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Rs 47:301 Definitions

NOTE: This provision of law was included in the Unconstitutional Statutes Biennial

Report to the Legislature, dated March 14, 2016.

CHAPTER 2. SALES TAX

§301. Definitions

As used in this Chapter the following words, terms, and phrases have the meanings

ascribed to them in this Section, unless the context clearly indicates a different meaning:

(1) "Business" includes any activity engaged in by any person or caused to be

engaged in by him with the object of gain, benefit, or advantage, either direct or indirect.

The term "business" shall not be construed to include the occasional and isolated sales by a

person who does not hold himself out as engaged in business.

(2) "Collector" shall mean and include (a) the secretary of the Department of

Revenue for the state of Louisiana and includes his duly authorized assistants, when used in

reference to a sales and use tax levied by the state, or (b) the individual or entity designated

as collector of the appropriate single sales and use tax collection office, and his duly

authorized assistants, of any political subdivision authorized under the constitution and laws

of the state of Louisiana to levy and collect a sales and use tax, except a statewide political

subdivision, when used in reference to a sales and use tax levied by such political

subdivision.

(3)(a) "Cost price" means the actual cost of the articles of tangible personal property

without any deductions therefrom on account of the cost of materials used, labor, or service

cost, except those service costs for installing the articles of tangible personal property if such

cost is separately billed to the customer at the time of installation, transportation charges, or

any other expenses whatsoever, or the reasonable market value of the tangible personal

property at the time it becomes susceptible to the use tax, whichever is less.

(b) In the case of tangible personal property which has acquired a tax situs in a taxing

jurisdiction and is thereafter transported outside the taxing jurisdiction for repairs performed

outside the taxing jurisdiction and is thereafter returned to the taxing jurisdiction, the cost

price shall be deemed to be the actual cost of any parts and/or materials used in performing

such repairs, if applicable labor charges are separately stated on the invoice. If the applicable

labor charges are not separately stated on the invoice, it shall be presumed that the cost price

is the total charge reflected on the invoice.

(c) "Cost price" shall not include the supplying and installation of board roads to oil

field operators if the installation charges are separately billed to the customer at the time of

installation.

(d)(i) In the case of interchangeable components located in Louisiana, a taxpayer

may elect to determine the cost price of such components as follows:

(aa) The taxpayer shall send to the secretary written notice of the calendar month

selected by the taxpayer as the first month for the determination of cost price under this

Paragraph (the "First Month"). The taxpayer may select any month. The taxpayer shall send

to the secretary notice of an election to designate a First Month on the first day of the

designated First Month, or ninety days from July 1, 1990, whichever is later.

(bb) For the First Month and each month thereafter, cost price shall be based and use

tax shall be paid only on one-sixtieth of the aggregate cost price of the interchangeable

components deployed and earning revenue within Louisiana during the month, without

regard to any credit or other consideration for Louisiana state, political subdivision, or school

board use tax previously paid on such interchangeable components.

(cc) Any election made under this Paragraph shall be irrevocable for a period of sixty

consecutive months inclusive of the First Month. If at any time after the sixty-month period

the taxpayer revokes its election, no credit or other consideration for use taxes paid pursuant

thereto shall be applied to any use tax liability arising after such revocation.

(ii)(aa) For purposes of this Paragraph, "interchangeable component" means a

component that is used or stored for use in measurement-while-drilling instruments or

systems manufactured or assembled by the taxpayer, which measurement-while-drilling

instruments or systems collectively generate eighty percent or more of their annual revenue

from their use outside of the state.

(bb) "Measurement-while-drilling instruments or systems" means instruments or

systems which measure information from a downhole location in a borehole, transmit the

information to the surface during the process of drilling the borehole using a wireless

technique, and receive and decode the information on the surface.

(iii) The method for determining cost price of interchangeable components provided

for in this Paragraph shall apply to any use taxes imposed by a local political subdivision or

school board. For purposes of that application, the words "political subdivision" or "school

board" as the case may be, shall be substituted for the words "Louisiana" or "State" in each

instance where those words appear in this Paragraph and an appropriate official of the local

political subdivision or school board shall be designated to receive the notices required by

this Paragraph.

(e) "Cost price" shall not include any amount designated as a cash discount or a

rebate by a vendor or manufacturer of any new vehicle subject to the motor vehicle license

tax. For purposes of this Paragraph "rebate" means any amount offered by the vendor or

manufacturer as a deduction from the listed retail price of the vehicle.

(f) The "cost price" of refinery gas shall be fifty-two cents per thousand cubic feet

multiplied by a fraction the numerator of which shall be the posted price for a barrel of West

Texas Intermediate Crude Oil on December first of the preceding calendar year and the

denominator of which shall be twenty-nine dollars, and provided further that such cost price

shall be the maximum value placed upon refinery gas by the state and by any political

subdivision under any authority or grant of power to levy and collect use taxes.

(g) "Cost price", for purposes of the use tax imposed by the state and its political

subdivisions, shall exclude any amount that a manufacturer pays directly to a dealer of the

manufacturer's product for the purpose of reducing and that actually results in an equivalent

reduction in the retail "cost price" of that product. This exclusion shall not apply to the value

of the coupons that dealers accept from purchasers as part payment of the "sales price" and

that are redeemable by the dealers through manufacturers or their agents. The value of such

coupons is deemed to be part of the "cost price" of the product purchased through the use of

the coupons.

(h)(i) For purposes of a publishing business which distributes its news publications

at no cost to readers and pays unrelated third parties to print such news publications, the term

"cost price" shall mean only the lesser of the following costs:

(aa) The printing cost paid to unrelated third parties to print such news publications,

less any itemized freight charges for shipping the news publications from the printer to the

publishing business and any itemized charges for paper and ink.

(bb) Payments to a dealer or distributor as consideration for distribution of the news

publications.

(ii) The definition of "cost price" provided for in this Subparagraph shall be

applicable to taxes levied by all tax authorities in the state.

(i)(i) For purposes of the imposition of the use tax levied by the state under R.S.

47:302, 321, and 331, the cost price of machinery and equipment used by a manufacturer in

a plant facility predominately and directly in the actual manufacturing for agricultural

purposes or the actual manufacturing process of an item of tangible personal property, which

is for ultimate sale to another and not for internal use, at one or more fixed locations within

Louisiana, shall be reduced as follows:

(aa) For the period ending on June 30, 2005, the cost price shall be reduced by five

percent.

(bb) For the period beginning July 1, 2005, and ending on June 30, 2006, the cost

price shall be reduced by nineteen percent.

(cc) For the period beginning July 1, 2006, and ending on June 30, 2007, the cost

price shall be reduced by thirty-five percent.

(dd) For the period beginning July 1, 2007, and ending on June 30, 2008, the cost

price shall be reduced by fifty-four percent.

(ee) For the period beginning July 1, 2008, and ending on June 30, 2009, the cost

price shall be reduced by sixty-eight percent.

(ff) For all periods beginning on or after July 1, 2009, the cost price shall be reduced

by one hundred percent.

(ii) For purposes of this Subparagraph, the following definitions shall apply:

(aa) "Machinery and equipment" means tangible personal property or other property

that is eligible for depreciation for federal income tax purposes and that is used as an integral

part in the manufacturing of tangible personal property for sale. "Machinery and equipment"

shall also mean tangible personal property or other property that is eligible for depreciation

for federal income tax purposes and that is used as an integral part of the production,

processing, and storing of food and fiber or of timber.

(I) Machinery and equipment, for purposes of this Subparagraph, also includes but

is not limited to the following:

(aaa) Computers and software that are an integral part of the machinery and

equipment used directly in the manufacturing process.

(bbb) Machinery and equipment necessary to control pollution at a plant facility

where pollution is produced by the manufacturing operation.

(ccc) Machinery and equipment used to test or measure raw materials, the property

undergoing manufacturing or the finished product, when such test or measurement is a

necessary part of the manufacturing process.

(ddd) Machinery and equipment used by an industrial manufacturing plant to

generate electric power for self consumption or cogeneration.

(eee) Machinery and equipment used primarily to produce a news publication

whether it is ultimately sold at retail or for resale or at no cost. Such machinery and

equipment shall include but not be limited to all machinery and equipment used primarily

in composing, creating, and other prepress operations, electronic transmission of pages from

prepress to press, pressroom operations, and mailroom operations and assembly activities.

The term "news publication" shall mean any publication issued daily or regularly at average

intervals not exceeding three months, which contains reports of varied character, such as

political, social, cultural, sports, moral, religious, or subjects of general public interest, and

advertising supplements and any other printed matter ultimately distributed with or a part of

such publications.

(II) Machinery and equipment, for purposes of this Subparagraph, does not include

any of the following:

(aaa) A building and its structural components, unless the building or structural

component is so closely related to the machinery and equipment that it houses or supports

that the building or structural component can be expected to be replaced when the machinery

and equipment are replaced.

(bbb) Heating, ventilation, and air-conditioning systems, unless their installation is

necessary to meet the requirements of the manufacturing process, even though the system

may provide incidental comfort to employees or serve, to an insubstantial degree,

nonproduction activities.

(ccc) Tangible personal property used to transport raw materials or manufactured

goods prior to the beginning of the manufacturing process or after the manufacturing process

is complete.

(ddd) Tangible personal property used to store raw materials or manufactured goods

prior to the beginning of the manufacturing process or after the manufacturing process is

complete.

(bb) "Manufacturer" means:

(I) A person whose principal activity is manufacturing, as defined in this

Subparagraph, and who is assigned by the Louisiana Workforce Commission a North

American Industrial Classification System code within the agricultural, forestry, fishing, and

hunting Sector 11, the manufacturing Sectors 31-33, the information Sector 511110 as they

existed in 2002, or industry code 423930 as a recyclable material merchant wholesaler

engaged in manufacturing activities, which must include shredding facilities, as determined

by the secretary of the Department of Revenue.

(II) A person whose principal activity is manufacturing and who is not required to

register with the Louisiana Workforce Commission for purposes of unemployment insurance,

but who would be assigned a North American Industrial Classification System code within

the agricultural, forestry, fishing, and hunting Sector 11, the manufacturing Sectors 31-33,

the information Sector 511110 as they existed in 2002, as determined by the Louisiana

Department of Revenue from federal income tax data, if he were required to register with the

Louisiana Workforce Commission for purposes of unemployment insurance.

(cc) "Manufacturing" means putting raw materials through a series of steps that

brings about a change in their composition or physical nature in order to make a new and

different item of tangible personal property that will be sold to another. Manufacturing

begins at the point at which raw materials reach the first machine or piece of equipment

involved in changing the form of the material and ends at the point at which manufacturing

has altered the material to its completed form. Placing materials into containers, packages,

or wrapping in which they are sold to the ultimate consumer is part of this manufacturing

process. Manufacturing, for purposes of this Subparagraph, does not include any of the

following:

(I) Repackaging or redistributing.

(II) The cooking or preparing of food products by a retailer in the regular course of

retail trade.

(III) The storage of tangible personal property.

(IV) The delivery of tangible personal property to or from the plant.

(V) The delivery of tangible personal property to or from storage within the plant.

(VI) Actions such as sorting, packaging, or shrink wrapping the final material for

ease of transporting and shipping.

(dd) "Manufacturing for agricultural purposes" means the production, processing,

and storing of food and fiber and the production, processing, and storing of timber.

(ee) "Plant facility" means a facility, at one or more locations, in which

manufacturing, referred to in Sectors 11 and 31-33 of the North American Industrial

Classification system as of 2002, of a product of tangible personal property takes place.

(ff) "Used directly" means used in the actual process of manufacturing or

manufacturing for agricultural purposes.

(iii) No person shall be entitled to purchase, use, lease, or rent machinery or

equipment as defined herein without payment of the tax imposed by R.S. 47:302, 321, and

331 before receiving a certificate of exclusion from the secretary of the Department of

Revenue certifying that he is a manufacturer as defined herein.

(iv) The secretary of the Department of Revenue is hereby authorized to adopt rules

and regulations in order to administer the exclusion provided for in this Subparagraph.

(j) For the purpose of the sales and use taxes imposed by the state under R.S. 47:302,

321, and 331, the "cost price" of electric power or energy, or natural gas for the period

beginning July 1, 2007 and thereafter, purchased or used by paper or wood products

manufacturing facilities shall not include any of such cost.

(k)(i) For purposes of the imposition of the sales and use tax levied by the state under

R.S. 47:302, 321, and 331, the tax on the cost price of tangible property consumed in the

manufacturing process, such as fuses, belts, felts, wires, conveyor belts, lubricants, and motor

oils and the tax on the cost price of repairs and maintenance of manufacturing machinery and

equipment shall be reduced as follows:

(aa) For the period beginning July 1, 2010, and ending on June 30, 2011, the state

sales and use tax on the cost price shall be reduced by twenty-five percent.

(bb) For the period beginning July 1, 2011, and ending June 30, 2012, the state sales

and use tax on the cost price shall be reduced by fifty percent.

(cc) For the period beginning July 1, 2012, and ending June 30, 2013, the state sales

and use tax on the cost price shall be reduced by seventy-five percent.

(dd) For all periods beginning on and after July 1, 2013, the state sales and use tax

on the cost price shall be reduced by one hundred percent.

(ii) For purposes of this Subparagraph, "manufacturer" means a person whose

principal activity is manufacturing and who is assigned an industry group designation by the

United States Census of 3211 through 3222 or 113310 pursuant to the North American

Industry Classification System of 2007.

(4) "Dealer" includes every person who manufactures or produces tangible personal

property for sale at retail, for use, or consumption, or distribution, or for storage to be used

or consumed in a taxing jurisdiction. "Dealer" is further defined to mean:

(a) Every person who imports, or causes to be imported, tangible personal property

from any other state, foreign country, or other taxing jurisdiction for sale at retail, for use,

or consumption, or distribution, or for storage to be used or consumed in a taxing

jurisdiction.

(b) Every person who sells at retail, or who offers for sale at retail, or who has in his

possession for sale at retail, or for use, or consumption, or distribution, or storage to be used

or consumed in the taxing jurisdiction, tangible personal property as defined herein.

(c) Any person who has sold at retail, or used, or consumed, or distributed, or stored

for use or consumption in the taxing jurisdiction, tangible personal property and who cannot

prove that the tax levied by this Chapter has been paid on the sale at retail, the use, the

consumption, the distribution, or the storage of said tangible personal property.

(d)(i) Any person who leases or rents tangible personal property for a consideration,

permitting the use or possession of the said property without transferring title thereto.

(ii) However, a person who leases or rents tangible personal property to customers

who provide information to such person that they will use the property only offshore beyond

the territorial limits of the state shall not be included in the term "dealer" for purposes of the

collection of the rental or lease tax of the state, statewide political subdivisions, and other

political subdivisions on such lease or rental contracts. For purposes of this Item, "use"

means the operational or functional use of the property and not other uses related to its

possession such as transportation, maintenance, and repair. It is the intention of this Item

that the customers of such persons shall remit any tax due on the lease or rental of such

property directly to the state and local taxing bodies to whom they are due.

(e) Any person who is the lessee or rentee of tangible personal property and who

pays to the owner of such property a consideration for the use or possession of such property

without acquiring title thereto.

(f)(i) Any person, who sells or furnishes any of the services subject to tax under this

Chapter.

(ii) Under guidelines enacted by the Legislature of Louisiana during the 2016

Regular Session, any person engaged in collecting the amount required to be paid by a

transient guest as a condition of occupancy at a residential location as provided for in R.S.

47:301(6)(a)(ii).

(iii) For purposes of this Chapter, dealer shall not include persons leasing apartments

or single family dwellings on a month-to-month basis.

(g) Any person, as used in this act, who purchases or receives any of the services

subject to tax under this Chapter.

(h) Any person engaging in business in the taxing jurisdiction. "Engaging in business

in the taxing jurisdiction" means and includes any of the following methods of transacting

business: maintaining directly, indirectly, or through a subsidiary, an office, distribution

house, sales house, warehouse, or other place of business or by having an agent, salesman,

or solicitor operating within the taxing jurisdiction under the authority of the seller or its

subsidiary irrespective of whether such place of business, agent, salesman, or solicitor is

located in such taxing jurisdiction permanently or temporarily or whether such seller or

subsidiary is qualified to do business in such taxing jurisdiction, or any person who makes

deliveries of tangible personal property into the taxing jurisdiction other than by a common

or contract carrier.

(i) Any person who sells at retail any tangible personal property to a vending

machine operator for resale through coin-operated vending machines.

(j) Any person who makes deliveries of tangible personal property into the taxing

jurisdiction in a vehicle owned or operated by said person.

(k) The term "dealer" shall not include lessors of railroad rolling stock used either

for freight or passenger purposes. However, the term "dealer" shall include lessees, other

than a railway company or railroad corporation, of such property and such lessees shall be

responsible for the collection and payment of all state and local sales and use taxes.

(l) Every person who engages in regular or systematic solicitation of a consumer

market in the taxing jurisdiction by the distribution of catalogs, periodicals, advertising fliers,

or other advertising, or by means of print, radio or television media, by mail, telegraphy,

telephone, computer data base, cable, optic, microwave, or other communication system.

(5) "Gross sales" means the sum total of all retail sales of tangible personal property,

without any deduction whatsoever of any kind or character except as provided in this

Chapter.

(6)(a) "Hotel" means and includes any establishment or person engaged in the

business of furnishing sleeping rooms, cottages, or cabins to transient guests, where such

establishment consists of sleeping rooms, cottages, or cabins at any of the following:

(i) A single business location.

(ii) A residential location, including but not limited to a house, apartment,

condominium, camp, cabin, or other building structure used as a residence.

(iii) For purposes of this Chapter, hotel shall not mean or include any establishment

or person leasing apartments or single family dwelling on a month-to-month basis.

(b) For purposes of the sales and use taxes of all tax authorities in this state, the term

"hotel" as defined herein shall not include camp and retreat facilities owned and operated by

nonprofit organizations exempt from federal income tax under Section 501(a) of the Internal

Revenue Code as an organization described in Section 501(c)(3) of the Internal Revenue

Code provided that the net revenue derived from the organizations's property is devoted

wholly to the nonprofit organization's purposes. However, for purposes of this Paragraph,

the term "hotel" shall include camp and retreat facilities which shall sell rooms or other

accommodations to transient guests who are not attending a function of such nonprofit

organization that owns and operates the camp and retreat facilities or a function of another

nonprofit organization exempt from federal income tax under Section 501(a) of the Internal

Revenue Code as an organization described in Section 501(c)(3) of the Internal Revenue

Code. It is the intention of the legislature to tax the furnishing of rooms to those who merely

purchase lodging at such facilities.

(c) For purposes of the sales and use taxes of all tax authorities in this state, the term

"hotel", as defined herein, shall not include a temporary lodging facility which is operated

by a nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code,

provided that the facility is devoted exclusively to the temporary housing, for periods no

longer than thirty days' duration, of homeless transient persons whom the organization

determines to be financially incapable of engaging lodging at a facility defined by

Subparagraph (a) of this Paragraph, and further provided that the lodging charge to such

persons is no greater than twenty dollars per day.

(7)(a) "Lease or rental" means the leasing or renting of tangible personal property

and the possession or use thereof by the lessee or renter, for a consideration, without transfer

of the title of such property. For the purpose of the leasing or renting of automobiles, "lease"

means the leasing of automobiles and the possession or use thereof by the lessee, for a

consideration, without the transfer of the title of such property for a one hundred eighty-day

period or more. "Rental" means the renting of automobiles and the possession or use thereof

by the renter, for a consideration, without the transfer of the title of such property for a period

less than one hundred eighty days.

(b) Solely for purposes of the state sales and use taxes imposed under R.S. 47:302,

321, and 331, the term "lease or rental", as herein defined, shall not mean or include the lease

or rental made for the purposes of re-lease or re-rental of casing tools and pipe, drill pipe,

tubing, compressors, tanks, pumps, power units, other drilling or related equipment used in

connection with the operating, drilling, completion, or reworking of oil, gas, sulphur, or other

mineral wells.

(c) The term "lease or rental", as herein defined shall not mean or include a lease or

rental of property to be used in performance of a contract with the United States Department

of the Navy for construction or overhaul of U.S. Naval vessels.

(d) Solely for purposes of the state sales and use taxes imposed under R.S. 47:302,

321, and 331, the term "lease or rental", as herein defined, shall not mean the lease or rental

of airplanes or airplane equipment by a commuter airline domiciled in Louisiana.

(e) For purposes of state and political subdivision sales and use tax, the term "lease

or rental", as herein defined, shall not mean the lease or rental of items, including but not

limited to supplies and equipment, which are reasonably necessary for the operation of free

hospitals.

(f) For purposes of state and political subdivision sales and use tax, "lease or rental"

shall not mean the lease or rental of educational materials or equipment used for classroom

instruction by approved parochial and private elementary and secondary schools which

comply with the court order from the Dodd Brumfield decision and Section 501(c)(3) of the

Internal Revenue Code, limited to books, workbooks, computers, computer software, films,

videos, and audio tapes.

(g) For purposes of state and political subdivision sales and use tax, "lease or rental"

shall not mean the lease or rental of tangible personal property to Boys State of Louisiana,

Inc. and Girls State of Louisiana, Inc. which is used by such organizations for their

educational and public service programs for youth.

(h) For purposes of state and political subdivision sales and use tax, the term "lease

or rental" shall not mean or include the lease or rental of motor vehicles by licensed motor

vehicle dealers, as defined in R.S. 32:1252(35), or vehicle manufacturers, as defined in R.S.

32:1252(24), for their use in furnishing such leased or rented motor vehicles to their

customers in performance of their obligations under warranty agreements associated with the

purchase of a motor vehicle or when the applicable warranty has lapsed and the leased or

rented motor vehicle is provided to the customer at no charge.

(i) For purposes of sales and use taxes levied and imposed by local governmental

subdivisions, school boards, and other political subdivisions whose boundaries are not

coterminous with those of the state, "lease or rental" by a person shall not mean or include

the lease or rental of tangible personal property if such lease or rental is made under the

provisions of Medicare.

(j) Solely for purposes of the sales and use tax levied by the state under R.S. 47:302,

321, and 331, the term "lease or rental" shall not include the lease or rental in this state of

manufacturing machinery and equipment used or consumed in this state to manufacture,

produce, or extract unblended biodiesel.

(k)(i) For purposes of any sales, use, or lease tax levied by the state, or any political

subdivision of the state, the term "lease or rental" shall not include the lease or rental of a

crane and related equipment with an operator.

(ii) Notwithstanding the provisions of Item (i) of this Subparagraph, cranes leased

or rented with an operator are subject to the provisions of the sales and use tax law upon first

use in Louisiana.

(l)(i) For purposes of the sales and use tax levied by the state under R.S. 47:302, 321,

and 331, and by any political subdivision, the term "lease or rental" shall not apply to leases

or rentals of pallets which are used in packaging products produced by a manufacturer.

(ii) For purposes of this Subparagraph, the term "manufacturer" shall mean a person

whose primary activity is manufacturing and who is assigned by the Louisiana Workforce

Commission a North American Industrial Classification System code within the

manufacturing sectors 31-33 as they existed in 2002.

(8)(a) "Person", except as provided in Subparagraph (c), includes any individual,

firm, copartnership, joint adventure, association, corporation, estate, trust, business trust,

receiver, syndicate, this state, any parish, city and parish, municipality, district or other

political subdivision thereof or any board, agency, instrumentality, or other group or

combination acting as a unit, and the plural as well as the singular number.

(b) Solely for purposes of the payment of state sales or use tax on the lease or rental

or the purchase of tangible personal property or services, "person" shall not include a

regionally accredited independent institution of higher education which is a member of the

Louisiana Association of Independent Colleges and Universities, if such lease or rental or

purchase is directly related to the educational mission of such institution. However, the term

"person" shall include such institution for purposes of the payment of tax on sales by such

institution if the sales are not otherwise exempt.

(c)(i) For purposes of the payment of the state sales and use tax and the sales and use

tax levied by any political subdivision, "person" shall not include this state, any parish, city

and parish, municipality, district, or other political subdivision thereof, or any agency, board,

commission, or instrumentality of this state or its political subdivisions.

(ii) Upon request by any political subdivision for an exemption identification

number, the Department of Revenue shall issue such number. The secretary may promulgate

rules and regulations in accordance with the Administrative Procedure Act to carry out the

provisions of this Item.

(d)(i) For purposes of the payment of the state sales and use tax and the sales and use

tax levied by any political subdivision, the term "person" shall not include a church or

synagogue that is recognized by the United States Internal Revenue Service as entitled to

exemption under Section 501(c)(3) of the United States Internal Revenue Code.

(ii) The secretary of the Department of Revenue shall promulgate rules and

regulations defining the terms "church" and "synagogue" for purposes of this exclusion. The

definitions shall be consistent with the criteria established by the U.S. Internal Revenue

Service in identifying organizations that qualify for church status for federal income tax

purposes.

(iii) No church or synagogue shall claim exemption or exclusion from the state sales

and use tax or the sales and use tax levied by any political subdivision before having obtained

a certificate of authorization from the secretary of the Department of Revenue. The secretary

shall develop applications for such certificates. The certificates shall be issued without

charge to the institutions that qualify.

(iv) The exclusion from the sales and use tax authorized by this Subparagraph shall

apply only to purchases of bibles, song books, or literature used for religious instruction

classes.

(e)(i) For purposes of the payment of the state sales and use tax and the sales and use

tax levied by any political subdivision, the term "person" shall not include the Society of the

Little Sisters of the Poor.

(ii) The secretary of the Department of Revenue shall promulgate rules and

regulations for purposes of this exclusion. The definitions shall be consistent with the

criteria established by the U.S. Internal Revenue Service in identifying tax-exempt status for

federal income tax purposes.

(iii) No member of the Society of the Little Sisters of the Poor shall claim exemption

or exclusion from the state sales and use tax or the sales and use tax levied by any political

subdivision before having obtained a certificate of authorization from the secretary of the

Department of Revenue. The secretary shall develop applications for such certificates. The

certificates shall be issued without charge to the entities which qualify.

(f)(i) For purposes of the payment of sales and use tax levied by this state and any

political subdivision whose boundaries are coterminous with those of the state, the term

"person" shall not include a nonprofit entity which sells donated goods and spends seventy-five percent or more of its revenues on directly employing or training for employment

persons with disabilities or workplace disadvantages.

(ii) The secretary shall promulgate rules and regulations for the use of exclusion

certificates for purposes of implementation of this Subparagraph. Each nonprofit entity

electing to utilize the exclusion provided for in this Subparagraph shall apply for an

exclusion certificate annually. Any exclusion certificate granted by the Department of

Revenue shall be effective for a one-year period.

(iii) The secretary shall provide forms for nonprofit entities to request an exclusion

certificate.

(9) "Purchaser" means and includes any person who acquires or receives any tangible

personal property, or the privilege of using any tangible personal property, or receives any

services pursuant to a transaction subject to tax under this Chapter.

(10)(a)(i) Solely for the purposes of the imposition of the state sales and use tax,

"retail sale" or "sale at retail" means a sale to a consumer or to any other person for any

purpose other than for resale as tangible personal property, o