Last week, the Louisiana Department of Revenue (the "Department") issued guidance regarding recent sales and use tax law changes. The Department issued Revenue Information Bulletin No. 25-023 on August 14, 2025 explaining how general contractors and subcontractors can qualify for the extended governmental sales tax exemption included in Act 384 of the 2025 Regular Session of the Louisiana Legislature. General contractors and subcontractors performing services for state or local government entities in Louisiana must complete the newly created Form R-85012, Public Projects Contractor/Subcontractor Certification and Exemption Application, through the Louisiana Taxpayer Access Point ("LaTAP") in order to qualify for the exemption.
The application must include the job description, contract number, state or local government entity identifying information, and valid dates or a date range for the construction project. Once a contractor has obtained a valid certificate, any purchases made after July 1, 2025 shall be exempt from state and local sales tax, even if the contract with the government entity was executed before July 1, 2025. No purchases made before July 1, 2025 shall be exempt from sales tax. Local tax collectors are also required to honor the exemption certificate issued to a general contractor or subcontractor.
However, the exemption does not apply to general contractors or subcontractors making purchases related to payment in lieu of taxes ("PILOT") agreements or other similar agreements executed after July 1, 2025, unless the agreement is approved by the Secretary of the Department and the Secretary of the Louisiana Economic Development. The Department had previously published Revenue Information Bulletin No. 25-022 explaining the process for obtaining a contractor exemption related to PILOT agreements.
In addition to Revenue Information Bulletin No. 25-023, the Department published the Sales and Use Tax on Digital Products and Related Services Guide, which provides additional detail regarding the taxation of digital products in Louisiana. Finally, the Department updated its Frequently Asked Questions section on recent sales and use tax law changes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
