§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.

            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.

            NOTE: See Acts 2025, No. 384, regarding different applicabilities of Sections.