HLS 14RS-1219 ORIGINAL
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Regular Session, 2014
HOUSE CONCURRENT STUDY REQUEST NO. 1
BY REPRESENTATIVE PUGH
TAX/SALES & USE: To study Louisiana's policy for the collection of sales and use taxes
on taxable transactions involving a remote seller who is not obligated to collect sales
tax at the time of sale
A CONCURRENT STUDY REQUEST1
To request the House Committee on Ways and Means and the Senate Committee on2
Revenue and Fiscal Affairs to meet and to function as a joint committee to study3
Louisiana's policy for the collection of sales and use taxes on transactions involving4
a remote seller who is not obligated to collect sales tax at the time of sale and to5
report the findings of the joint committee to the legislature prior to the convening of6
the 2015 Regular Session of the Legislature of Louisiana.7
WHEREAS, the Louisiana sales tax is payable for taxable property and services at8
the time of sale, but many online sales involve remote sellers who, because of their location,9
are not obligated to collect the tax; and 10
WHEREAS, Louisiana law provides that if the sales tax due on a taxable transaction11
is not collected by the dealer at the time of sale, the use tax is imposed and payable by the12
purchaser; and13
WHEREAS, the opportunity exists for many taxable transactions to occur with no14
tax ever paid; and15
WHEREAS, a taxable transaction occurring tax free has a negative fiscal impact on16
the state through direct reductions in state revenue from the loss of sales and use tax,17
estimated to be several hundred million dollars per year; and 18 HLS 14RS-1219 ORIGINAL
HCSR NO. 1
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WHEREAS, in addition to the loss of sales and use tax revenue, Louisiana also loses1
income tax revenue as Louisiana retailers are forced to close their businesses when they are2
unable to compete on a cost basis with a tax free transaction; and3
WHEREAS, a taxable transaction occurring tax free has a negative social impact on4
the state in the permanent loss of Louisiana's local businesses; and 5
WHEREAS, the United States Congress is considering the Marketplace Fairness Act,6
which legislation would authorize states to require a remote seller to collect existing sales7
taxes on taxable transactions; and8
WHEREAS, in exchange for granting states the authorization to require such tax9
collection, all versions of the legislation considered so far have required that the state have10
a simple tax system so that a remote seller might easily comply with collection requirements;11
and 12
WHEREAS, a study of current and future Louisiana policy regarding sales and use13
tax collection on online transactions is prudent so that any changes which may become14
necessary in order to exercise newly granted federal authority might be considered during15
the 2015 Regular Session of the Legislature of Louisiana.16
THEREFORE, the Legislature of Louisiana requests the House Committee on Ways17
and Means and the Senate Committee on Revenue and Fiscal Affairs to meet and to function18
as a joint committee to study Louisiana's policy for the collection of sales and use taxes on19
transactions involving a remote seller who is not obligated to collect the sales tax at the time20
of sale and to report the finding of the joint committee to the legislature prior to the21
convening of the 2015 Regular Session of the Legislature of Louisiana.22
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)]
Pugh HCSR No. 1
Requests the House Committee on Ways and Means and the Senate Committee on Revenue
and Fiscal Affairs to study Louisiana's policy for the collection of sales and use taxes on
transactions involving a remote seller who is not obligated to collect sales tax at the time of
sale and to report the finding of the joint committee to the legislature prior to the convening
of the 2015 R.S.