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Regular Session, 2014
SENATE BILL NO. 463
BY SENATORS ADLEY, BUFFINGTON, ERDEY, NEVERS AND GARY SMI TH
FUNDS/FUNDING. Dedicates to the Better Highways and Higher Education Fund state
sales tax proceeds collected each fiscal year as a result of a federal law which will require
vendors located out-of-state to collect sales tax on their Internet and mail order sales.
(gov sig)
AN ACT1
To enact Chapter 2-E of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, to2
be comprised of R.S. 47:339, relative to the sales and use tax of the state; to provide3
for a dedication of certain sales and use taxes to the Better Highways and Higher4
Education Fund; to provide for disposition and appropriation of money in the fund;5
and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. Chapter 2-E of Subtitle II of Title 47 of the Louisiana Revised Statutes8
of 1950, to be comprised of R.S. 47:339 is hereby enacted to read as follows: 9
CHAPTER 2-E. BETTER HIGHWAYS AND HIGHER EDUCATION FUND10
ยง339. Dedication of increased sales tax collections from Internet and mail order11
sales; Better Highways and Higher Education Fund12
A.(1) The secretary of the Department of Revenue shall provide written13
notification to the commissioner of administration and to the chairs of the14
Senate Committee on Finance and the House Committee on Appropriations of15
the effective date of any federal law which the secretary determines will directly16
or indirectly cause or require vendors located out-of-state to collect and remit17 SB NO. 463
SLS 14RS-451 ENGROSSED
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words in boldface type and underscored are additions.
Louisiana state sales and use tax on their Internet, mail order, or other sales1
into the state.2
(2) Of the proceeds of state sales and use taxes collected during each3
fiscal year after the effective date of such federal law, the secretary and the4
Louisiana Legislative Auditor shall agree on a reasonable estimate of the5
amount of such proceeds which are remitted by vendors located out-of-state as6
a direct or indirect result of the federal law. An "indirect result of the federal7
law" includes those remittances which may have begun to be collected in8
months prior to the effective date of the federal law, but which the secretary and9
legislative auditor determine would not have been collected but for the10
imminent passage of such law.11
B.(1) The estimated amount of state sales and use taxes collected from12
vendors located out-of-state on Internet, mail order, or other sales into the state13
because of a federal law as provided for in Subsection A of this Section shall be14
deposited upon receipt in the state treasury.15
(2) After compliance with the requirements of Article VII, Section 9(B)16
of the Constitution of Louisiana relative to the Bond Security and Redemption17
Fund and prior to any money being placed into the general fund or any other18
fund, an amount equal to that deposited as required by Paragraph (1) of this19
Subsection shall be credited by the treasurer to a special fund hereby created20
in the state treasury to be known as the Better Highways and Higher Education21
Fund. The money in the fund shall be appropriated by the legislature to be used22
solely as provided for in Subsection C of this Section.23
(3)(a) The money in the fund shall be invested by the treasurer in the24
same manner as money in the state general fund and interest earned on the25
investment of the money shall be credited to the fund after compliance with the26
requirements of Article VII, Section 9(B) relative to the Bond Security and27
Redemption Fund.28
(b) All unexpended and unencumbered money in the fund at the end of29 SB NO. 463
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the year shall remain in the fund.1
C. The money in the Better Highways and Higher Education Fund shall2
be appropriated by the legislature each fiscal year to be used solely as follows:3
(1) Fifty percent shall be appropriated to the Transportation Trust Fund4
to be expended solely and exclusively for the costs of construction and/or5
maintenance in Highway Priority Program projects.6
(2) Fifty percent shall be appropriated to public postsecondary7
institutions in the same proportion as the institution's average federally-8
financed research and development expenditures for the latest three years9
according to the data in the "Federally Financed Higher Education R&D10
Expenditures" report of the National Science Foundation issued on or before11
January first preceding a state fiscal year.12
Section 2. This Act shall become effective upon signature by the governor or, if not13
signed by the governor, upon expiration of the time for bills to become law without signature14
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If15
vetoed by the governor and subsequently approved by the legislature, this Act shall become16
effective on the day following such approval.17
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Adley (SB 463)
Proposed law requires the secretary of the Department of Revenue and the Louisiana
Legislative Auditor to agree on a reasonable estimate of the amount of the total state sales
tax proceeds collected each fiscal year which are remitted by vendors located out-of-state
as a "direct or indirect" result of the enactment of a federal law which the secretary
determines will directly or indirectly cause or require vendors located out-of-state to collect
and remit state sales tax on their Internet, mail order, or other sales into the state.
The estimated amount is required to be credited to a special fund created in the state treasury
to be known as the Better Highways and Higher Education Fund. The money in the fund is
required to be appropriated by the legislature each fiscal year to be used solely as follows:
(1)50% must be appropriated to the Transportation Trust Fund to be expended solely
and exclusively for the costs of construction and/or maintenance in Highway Priority
Program projects.
(2)50% must be appropriated to public postsecondary institutions in the same
proportion as the institution's average federally-financed research and development SB NO. 463
SLS 14RS-451 ENGROSSED
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expenditures for the latest three years according to the data in the "Federally
Financed Higher Education R&D Expenditures" report of the National Science
Foundation issued on or before January first preceding a state fiscal year.
An "indirect result of the federal law" includes those remittances which may have begun to
be collected in months prior to the effective date of the federal law, but which the secretary
and legislative auditor determine would not have been collected but for the imminent
passage of such law.
Proposed law requires the money in the fund to be invested by the treasurer in the same
manner as money in the state general fund and interest earned on the investment of the
money must be credited to the fund. All unexpended and unencumbered money in the fund
at the end of the year must remain in the fund.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:339)