Louisiana § RS 47:305.36 - Exclusions and exemptions; motor vehicles

§ RS 47:305.36. Exclusions and exemptions; motor vehicles

            A. The sales and use tax levied by any taxing authority shall not apply to the sale at retail, the purchase, lease, or the importation of motor vehicles, trailers, or semitrailers as defined by R.S. 47:451 that will be stored, used, or consumed in this state exclusively for lease or rental, provided that the gross proceeds derived from the lease or rental of the property not previously taxed shall be at reasonable market rates. If the secretary of the Department of Revenue or a local taxing authority finds that any person who has purchased, used, or imported motor vehicles, trailers, or semitrailers tax free under this Subsection has subsequently leased or rented motor vehicles, trailers, or semitrailers in transactions not at arms length at below market rates, the secretary shall presume that the person was not entitled to claim the exemption provided herein, and the burden shall be on that person to prove otherwise.

            B. A person who has acquired or used property pursuant to this Section without payment of the tax shall be construed to be in the business of leasing, renting, or selling such property, whether or not the lessees have the right or obligation to purchase the tangible personal property or will otherwise acquire title to the property at termination of the lease. Therefore, a transaction entered into that is entitled lease, rental, lease-purchase, or similar name which for purposes other than state sales taxation might be considered a conditional sales contract or transaction in lieu of sale shall be deemed for state sales tax purposes to be a taxable lease. The monthly or other periodic payments made pursuant to the agreement shall be subject to the tax imposed by all taxing authorities. These persons shall not be allowed to make an isolated or occasional non-retail sale of the property pursuant to R.S. 47:305(A).

            C.(1) No person shall be entitled to purchase, use, or import motor vehicles, trailers, or semitrailers under this Section without payment of the tax imposed by any taxing authority before having received an exemption number or certificate from the secretary of the Department of Revenue authorizing him to engage in the business of purchasing, using, or importing motor vehicles.

            (2) The exemption provided by this Section shall be available only to dealers who have qualified with the Louisiana Motor Vehicle Commission and the Louisiana Used Motor Vehicle and Parts Commission.

            D. The secretary of the Department of Revenue shall promulgate rules and regulations for carrying out the exemption provided by this Section. Any person not in compliance with those rules and regulations shall not be entitled to the exemption.

            E. Repealed by Acts 2025, No. 384, §7, eff. June 20, 2025.

            Added by Acts 1982, No. 415, §1. Acts 1984, No. 539, §1, eff. Sept. 1, 1984; Acts 1985, No. 847, §1, eff. July 23, 1985; H.C.R. No. 55, 1986 R.S.; Acts 1991, No. 495, §1, eff. July 15, 1991; Acts 1997, No. 658, §2; Acts 2003, No. 73, §1, eff. July 1, 2003; Acts 2025, No. 384, §§3, 7, eff. June 20, 2025.