Changes in State Tax Laws that Affect the Louisiana Cultural Community Effective April 1, 2016
TAX LAWS AFFECTING LOUISIANA NONPROFIT ORGANIZATIONS
The State of Louisiana passed House Bill (HB) 61 and 62 that eliminates the majority of sales tax exemptions currently available to nonprofits. Beginning Friday April 1, nonprofits must charge 5% state sales tax on memberships, ticket sales, and many other items, summarized at this link. This 5% tax is effective April 1, 2016 through July 1, 2016. Beginning July 2, 2016, through July 1, 2018, the tax decreases to 3%.
TAX LAWS AFFECTING LOUISIANA CULTURAL DISTRICTS
The following information affects the sale of original artwork sold beginning April 1, 2016. The tax exemption for artwork sold in Louisiana Cultural Districts is no longer in effect beginning April 1, 2016.
* April 1, 2016 – June 30, 2016: The 5% state tax exemption for original art sold in Cultural Districts is suspended.
* April 1, 2016 – June 30, 2018: An additional 1% state sales tax goes into effect. The sale of original art is not exempt from this extra 1% state sales tax. Therefore, as of April 1, 2016 total state sales tax is 3%.
More information on tax law changes that affects Louisiana Cultural Districts can be accessed at this link.
CITY OF NEW ORLEANS TAXES
As of today, the City of New Orleans has not enacted a similar tax. We will keep you posted with any new developments on that front.
Please feel free to pass this on to anyone who may be affected.
Arts Council New Orleans
Artist Services Division