Page 1 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010 ENROLLED
SENATE BILL NO. 567
BY SENATOR MORRISH AND REPRESENTATIVES HENRY AND HINES
AN ACT1
To amend and reenact R.S. 47:305.20(G), 337.45(A), 337.51(A) and (B), 337.63(A) and2
(D), and 337.81(A), to enact R.S. 47:337.10(N), 337.51.1, and 337.67(C)(3), relative3
to the sales and use tax of political subdivisions of the state; to provide for a4
procedure for mandatory arbitration of issues related to the collection or refund of5
such tax; to authorize local taxing authorities to grant an exemption and refunds for6
commercial fishermen; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 47:305.20(G) is hereby amended and reenacted and R.S.9
47:337.10(N) is hereby enacted, to read as follows:10
§305.20. Exclusions and exemptions; Louisiana commercial fishermen11
* * *12
G.(1) Except as provided for in Paragraph (2) of this Subsection, this13
This exemption applies only to sales and use tax imposed by the state of Louisiana14
and does not apply to such taxes authorized and levied by any school board,15
municipality, or other local taxing authority notwithstanding any other provision of16
law to the contrary, specifically but not exclusively R.S. 33:2716.1 R.S. 47:17
337.8(B).18
(2) However, the governing authority of any parish, school board,19
municipality, or other local taxing authority may by ordinance or resolution20
grant the exemption provided for in this Section. In addition, such taxing21
authority may authorize refunds of any tax paid prior to the effective date of22
ACT No. 1003 SB NO. 567 ENROLLED
Page 2 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
such ordinance or resolution on transactions exempted by this Section.1
* * *2
§337.10. Optional exclusions and exemptions3
* * *4
N. As provided for in R.S. 47:305.20(G)(2), the governing authority of5
any parish, school board, municipality, or other local taxing authority may, by6
ordinance or resolution grant the exemption provided for in R.S. 47:305.20. In7
addition, such taxing authority may authorize refunds of any tax paid prior to8
the effective date of such ordinance or resolution on transactions exempted by9
that Section.10
* * *11
Section 2. R.S. 47:337.45(A), 337.51(A) and (B), 337.63(A) and (D), and 337.81(A)12
are hereby amended and reenacted and R.S. 47:337.51.1 and 337.67(C)(3) are hereby13
enacted to read as follows:14
§337.45. Alternative remedies for the collection of taxes15
A. In addition to following any of the special remedies provided in this16
Chapter, the collector may, in his discretion, proceed to enforce the collection of any17
taxes due under the local ordinance by means of any of the following alternative18
remedies or procedures:19
(1) Assessment and distraint, as provided in R.S. 47:337.48 through 337.60;20
provided that a taxpayer may utilize the mandatory arbitration procedure21
provided for in R.S. 47:337.51.1.22
(2) Summary court proceeding, as provided in R.S. 47:337.61.23
(3) Ordinary suit under the provisions of the general laws regulating actions24
for the enforcement of obligations.25
* * *26
§337.51. Notice of assessment and right to appeal or arbitration27
A. Having assessed the amount determined to be due, the collector shall send28
a notice by certified mail to the taxpayer against whom the assessment is imposed29
at the address given in the last report filed by said taxpayer, or to any address30 SB NO. 567 ENROLLED
Page 3 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
obtainable from any private entity which will provide such address free of charge or1
from any federal, state, or local government entity, including but not limited to the2
United States Postal Service or from the United States Postal Service certified3
software. If no report has been timely filed, the collector shall send a notice by4
certified mail to the taxpayer against whom the assessment is imposed at any address5
obtainable from any private entity which will provide such address free of charge or6
from any federal, state, or local government entity, including but not limited to the7
United States Postal Service or from the United States Postal Service certified8
software. This notice shall inform the taxpayer of the assessment and that he has9
sixty thirty calendar days from the date of the notice to (a) pay the amount of the10
assessment; (b) request a hearing with the collector request mandatory arbitration11
pursuant to R.S. 47:337.51.1 or; (c) pay under protest in accordance with R.S.12
47:337.63 and file suit as provided for in that Section or request mandatory13
arbitration pursuant to R.S. 47:337.51.1.14
B. If any dealer shall be aggrieved by any findings or assessment of the15
collector, he may, within thirty days of the receipt of notice of the assessment or16
finding, do any of the following:17
(1)(a) File a protest with the collector in writing, signed by himself or his18
duly authorized agent, which shall be under oath and shall set forth the reason19
therefor, and may request a hearing. Thereafter, the collector shall grant a hearing20
to said dealer, if a hearing has been requested, and may make any order confirming,21
modifying or vacating any such finding or assessment. The filing of any such protest22
shall not abate any penalty for nonpayment, nor shall it stay the right of the taxing23
authority to collect the tax in any manner herein provided. Appeals an appeal from24
the decision of the collector shall be directed to any state, city, or federal court of25
competent jurisdiction.26
(b) Pay under protest in accordance with R.S. 47:337.63, and either file27
suit as provided for in that Section, or make a written request for mandatory28
arbitration pursuant to R.S. 47:337.51.1.29
(c) Mail a written request for mandatory arbitration pursuant to R.S.30 SB NO. 567 ENROLLED
Page 4 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
47:337.51.1 without payment under protest.1
(2) This Section shall afford a legal remedy and right of action in any state,2
city, or federal court having jurisdiction of the parties and subject matter for a full3
and complete adjudication of any and all questions arising in the enforcement of the4
local ordinance and this Chapter as to the legality of any tax accrued or accruing or5
the method of enforcement thereof.6
* * *7
§337.51.1. Mandatory arbitration procedure8
A.(1) Any taxpayer who receives an assessment in accordance with R.S.9
47:337.48(B) resulting from an audit or whose request for a refund of such tax,10
penalty, and/or interest has been denied by a collector, may, in lieu of other11
remedies provided to him in this Chapter, timely initiate a mandatory12
arbitration proceeding in accordance with the provisions of this Section by13
mailing to the collector who is attempting to collect the tax, penalty, and/or14
interest a written request for mandatory arbitration.15
(2) A proper, timely mailed request for mandatory arbitration shall16
suspend any collection action by the collector, and shall suspend the running of17
any prescription or other time limit or requirement to act in any provision of18
law or ordinance until the arbitration panel provided for in this Section has19
issued a final written decision, including but not limited to the time to respond20
to an ordinary suit; any remedy provided for in R.S. 47:337.45; a rule to cease21
business in R.S. 47:337.33; a payment under protest in R.S. 47:337.63; or22
auditing, examining or subpoena authority in R.S. 47:337.41, 337.42, and23
337.43.24
B.(1)(a) Upon receipt of the notification of the request for arbitration,25
the collector shall provide written notification to the secretary of the26
Department of Revenue and the Executive Director of the Louisiana Association27
of Tax Administrators of the pending arbitration proceeding.28
(b)(i) The taxpayer and the collector shall each select one arbitrator from29
the registry of arbitrators provided for in Subparagraph (d) of this Paragraph30 SB NO. 567 ENROLLED
Page 5 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
within ten days of receipt of the notification of the request for arbitration. The1
two arbitrators selected shall then jointly agree on a third arbitrator to2
complete a panel of three. The arbitrators shall then select one of the three as3
a chief arbitrator.4
(ii) If the two arbitrators selected are unable to jointly agree on a third5
arbitrator to complete the panel, they shall select one of themselves to be the6
chief arbitrator and may proceed with the arbitration, except that the decision7
of the panel must be agreed to by both arbitrators.8
(iii) An arbitrator selected by either party may not have had any9
business relationship with either party within the last five years or at the time10
of selection be engaged in negotiations or other contacts with either party11
relative to entering into such a business relationship.12
(c) In the event a taxpayer or a collector fails or refuses to comply with13
the arbitration procedure within the time periods provided for in this14
Subsection, plus any additional time as may be granted upon request by such15
party, the other party may appoint an arbitrator on behalf of such failing or16
refusing party.17
(d)(i) Arbitrators for the panel shall be selected from the registry of18
arbitrators compiled in accordance with this Subsection.19
(ii) The Board of Directors of the Louisiana Association of Tax20
Administrators shall annually appoint not less than ten arbitrators to the21
registry, each of whom shall be board certified tax administrators. In the event22
there are fewer than ten certified tax administrators available for such23
appointment, the board of directors may select any local sales tax administrator24
with at least five years experience in sales and use tax, provided such local sales25
tax administrator is not a party to the arbitration proceeding.26
(iii) The Business and Industry Committee of the Louisiana Association27
of Tax Administrators, the Louisiana Association of Business and Industry, and28
the Society of Louisiana CPAs jointly shall appoint not less than ten arbitrators29
to the registry, each of whom shall possess at least five years of experience in the30 SB NO. 567 ENROLLED
Page 6 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
area of sales and use tax.1
(2)(a) After his selection, the chief arbitrator shall provide a written2
request to the taxpayer and the collector for the submission of a detailed3
statement of fact or law in support of their positions and such other documents4
as the parties deem necessary, which are to be provided to each member of the5
panel and to the other party within thirty days of the date of the request.6
(b) The chief arbitrator shall then designate a time and place for a7
hearing, unless a hearing is specifically waived in writing by both parties.8
(c) All records, documentation, testimony, and other submissions related9
to the arbitration proceeding shall be subject to the provisions of R.S. 47:150810
et seq.11
(3)(a)(i) After due consideration of the statements and documents12
provided to the panel, and any additional submissions required by the panel,13
and argument and evidence submitted at the hearing, the panel shall issue a14
written decision.15
(ii)(aa) Decisions of the panel relating to common sales tax law as defined16
in R.S. 47:337.2(C)(1)(b) shall require consultation with the Department of17
Revenue prior to the rendering or issuance of the decision.18
(bb)(I) Unless the panel is composed of two members as provided for in19
Item (1)(b)(ii) of this Subsection and therefore requires both members to agree20
on a decision, the decision shall be the opinion of at least a majority of the21
panel; provided that any dissenting panel member may submit reasons for22
dissent from the majority. The decision shall be rendered within sixty days of23
the conclusion of the hearing, or within sixty days of timely receipt of the24
statements and documents in the absence of a hearing.25
(II) A written statement to the taxpayer and the collector by a panel26
composed of two members as provided for in Item (1)(b)(ii) of this Subsection27
of its inability to agree on a decision shall be treated as a decision of the panel28
for purposes of this Section.29
(4) The parties to the arbitration proceeding provided for in this Section30 SB NO. 567 ENROLLED
Page 7 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
shall share equally in the cost of such proceeding, provided that each party shall1
bear its own respective costs of providing the necessary documentation,2
witnesses, travel, or other costs and expenses of the arbitration proceeding.3
(5)(a) The decision of the panel shall be in writing and shall state the4
legal and factual reasons upon which the decision is based.5
(b) A copy of the decision shall be sent to the taxpayer, the collector, the6
Executive Director of the Louisiana Association of Tax Administrators, and the7
secretary of the Department of Revenue.8
C.(1)(a) The decision of the panel may be appealed by the collector or the9
taxpayer within thirty calendar days after the decision has been rendered and10
signed by filing a petition with the district court of the parish in which the11
political subdivision is located with a copy of the arbitration panel's decision12
attached and setting forth specifically any errors which may have been13
committed by the arbitration panel in reaching its decision.14
(b) If the decision of the arbitration panel has found any tax, interest, or15
penalty to be due, and the taxpayer has not paid under protest as provided for16
in R.S. 47:337.63, the taxpayer shall post bond, with surety approved by the17
district court conditioned upon the payment of the tax as finally determined,18
together with any interest, additional amounts or additions to the tax provided19
for by law, payable to the collector, in an amount not to exceed one and one-half20
times the amount of the tax, interest, and penalty found to be due in the decision21
of the arbitration panel, and the posting of such bond shall be a condition22
precedent to any appeal for review in any district court.23
(2) The appeal of the decision of the arbitration panel shall be a trial de24
novo; however, a court may consider the decision of the arbitration panel in25
rendering its decision on the appeal. The judgment of any such court shall be26
subject to further appeal, suspensive only, in accordance with law. If a27
suspensive appeal is taken from a judgment of the district court no further bond28
need be posted and the bond originally posted remains in full force and effect29
to guarantee the payment of any tax, interest, and penalty until final decision30 SB NO. 567 ENROLLED
Page 8 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
of the court.1
(3)(a) If a decision of the arbitration panel is not appealed as provided2
for in this Section within thirty calendar days after the decision has been3
rendered and signed by the panel, it shall be binding on the parties. If it4
contains a finding that the taxpayer is liable for the payment of an amount of5
tax, interest, and penalty, such amount, if not in escrow pursuant to R.S.6
47:337.63, shall be paid by the taxpayer upon notice and demand from the7
collector, and shall be collectible by distraint and sale, as provided in R.S.8
47:337.57 through 337.60 or any other means provided for in Chapter 2-D of9
Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950.10
(b) When the decision of the arbitration panel which is not appealed11
contains a finding that the taxpayer is entitled to receive a refund or credit of12
an overpayment, the collector shall promptly enter the credit or make the13
refund, as the case may be.14
D. Upon request of a taxpayer and upon proper showing by such15
taxpayer that the principle of law involved in an additional assessment is16
already pending before an arbitration panel pursuant to this Section, the17
taxpayer, upon agreement to abide by the decision of the arbitration panel or18
by a final judgment of a court upon a timely appeal of such decision, may make19
a written request to the collector that the additional assessment be included in20
the pending arbitration matter. If the collector agrees that the principle of law21
involved in the additional assessment is already pending before the arbitration22
panel, then the validity of such assessment shall be determined by the decision23
of the panel or by a final judgment of a court upon a timely appeal of such24
decision.25
* * *26
§337.63. Remittance of tax under protest; suits to recover27
A.(1)(a) Any taxpayer protesting the payment of any amount found due by28
the collector or the enforcement of any provision of law in relation thereto shall29
remit to the collector the amount due and at that time shall give notice of intention30 SB NO. 567 ENROLLED
Page 9 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to file suit for the recovery of such tax or shall remit to the collector the amount1
due and make a written request for mandatory arbitration pursuant to R.S.2
47:337.51.1.3
(b) In the case of sales or use taxes that are required to be collected and4
remitted by a selling dealer as provided for in R.S. 47:337.17, the purchaser, in order5
to avail himself of the alternative remedy provided by this Section, shall remit6
protested sales or use tax to the selling dealer, and shall retain copies of7
documentation evidencing the amount of the sales or use tax paid to the dealer on the8
transactions. On or before the twentieth day of the month following the month of the9
transactions on which the selling dealer charged the tax, the purchaser shall inform10
the collector by certified mail or other reasonable means of the dates and amounts11
of the protested taxes that were charged by the selling dealer, and shall give notice12
of the purchaser's intention to file suit for recovery of the tax or to make a written13
request for mandatory arbitration pursuant to R.S. 47:337.51.1.14
(2) Upon receipt of this notice, the amount remitted to the collector or the15
amount of protested taxes that have been paid to the selling dealer shall be placed in16
an escrow account and held by the collector or his duly authorized representative for17
a period of thirty days. If suit is filed for recovery of the tax or a written request for18
mandatory arbitration is mailed as provided for in R.S. 47:337.51.1 within the19
thirty-day period, the funds in the escrow account shall be further held pending the20
outcome of the suit or the arbitration proceeding or appeal therefrom.21
(3) If the taxpayer prevails, the collector shall refund the amount to the22
claimant, with interest at the rate established pursuant to R.S. 47:337.80.23
* * *24
D. Upon request of a taxpayer and upon proper showing by such taxpayer25
that the principle of law involved in an additional assessment is already pending26
before the courts for judicial determination or before an arbitration panel as27
provided for in R.S. 47:337.51.1, the taxpayer, upon agreement to abide by the28
decision of the courts, an arbitration panel, or by a final judgment of a court29
upon a timely appeal of a decision of an arbitration panel, may remit the30 SB NO. 567 ENROLLED
Page 10 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
additional assessment under protest, but need not file an additional suit or make1
another mandatory arbitration request. In such cases, the tax so paid under2
protest shall be placed in an escrow account and held by the collector until the3
question of law involved has been determined by the courts, an arbitration panel,4
or by a final judgment of a court upon a timely appeal of a decision of an5
arbitration panel, and shall then be disposed of as therein provided.6
* * *7
§337.67. Suspension and interruption of prescription8
* * *9
C. The running of such prescriptive period may also be suspended as follows:10
* * *11
(3) By use of the mandatory arbitration procedure provided for in R.S.12
47:337.51.1.13
* * *14
§337.81. Appeals from the collector's disallowance of refund claim15
A.(1) If the collector fails to act on a properly filed claim for refund or credit16
within one year from the date received by him or if the collector denies the claim in17
whole or in part, the taxpayer claiming such refund or credit may within thirty days18
of the notice of disallowance of the claim request a hearing with the collector for19
redetermination. The collector shall render a decision within thirty days of the20
request by the taxpayer.21
(2) The taxpayer may appeal a denial of a claim for refund to a court of22
competent jurisdiction or mail a written request for mandatory arbitration23
pursuant to R.S. 47:337.51.1. No appeal may be filed or request for arbitration24
made before the expiration of one year from the date of filing such claim unless the25
collector renders a decision thereon within that time, nor after the expiration of26
ninety days from the date of mailing by certified or registered mail by the collector27
to the taxpayer of a notice of the disallowance of the part of the claim to which such28
appeal relates.29
* * *30 SB NO. 567 ENROLLED
Page 11 of 11
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Section 3. The provisions of Section 1 of this Act shall become effective upon1
signature by the governor or, if not signed by the governor, upon expiration of the time for2
bills to become law without signature by the governor, as provided by Article III, Section3
18 of the Constitution of Louisiana.4
Section 4. The provisions of Section 2 of this Act shall become effective on January5
1, 2011.6
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: