Louisiana Senate Bill SCR133

Louisiana 2010 Regular Session

• Introduced: 6/18/10
• Passed: 6/18/10
• Engrossed: 6/18/10

Caption

Requests study of whether to require financial institutions doing business in the state to participate in an electronic information matching program with the Department of Revenue for collecting delinquent state tax debt and to study its results.

Impact

The study called for by SCR133 would assess essential legislative changes required for implementation, potentially impacting state laws governing financial institutions and tax collection procedures. By examining how other states have successfully integrated such data matching programs, the resolution aims to provide a roadmap for Louisiana to achieve similar success in improving tax debt recovery. The results of this study could lead to legislative proposals for enacting new regulations or amending existing laws to facilitate this process.

Summary

SCR133 is a Senate Concurrent Resolution that requests a study to determine whether financial institutions doing business in Louisiana should be required to participate in an electronic information matching program with the Department of Revenue. This initiative aims to explore the feasibility and potential revenue increases from collecting delinquent state tax debts through more efficient automated data matching processes. The resolution underscores the need for the state to enhance its revenue collection methods given current budget constraints and seeks to leverage the successes seen in other states with similar programs.

Sentiment

General sentiment surrounding SCR133 appears to support the exploration of innovative solutions for tax debt collection, especially in light of stringent budget conditions. There is an understanding among lawmakers and stakeholders of the necessity for breakthrough approaches to enhance revenue collection. However, there may be underlying concerns regarding the privacy and operational implications for financial institutions mandated to participate in such programs. Stakeholders may be divided on the degree of mandatory participation versus voluntary compliance.

Contention

Notable points of contention include the potential need for legislation to provide the Department of Revenue with the legal authority to enforce participation by financial institutions. There could be debates about the efficacy of mandatory versus voluntary programs and the administrative burden placed on the financial sector. The findings of the joint committee will be crucial in shaping the discussion about the implications for financial institutions and potential costs or benefits associated with the program, making this an important topic for both lawmakers and the public.