Louisiana will honor tax exemptions for nonprofits, school sports after confusion

The Louisiana Department of Revenue said the state will continue to recognize sales tax exemptions on K-12 school sports tickets and fundraising events for nonprofit organizations in 2025. 

The flurry of tax law changes approved last November led to legal confusion about whether nonprofit organizations and public school sports teams were going to have to start applying sales taxes to their admission tickets and parking fees for events this year.

Revenue Secretary Richard Nelson said in a bulletin released in January the addition of sales taxes to these events was not intended. The agency will continue to honor the two exemptions in spite of the legal confusion. 

“Given the scale of these changes, technical oversights are inevitable,” Nelson wrote.

State lawmakers passed a tax package last year that cut the Louisiana income tax rate while maintaining a higher sales tax rate and applying the sales tax to new products. Many of the tax changes kicked in Jan. 1.

Rep. Julie Emerson, R-Carencro, said she expects legislators will pass a bill later this year to clear up confusion in the law and make the nonprofit and school sports exemptions permanent. 

Even if the lawmakers fail to pass a bill honoring the tax breaks, Nelson said in the bulletin they will remain in effect for the rest of 2025.

The regular legislative session starts in April.