ENROLLED
ACT No. 107
2015 Regular Session
HOUSE BILL NO. 336
BY REPRESENTATIVE CONNICK
1 AN ACT
2 To enact R.S. 47:303(B)(8), relative to state sales and use tax; to provide for the collection
3 of state sales and use tax on vehicles acquired by certain foreign business entities;
4 to provide for an effective date; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:303(B)(8) is hereby enacted to read as follows:
7 ยง303. Collection
8 * * *
9 B. Collection of tax on vehicles. The tax imposed by R.S. 47:302(A) on the
10 sale or use of any motor vehicle, automobile, motorcycle, truck, truck-tractor, trailer,
11 semi-trailer, motor bus, house trailer, or any other vehicle subject to the vehicle
12 registration license tax shall be collected as provided in this Subsection.
13 * * *
14 (8) When a foreign corporation, foreign limited liability company, foreign
15 limited partnership, or foreign partnership acquires a vehicle on which the tax
16 imposed by R.S. 47:302(A) would have been due had the vehicle been acquired by
17 a business entity organized under the laws of this state, the department may collect
18 the tax from the foreign business entity if the department determines that the purpose
19 of the foreign business entity was tax avoidance after considering all of the
20 following:
21 (a) Whether there is a specific business purpose for the foreign business
22 entity to acquire the vehicle other than the avoidance of the tax imposed by R.S.
23 47:302(A).
24 (b) Whether the users of the vehicle compensate the foreign business entity
25 reasonably for the use of the vehicle.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 336 ENROLLED
1 (c) Whether the foreign business entity fails to maintain a physical location
2 in the foreign state.
3 (d) Whether the foreign business entity fails to employ individual persons
4 and provide those persons with Internal Revenue Service Form W-2 wage and tax
5 statements.
6 (e) Whether the foreign business entity fails to file federal tax returns or fails
7 to file a required state tax return in the foreign state.
8 (f) The location of where the vehicle is stored.
9 (g) The jurisdiction where the vehicle is typically used.
10 (h) The domicile of the most frequent drivers and passengers of the vehicle.
11 (i) The duration of the trips for which the vehicle is used.
12 * * *
13 Section 2. This Act shall become effective upon signature by the governor or, if not
14 signed by the governor, upon expiration of the time for bills to become law without signature
15 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
16 vetoed by the governor and subsequently approved by the legislature, this Act shall become
17 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.