§ 47:305.7 — Exclusions and exemptions; intergovernmental; government

Louisiana § 47:305.7

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§305.7. Exclusions and exemptions; intergovernmental; government
A.(1)(a) This state, any parish, city and parish, municipality, district, or other
political subdivision thereof, or any agency, board, commission, or instrumentality of this
state or its political subdivisions shall be exempt from sales and use taxes imposed by any
taxing authority. Upon request by any political subdivision for an exemption identification
number, the Department of Revenue shall issue such number.
(b)(i) The exemption provided for in Subparagraph (a) of this Paragraph shall extend
to purchases made by general contractors or their subcontractors related to work performed
by such contractors pursuant to construction contracts for public projects for state and local
governments or to any agency, board, commission, or instrumentality of the state or its
political subdivisions.
(ii) Prior to claiming the exemption provided for in this Paragraph, the general
contractor or their subcontractor shall obtain a certificate of exemption from the secretary of
the Department of Revenue. The certificate of exemption shall be in a form and manner
prescribed by the secretary and shall include the job description, contract number, state or
local government entity identifying information, and valid dates or a date range for the
project. The general contractor or their subcontractor shall also provide a copy of the
construction contract when applying for a certificate of exemption from the department. A
local collector shall accept certificates of exemption properly issued by the secretary of the
Department of Revenue and completed by the general contractor or their subcontractors.
(c) Notwithstanding any law to the contrary, for purposes of state sales and use taxes,
the exemption provided for in this Paragraph shall not apply to purchases made with respect
to property owned by a public entity and leased to a private party as part of a payment in lieu
of taxes or other similar agreement executed after the effective date of this Subparagraph
unless the agreement is approved by the secretary of the Department of Revenue and the
secretary of Louisiana Economic Development.
(2) Any private nonprofit company that enters into a contract with a municipal
corporation, parish, sewerage, or water district to construct or operate a sewerage or
wastewater treatment facility shall be exempt from the same sales tax as the municipal
corporation, parish, sewerage, or water district.
B. The following items shall be excluded from the sales and use tax imposed by any
taxing authority:
(1) Sales of tangible personal property by the Military Department which occur on
an installation or other property owned or operated by the Military Department, including
thrift shops located on military installations.
(2) The lease or rental of property to be used in performance of a contract with the
United States Department of the Navy for construction or overhaul of U.S. Naval vessels.
(3) For purposes of the sales of services, an action performed pursuant to a contract
with the United States Department of the Navy for construction or overhaul of U.S. Naval
vessels.
(4) The sale of corporeal movable property which is intended for future sale to the
United States government or its agencies, when title to the property is transferred to the
United States government or its agencies prior to the incorporation of that property into a
final product.
(5) The sale or purchase of equipment used in firefighting by bona fide volunteer and
public fire departments.
C. The following items shall be exempt from the sales and use tax imposed by any
taxing authority:
(1) Eligible food items, as defined by the United States Department of Agriculture
regulations for the Supplemental Nutrition Assistance Program (SNAP), when the food items
are purchased with SNAP benefits.
(2) Eligible food items authorized for purchase under the Women, Infants, and
Children's (WIC) Program as administered by the Department of Children and Family
Services when the items are purchased with WIC Program benefits.
(3) The exemptions granted pursuant to this Subsection shall remain in effect as to
each program only until applicable federal law, rules, or regulations permit the levy and
collection of sales and use taxes on those exempted items without jeopardizing the
contribution of funds by the federal government to the program.
NOTE: See Acts 2025, No. 384, regarding different applicabilities of Sections.

Legislative History

Added by Acts 1963, No. 124, §1. Amended by Acts 1964, No. 198, §1; H.C.R. No. 55, 1986 R.S.; Acts 2003, No. 73, §1, eff. July 1, 2003; Acts 2024, 3rd Ex. Sess., No. 11, §2, eff. Dec. 4, 2024; Acts 2025, No. 384, §§3, 4, eff. June 20, 2025.