In response to the 2024 Third Extraordinary Session to address state tax reform, the Louisiana Department of Revenue (the “Department”) issued Revenue Information Bulletin No. 25-009 to clarify that certain exemptions and exclusions were inadvertently repealed due to “technical oversights.” Although certain exemptions related to sales by nonprofit organizations and admissions to athletic or entertainment events of educational institutions appear to have been repealed, the Department has determined that repealing these exemptions was inconsistent with the legislature’s intent.
Accordingly, the Department has stated in RIB No. 25-009 that it will continue to recognize the exemptions created under La. R.S. §§ 47:305.14 and 47:305.6(5) unless “the legislature does not adopt legislation confirming its intent to retain these exemptions in the 2025 Regular Session.” This means that nonprofit organizations will still be eligible to seek Form R-1048 exemptions and that taxpayers may bind the Department to honor the RIB at least until the 2025 Regular Session. The Department encouraged local sales tax collectors to afford the same relief at the local level.
The Department has updated two tables it published highlighting Sales and Use Tax Exclusions and Exemptions Repealed and Retained by Act 11 of the Third Extraordinary Session. We will continue to monitor the Department for additional guidance clarifying the scope of state tax reform and provide updates accordingly.
Contact Bob Angelico, Leon Rittenberg III, Caroline Lafourcade, or Kevin Naccari, Jr. for additional information or questions regarding how these changes might impact your tax payment or collection obligations in Louisiana, and visit our Tax practice page.
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