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On October 6, 2000, the Louisiana Supreme Court ruled that Act 1266 of the
1999 Legislative Session was constitutional. The Louisiana Municipal Association and
the Parish of East Baton Rouge challenged Act 1266 claiming it was unconstitutional
because tax legislation can only be adopted during a legislative session in an even
numbered year. However, the Supreme Court ruled that the constitutional provision
only applies to state tax matters and not local taxes, therefore, Act 1266 is valid.
The Act provides an exclusion from local sales and use tax for all
tangible personal property purchased for lease or rental. The legislation provides
for the following phase-in of the exclusion:
- Beginning July 1, 1999 and ending June 30, 2000, one-fourth (1/4) of the sales
or cost price is excluded.
- Beginning July 1, 2000 and ending June 30, 2001, one-half (1/2) of the sales or
cost price is excluded.
- Beginning July 1, 2001 and ending June 30 2002, three-fourths (3/4) of the sales
or cost price is excluded.
- Beginning July 1, 2002, purchases of tangible personal property for lease or
rental purposes will be totally excluded from sales and use tax.
An exemption certificate
 claiming
that property is purchased for lease or rental purposes must be provided to the
seller/vendor selling such property. The exemption certificate must be signed by the
buyer and must include the name, address, and sales tax registration number of the
buyer. Please contact the Finance Department, Revenue Division, at (225) 389-3084 if
you need additional information concerning this matter.
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