HLS 11RS-957 ORIGINAL
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Regular Session, 2011
HOUSE BILL NO. 544
BY REPRESENTATIVE ROSALIND JONES
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/SALES & USE: Provides with respect to the definition of "dealer" for state sales and
use tax
AN ACT1
To enact R.S. 47:301(4)(m), relative to sales and use tax; to provide with respect to dealers;2
to provide for certain definitions; to provide a method for reporting and remitting3
taxes by certain dealers; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:301(4)(m) is hereby enacted to read as follows: 6
ยง301. Definitions7
As used in this Chapter the following words, terms, and phrases have the8
meaning ascribed to them in this Section, unless the context clearly indicates a9
different meaning:10
* * *11
(4) "Dealer" includes every person who manufactures or produces tangible12
personal property for sale at retail, for use, or consumption, or distribution, or for13
storage to be used or consumed in a taxing jurisdiction. "Dealer" is further defined14
to mean:15
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(m)(i) Any person who sells the same or substantially similar line of17
products as a Louisiana retailer under the same or substantially similar business18
name, or the facilities or employees of the Louisiana retailer are used to advertise or19
promote sales by the person to Louisiana purchasers, or are used to facilitate returns,20 HLS 11RS-957 ORIGINAL
HB NO. 544
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issuance of refunds or credits, or adjustments on property sold by the person. The1
provisions of this Subparagraph apply to any person who holds a substantial2
ownership interest, directly or through a subsidiary, in a retailer maintaining sales3
locations in Louisiana; or to any person who is owned in whole or in substantial part4
by a retailer maintaining sales locations in Louisiana, or by a parent or subsidiary5
thereof.6
(ii) For the purposes of this Subparagraph, "substantial ownership interest"7
in an entity means that degree of ownership of equity interests in an entity that is not8
less than that degree of ownership specified by Section 267 of the Internal Revenue9
Code of 1986, as in effect on January 1, 2001, with respect to a person other than a10
director or officer.11
(iii) A dealer, as defined in and for purposes of this Subparagraph, shall file12
tax returns and remittances to the state through the electronic filing option available13
on the Department of Revenue website, which shall be the central filing and14
collection point for both state and local sales and use taxes for such dealer.15
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Rosalind Jones HB No. 544
Abstract: Expands the definition of "dealer" to include persons who have certain
substantial relationships and similarities with La. retailers.
Present law provides various definitions of "dealer" with respect to sales and use tax law.
Proposed law retains present law but expands the definition of "dealer" to include a person
who sells the same or substantially similar line of products as a Louisiana retailer under the
same or substantially similar business name, or the facilities or employees of the Louisiana
retailer are used to advertise or promote sales by the person to Louisiana purchasers, or are
used to facilitate returns, issuance of refunds or credits, or adjustments on property sold by
the person. Further provides that proposed law applies to a person who:
(1)Holds a substantial ownership interest, directly or through a subsidiary, in a retailer
maintaining sales locations in La.; or
(2)Is owned in whole or in substantial part by a retailer maintaining sales locations in
La., or by a parent or subsidiary thereof. HLS 11RS-957 ORIGINAL
HB NO. 544
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Proposed law defines "substantial ownership interest".
Proposed law requires persons who meet the definition of a dealer under proposed law to file
tax returns and remittances to the state through the electronic filing option available on the
Dept. of Revenue website, which shall be the central filing and collection point for both state
and local sales and use taxes for such dealers.
(Adds R.S. 47:301(4)(m))