LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 200 SLS 21RS 252
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 4, 2021 7:24 PM Author: MCMATH
Dept./Agy.: Revenue
Subject: Sales Tax Exemption: Certain Live Entertainment Events Analyst: Benjamin Vincent
TAX EXEMPTIONS EG DECREASE GF RV See Note Page 1 of 1
Exempts admissions to certain live entertainment events from state sales and use tax. (gov sig)
Current law subjects purchases of tangible personal property to a combined state sales and use tax rate of 4.45%. 0.45% of
the 4.45% is levied via R.S. 47:321.1, which will expire on June 30, 2025. At that time, these purchases will be subject to a
combined state rate of 4%.
Proposed law creates a new exemption for admission to live entertainment events held at certain Louisiana facilities, and
provides that the exemption will be temporarily effective from July 1, 2021 through June 30, 2023.
Effective October 1, 2021.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. DECREASE DECREASE $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0
EXPENDITURE EXPLANATION
LDR anticipates that accommodating the addition and subsequent removal of a new and temporary exemption will impose a
minor additional expenditure in FY21 and FY22 of approximately $26,000 for tax form modification and system costs.
REVENUE EXPLANATION
Proposed law defines admission to certain eligible live entertainment events at certain eligible facilities, and provides for a
full exemption for these events from state sales and use tax. The definitions generally provide an exemption for concerts at
typical limited-entry concert venues, such as stadiums, arenas, theaters, music halls, etc., provided that the facility has a
minimum capacity of 2,400 attendees and is not a publicly owned domed stadium facility or baseball facility, as defined in
R.S. 39:467.
Proposed law would cause a reduction in general fund revenue collections, and a small reduction in dedicated fund revenues.
This is reflected in the table above as entirely general fund, but approximately 1% of the total revenue reduction will impact
the Tourism Promotion District and LED Marketing Funds.
A reliable estimate of the magnitude of the revenue impact of the exemption in the two fiscal years is currently
indeterminable, as LDR does not have an existing exemption, prior exemption, or specific reporting requirement for these
transactions. For informational purposes, an estimate based on general market research suggests that a typical year’s
concert admission sales may total approximately $90 million, implying a $4 million revenue reduction over a full year. This
figure would represent an upper bound, as open air festivals, venues with capacities under 2,400, and publicly owned domed
stadiums or baseball facilities are likely included in the general market information.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Gregory V. Albrecht
x 13.5.2 >= $500,000 Annual Tax or Fee x 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}