Sales Tax Statutes and Regulations - Louisiana Department of ...

R.S. 47:305.13
R.S. 47:305.13. Exclusions and
exemptions; admissions to
entertainments furnished by certain
domestic nonprofit corporations
The sales tax imposed by R.S. 47:302 shall not
apply to the sale of admissions to entertainment
events furnished by recognized domestic nonprofit
charitable, educational and religious organizations
when the entire proceeds from such
sales, except for necessary expenses connected
with the entertainment events, are used for the
purposes for which the organizations furnishing
the events were organized.
LAC 61:I.4413. Admissions to
Entertainment Furnished by Certain
Domestic Nonprofit Corporations
A. This Section [R.S. 47:305.13] grants a limited
exemption to organizations created under the laws
of the state of Louisiana as nonprofit, charitable,
educational, or religious organizations from the
taxes imposed by this Chapter on the sale of
admissions to entertainment events. Such sales of
admissions are exempt only when the entire proceeds,
with the exception of necessary expenses
connected with the event, are used for the purpose
for which the organization was formed. The requirement
that the entire proceeds from the sales
of tickets, except for necessary expenses, must be
used for the purpose for which the organization
was formed eliminates from exempt status any
event where payment has been made to a promoter
or promotional firm for engaging the services of
persons not directly connected with the sponsoring
organization.
B. Only sales of admissions made by recognized
domestic nonprofit, charitable, educational, or religious
organizations are exempt under this Section.
In order to meet the nonprofit requirement, an
organization or corporation must have no provision
for making of dividends or payments of any profits
to any organizers or stockholders and none of the
income may inure to the benefit of any private
shareholder or individual. In order to qualify as a
charitable organization, it must freely and voluntarily
minister to the physical needs of those unable
to help themselves, or promote the welfare of
mankind at large, or of a community, or of some
class from a part of a community, or be one which
would not deny assistance to persons unable to
pay even though it may charge for assistance to
those who are able to pay. An educational institution
is construed to mean a school, seminary,
college, or other institution having an instructional
staff and a curriculum designed to cultivate the
mental, moral, religious, or physical facilities of
those whom it seeks to educate.
R.S. 47:305.14. Exclusions and
exemptions; nonprofit organizations;
nature of exemption; limitations;
qualifications; newspapers
A.(1) The sales and use taxes imposed by R.S.
47:302 and 331 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 the necessary
expense 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. In
addition, newspapers published in this state by
religious organizations shall also be exempt from
such taxes, provided that the price paid for the
newspaper or a subscription to the newspaper
does not exceed the cost to publish such newspaper.
Amended by Acts 1994, No. 39, eff. Aug. 15, 1994.
(2) The exemption provided herein 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. However,
the exemption provided in this Section shall
apply to thrift shops located on military installations,
the operation of which is deemed to be an
“event” for purposes of this exemption.
Amended by Acts 1994, No. 22, eff. June 7, 1994.
B. This sponsorship of any event by any organization
applying for an exemption hereunder must
86 August 2001