The Louisiana Department of Revenue has issued an emergency rule to define tangible personal property in regards to the sale or purchase of customized computer software. The law states that the sale or purchase of custom computer software from July 1, 2002, to July 1, 2005 is partially exempt, and after July 1, 2005 will be completely exempt. The exemption applies to both the 3.97% state tax and the .03% tourism tax, totaling 4%. This exemption does not apply to local parish sales and use taxes. Beginning July 1, 2002 the exemption will be phased in at the rate of 25% (75% taxable) per year and will increase by 25% in subsequent years on July 1 of that year, until it is 100% exempt by July 1, 2002. (LAC 61:I.4301.C.Tangible Personal Property)