Louisiana House Bill HCR71

Louisiana 2013 Regular Session

• Introduced: 4/17/13

Caption

Suspends the vendor's compensation for sales and use tax collection

Impact

If enacted, HCR71 would directly affect the financial dynamics of tax collection in Louisiana. By suspending the dealer's compensation, the state aims to potentially curtail administrative costs associated with tax collection on the surface. However, this could also impose an added burden on local dealers, who may find their operational costs and accounting responsibilities increased without corresponding compensation from the state.

Summary

House Concurrent Resolution 71 (HCR71) introduced by Representative Hunter seeks to suspend the compensation for dealers engaged in collecting the state sales and use tax. Specifically, the resolution targets the provisions outlined in R.S. 47:306(A)(3)(a), which traditionally allows dealers to retain a percentage of tax collected as compensation for their accounting efforts. This suspension is intended to remain in effect until sixty days following the adjournment of the 2014 Regular Session of the Louisiana Legislature.

Sentiment

The sentiment surrounding HCR71 reflects a cautious approach among legislators and stakeholders. While some may view the suspension as a necessary budgetary measure, there are concerns about the impact on local businesses and their ability to manage tax-related processes effectively. This speaks to a larger debate about fiscal responsibility versus the practicalities of incentivizing tax compliance.

Contention

Notable points of contention arise from the potential implications for local dealers who rely on the compensation for their efforts in tax collection. Critics of HCR71 might argue that this suspension undermines the incentive structure that encourages accurate tax reporting and compliance. It raises questions about the balance of state budgetary constraints and the operational viability of local businesses in fulfilling state tax obligations.