The Louisiana Department of Revenue has confirmed that the state will continue to recognize sales tax exemptions for K-12 school sports tickets and fundraising events for nonprofit organizations in 2025. Following confusing tax law changes approved in November, there was uncertainty as to whether these exemptions would remain in place. However, Revenue Secretary Richard Nelson clarified in a bulletin released in January that sales taxes were not intended to be applied to these events. Despite the confusion, the exemptions will be honored.
Last year, state lawmakers passed a tax package that included a reduction in the Louisiana income tax rate, an increase in the sales tax rate, and the application of sales tax to new products. While many of these changes took effect on January 1, there were concerns about the impact on nonprofit organizations and public school sports teams. Representative Julie Emerson has indicated that there may be a bill introduced later this year to address any confusion in the law and make the exemptions permanent.
Even if a bill is not passed, Nelson’s bulletin ensures that the exemptions will remain valid for the entirety of 2025. The regular legislative session is set to begin in April. This announcement provides clarity and reassurance to organizations and schools that rely on these exemptions for their fundraising events and sports programs.
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