ENROLLED
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Regular Session, 2010
HOUSE BILL NO. 845
BY REPRESENTATIVE NOWLIN
AN ACT1
To amend and reenact R.S. 47:337.26(C) and (D)(1)(introductory paragraph) and (c) and to2
enact R.S. 47:337.26(D)(3), (F), and (G), relative to collection of local sales and use3
tax; to provide for requirements governing certain activities of private contractors;4
to prohibit the sharing of certain taxpayer information; to provide with respect to5
contracts; to provide for oversight by the legislative auditor; and to provide for6
related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 47:337.26(C) and (D)(1)(introductory paragraph) and (c) are hereby9
amended and reenacted and R.S. 47:337.26(D)(3), (F), and (G) are hereby enacted to read10
as follows: 11
§337.26. Contracts for purposes purposes relating to collection of sales and use12
taxes13
* * *14
C.(1) Any private agency or auditing firm hired for the purposes of this15
Section and any employee , contractor, or other agent of such private agency or16
auditing firm shall be governed by the provisions of R.S. 47:1508 et seq.17
(2)(a) Audit leads provided by the private agency or auditing firm shall be18
subject to the taxpayer confidentiality requirements of R.S. 47:1508 et seq. Once19
confidential information has been disclosed by the taxpayer to the private agency or20
auditing firm, audit leads by such private agency or auditing firm to other local21
collectors are strictly prohibited under the taxpayer confidentiality requirements of22
R.S. 47:1508 et seq; however, the taxpayer may voluntarily waive confidentiality23 ENROLLEDHB NO. 845
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requirements in writing, authorizing the examination or audit to be expanded to1
include additional tax collectors.2
(b) Information provided by the private agency or auditing firm to the local3
collector may be shared by the local collector with other collectors which maintain4
written reciprocal exchange agreements in accordance with R.S. 47:1508(B)(5).5
(3) Notwithstanding any provision of this Section to the contrary, a private6
agency or auditing firm shall limit its activities to auditing the books and records of7
the taxpayer and shall not perform any assessment or collection functions, except as8
otherwise expressly permitted by law.9
(4) A lead auditor of a private agency or auditing firm performing an10
examination or audit function shall possess or have attained any of the following:11
(a) An active certified public accountant license.12
(b) A bachelor's degree with a minimum of eighteen hours of accounting.13
(c) An active certified tax examiner's certificate issued by the Louisiana14
Association of Tax Administrators.15
(d) A minimum of six years' experience in the field of state or local sales and16
use tax.17
D.(1) Prior to initiating an examination or audit of a taxpayer, a taxing18
authority the local collector shall provide notice of the taxing authority's the intent19
to audit which shall be sent by certified mail to the taxpayer at the taxpayer's last20
known address. Such notice shall:21
* * *22
(c)(i) Advise the taxpayer of the right to review and copy the audit contract23
if the audit will be conducted by a private auditing firm.24
(ii) If the audit is conducted by a private auditing firm, the notice shall also25
advise the taxpayer whether the payment of compensation to the private auditing26
firm is contingent upon the actual collection of tax or in any other way dependent on27
the outcome of the audit.28
* * *29 ENROLLEDHB NO. 845
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(3)(a) Upon completion of the audit or examination, all original information1
obtained by the private agency or auditing firm from the taxpayer in connection with2
the audit or examination, whether written or in electronic form, shall be returned to3
the taxpayer, and the private agency or auditing firm shall not retain any copies of4
such information. All taxpayer related information derived, compiled, or generated5
by the private agency or auditing firm in any form whatsoever, including audit6
schedules,working papers, and copies of information received from the taxpayer,7
shall be delivered to the tax collector, except to the extent such information may be8
retained by certified public accountants in accordance with the Louisiana9
Accountancy Act.10
(b) No provision of this Section shall prohibit a private agency or auditing11
firm from retaining books and records of a taxpayer until the termination of any legal12
proceedings related to the audit or examination.13
(c) The tax collector and the private agency or auditing firm may enter into14
a written agreement in accordance with this Subparagraph, authorizing such private15
agency or auditing firm to act as agent for the storage and safekeeping of documents16
otherwise required to be maintained by the tax collector. Such documents shall be17
maintained in accordance with R.S. 47:1508 et. seq.18
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F. Each contract entered into pursuant to this Section may be subject to20
review and oversight by the legislative auditor pursuant to R.S. 33:1427. Contracts21
entered into after July 1, 2010 shall contain a statement by the local collector and22
private agency or auditing firm certifying that the terms and conditions of the23
contract are in compliance with the requirements of the provisions of this Section.24
Any contract that does not satisfy the requirements of this Section may be declared25
null and void by a court of competent jurisdiction.26
G. The private agency or auditing firm hired for the purposes of this Section,27
including any employee, contractor, or other agent of such private agency or auditing28
firm conducting such examination or audit, shall be subject to the Code of29
Governmental Ethics as set forth in R.S. 42:1101 et seq.30 ENROLLEDHB NO. 845
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Section 2. The provisions of this Act shall apply to audits or examinations initiated1
by the issuance of a local collector's notice of intent to audit after the effective date of this2
Act.3
Section 3. This Act shall become effective upon signature by the governor or, if not4
signed by the governor, upon expiration of the time for bills to become law without signature5
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If6
vetoed by the governor and subsequently approved by the legislature, this Act shall become7
effective on the day following such approval.8
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: