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ACT No. 929
Regular Session, 2010
HOUSE BILL NO. 666
BY REPRESENTATIVE NOWLIN
AN ACT1
To amend and reenact R.S. 47:337.13.1, relative to tax collection; to provide relative to the2
authority of local collectors to employ private counsel; to authorize the recovery of3
attorney fees under certain circumstances; to provide for certain limitations; to4
provide for an effective date; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:337.13.1 is hereby amended and reenacted to read as follows: 7
ยง337.13.1. Power to employ counsel; attorney fees8
A.(1) The local collector is authorized to employ private counsel to assist in9
the collection of any taxes, penalties, or interest due under this Subtitle, or to10
represent him in any dispute, contest, or other controversy involving the11
determination of sales and use tax due, or in any other proceeding under this Subtitle.12
The attorney fees and legal expenses incurred by the local collector for the13
employment of private counsel shall be reimbursed to him by the local taxing14
authorities and recoverable as a deduction from current collections, unless such15
attorney fees and legal expenses are recoverable as a reimbursement from the16
taxpayer.17
(2) If any taxes, penalties, or interest due and final under this Subtitle are18
referred to an attorney at law for a collection action, an additional charge for attorney19
fees, in the amount of ten percent of the taxes, penalties, and interest due, except20
with respect to amounts timely paid under protest with a return that is not delinquent,21
or paid under protest to a vendor in accordance with law, shall be paid by the22
taxpayer to the local collector; provided, however, that the amount paid to the23 ENROLLEDHB NO. 666
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attorney for attorney fees shall be subject to the discretion of the court as to1
reasonableness.2
(3) A taxpayer shall not be subject to the payment of attorney fees unless the3
local collector is the prevailing party entitled to reimbursement of attorney fees and4
costs as provided for in Subsection B of this Section.5
B.(1) Except as otherwise provided for in Paragraph (3) of Subsection A of6
this Section, the prevailing party in a dispute, contest, or other controversy involving7
the determination of sales and use tax due shall be entitled to reimbursement of8
attorney fees and costs, not to exceed ten percent of the taxes, penalties, and interest9
at issue, unless the position of the non-prevailing party is substantially justified. The10
prevailing party is defined as the party which has substantially prevailed with respect11
to the amount in controversy or substantially prevailed with respect to the most12
significant issue or set of issues presented. A position is substantially justified if it13
has a reasonable basis in law and fact. The reimbursement amount for attorney fees14
and costs shall be subject to the discretion of the court as to reasonableness.15
(2) The provisions of this Subsection shall not apply to amounts timely paid16
under protest by the taxpayer with a return that is not delinquent, or paid under17
protest to a vendor in accordance with law, as provided for in Subsection A of this18
Section.19
(3) A local collector, which is a non-prevailing party in a dispute, contest,20
or other controversy involving the determination of sales and use tax due shall be21
reimbursed by the local taxing authorities for attorney fees and costs incurred by the22
tax collector and recoverable as a deduction from current collections.23
(4) The provisions of this Subsection shall apply only to matters referred to24
private counsel by the local collector.25
C. A local collector may waive the attorney fee award as provided for in this26
Section. A waiver of attorney fees by a local collector shall be considered timely if27
the notice of the waiver is mailed to a taxpayer by certified mail, return receipt28
requested, within thirty days of the service of process. If a local collector timely29 ENROLLEDHB NO. 666
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waives its attorney fee award, a taxpayer may not recover attorney fees as provided1
for in Subsection B of this Section.2
Section 2. This Act shall become effective upon signature by the governor or, if not3
signed by the governor, upon expiration of the time for bills to become law without signature4
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If5
vetoed by the governor and subsequently approved by the legislature, this Act shall become6
effective on the day following such approval.7
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: