§305.1. Exclusions and exemptions; ships and ships' supplies
A. The tax imposed by taxing authorities shall not apply to sales of materials,
equipment, machinery, and software that enter into and become component parts of vessels
of fifty tons load displacement and over, built in Louisiana nor to the gross proceeds from
the sale of such vessels, when sold by the builder thereof.
B. The taxes imposed by taxing authorities shall not apply to any of the following:
(1)Materials, supplies, or software purchased by the owners or operators of vessels
operating exclusively in foreign or interstate coastwise commerce, where the materials and
supplies are loaded upon, or software is installed on any such vessel for use or consumption
in the maintenance and operation of the vessel.
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§305.1. Exclusions and exemptions; ships and ships' supplies
A. The tax imposed by taxing authorities shall not apply to sales of materials,
equipment, machinery, and software that enter into and become component parts of vessels
of fifty tons load displacement and over, built in Louisiana nor to the gross proceeds from
the sale of such vessels, when sold by the builder thereof.
B. The taxes imposed by taxing authorities shall not apply to any of the following:
(1) Materials, supplies, or software purchased by the owners or operators of vessels
operating exclusively in foreign or interstate coastwise commerce, where the materials and
supplies are loaded upon, or software is installed on any such vessel for use or consumption
in the maintenance and operation of the vessel.
(2) Repair services performed upon vessels operating exclusively in foreign or
interstate coastwise commerce, including materials, supplies, and software used in the repairs
where the items enter into and become a component part of such vessels.
(3) Laundry services performed for the owners or operators of vessels operating
exclusively in foreign or interstate coastwise commerce, where the laundered articles are to
be used in the course of the operation of such vessels.
(4) Digital products, prewritten computer software access services, and information
services purchased by the owners or operators of vessels operating exclusively in foreign or
interstate coastwise commerce, where the digital product or service is used in the
maintenance or operation of the vessel and is either required for the navigation or intended
commercial operation of a vessel or required to obtain certification or approvals from the
United States Coast Guard or any regulatory agency or classification society with respect to
a vessel.
(5) Nothing in this Section shall be construed to exempt purchases of software,
digital products, or services that are used for routine business operations not specific to the
commercial operations of a vessel or for entertainment, leisure, or recreation of crew
members or any other person on the vessel.
C.(1) For purposes of this Section, the term "foreign or interstate coastwise
commerce" shall mean and include trade, traffic, transportation, or movement of passengers
or property by, in, or on a vessel:
(a) Between a point in one state and a point outside the territorial boundaries of such
state;
(b) Between points in the same state where the trade, traffic, transportation, or
movement of passengers or property traverses through a point outside of the territorial
boundaries of such state;
(c) At a point in or between points in the same state as part of or in connection with
the business of providing or delivering materials, equipment, fuel, supplies, crew, repair
services, laundry services, dredging waterways services, stevedoring services, other loading
or unloading services, or ship, barge, or vessel movement services to or for vessels that are
operating in foreign or interstate coastwise commerce as defined in this Subsection; or
(d) At a point in or between points in the same state when such trade, traffic,
transportation, or movement of passengers or property is part of or consists of one or more
segments of trade, traffic, transportation, or movement of passengers or property that either
(i) follows movement of passengers or property into or within the state from a point beyond
the territorial boundaries of such state, (ii) precedes movement of the passengers or property
from within the state to a point outside the territorial boundaries of such state, or (iii) is part
of a stream of trade, traffic, transportation, or movement of passengers or property
originating or terminating outside the territorial boundaries of such state or otherwise in
foreign or interstate coastwise commerce, as defined in this Subsection.
(2) The term "foreign or interstate coastwise commerce" shall not include intrastate
commerce, which, for purposes of this Section, shall mean any trade, traffic, transportation,
or movement of passengers or property in any state that is not described in the term "foreign
or interstate coastwise commerce" as defined in this Section.
(3) For purposes of this Section, the term "component part" or "component parts"
shall mean and include any item or article of tangible personal property that is:
(a) Incorporated into, attached to, or placed on a vessel, commercial fishing vessel,
or drilling barge during the construction of the vessel in the case of the exemption provided
in Subsection A of this Section, or the repair of the vessel in the case of the exemption
provided for in Subsection B of this Section;
(b) Required for the navigation or intended commercial operation of a vessel; or
(c) Required to obtain certification or approvals from the United States Coast Guard
or any regulatory agency or classification society with respect to a vessel.
(4) For purposes of this Section and except with respect to any gaming equipment,
as defined in R.S. 27:44(12), the determination of whether any item or article of tangible
personal property is a component part shall be made without regard to any provision of the
Louisiana Civil Code.
(5) The provisions of Paragraph (3) of this Subsection shall not apply to any gaming
equipment as defined in R.S. 27:44(12).
(6) For purposes of this Section, "vessel" shall mean a ship, vessel, or barge,
including a commercial fishing vessel, drilling ship, or drilling barge.
D. The exemption from the state sales tax provided in this Section shall be applicable
to any sales tax levied by a local governmental subdivision or school board.