Authorizes the prevailing party in certain collection actions to recover attorney fees and costs under certain circumstances (EN INCREASE LF EX See Note)
Impact
If enacted, HB 666 would significantly impact local tax laws by providing local collectors with the means to engage private attorneys in tax collection disputes. This change could affect how local governments manage their collections and disputes related to sales and use tax, as the authority to recover attorney fees can incentivize more thorough legal action against delinquent taxpayers. The bill aims to streamline the tax collection process and ensure that local authorities are not unduly burdened by unpaid tax dues.
Summary
House Bill 666 aims to amend and reenact R.S. 47:337.13.1 to endow local collectors with the authority to employ private counsel for tax collection purposes. This bill establishes conditions under which the prevailing party in tax dispute cases can recover attorney fees and costs not exceeding ten percent of the taxes due. The intention behind this legislation is to enhance the efficiency of tax collections at the local level while ensuring fair reimbursement for legal costs incurred during disputes.
Sentiment
Overall, the sentiment surrounding HB 666 is mixed. Proponents view the bill as a necessary tool to enhance tax collection efficiency and enable local authorities to better enforce tax laws. They argue that allowing the recovery of attorney fees will mitigate the financial risks faced by local collectors in legal proceedings. Conversely, opponents may express concerns that this could lead to excessive legal actions against taxpayers, potentially penalizing those who may be struggling financially or contesting their tax liabilities in good faith.
Contention
Notable points of contention related to HB 666 include potential abuse of the provisions that allow for the recovery of attorney fees. Critics might argue that local collectors could overreach in their pursuit of delinquent taxes, using the threat of legal fees to coerce payments from taxpayers. There may also be concerns about the fairness of this arrangement, especially regarding how 'prevailing party' is defined and determined in various tax disputes. The balance between effective tax collection and taxpayer rights will likely be a major topic of debate.
Mobile County; amend definition of municipal tax lien to authorize the inclusion of certain weed liens on a tax bill under certain circumstances; deem municipality as prevailing party in certain bid auctions resulting in a tie; authorize municipality to enter property to make repairs under certain circumstances; and authorize tax collecting official to sell a tax lien under certain circumstances.
Authorizes the mediation of certain tax disputes, the issuance of policy advice, and requests for private letter rulings under certain circumstances (EN NO IMPACT GF EX See Note)
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)
Provides for procedures for the collection of delinquent ad valorem taxes and statutory impositions, tax auctions, tax auction certificates, and the redemption of certain property (RE SEE FISC NOTE LF RV See Note)
Authorizes municipal tax collectors to employ private counsel or an agency for collection of delinquent taxes and provides for the collection of a fee for such services (RE SEE FISC NOTE LF RV See Note)
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)