LA HB578

Levies a 5% state sales and use tax on telecommunications services, cable television services, direct-to-home satellite services, video programming services, and satellite digital audio radio services, with proceeds deposited into a new Local Revenue Fund to offset parish business inventory ad valorem tax exemption losses

Extends sales and use tax exemptions to digital products throughout the tax code, updating definitions of "retail sale," "sales price," "cost price," and "use" to include digital products alongside tangible personal property

Creates new exemptions for: purchases by contractors on public construction contracts (with exemption certificate from Department of Revenue), boats registered in Louisiana (tax capped at $20,000), qualifying radiation therapy treatment centers, sickle cell disease nonprofit organizations, Habitat for Humanity construction materials, and certain higher education institutions

Exempts from sales tax: software and digital products used by healthcare facilities for diagnosis/treatment or storing healthcare information, motor vehicle leases/rentals provided by dealers under warranty obligations, and repairs to tangible personal property delivered out of state

Establishes the initial baseline collection rate of $1,272,394 for sales tax increment financing in the medical and bioscience district established during the 2005 Regular Session, and reduces tourism promotion funding from state sales tax avails from 0.03% to 0.0001%