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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 458
BY SENATOR N. GAUTREAUX
REVENUE DEPARTMENT. Removes the requirement that all non-resident contractors
with contracts over $3,000 must register with the Department of Revenue and provide surety
and a final accounting for state and local taxes and instead gives the department the
discretion to require by rule such registration, surety, and accounting for contracts of more
than $50,000. (8/15/10)
AN ACT1
To amend and reenact R.S. 47:9(A)(1), the introductory paragraph of 306(D)(1), and2
306(D)(3), the introductory paragraph of 337.18(C)(1), and 337.18(C)(3), relative3
to a nonresident prime contractor; to provide with respect to registration and bond;4
to provide with respect to returns and payment of taxes; to provide for an effective5
date; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:9(A)(1), the introductory paragraph of 306(D)(1), and 306(D)(3),8
the introductory paragraph of 337.18(C)(1), and 337.18(C)(3) are hereby amended and9
reenacted to read as follows: 10
§9. Collection of taxes from nonresident contractors and subcontractors;11
registration; bond12
A.(1) To the end that the state of Louisiana and the political subdivisions13
thereof may receive all taxes due in every instance, including contributions due14
under the Employment Security Law, contractors and subcontractors who are15
nonresidents of this state, desiring to engage in, prosecute, follow or carry on the16
business of contracting as defined in this Section shall register may be required to17 SB NO. 458
SLS 10RS-951 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
register with the secretary of the Department of Revenue for each contract where the1
total contract price or compensation to be received amounts to more than three fifty2
thousand dollars as provided by rule. The secretary of the Department of Revenue3
shall charge a fee for such registration in an amount of ten dollars for each such4
contract. All such fees received by the secretary of the Department of Revenue shall5
be deposited with the state treasurer. The state treasurer shall thereupon credit the6
amount of said fees to the State General Fund.7
* * *8
§306. Returns and payment of tax; penalty for absorption9
* * *10
D. Registration by nonresident prime contractor. (1) Prior to commencing11
work on any construction contract which in the aggregate exceeds three fifty12
thousand dollars, any nonresident prime contractor, as defined in R.S. 47:9(A)(2),13
required to be registered in accordance with the provisions of R.S. 47:9(A)(1)14
shall:15
* * *16
(3) Within thirty days of the completion and acceptance of the contract17
project, the prime contractor shall submit to the department, on a form provided or18
approved by the department, a complete and accurate accounting of all state sales19
and use taxes which became due as a result of the contract for all contracts20
required to be registered in accordance with the provisions of R.S. 47:9(A)(1).21
In the event that there are additional taxes due, they shall be submitted with the22
accounting.23
* * *24
§337.18. Returns and payment of tax; penalty for absorption25
* * *26
C. Registration by nonresident prime contractor. (1) Prior to commencing27
work on any construction contract which in the aggregate exceeds three fifty28
thousand dollars, any nonresident prime contractor, as defined in R.S. 47:9(A)(2),29 SB NO. 458
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
required to be registered in accordance with the provisions of R.S. 47:9(A)(1)1
shall:2
* * *3
(3) Within thirty days of the completion and acceptance of the contract4
project, the prime contractor shall submit to the Department of Revenue, on a form5
provided or approved by the department, a complete and accurate accounting of all6
state sales and use taxes which became due as a result of the contract for all7
contracts required to be registered in accordance with the provisions of R.S.8
47:9(A)(1). In the event that there are additional local taxes due, the contractor shall9
submit a copy of the accounting and the additional tax due to the taxing authority.10
* * *11
Section 2. This Act shall become effective upon signature by the governor or, if not12
signed by the governor, upon expiration of the time for bills to become law without signature13
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If14
vetoed by the governor and subsequently approved by the legislature, this Act shall become15
effective on the day following such approval.16
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Angela Lockett De Jean.
DIGEST
Present law provides that nonresident contractors and subcontractors who engage in,
prosecute, follow or carry on contracting business in this state shall register with the
Department of Revenue (DOR) for each contract where the total contract price or
compensation to be received exceeds $3,000.00.
Proposed law provides that such nonresident contractors and subcontractors may be required
to register with the (DOR) for each contract where the total contract price or compensation
to be received exceeds $50,000.00 as provided by rule.
Present law provides that all such fees received by the DOR shall be deposited with the state
treasurer. The state treasurer shall thereupon credit the amount of the fee to the State
General Fund.
Proposed law removes these requirement from present law.
Effective August 15, 2010.
(Amends R.S. 47:9(A)(1), 306(D)(1) (intro para) and 306(D)(3), and 337.18(C)(1)(intro
para) and 337.18(C)(3))