Louisiana House Bill HB565

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Authorizes the Department of Revenue to establish and use an electronic financial institution data match system for purposes of tax collection administration and enforcement

Impact

By enacting HB 565, the Louisiana legislature intends to bolster the state's ability to collect outstanding tax debts effectively. This proposed legislation would allow the Department to contract with financial institutions, facilitating access to necessary account information while maintaining confidentiality and limiting the liability of these institutions. The processes authorized by this bill could potentially enhance the state's revenue collection efforts, reducing the overall number of delinquent accounts.

Summary

House Bill 565 authorizes the Louisiana Department of Revenue to establish an electronic financial institution data match system aimed at improving the enforcement of tax collection from individuals identified as tax debtors. This system will enable the Department to compare personal account information held by financial institutions with a database of tax debtors who have been formally assessed or judged for tax liabilities. The legislation defines several key terms to clarify the framework for this electronic matching system, including definitions for 'account,' 'account holder of interest,' and 'tax debtor.'

Sentiment

The discussion around HB 565 appears to reflect a mixed sentiment among stakeholders. Supporters advocate that this measure is a critical step in improving tax collection efficiency and closing loopholes that allow tax debtors to evade payments. However, there is concern regarding privacy implications and the potential overreach of state power into personal financial matters. The sentiment indicates a balance between the need for efficient tax enforcement and the protection of individual privacy rights.

Contention

Notably, some points of contention related to HB 565 arise from concerns over privacy and the ethical implications of matching financial data without consent. While the bill includes confidentiality provisions to protect account information shared with the Department, critics argue that the equal access to personal financial records may lead to unintended consequences. The negotiation of terms between the Department and financial institutions regarding the sharing and confidentiality of data is likely to be a focal point of ongoing debate as the bill moves forward.