In a recent Private Letter Ruling, the State of Louisiana held that electronic discovery services, consisting of evidence collection, data preparation, data review, and data production, were not subject to sales and use tax because they fell outside the scope of the state’s three categories of taxable transactions: sale at retail or use of tangible personal property, lease or rental of tangible personal property, or taxable services. The fact that the client received tangible personal property in conjunction with the services was considered insignificant when compared to the value of the non-taxable services performed. Any tangible personal property or taxable services acquired to provide such services, however, would be subject to use tax. (Private Letter Ruling No. 05-003).