CHAPTER 10. LOUISIANA TAX FREE SHOPPING PROGRAM

§1301. Purpose; termination

A. The legislature finds that Louisiana, with its many attractions, has an extraordinary opportunity to generate additional revenue in the form of international tourism. Foreign visitors to the United States represent a more lucrative market than domestic travelers because they use tourism services to a much greater degree than their domestic counterparts. Many foreign countries have a value added tax refund system for purchases of tangible personal property by foreign visitors which has proved successful, when appropriately advertised, in increasing tourism in those countries. A similar sales tax refund program, the Louisiana Tax Free Shopping (LTFS) Program, which is applicable to retail shopping by international visitors, has become an effective promotional tool to increase Louisiana's share of the United States' growing foreign tourism market. While the LTFS Program had an initial opportunity cost to state and local governments equal to the amount of sales tax refunded, this loss was offset by additional revenues generated from an increase in foreign tourists, who continue to pay tax on expenditures such as hotels, restaurants, entertainment, rental cars, riverboat rides, and other attractions. An Annual Economic Impact Estimate Report prepared by the research director of the New Orleans Region Economic Development Council quantifies this benefit.

B. Therefore, it is the intention of the legislature to authorize the state and its political subdivisions to voluntarily continue in a cooperative endeavor to establish a sales tax refund program for the purchases of tangible personal property by international travelers in which the traveler, the participating retailer, and the refunding agency have clear and simple roles in the refund process with adequate internal accounting controls in place.

C. The sales tax refund program shall be known as the "Louisiana Tax Free Shopping Program" or "LTFS Program".

D. Notwithstanding any provision of law to the contrary, the provisions of this Chapter shall be effective through July 1, 2023.

Acts 1988, No. 535, §1, eff. July 8, 1988; Acts 1992, No. 285, §§1 and 2, eff. July 1, 1992; Acts 1997, No. 1291, §2; Acts 1998, No. 50, §1; Acts 2001 1st Ex. Sess., No. 7, §1; Acts 2004, 1st Ex. Sess., No. 14, §1; Acts 2006, No. 76, §1; Acts 2008, No. 232, §1, eff. June 17, 2008; Acts 2017, No. 318, §1, eff. June 22, 2017.

NOTE: Acts 1988, No. 535, §3 provided for termination on July 1, 1992; Acts 1992, No. 285, §3, extended the date to July 1, 1997; Acts 1997, No. 1291, §2, extended the date to July 1, 1999; Acts 1998, No. 50, §1, extended the date to July 1, 2001; Acts 2001, 1st Ex. Sess., No. 7, §1, extended the date to July 1, 2004; Acts 2004, 1st Ex. Sess., No. 14, §1, extended the date to July 1, 2007; Acts 2006, No. 76, §1, extended the date to July 1, 2009; Acts 2008, No. 232, §1, extended the date to July 1, 2013; Acts 2012, No. 435, §1, extended the date to July 1, 2017; Acts 2017, No. 318, §2, removed the termination date from Act No. 535 of the 1988 R.S. and placed it in R.S. 51:1301(D).