Louisiana House Bill HB481

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/27/10
• Engrossed: 5/10/10
• Refer: 5/11/10
• Report Pass: 6/7/10

Caption

Authorizes sheriffs and ex officio tax collectors to employ an agency to assist in the collection of delinquent ad valorem taxes and obligations and provides for the payment of such services on a fee basis (RE INCREASE LF EX See Note)

Impact

The passage of HB 481 has implications for state laws relating to tax collection practices. The bill aims to improve efficiency in collecting overdue taxes by allowing sheriffs and tax collectors to use agencies with experience in tax collections. It seeks to clarify the process, allowing for flexible financial arrangements under which these agencies can be paid. By enabling the hiring of agencies, this legislation is anticipated to help increase collections, thereby benefiting local government revenues by ensuring that funds owed to them are recovered more effectively.

Summary

House Bill 481 authorizes sheriffs and ex officio tax collectors in Louisiana to employ private agencies to assist in the collection of delinquent ad valorem taxes and obligations. This bill amends existing laws to provide for payment structures that can include hourly rates or a set fee. A significant feature of the bill is the stipulation that the contracts used for these services cannot exceed 10% of the total amount collected, including any applicable penalties and fees. The intent is to enhance the effectiveness of tax collection efforts, particularly for delinquent accounts, by allowing access to specialized resources and expertise.

Sentiment

Sentiment surrounding HB 481 appears to be generally positive among supporters who view the bill as a practical measure to tackle the longstanding issue of delinquent property taxes. Advocates argue that the inclusion of private agencies in tax collection adds valuable expertise and will likely result in higher rates of successful collections. However, there may be concerns regarding the potential for increased costs to taxpayers, as the fees for these services are ultimately charged to them through the tax recipient bodies. This aspect could engender some opposition from those wary of additional fees or who prefer traditional methods of tax collection.

Contention

A notable point of contention is the reliance on private entities for governmental tax collection, which some critics argue could lead to aggressive collection practices or a lack of transparency. Additionally, the change from a mandatory to a discretionary power for sheriffs and tax collectors in contracting with agencies may raise concerns about inconsistency in how these decisions are made across different parishes. The bill's provisions regarding the sharing of any excess fees collected from the taxpayer with the tax recipient bodies also introduce a layer of complexity that could be scrutinized as it is implemented.