Louisiana House Bill HB666

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 5/19/10
• Engrossed: 5/27/10
• Refer: 6/1/10
• Report Pass: 6/15/10
• Enrolled: 6/18/10
• Chaptered: 7/2/10
• Passed: 7/2/10

Caption

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.