RÉSUMÉ DIGEST
ACT 210 (HB 338) 2015 Regular Session Danahay
Existing law establishes the Board of Tax Appeals (board) to act as an appeal board to hear
and decide questions of law and fact arising from disputes between a taxpayer or dealer and
the state revenue collector in the enforcement of any tax, excise, license, permit or any other
tax law administered by the collector, and between taxpayers or dealers and local sales and
use tax collectors (local collectors).
Administration
Prior law provided funding for the board through an annual dedication of $132,000 of use
tax proceeds from the local government share of the use tax collections from sales by remote
dealers. This amount was to increase by $5,000 on July 1, 2015, and thereafter be increased
an additional $5,000 per year in the four subsequent years in which the total amount
distributed to local government from such use tax proceeds would exceed the amount
distributed in FY 2014.
New law changes the interval for and amount of increase in the annual dedication for the
board, as follows:
(1)The additional amount dedicated beginning July 1, 2015, is increased from $5,000
to $55,000.
(2)Number of years in which the dedication may increase by $5,000 is reduced from
four to two years.
Existing law establishes the board as an independent agency within the Dept. of State Civil
Service.
New law establishes the Local Tax Division (local division) of the board as an independent
agency within the board for purposes of exercising jurisdiction over disputes involving local
collectors.
New law authorizes the board to establish an Escrow Account (account) with the approval
of the Cash Management Review Board, and to select a bank or financial institution to serve
as its fiscal agent. The fiscal agent is authorized to distribute monies from the account
pursuant to an order signed by the chairman of the board, its local tax judge, or a duly
appointed ad hoc judge, or upon the receipt of a certified non-appealable order of the relevant
appellate or higher court.
New law authorizes a taxpayer to fulfill the requirement for posting bond when appealing
a decision of the board by paying into the account an amount equal to the amount required
for the posting of security for purposes of an appeal under existing law. New law also
authorizes the board or its local division to assess a fee related to this optional method of
posting security.
New law provides for the disposition of interest earned on monies deposited into the account
for specific cases by taxpayers, a state collector, or a local collector.
New law subjects the account transactions to audit by the legislative auditor, and requires
annual reports to the Cash Management Review Board and the local sales and use tax
commission established by existing law with respect to transactions involving the state and
local collectors, respectively.
New law authorizes certain agreements between the board and its local division and the
Office of the Judicial Administrator of the Supreme Court regarding the selection of, and
compensation and expenses to be paid to, ad hoc judges. Membership
Existing law provides that the board is comprised of three members, one with a term of six
years, and two with terms of four years. Officers of the board are designated, including a
specific member to serve as hearing judge for the local division. Member compensation is
set by the governor, and the hearing judge of the local division receives extra compensation
equivalent to the compensation provided by the state for a part-time city court judge.
New law provides that the hearing judge of the local division, to be known as the "local tax
judge", shall be a distinct position in the unclassified service for purposes of the La.
constitution governing public officials and employees.
New law provides for additional compensation and benefits for the local tax judge as
follows:
(1)Additional compensation in the amount of three-fifths of the salary provided for city
court judges in the city of Baton Rouge.
(2)The ability to receive reimbursement of expenses, to earn vacation leave, and to
participate in group insurance plans, all in the same manner as a judge paid in part
by the state.
Adjudication of cases
Existing law provides that if a local collector hires a private attorney to assist in the
collection of taxes, penalties, or interest due under existing law, then the taxpayer shall be
charged for the attorney fees equal to 10% of the amount owed, with that amount of the extra
charge subject to approval of the district court.
New law adds authorization for board approval of the reasonableness of the attorney fees
charged in the same manner as in a district court.
Existing law provides for alternative remedies available to local collectors for the collection
of taxes owed, which include assessment and distraint, summary court proceeding, or
ordinary lawsuit.
New law adds a demand in reconvention, and a third-party demand as additional remedies
in any court or before the board.
Existing law provides procedures for a taxpayer to file suit to recover taxes which he paid
under protest, and authorizes the payment of interest on the amount at issue if the taxpayer
prevails.
New law adds the option of filing a pleading with the board as an alternative to filing suit in
district court to recover taxes paid under protest for purposes of state and local sales and use,
income, and corporation franchise taxes.
Existing law imposes a three year limit on the amount of time in which a taxpayer may claim
a refund or credit of an overpayment of taxes.
New law provides for circumstances in which the time limit on the claiming of a refund or
a credit of an overpayment of taxes may be suspended.
The provisions of new law amending R.S. 337.13.1, 337.28.1, 337.81(A)(2), 337.86, 1401,
and 1403 become effective June 12, 2014, which is the effective date of Act No. 640 of the
2014 Regular Session of the Legislature, since the nature of such amendments is procedural
and curative as it relates to that Act of the legislature.
Effective upon signature of the governor (June 23, 2015).
(Amends R.S. 47:302(K)(7)(b), 337.13.1(A)(2), (B)(1), and (C), 337.27, 337.28.1(B),
337.33(A)(5), 337.45(B), 337.63(A)(3) and (B), 337.64(B), 337.81(A)(2) and (B), 337.86(E)(2)(a), 1401, 1403(B)(5), 1418(4), 1434, 1438, 1522, 1561(B)(3), 1576(B),
1603(A)(3), and 1625, and §§5 and 7 of Act No. 640 of 2014 R.S.; Adds R.S.
47:337.45(A)(4), 337.51(B)(4), 337.63(E), 337.79(C), 337.81(A)(3), 1403(A)(4) and
(B)(6)(c), 1407(5), 1408(D) and (E), 1413(D) and (E), 1418(6) and (7), 1439, 1561(A)(4)
and (B)(4), 1580(B)(5), 1621(D)(4), and 1623(F))