§ 47:303.1 — Direct Payment Numbers

Louisiana § 47:303.1

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§303.1. Direct Payment Numbers
A. Notwithstanding any other law to the contrary except for the provisions of R.S.
47:303(B) and (E), the state and local sales and use tax due on the purchase, importation, or
lease of tangible personal property, digital products, or taxable services by taxpayers who
have obtained a Direct Payment Number, hereinafter referred to as a "DP Number", shall be
remitted directly to the state and appropriate political subdivision by the taxpayer, as
provided in this Section. The vendor or lessor of tangible personal property, digital products,
or taxable services shall not be responsible for collecting sales and use tax on sales or leases,
and shall not be liable for the tax as provided in R.S. 47:304(C), upon presentation to him
of a valid DP Number by such purchaser or lessee, provided that the vendor or lessor notes
the DP Number on the untaxed contract or invoice submitted to the purchaser and lessee.
B.(1) A DP Number shall be issued to and shall be continued to be held by a
taxpayer who obtains the required approvals and who meets all of the following
qualifications and all other applicable qualifications provided for in this Section:
(a) The taxpayer's primary business in the state is that of a manufacturer of tangible
personal property for resale where such manufacturing occurs at a manufacturing
establishment or facility within the state.
(b) The taxpayer has reported and paid timely substantially all of the taxes which the
taxpayer believes are legally due to the state and its political subdivisions.
(c) The taxpayer has an annual average of five million dollars of taxable purchases
or leases of tangible personal property, digital products, taxable services, or any combination
of these for three calendar years prior to the year of application by the taxpayer, and has such
an average for each subsequent three-year period.
(d) The taxpayer maintains adequate procedures and practices, records and reports
for accrual and timely reporting and paying the state and political subdivision sales and use
taxes due.
(2)(a) A DP Number shall be issued to and shall be continued to be held by a
taxpayer that is a private, nonprofit, tax-exempt organization as defined under Section 501
(c)(3) of the Internal Revenue Code, that obtains the required approvals, and that meets all
of the qualifications provided for in this Section except Subparagraph (1)(a) of this
Subsection.
(b) Separate DP Numbers shall be issued to and shall be continued to be held by
taxpayers that are subsidiary entities of a private, nonprofit, tax-exempt organization, as
defined under Section 501(c)(3) of the Internal Revenue Code, that meets the requirements
of Subparagraph (a) of this Paragraph, as well as to those taxpayer entities in which the
tax-exempt organization is the sole member, provided that these entities are licensed by the
Louisiana Department of Health, Louisiana Board of Pharmacy, or otherwise have as their
mission promoting the delivery of healthcare and patient medical services and products and
further provided that these entities and the tax exempt organization together have in the
aggregate an annual average of ten million dollars of taxable purchases or leases of tangible
personal property, digital products, or taxable services for three calendar years prior to the
year of application, and have that average for each subsequent three-year period, and which
obtain the required approvals and meet the qualifications provided for in Subparagraphs
(1)(b) and (d) of this Subsection.
(3)(a) A DP Number shall be issued to a taxpayer who has entered into a tax
exemption contract with Louisiana Economic Development as provided by R.S. 47:4302 or
a similar successor program and who obtains the required approvals and meets all of the
qualifications provided for in this Section except Subparagraph (1)(a) of this Subsection.
The DP Number shall be continued to be held by the taxpayer for the term of the tax
exemption contract.
(b) Notwithstanding the provisions of Subsection A of this Section, a taxpayer issued
a DP Number pursuant to Subparagraph (a) of this Paragraph shall not be responsible for the
remittance of use taxes on purchases when filing monthly state sales and use tax returns
when such purchases are exempt pursuant to the annual tax exemption contract cap.
(4) A DP Number shall be issued to a taxpayer who has entered into a cooperative
endeavor agreement with the state as provided by R.S. 33:9029.2 and who obtains the
required approvals and meets all of the qualifications provided for in this Section except
Subparagraph (1)(c) of this Subsection. The DP Number shall be continued to be held by the
taxpayer for the term of the cooperative endeavor agreement or until the taxpayer otherwise
qualifies for a DP Number.
(5) A DP Number shall be issued to a taxpayer who has entered into an agreement
with the state pursuant to the provisions of R.S. 47:305.73 and who obtains the required
approvals and meets all of the qualifications provided in this Section except Subparagraphs
(1)(a) and (c) of this Subsection. The taxpayer may possess the DP Number for the entire
term of the agreement that the taxpayer enters into pursuant to R.S. 47:305.73.
C.(1) Upon application by a taxpayer to the department for a DP Number pursuant
to Paragraph (B)(1) or (2) of this Section, the department shall submit the application to the
local collector in the parish or parishes in which the taxpayer has a manufacturing
establishment or facility or is a taxpayer that meets the requirements of Paragraph (B)(2) of
this Section. The application shall be submitted to the local collector in a manner that
provides actual notice of the application including but not limited to submission by certified
mail that is signed for and received by the local collector. The department and the local
collector shall review the application and may audit the taxpayer to determine that the
taxpayer meets the qualifications provided in Paragraph (B)(1) or (2) of this Section, if the
department or local collector consider an audit necessary.
(2)(a) If the taxpayer applying for a DP Number meets the qualifications of
Paragraph (B)(1) or (2) of this Section and obtains written approval from the local collector
in the parish or parishes in which the taxpayer has a manufacturing establishment or facility
or is a taxpayer that meets the requirements of Paragraph (B)(2) of this Section within sixty
days of receipt of the application by the local collector, the department shall issue the DP
Number to the taxpayer.
(b) If the taxpayer meets the qualifications of Paragraph (B)(1) or (2) of this Section
but written approval is not provided by the local collector within sixty days after receipt of
the application by the local collector in the parish or parishes in which the taxpayer has a
manufacturing establishment or facility or is a private, nonprofit, tax-exempt organization,
the department shall issue a DP Number to the taxpayer.
(c) If the taxpayer meets the qualifications of Paragraph (B)(1) or (2) of this Section
but approval is denied in writing by the local collector within sixty days of receipt of the
application by the local collector in the parish or parishes in which the taxpayer has a
manufacturing establishment or facility or is a private, nonprofit, tax-exempt organization
that meets the requirements of Paragraph (B)(2) of this Section, the department shall issue
a DP Number to the taxpayer that shall be applicable only for the purposes of state sales and
use tax.
(3) If a local collector determines that a taxpayer no longer qualifies for a DP
Number, the local collector shall notify the department and request an examination of the
taxpayer for the limited purpose of determining continued eligibility for a DP Number. If,
after examination, the department determines that the taxpayer no longer qualifies for a DP
Number, the department shall revoke the DP Number and notify the local collector.
D. Notwithstanding any other provision of law to the contrary, the interest provided
for in R.S. 47:337.80 and 1624 shall not accrue on any overpayment resulting from the
payment of sales and use tax on exempt purchases by a taxpayer holding a DP number until
one hundred eighty days after the later of the due date of the return, the filing date of the
return or claim for refund on which the overpayment is claimed, or the date the tax was paid.
E. The department shall review the procedures and practices, records and reports of
the taxpayer at least once in every three calendar years after the year in which the application
for the DP Number is granted, and the department shall audit the books and records of such
taxpayer unless the department decides, in its discretion, that such an audit is not necessary.
F. The DP Number issued by the department under this Section may be revoked by
the secretary at any time if the taxpayer fails to meet the qualifications provided in this
Section, or if the department receives written notice of the revocation of approval for
issuance of the DP Number from all of the local tax collection agencies that had previously
given their approval pursuant to Subsection D of this Section.
G.(1) The taxpayer may appeal the denial or revocation of a DP Number to the Board
of Tax Appeals.
(2) A local collector may appeal the department's failure to revoke a taxpayer's DP
Number pursuant to Paragraph (C)(3) of this Section.
H. The department shall promulgate rules and regulations necessary for the
implementation of this Section.

Legislative History

Acts 1987, No. 682, §1, eff. Sept. 1, 1987; Acts 1988, No. 512, §1; Acts 1993, No. 895, §1; Acts 2003, No. 141, §1, eff. July 1, 2003; Acts 2008, No. 456, §1; Acts 2010, No. 960, §1, eff. July 6, 2010; Acts 2018, No. 250, §1, eff. July 1, 2018; Acts 2022, No. 428, §§1, 2, eff. Jan. 1, 2023; Acts 2024, No. 730, §1, eff. July 1, 2024; Acts 2024, 3rd Ex. Sess., No. 10, §1, eff. Dec. 4, 2024; Acts 2024, 3rd Ex. Sess., No. 11, §2, eff. Dec. 4, 2024; Acts 2025, No. 498, §2, eff. July 1, 2025.