HLS 12RS-1617 ORIGINAL
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 1076
BY REPRESENTATIVE SEABAUGH
REVENUE/TAXATION DEPT: Requires that charges imposed by collection contractors
for the collection of taxes due the Dept. of Revenue be deducted from the total
amount of money collected from a tax debtor
AN ACT1
To amend and reenact R.S. 47:1516(B) and 1516.1(C), relative to the collection of taxes; to2
provide relative to the charges a collection contractor imposes for the collection of3
taxes, interest, penalties, or fees due the Department of Revenue; to prohibit a4
collection contractor from collecting an additional charge from a tax debtor; to5
require that such charge be deducted from the monies collected from a tax debtor;6
to provide for an effective date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 47:1516(B) and 1516.1(C) are hereby amended and reenacted to read9
as follows:10
§1516. Out-of-state debt collection 11
* * *12
B. The secretary shall enter into such contracts only with respect to the13
collection of obligations that have become collectible by distraint and sale, as14
provided by this Chapter, from debtors whose identifiable assets subject to distraint15
in Louisiana, are insufficient to satisfy the obligations owed. The contracts shall16
provide, at the discretion of the secretary, the rate of payment and the manner in17
which compensation for services shall be paid. The tax debtor shall pay the full18
amount of any additional charge for collection of any taxes, penalties, or interest19 HLS 12RS-1617 ORIGINAL
HB NO. 1076
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
imposed by a collection contractor shall be paid from the total amount of taxes,1
penalties, or interest collected by the collection contractor from the tax debtor. No2
additional charge for the collection of any taxes, penalties, or interest shall be paid3
by a tax debtor to a collection contractor which are referred to a collection4
contractor.5
* * *6
§1516.1. In-state debt collection7
* * *8
C. The tax debtor shall pay the full amount of any additional charge for the9
collection of any taxes, interest, penalties, or fees imposed by a collection contractor10
shall be paid from the total amount of taxes, interest, penalties, or fees collected by11
the collection contractor from the tax debtor. No additional charge for the collection12
of any taxes, interest, penalties, or fees shall be paid by a tax debtor to a collection13
contractor. If an account is referred to a collection contractor, the additional charge14
shall be paid to the by the Department of Revenue from the total amount of monies15
collected by the collection contractor from the tax debtor.16
* * *17
Section 2. This Act shall become effective on July 1, 2012, and shall be applicable18
for all debt collection contracts entered into by the secretary of the Department of Revenue19
on and after such date.20
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)]
Seabaugh HB No. 1076
Abstract: Requires that charges imposed by a collection contractor in collecting in-state
and out-of-state taxes due the Dept. of Revenue be deducted from the total amount
of money collected from the tax debtor.
Present law authorizes the secretary of the Dept. of Revenue (DOR) to facilitate the in-state
and out-of-state collection of taxes, interest, and penalties due to DOR by entering into
contracts with collection contractors for the purpose of debt collection. HLS 12RS-1617 ORIGINAL
HB NO. 1076
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Present law defines a "collection contractor", for purposes of out-of-state debt collection,
as one or more private persons, companies, associations, or corporations which provide debt
collection services. For purposes of in-state debt collection, a "collection contractor" shall
additionally include the attorney general.
Present law requires the tax debtor to pay the full amount of any additional charge for
collection of any taxes, penalties, or interest (and fees for in-state debt collection) which are
referred to a collection contractor. Further requires that if an account is referred to a
collection contractor, the additional charge shall be paid to the collection contractor.
Proposed law changes present law by requiring the full amount of any additional charge for
the collection of any taxes, interest, penalties (and fees for in-state debt collection) imposed
by a collection contractor to be paid from the total amount of monies collected by the
collection contractor from the tax debtor. Further prohibits a tax debtor from being charged
an additional fee for the collection of any taxes, interest, penalties (and fees for in-state debt
collection) by the collection contractor.
Proposed law provides that the additional charge of the collection contractor shall be paid
by the department from the total amount of monies collected by the collection contractor.
Effective July 1, 2012, and shall be applicable for all debt collection contracts entered into
by the secretary of the Dept. of Revenue on and after such date.
(Amends R.S. 47:1516(B) and 1516.1(C))