Louisiana House Bill HB1270

Louisiana 2010 Regular Session

• Introduced: 4/12/10
• Refer: 4/13/10

Caption

Prohibits the suspension or interruption of prescription for certain taxes, licenses, interest, and penalties under certain circumstances (OR DECREASE GF RV See Note)

Impact

The bill is expected to significantly impact state laws regarding the collection of sales and use taxes. It dictates that the prescription period for local sales and use taxes, as well as any state tax-related charges, shall not be suspended unless the collector has specific evidence of a qualifying event happening within their jurisdiction. By tightening these regulations, the bill attempts to protect taxpayers by ensuring they are only liable for taxes when a collector has substantiated evidence proving the need for compliance.

Summary

House Bill 1270 seeks to amend the current taxation law in Louisiana by prohibiting the suspension or interruption of the prescription period for certain taxes, licenses, and penalties unless specific documentation is provided by the tax collector. This legislation aims to enforce stricter requirements for tax authorities, necessitating that they present clear evidence of events or transactions that necessitate a taxpayer's obligation to file returns before any prescription can be interrupted.

Sentiment

The discussions surrounding HB 1270 have been generally supportive among advocates of taxpayer rights, who see it as a measure that enhances transparency and fairness in tax collection. Proponents argue that it prevents arbitrary collection practices by ensuring that taxpayers are informed and provided with required evidence. However, there may be concerns from tax collectors and entities that are affected by the administrative burden this bill may impose, as it requires them to fulfill additional documentation requirements before pursuing tax obligations.

Contention

Notable points of contention regarding HB 1270 revolve around the potential administrative complexities it introduces. Critics may argue that requiring evidence before suspending the prescription could delay necessary tax collection processes, possibly affecting state revenue. Furthermore, there is a debate about the balance of power between tax authorities and taxpayer rights, as this bill leans towards increasing taxpayer protections while potentially complicating tax enforcement mechanisms.