Louisiana House Bill HB849

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 5/13/10
• Engrossed: 5/25/10
• Refer: 5/26/10
• Report Pass: 6/7/10

Caption

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)

Impact

The enactment of HB 849 will amend state laws specifically concerning tax collection processes at the municipal level. By allowing tax collectors to hire private counsel or agencies, the bill seeks to streamline the collection process and increase deterrence against tax delinquency. However, the provision for attorney fees to be charged to taxpayers could lead to increased financial pressure on those who are already in delinquent status, igniting discussions about fairness and accessibility in tax collection.

Summary

House Bill 849 authorizes municipal tax collectors in Louisiana to employ private counsel or agencies for the collection of delinquent ad valorem taxes, interest, and penalties. This bill explicitly allows the tax collector to impose an additional fee—amounting to 10% of the delinquent taxes, interest, and penalties—on taxpayers who require the assistance of private entity for their tax collection. The legislation intends to facilitate the recovery of unpaid taxes for municipalities, potentially increasing their revenue from tax collections.

Sentiment

The sentiment surrounding HB 849 is mixed, with advocates arguing that the bill provides municipalities with essential tools to improve tax revenue management and reduce delinquency rates. Supporters emphasize that it is a necessary measure for municipal finance, ensuring the fulfillment of tax obligations. Conversely, opponents express concern about the additional financial burden placed on taxpayers already struggling with delinquent payments, viewing the bill as disproportionate and potentially exploitative.

Contention

Notable points of contention include the implications of allowing private entities to be involved in tax collection—some fear this could lead to aggressive collection tactics or prioritization of profit over equitable treatment of taxpayers. Critics also argue that it could undermine public trust in the tax collection system itself, as private entities may not operate with the same accountability or transparency as public officials. Additionally, while the bill includes a provision that limits its applicability to ad valorem taxes, the broader framework it establishes for tax collection could invite future legislative alterations.