HLS 13RS-1062 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 568
BY REPRESENTATIVE GIROD JACKSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/SALES & USE: Creates the Louisiana Sales and Use Tax Commission
AN ACT1
To enact R.S. 36:459(I) and Chapter 2-E of Subtitle II of Title 47, to be comprised of R.S.2
47:401 and 402, relative to the Louisiana Sales and Use Tax Commission; to3
establish the commission within the Department of Revenue; to establish the4
purpose, powers, duties, operations, and authority of the commission; to provide for5
the selection, terms and compensation of commission members; to provide for the6
officers of the commission; to provide an electronic portal for the filing by remote7
sellers of state and local sales and use tax returns; to establish a fiscal agent solely8
for the purpose of remote seller remittances; to provide for the issuance of sales and9
use tax regulations, private letter rulings, revenue rulings, and revenue information10
bulletins with respect to remote sellers; to provide for the audit of remote sellers; to11
provide for the receipt of remote seller protests; to provide for the granting and12
conduct of administrative hearings requested by remote sellers and for related13
matters; and to provide for related matters.14
Be it enacted by the Legislature of Louisiana:15
Section 1. R.S. 36:459(I) is hereby enacted to read as follows:16
§459. Transfer of agencies or their powers to Department of Revenue17
* * *18
I. The Louisiana Sales and Use Tax Commission is placed within the19
Department of Revenue and shall exercise and perform its powers, duties, functions,20 HLS 13RS-1062 ORIGINAL
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and responsibilities as provided for agencies transferred in accordance with the1
provisions of R.S. 36:801.1.2
Section 2. Chapter 2-E of Subsection II of Title 47, comprised of R.S. 47:401 and3
402 is hereby enacted to read as follows:4
CHAPTER 2-E. LOUISIANA SALES AND USE TAX COMMISSION5
§401. Louisiana Sales and Use Tax Commission6
A. The Louisiana Sales and Use Tax Commission, hereinafter referred to as7
"commission", is hereby created and established within the Department of Revenue8
for the administration of the sales and use tax laws of the State of Louisiana and the9
sales and use tax ordinances of local sales and use taxing jurisdictions with respect10
to remote sales. The Commission shall:11
(1) Promote, to the extent feasible and in accordance with law, uniformity12
and simplicity in sales and use tax compliance in Louisiana, while reserving to13
political subdivisions their authority to impose and collect sales and use taxes as14
provided in Article VI, Section 29 of the Constitution of Louisiana and other laws.15
(2) With respect to Senate Bill 336 and House Bill 684 of the 113th United16
States Congress, the "Marketplace Fairness Act of 2013" or such similar federal law17
as may be enacted by the United States Congress authorizing states to require remote18
sellers, except those remote sellers who qualify for the small seller exceptions as19
provided by federal law, to serve as the single entity in Louisiana to require remote20
sellers and their designated agents to collect from customers and remit to the21
commission sales and use taxes on remote sales sourced to Louisiana at the uniform22
Louisiana state and local sales and use tax base established by Louisiana law;23
(a) Provide the minimum tax administration, collection, and payment24
requirements required by federal law with respect to the collection and remittance25
of sales and use tax imposed on remote sales;26
(b) Provide at no expense to remote sellers and their agents software27
programs which may include, but not be limited to, Parish E-File or some other28
electronic system or method to facilitate the filing, reporting, payment, and29 HLS 13RS-1062 ORIGINAL
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remittance of state and local sales and use taxes to the appropriate local Louisiana1
jurisdictions to which remote sales are sourced;2
(3) Maintain a free Internet database that provides information for the use of3
remore sellers regarding the taxability of products and services sourced to Louisiana,4
along with any product and service exclusions and exemptions from sales and use5
taxes, state and local jurisdiction tax rates, and territorial boundaries;6
(4) Provide free of charge for remote sellers software that calculates the sales7
and use tax due on each transaction at the time the transaction is completed, that files8
sales and use tax returns, and that is updated to reflect changes in rates or bases;9
(5) If necessary, establish a fiscal agent solely for the purpose of remote10
seller remittances;11
(6) Provide remote sellers and certified software providers with ninety days12
notice of a rate change by the state or any local taxing jurisdiction in the state, and13
relieve remote sellers and certified software sellers who collect taxes at the14
immediately preceding effect rate during the ninety-day notice period if the required15
notice is not provided from liability as a result thereof;16
(7) Provide a procedure for persons to be approved as certified software17
providers;18
(8) Provide to remote sellers, and at no cost to them, a sales and use tax19
remote sales tax return form for use in reporting and remitting state and local sales20
taxes on remote sales sourced to Louisiana; and21
(9) Provide an electronic means for remote sellers to determine the22
appropriate local taxing authority to receive the tax on remote sales sourced to23
Louisiana, the name and contact information of the single sales tax collector, and the24
current rate of tax applicable to such sales.25
B. As used in this Chapter, unless the context clearly indicates otherwise, the26
following terms shall be defined as follows:27
(1) "Commission" means the Louisiana Sales and Use Tax Commission.28
(2) "Executive Director" means the executive director of the commission.29 HLS 13RS-1062 ORIGINAL
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(3) "Local taxing authority" and "local" means those parishes, municipalities,1
special tax districts, political subdivisions, parish governing bodies and school2
boards who are authorized under the provisions of the Constitution of Louisiana, the3
Louisiana Revised Statutes and jurisprudence to levy and collect local sales and use4
taxes.5
(4) "Sales and use taxes" and "taxes" shall mean the sales and use taxes6
levied by the State of Louisiana under the provisions of Title 47 of the Revised7
Statutes of Louisiana and the sales and use taxes levied by local taxing authorities8
in Louisiana under the provisions of the Constitution of Louisiana, statutory laws9
authorizing the imposition of such taxes, and local sales and use tax ordinances.10
(5) "Federal law" shall mean Senate Bill 336 and House Bill 684 of the 113th11
Congress, the "Marketplace Fairness Act of 2013" or such other similar federal law12
as may be enacted by the United States Congress authorizing states to require remote13
sellers, except those remote sellers who meet the small seller exceptions of federal14
law, to collect and remit sales and use taxes on remote sales sourced to Louisiana.15
(6) The terms "certified software provider", "remote sale", "remote seller"16
and "sourced" shall have the meanings as defined by federal law.17
(7) The term "person" shall have the meaning as defined by federal law for18
purposes of remote sales but shall retain the meaning as provided in La.R.S.19
47:301(8) for all other purposes in state and local sales and use tax law.20
(8) The term "non-remote sale" means a sale that is not a remote sale.21
(9) The term "non-remote seller" means a seller that is not a remote seller.22
§402. Members of the Sales and Use Tax Commission23
A. The duties of the commission shall be exercised and discharged under the24
supervision and direction of a board of commissioners with voting power and a25
non-voting executive director, all of whom shall be appointed and shall serve as26
provided in this Section:27
B.(1) The Commission shall be comprised of eleven voting commissioners,28
eight of whom shall have knowledge and experience in sales and use tax29 HLS 13RS-1062 ORIGINAL
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administration and enforcement and at least four of whom shall be active local sales1
and use tax administrators. Two commissioners shall be appointed from2
representative geographic regions of the state by each of the following organizations:3
the Police Jury Association of Louisiana, the Louisiana School Boards Association,4
the Louisiana Sheriffs Association, and the Louisiana Municipal Association. Three5
additional voting commissioners with knowledge and experience in sales and use tax6
administration and enforcement shall be appointed by the Louisiana Department of7
Revenue. No person associated with any business group, and trade group, any public8
policy group or any association other than the Police Jury Association of Louisiana,9
the Louisiana School Boards Association, the Louisiana Municipal Association, the10
Louisiana Sheriffs Association, the Louisiana Association of Tax Administrators or11
the Louisiana Multiparish Tax Commission shall be appointed as a voting member12
of the Commission. One commissioner shall be elected by the voting members of13
the commission from those commissioners appointed by the Police Jury Association14
of Louisiana, the Louisiana School Boards Association, the Louisiana Municipal15
Association and the Louisiana Sheriffs Association to serve as chairperson.16
(2) The commissioners shall determine the length of the terms of service of17
commissioners, whose terms shall be staggered as the Commission may direct.18
Commissioners shall serve without compensation but shall be reimbursed for19
reasonable expenses, including travel expenses, incurred in the performance of20
official duties.21
C.(1) The Commission shall meet as often and at such locations as directed22
by the chairperson. A majority of commissioners in attendance at commission23
meetings, due and timely notice of which has been given by the chairperson, shall24
constitute a quorum, and the majority vote of those present shall control all business25
that comes before the commission.26
(2) The domicile of the Commission shall be East Baton Rouge Parish,27
Louisiana. The Commission, however, may meet and conduct Commission business28 HLS 13RS-1062 ORIGINAL
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at other locations within the State of Louisiana as it may from time to time1
determine, after timely notice to those persons who may be affected thereby.2
D.(1) The Commission shall select and employ an executive director who3
shall serve at the pleasure of the Commission. The executive director, under and4
subject to the direct supervision and control of the Commission, shall direct the5
day-to-day administration and enforcement of all laws, rules, policies, and6
regulations which it is the duty of the Commission to administer and enforce. The7
executive director shall receive such compensation and benefits as may be8
determined and fixed by the Commission. The executive director shall also have the9
power to employ such professional and administrative staff and at such rates of10
compensation and with such benefits, plus necessary expenses incurred in11
performing their duties, subject to approval by the Commission.12
(2) The Commission and its operations shall be funded by the state, with13
contributions from local taxing authorities based on a fair and rational basis to be14
determined by the Commission.15
E. The Commission shall develop rules and procedures in accordance with16
the Administrative Procedure Act governing its internal operations and governing17
dealer and taxpayer dealings with the Commission.18
F. The Commission shall have the power, duty and authority:19
(1) To serve as the single entity within the State of Louisiana responsible for20
all state and local sales and use tax administration, return processing, and audits for21
remote sales sourced to Louisiana;22
(2) To provide a free Web-based portal as the single filing point for both23
local and state sales and use tax returns for remote sales and to serve as the central,24
single agency to which remote sellers shall make state and local sales and use tax25
remittances;26
(3) To assign and direct a single audit of remote sellers for the state and all27
local taxing authorities;28 HLS 13RS-1062 ORIGINAL
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(4) To serve as the single State of Louisiana agency to represent both state1
and local taxing authorities in taking appropriate action to enable Louisiana to2
participate in programs designed to allow Louisiana to receive additional state and3
local sales and use taxes on sales made by remote sellers;4
(5) To conduct administrative hearings as requested by aggrieved remote5
sellers, administer oaths, make adjustments to assessments when justified by the6
facts and the law, and render decisions following such hearings;7
(6) To require remote sellers to register with the Commission; and,8
(7) To provide, on or before June 1 for the preceding calendar year, to the9
single tax collector for each parish an annual report of revenues collected and10
distributed.11
(8) Authorize the Commission to enter into agreements to waive or suspend12
prescription as to local taxes;13
(9) With the consent of the affected local taxing authority, issue notices of14
intent to assess, notices of assessments, enforce collection of local taxes by distraint15
and sale, institution of summary proceedings or ordinary proceedings for collection16
of local taxes;17
(10) To sue and be sued;18
G. Nothing herein shall be construed to:19
(1) Limit the right of local taxing authorities to levy and collect sales and use20
taxes as provided in the Constitution of Louisiana, statutory law and jurisprudence;21
(2) Authorize the Commission to exercise any right or perform any function22
presently exercised by local sales and use tax authorities under present law;23
(3) Create, repeal or amend any local tax exclusions or exemptions;24
(4) Authorize the Commission to grant local tax amnesty;25
(5) Authorize the Commission to promulgate rules, regulations, issue private26
letter rulings or give to dealers or taxpayers other advice that is inconsistent with the27
Louisiana Constitution, statutory law or controlling jurisprudence;28 HLS 13RS-1062 ORIGINAL
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(6) Require local taxing authorities to make refunds, give tax credit, waive1
penalties or waive audit costs;2
(7) Repeal or amend any provisions of any local tax ordinances;3
(8) Extend to any local taxes any state exclusions, exemptions, credits,4
rebates or other tax relief provisions that do not presently apply to local taxes;5
(9) Repeal or amend any provision of the Uniform Local Sales Tax Code,6
La.R.S. 47:337.1, et seq.; or7
(10) Make the State of Louisiana a member of the Streamlined Sales and Use8
Tax Agreement;9
(11) Authorize the Commission to serve as a central state collection agency10
for local sales and use taxes; or11
(12) Limit any statutory and ordinal provisions in place as of the effective12
date of this Act that require dealers and taxpayers, with respect to non-remote sales,13
to pay and remit directly to the single sales and use collector in each parish the sales14
and use taxes due to each local taxing authority within each parish; or,15
(13) Repeal or amend any provision of La. R.S. 47:1508 and 1508.1.16
H. The Louisiana State Law Institute is hereby authorized and requested to17
review all statutes which contain phrases being changed by this Act and in all18
locations it deems appropriate change said references, particularly those that apply19
to the levy and collection of state and local sales and use taxes.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)]
Girod Jackson HB No. 568
Abstract: Establishes the Louisiana Sales and Use Tax Commission for purposes of
administration and collection of state and local sales and use taxes on remote sellers.
Proposed law establishes the Louisiana Sales and Use Tax Commission within the
Department of Revenue for the administration of the sales and use tax laws of the state of
Louisiana with respect to remote sales. HLS 13RS-1062 ORIGINAL
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Proposed law also provides for members of the commission and their duties.
(Adds R.S. 36:459(I) and R.S. 47:401 and 402)