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Regular Session, 2012
SENATE BILL NO. 542
BY SENATORS WALSWORTH AND ALARI O
ECONOMIC DEVELOPMENT. Authorizes state sales and use tax rebate contracts for
certain businesses. (7/1/12)
AN ACT1
To enact Chapter 3 of Subtitle VII of Title 47 of the Louisiana Revised Statutes of 1950, to2
be comprised of R.S. 47:6301, relative to rebates; to authorize contracts for certain3
sales and use tax rebates; to provide for definitions, requirements, and limitations;4
to provide for the amount, approval, and issuance of rebates; to authorize the5
promulgation of rules and regulations; to provide for an effective date; and to6
provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Chapter 3 of Subtitle VII of Title 47 of the Louisiana Revised Statutes of9
1950, comprised of R.S. 47:6301, is hereby enacted to read as follows: 10
ยง6301. Rebates; contracts for certain sales and use tax rebates11
A. Definitions. For purposes of this Section, the following words shall12
have the following meanings unless the context clearly indicates otherwise:13
(1) "Department" shall mean the Department of Revenue.14
(2) "New taxable sales" shall mean the sale of goods and services upon15
which tax is paid under Title 47 of the Louisiana Revised Statutes of 1950, and16
which occur in the state as a result of the operation in the state of a17 SB NO. 542
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procurement processing company.1
(3) "Procurement processing company" means a company engaged in2
managing the activities of unrelated purchasing companies.3
(4) "Purchasing company" means a company engaged in the activity of4
selling property and services to affiliated entities.5
(5) "Secretary" shall mean the secretary of the Department of Revenue.6
B. Contract. The secretary of the Department of Economic Development7
is authorized to enter into a contract with a procurement processing company8
to recruit to Louisiana, purchasing companies that generate sales of items9
subject to the taxes imposed under this Title. The contract shall be determined10
by the governor to be in the best interest of the state. The initial term of a11
contract shall not exceed twenty years. The contract shall provide an incentive12
to the procurement processing company which shall be paid in the form of a13
rebate of a portion of the state sales and use taxes collected on new taxable sales14
by a purchasing company which is managed by a procurement processing15
company.16
C. Certification of sales. The secretary of the department shall17
determine the amount of incentive rebates to be paid to a procurement18
processing company pursuant to the contract. Rebate payments shall be based19
upon the amount of new taxable sales which are certified by the secretary.20
D. Payment of rebate. Notwithstanding any provision of law to the21
contrary, the secretary of the department shall make the rebate authorized22
pursuant to the provisions of this Section from the current collections of the23
taxes imposed by this Title.24
E. The Department of Revenue may promulgate rules and regulations25
in accordance with the provisions of the Administrative Procedure Act as are26
necessary to implement the provisions of this Section.27
Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor28
and subsequently approved by the legislature, this Act shall become effective on July 1,29 SB NO. 542
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2012, or on the day following such approval by the legislature, whichever is later.1
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Proposed law authorizes the secretary of the Dept. of Economic Development (DED) to
enter into a contract with a procurement processing company to recruit to La., purchasing
companies that generate sales of items subject to the taxes imposed under present law. The
contract shall provide an incentive to the procurement processing company which shall be
paid in the form of a rebate of a portion of the state sales and use taxes collected on new
taxable sales by a purchasing company which is managed by a procurement processing
company. The initial term of a contract shall not exceed 20 years.
Proposed law defines a "procurement processing company" as a company engaged in
managing the activities of unrelated purchasing companies. Further defines "new taxable
sales" as sales of goods and services upon which tax is paid under present law and which
occur in the state as a result of the operation in the state of a procurement processing
company.
Proposed law requires the contract to be determined by the governor to be that which is in
the best interest of the state.
Proposed law requires the secretary of the DED to determine the amount of incentive rebates
to be paid to a procurement processing company pursuant to the contract. Further requires
rebate payments to be based on the amount of new taxable sales which are certified by the
secretary of DED.
Proposed law requires Dept. of Revenue (DOR) to pay the rebate from the current
collections of the taxes imposed by present law.
Proposed law authorizes DOR to promulgate rules and regulations in accordance with the
APA as are necessary to implement the provisions of proposed law.
Effective July 1, 2012.
(Adds R.S. 47:6301)