RS 26:421

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RS 26:421

PART IV. EXEMPTIONS

§421. Exempt products

A. The provisions of this Chapter do not apply to the sale of:

(1)Patent, antiseptic, and toilet preparations.

(2)Flavoring extracts, syrups, and food products.

(3)Scientific, chemical, mechanical, and industrial products.

B. Nor does this Chapter apply to the manufacture or sale of alcohol which is for industrial use or purposes, which is not manufactured or sold for beverage purposes, and which is so denatured as to be unfit for human consumption.

C. No one shall knowingly sell any of the above exempt products for beverage purposes or under circumstances from which he may reasonably deduce the intention of the purchaser to use them for beverage purposes.

D. The provisions of this Chapter do apply to alcohol and alcoholic spirits, including distilled or rectified alcoholic spirits, which are used or may be used in the preparation of any proprietary, medicinal, or pharmaceutical preparation. Therefore, such alcohol and alcoholic spirits are subject to the tax levied in this Chapter. Any person who uses such alcohol or alcoholic spirits in the preparation of proprietary, medicinal, or pharmaceutical preparations and who has paid the tax on them, may obtain a refund of the amount of tax paid upon furnishing proof satisfactory to the secretary that they were so used. Refunds shall be made under rules and regulations promulgated by the secretary.

E. No tax levied in this Chapter applies to or is imposed upon any priest, minister, rabbi, or other clergyman possessing or using wines for religious or sacramental purposes in the regular course of his religious duties. No regulatory provision contained in this Chapter affects or in any way applies to such wines. Any tax collected on such wines shall be refunded by the secretary to those persons.

F.(1)(a) No tax imposed pursuant to the provisions of this Chapter shall apply to the furnishing of an alcoholic beverage at no charge as a sample in a business-to-business exchange at, or in conjunction with, a conference, convention, exposition, trade show, professional or trade association event, business or professional meeting, corporate event, or exhibition of any kind held in this state.

(b)(i) For purposes of this Subsection, "business-to-business exchange" means the distribution by a business of free samples in a limited quantity with nominal value to another business as part of a genuine effort to sell or market the product being sampled to that business.

(ii)For purposes of this Subparagraph, "nominal value" means a value which is so small or slight that it is not considered real or substantial in comparison with what might reasonably be expected.

(2)The exemption provided for in this Subsection shall terminate on August 1, 2033, and shall have no effect on and after that date.

Acts 1987, No. 696, §1; Acts 2023, No. 297, §1.