LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 227 SLS 23RS 481
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 6, 2023 8:51 AM Author: DUPLESSIS
Dept./Agy.: Revenue/CRT
Subject: Sales tax exemption for certain digital art Analyst: Deborah Vivien
TAX EXEMPTIONS EN DECREASE GF RV See Note Page 1 of 1
Provides for state and local sales and use taxes on digital art sold in a cultural product district. (gov sig)
Current law provides a state and local sales tax exemption (currently suspended) for unique works of art sold in cultural
districts, as determined by the Department of Culture, Recreation and Tourism (CRT). Works of art are defined in law as
visual arts and crafts such as paintings, photographs, sculpture, pottery and traditional or fine crafts. This exemption is
currently suspended until June 30, 2025, making these items taxable until then. On July 1, 2025, and thereafter, these
“works of art” will be exempt from state and local sales tax. Non-unique digital art is currently taxable.
Proposed law adds digital art to the unique works of art sold in cultural districts under the suspended exemption from state
and local sales tax making the sales taxable upon determination by CRT. On July 1, 2025, unique digital art (along with all
other “works of art” under current law) sold in cultural districts will be exempt from state and local sales tax.
Effective July 1, 2023
EXPENDITURES 2023-24 2024-25 2025-26 2026-27 2027-28 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 2023-24 2024-25 2025-26 2026-27 2027-28 5 -YEAR TOTAL
State Gen. Fd. $0 $0 DECREASE DECREASE DECREASE $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 DECREASE DECREASE DECREASE $0
Annual Total $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. However, CRT is
uncertain about practices in the digital art trade within cultural districts and is unable to accurately ascertain the parameters
of potential responsibilities. Should trade in unique digital art require more strenuous vetting in a manner that unexpectedly
deviates from current sales of unique works of art, additional resources may be required, though the magnitude cannot be
determined.
REVENUE EXPLANATION
Digital art is currently taxable and will remain taxable under this bill. Any digital art deemed unique by the Department of
Culture, Recreation and Tourism and sold within a cultural district will be exempt from state and local sales tax starting on
July 1, 2025, at which time state and local revenue will decline. The amount of the revenue loss will depend on the scale
and price of digital art that will be considered unique and sold within cultural districts in FY 26 and beyond.
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}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Legislative Fiscal Officer


Statutes affected:
SB227 Original: 47:57(B)(2)
SB227 Engrossed: 47:57(B)(2)
SB227 Enrolled: 47:57(B)(2)
SB227 Act : 47:57(B)(2)