ENROLLED
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
ACT No. 1019
Regular Session, 2010
HOUSE BILL NO. 667
BY REPRESENTATIVE NOWLIN
AN ACT1
To enact R.S. 47:337.28.1, relative to collection of local sales and use tax; to prohibit certain2
arbitrary assessments by tax collectors; to define arbitrary assessment; to authorize3
the recovery of litigation costs under certain circumstances; and to provide for4
related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:337.28.1 is hereby enacted to read as follows:7
ยง337.28.1 Arbitrary assessments prohibited8
A. Notwithstanding any provision of this Chapter to the contrary, the9
collector shall be prohibited from issuing an arbitrary assessment. For purposes of10
this Chapter, the term "arbitrary assessment" shall mean an estimated assessment11
issued by the local collector which does not comply with R.S. 47:337.28, 337.48(A),12
or 337.53. However, no provision of this Chapter shall prevent the collector from13
determining correct tax as provided for in R.S. 47:337.35. An assessment shall not14
be considered an "arbitrary assessment" if the taxpayer does not provide records as15
required by R.S. 47:337.29 and/or R.S. 47:337.36. The taxpayer shall bear the16
burden of proving that the assessment was not in compliance with the law.17
B. If the assessment by the collector is determined by a court of competent18
jurisdiction to be an arbitrary assessment, the assessment shall neither interrupt nor19
suspend prescription, and the dealer shall be reimbursed by the collector for20
reasonable costs of litigation. The amount of costs recoverable under this Section21
shall not exceed ten percent of the taxes, interest, and penalty that were arbitrarily22
assessed, which amount shall be subject to the discretion of the court as to23
reasonableness.24 ENROLLEDHB NO. 667
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are additions.
C. No assessment shall be made under this Chapter for the purpose of1
depriving a taxpayer of his constitutional right to a three-year prescriptive period for2
the assessment of tax in accordance with Article VII, Section 16 of the Constitution3
of Louisiana.4
Section 2. This Act shall become effective upon signature by the governor or, if not5
signed by the governor, upon expiration of the time for bills to become law without signature6
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If7
vetoed by the governor and subsequently approved by the legislature, this Act shall become8
effective on the day following such approval.9
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: