Avalara Taxrates > Blog > Sales Tax News > Louisiana Temporarily Suspends Business Utilities Exemptions, July 2015 - Avalara

Louisiana Temporarily Suspends Business Utilities Exemptions, July 2015


 Partially exempt in Louisiana... temporarily.

A partial suspension of the state sales tax exemption for business utilities is now in effect in Louisiana under HCR. No. 8.

Between July 1, 2015 and August 5, 2016, a 1% state sales tax is imposed upon the retail sale, use, distribution and storage of the following business utilities:

  • All energy sources when used for boiler fuel, except refinery gas
  • Electric power or electric energy and any material or energy sources used to fuel the generation of electrical power for resale or used by an industrial manufacturing plant for self-consumption or cogeneration
  • Natural gas
  • Steam
  • Utilities used by steelworks and blast furnaces
  • Water (not including mineral water or carbonated water or any water put it bottles, jugs or containers, all of which are not exempted)

These business utilities will be fully exempt from the 4% state sales and use tax effective August 6, 2016. Additional information is available through the Louisiana Department of Revenue on Revenue Information Bulletin No. 15-016.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.