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ACT No. 421
Regular Session, 2013
HOUSE BILL NO. 456
BY REPRESENTATIVE ROBIDEAUX
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To enact the Louisiana Tax Delinquency Amnesty Act of 2013; to provide for definitions;2
to require the Department of Revenue to establish a tax amnesty program as provided3
for in this Act; to provide for terms and conditions of the program; to provide for the4
disposition of the monies collected pursuant to the tax amnesty program; to provide5
for an effective date; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. This Act shall be known as and may be cited as the "Louisiana Tax8
Delinquency Amnesty Act of 2013". 9
Section 2. Definitions. As used in this Act, the following terms have the meaning10
ascribed to them in this Section, except when the context clearly indicates otherwise:11
(1) "Courier" means a messenger other than the United States Postal Service that12
delivers parcels, packages, and the like, containing returns, reports, and other documents or13
payments.14
(2) "Department" means the Department of Revenue.15
(3) "Postmark" means an official mark made by the United States Postal Service on16
a piece of mail to cancel the stamp and to indicate the place and date of sending.17
(4) "Tax period" means any period for which a tax return is required by law to be18
filed with the department.19
(5) "Taxpayer" means any individual or entity subject to any tax imposed by any law20
of the state of Louisiana, payable to the state of Louisiana, and collected by the department.21
Section 3.(A) The department shall develop and implement a tax amnesty program22
in accordance with the provisions of this Act. The secretary shall provide by regulation as23
necessary for the administration and implementation of this amnesty program. The secretary24
shall publicize the tax amnesty program in order to maximize the public awareness of and25 ENROLLEDHB NO. 456
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participation in the program. The secretary may, for purpose of publicizing the tax amnesty1
program, contract with any advertising agency within or outside this state and use public2
service announcements, pamphlets, mail notices, and print, television, and radio3
announcements. Such publications shall include increasing public awareness that the tax4
amnesty program will provide amnesty for sales and use tax due on internet, mail order, or5
other purchases made from out-of-state vendors for which Louisiana sales or use tax was not6
charged at the time of purchase. In furthering the collections of amnesty, the secretary may7
procure amnesty program administration services on a fee basis; however, the fee shall not8
exceed ten percent of the total dollars collected.9
(B) The amnesty program shall be effective for a period of at least two months10
duration in 2013 occurring prior to December 31, 2013; for a period of at least one month11
in 2014, occurring between July 1, 2014 and December 31, 2014; and for a period of at least12
one month in 2015, occurring between July 1, 2015, and December 31, 2015; all at the13
discretion of the secretary. The tax amnesty program shall apply to all taxes administered14
by the department except for motor fuel taxes and penalties for failure to submit information15
reports that are not based on an underpayment of tax.16
(C) Notwithstanding the terms or provisions of any other Act or other provisions of17
law to the contrary, and except as provided in Subsection (B), the following taxes are18
eligible for amnesty:19
(1) Taxes due prior to January 1, 2013, for which the department has issued an20
individual or a business proposed assessment, notice of assessment, bill, notice, or demand21
for payment not later than May 31, 2013; or22
(2) Taxes for taxable periods that began before January 1, 2013; or23
(3) Taxes for which the taxpayer and the department have entered into an agreement24
to interrupt the running of prescription pursuant to R.S. 47:1580 and said agreement25
suspends the running of prescription until December 31, 2013.26
(D) Participation in the amnesty program shall be conditioned upon the agreement27
of the taxpayer that the right to protest or initiate an administrative or judicial proceeding is28
barred. The agreement shall only apply to the specific tax and the tax period for which29
amnesty is granted.30
(E) Amnesty for matters under examination and in litigation. 31 ENROLLEDHB NO. 456
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(1) Taxpayers involved in field audits or litigation that participate in an amnesty1
program shall agree to abide by the department's interpretation of the law with respect to2
issues involved in the audit or litigation resolved through amnesty for all taxable periods3
beginning in 2014, 2015, and 2016 for the taxpayers participating in the 2013 amnesty4
period; for all taxable periods beginning on 2015, 2016, and 2017 for taxpayers participating5
in the 2014 amnesty period; and for all taxable periods beginning on 2016, 2017, and 20186
for taxpayers participating in the 2015 amnesty period. Taxpayers shall agree to abide by7
the department's interpretation of the law at the time the returns for these periods are filed.8
Failure to abide by the department's interpretation of the law for these periods shall subject9
the taxpayer to the negligence penalty under R.S. 47:1604.1.10
(2) Taxpayers involved in litigation that elect to participate in amnesty shall agree11
to pay all applicable attorney fees pursuant to R.S. 47:1512 and their own costs of litigation.12
(3) Taxpayers electing to participate in amnesty who have paid under protest and13
filed suit in accordance with R.S. 47:1576 shall agree that upon approval of their amnesty14
application, the department shall release their payment from escrow and apply it in15
accordance with the grant of amnesty. Any refunds resulting from the application of the16
payment shall be made in accordance with Subsection (J) of this Section. The application17
for amnesty shall be subject to the provisions of Paragraphs (1) and (2) of this Subsection.18
(F) Taxpayers with existing liens on their property, both movable and immovable,19
filed pursuant to R.S. 47:1577, as well as taxpayers the department has initiated proceedings20
against under the assessment and distraint procedure pursuant to R.S. 47:1569 through 157321
are eligible for amnesty; however, taxpayers are required to pay any and all lien fees22
associated with the tax periods for which amnesty is applied for.23
(G) Amnesty will be granted only for eligible taxes to eligible taxpayers who apply24
for amnesty during an amnesty period on forms prescribed by the secretary and who pay all25
of the tax, all fees and costs, if applicable, and any interest due upon filing the amnesty26
application. The amnesty application for taxpayers involved in field audits or litigation shall27
include all issues and all eligible periods involved in the audit or litigation. The secretary28
shall reserve the right to require taxpayers to file tax returns with the amnesty application.29
Notwithstanding the terms or provisions of any other Act or other provisions of law to the30
contrary, if the amnesty application is approved during the 2013 amnesty period the31 ENROLLEDHB NO. 456
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secretary shall waive one-half of the interest and all of the penalties associated with the tax1
periods for which amnesty is applied. If the amnesty application is approved during the 20142
amnesty period, the secretary shall waive fifteen percent of all of the penalties associated3
with the tax periods for which amnesty is applied, but no interest shall be waived. If the4
amnesty application is approved during the 2015 amnesty period, the secretary shall waive5
ten percent of all of the penalties associated with the tax periods for which amnesty is6
applied, but no interest shall be waived. An amnesty payment or application submitted in7
a properly addressed envelope with sufficient postage delivered by the United States Postal8
Service is deemed paid or received on the date it is postmarked. An amnesty payment or9
application delivered by courier or taxpayer is deemed paid or received on the date it is10
delivered to the department's headquarters or a regional office. No installment agreements11
will be entered into for tax periods that are approved for amnesty.12
(H) Ineligible taxpayers. Amnesty shall not be granted to taxpayers who are parties13
to any criminal investigation or criminal litigation in any court of the United States or the14
state of Louisiana pending on the effective date of this Act for nonpayment, delinquency, or15
fraud in relation to any state tax imposed by a law of the state of Louisiana and administered16
by the department. Further, a taxpayer who delivers or discloses any false or fraudulent17
application, document, return, or other statement to the department in connection with an18
amnesty application shall be ineligible for amnesty and shall be subject to the fraud penalty19
under R.S. 47:1604 or a penalty of ten thousand dollars, whichever is greater. 20
(I) Amnesty applications shall include a written waiver of all rights, restrictions, and21
delays for assessing, collecting, or protesting taxes and interest due as set forth in R.S.22
47:1562 through 1565 and 1576. The filing of such applications shall make the tax, interest,23
and penalty immediately due and payable; subject to the distraint procedure provided for in24
Title 47 of the Louisiana Revised Statutes of 1950; ineligible for refund, credit, or claim25
against the state; and ineligible for redetermination under the provisions of R.S. 47:1565(C);26
however, a taxpayer shall be eligible for a refund or credit if the overpayment arises after the27
amnesty application is submitted and is attributable to a properly claimed Louisiana net28
operating loss or attributable to an adjustment made by the Internal Revenue Service to the29
taxpayer's federal income tax, and the taxpayer provides notice of the adjustment to the30
secretary within sixty days of receipt of the adjustment from the Internal Revenue Service.31 ENROLLEDHB NO. 456
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A taxpayer who files an application for amnesty retains all administrative and judicial rights1
of appeal with respect to any additional tax assessed by the department.2
(J) No interest shall be paid on refunds for those amounts previously collected by3
the department from the taxpayer for a tax period for which amnesty is granted.4
(K) Post amnesty collection penalty. If, following the termination of the tax amnesty5
period, the secretary issues a deficiency assessment for a period for which amnesty was6
taken, the secretary shall have the authority to impose penalties and institute civil7
proceedings or criminal proceedings as authorized by law only with respect to the difference8
between the amount shown on the amnesty application and the correct amount of tax due.9
The secretary may by regulation impose after the expiration of the tax amnesty period a cost10
of collection penalty not to exceed twenty percent of any additional deficiency assessed for11
any taxable period for which amnesty was taken. This penalty shall be in addition to all12
other applicable penalties, fees, or costs. The secretary shall have the right to waive any or13
all of the collection penalty when it is demonstrated that any of the deficiency of the14
taxpayer was not due to negligence, intentional disregard of administrative rules and15
regulations, or fraud. The imposition of penalties or civil proceedings or criminal16
proceedings shall not invalidate the amnesty that was previously granted. No penalty shall17
be imposed if the deficiency results from an adjustment made by the Internal Revenue18
Service to the taxpayer's federal income tax and the taxpayer provides written notice of the19
adjustment to the secretary within sixty days of receipt of the adjustment from the Internal20
Revenue Service, or if the taxpayer's application for amnesty was based on a proposed21
assessment or notice of assessment.22
(L)(1) For taxable periods beginning on or after January 1, 2014, and before23
December 31, 2019, taxpayers that participate in the 2013 amnesty and later fail to comply24
with any payment and filing provision administered by the secretary shall be subject to the25
negligence penalty under R.S. 47:1604.1 or a penalty of one hundred dollars, whichever is26
greater.27
(2) For taxable periods beginning on or after January 1, 2015, and before December28
31, 2020, taxpayers that participate in the 2014 amnesty and later fail to comply with any29
payment or filing provision administered by the secretary shall be subject to the negligence30
penalty under R.S. 47:1604.1 or a penalty of one hundred dollars, whichever is greater. 31 ENROLLEDHB NO. 456
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(3) For taxable periods beginning on or after January 1, 2016, and before December1
31, 2021, taxpayers that participate in the 2015 amnesty and later fail to comply with any2
payment or filing provision administered by the secretary shall be subject to the negligence3
penalty under R.S. 47:1604.1 or a penalty of one hundred dollars, whichever is greater.4
Section 4.A. The secretary shall retain from monies collected under this Act an5
amount equal to all penalties waived under this Act, an amount equal to the costs for6
contractual information technology and amnesty program administration services, and an7
amount equal to any collection fees, legal fees, or any other fees the department incurs that8
are associated with granting amnesty. Such monies shall be designated as self-generated9
revenues. Notwithstanding any provision of law to the contrary, amnesty program10
administration services and information technology services to implement amnesty may be11
acquired using the emergency procurement process. The secretary shall also retain an12
amount not to exceed two hundred fifty thousand dollars for advertising expenses from13
monies collected from taxes paid pursuant to this Act. 14
B.(1) After satisfaction of the requirements of Subsection A of this Section, all15
remaining monies collected pursuant to this Act shall be paid into the state treasury. After16
compliance with the requirements of Article VII, Section 9(B) of the Constitution of17
Louisiana relative to the Bond Security and Redemption Fund and prior to any monies being18
placed into the state general fund or any other fund, an amount equal to the remaining19
collections shall be credited by the state treasurer to a special fund hereby created in the state20
treasury to be known as the 2013 Amnesty Collections Fund, hereinafter referred to as21
"fund". The monies in the fund shall be available for appropriation for any public purpose.22
(2) Monies in the fund shall be invested by the state treasurer in the same manner23
as those in the state general fund and interest earned on such investment shall be credited to24
the fund after compliance with the requirements of the Bond Security and Redemption Fund.25
All unexpended and unencumbered monies in the fund at the end of the year shall remain26
in the fund.27
Section 5. This Act shall become effective upon signature by the governor or, if not28
signed by the governor, upon expiration of the time for bills to become law without signature29
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If30 ENROLLEDHB NO. 456
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: