RS 47:305.14

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RS 47:305.14

§305.14. Exemptions; nonprofit organizations; nature of exemption; limitations; qualifications; determination of tax exempt status

A.(1) The sales and use taxes imposed by taxing authorities shall not apply to sales of tangible personal property at, or admission charges for, outside gate admissions to, or parking fees associated with, events sponsored by domestic, civic, educational, historical, charitable, fraternal, or religious organizations, which are nonprofit, when the entire proceeds, except for necessary expenses such as fees paid for guest speakers, chair and table rentals, and food and beverage utility related items connected therewith, are used for educational, charitable, religious, or historical restoration purposes, including the furtherance of the civic, educational, historical, charitable, fraternal, or religious purpose of the organization.

(2)The exemption provided in this Section shall not apply to any event intended to yield a profit to the promoter or to any individual contracted to provide services or equipment, or both, for the event.

(3)This Section shall not be construed to exempt any organization or activity from the payment of sales or use taxes otherwise required by law to be made on purchases made by these organizations.

(4)This Section shall not be construed to exempt regular commercial ventures of any type such as bookstores, restaurants, gift shops, commercial flea markets, and similar activities that are sponsored by organizations qualifying hereunder which are in competition with retail merchants.

B. The sponsorship of any event by any organization applying for an exemption pursuant to this Section must be genuine. Sponsorship shall not be considered genuine in any case in which exemption from taxation is a major consideration leading to the sponsorship.

C.(1) An annual exemption certificate shall be obtained from the secretary of the Department of Revenue pursuant to regulations the secretary shall prescribe, in order for nonprofit organizations to qualify for the exemption provided in this Section. Any event held pursuant to the annual exemption certificate shall be subject to review for compliance with the provisions of law and regulations governing this exemption.

(2)In the event the secretary of the Department of Revenue denies tax exempt status pursuant to this Section, the organization may appeal the ruling to the Board of Tax Appeals, which may overrule the secretary and grant tax exempt status if the Board of Tax Appeals determines that the denial of tax exempt status by the collector of revenue was arbitrary, capricious, or unreasonable.

(3)However, any organization that endorses any candidate for political office or otherwise is involved in political activities shall not be eligible for the exemption provided in this Section.

D. Notwithstanding any other provision of law to the contrary, the proper venue in any proceeding to determine the tax exempt status pursuant to the provisions of this Section shall be the parish in which the activity for which the tax exempt status is claimed took place, or any parish in which the taxpayer has a corporate presence, to be determined at the discretion of the taxpayer.

Acts 2025, No. 384, §5, eff. June 20, 2025.