Exempts purchases made by child advocacy centers from state and local sales and use taxes (EN -$275,000 GF RV See Note)
Summary
HB 313 creates a new sales and use tax exemption for purchases made by the Louisiana Alliance of Children’s Advocacy Centers and by other nonprofit child advocacy centers that operate under Louisiana Children’s Code Article 521, are governed by a child advocacy board of directors, and otherwise meet the requirements of Chapter 2 of Title V of the Children’s Code. The exemption applies to sales and use taxes levied by taxing authorities, which includes state and local taxes.
To receive the exemption, qualifying organizations must apply annually for a one-year exemption certificate. The bill also directs the secretary of the Department of Revenue to adopt rules and regulations and create the application form needed to administer the exemption. The act takes effect July 1, 2025.
Impact
The bill adds R.S. 47:305.21 to Louisiana’s sales and use tax law, carving out a specific exemption for qualifying nonprofit child advocacy organizations. It reduces tax liability for eligible centers on their purchases and requires the Department of Revenue to administer the exemption through annual certification and rulemaking. The fiscal note in the bill context indicates an estimated general fund revenue reduction of $275,000.
Sentiment
The bill appears to have broad bipartisan support and little visible opposition. It passed the House 80-13 and the Senate 37-0, suggesting strong agreement that child advocacy centers should receive tax relief to support their work. The lack of committee transcript discussion in the provided materials also suggests the measure was relatively noncontroversial.
Contention
The main policy issue is the scope of the exemption and its fiscal effect: the bill benefits a narrow class of nonprofit organizations while reducing state and local tax collections. Any concern would likely center on whether the exemption should be limited to organizations meeting the Children’s Code and board-governance requirements, and on the administrative burden of annual certification and rulemaking by the Department of Revenue. The voting record, however, shows no significant recorded controversy.