SLS 12RS-1806 ORIGINAL
Page 1 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 737
BY SENATOR WHITE
TAX/SALES. Requires certain precollection procedures if a political subdivision denies a
taxpayer certain exemptions as a result of an audit. (gov sig)
AN ACT1
To enact R.S. 47:337.9.1, relative to the sales and use tax of political subdivisions; to require2
certain precollection procedures if a political subdivision denies a taxpayer certain3
exemptions; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:337.9.1 is hereby enacted to read as follows: 6
ยง337.9.1. Precollection procedures for denial of certain exemptions7
Any political subdivision which, as the result of an audit or examination8
of any taxpayer, determines that sales or use tax is due from a taxpayer for9
transactions which the provisions of R.S. 47:305 or 337.9 or any other provision10
of law indicate are exempt from the sales and use tax of political subdivisions11
or are exempt from both the sales and use tax of political subdivisions and of the12
state, shall not attempt to collect any such tax from such taxpayer prior to13
providing the taxpayer with the following:14
(1) An explicit written explanation, including specific legal citations, of15
the basis for denying the taxpayer exemption for transactions which the16
provisions of R.S. 47:305 or 337.9 or any other provision of law indicate are17 SB NO. 737
SLS 12RS-1806 ORIGINAL
Page 2 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
exempt from the sales and use tax of political subdivisions or are exempt from1
both the sales and use tax of political subdivisions and of the state.2
(2) If one of the reasons for denying the taxpayer an exemption pursuant3
to such provisions of law is alleged to be Article VI, Section 29(C) of the4
Constitution of Louisiana, the explicit written explanation provided for in5
Paragraph (1) of this Section shall include all of the following:6
(a) The date on which the bonds secured by the sales and use tax were7
originally authorized.8
(b) The authority pursuant to which such bonds were authorized.9
(c) The date such bonds mature.10
(d) The date or dates upon which such bonds were authorized to be11
reissued.12
(e) How much of the sales and tax that would otherwise be exempted is13
dedicated to securing such bonds.14
Section 2. The provisions of this Act shall apply to any assessment which has not15
become a final assessment before the effective date of this Act.16
Section 3. This Act shall become effective upon signature by the governor or, if not17
signed by the governor, upon expiration of the time for bills to become law without signature18
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If19
vetoed by the governor and subsequently approved by the legislature, this Act shall become20
effective on the day following such approval.21
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Present law in R.S. 47:305 indicates that certain sales tax exemptions are applicable to both
state and local sales tax and R.S. 47:339.9 lists sales tax exemptions in the Chapters of Title
47 which are applicable to local tax.
Present law provides that certain exemptions in R.S. 47:305(D) which were "in existence as
of the effective date of Act 205 of 1978" are applicable to any sales tax levied by any local
governmental subdivision or school board except as otherwise specifically provided in that
Subsection.
Proposed law prohibits any political subdivision which, as the result of an audit or SB NO. 737
SLS 12RS-1806 ORIGINAL
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
examination of any taxpayer, determines that sales tax is due from a taxpayer for
transactions which the provisions of R.S. 47:305 or 337.9 or any other provision of law
indicate are exempt from the sales tax of political subdivisions or are exempt from both the
sales tax of political subdivisions and of the state, from attempting to collect any tax from
such taxpayer prior to providing the taxpayer with the following:
An "explicit written explanation", including specific legal citations, of the basis for denying
the taxpayer exemption for transactions which the provisions of R.S. 47:305 or 337.9 or any
other provision of law indicate are exempt from the sales tax of political subdivisions or are
exempt from both the sales tax of political subdivisions and of the state.
Present constitution in Const. Art. VI, Sec. 29(C) authorizes the legislature to grant
exemptions from local sales tax but provides: "Nothing in this Section shall . . . affect or
impair the security of any bonds payable from the proceeds of the tax".
Proposed law further requires the "explicit written explanation" above to include all of the
following if one of the reasons for denying the taxpayer an exemption pursuant to such
provisions of law is alleged to be Const. Art. VI, Sec. 29(C):
1. The date on which the bonds secured by the sales tax were originally authorized.
2. The authority pursuant to which such bonds were authorized.
3. The date such bonds mature.
4. The date or dates upon which such bonds were authorized to be reissued.
5. How much of the sales tax that would otherwise be exempted is dedicated to
securing such bonds.
Proposed law is applicable to any assessment which has not become a final assessment
before the effective date of the proposed law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 337.9.1)