Provide for the collection of sales and use taxes due on sales made in Louisiana by a remote dealer (RE1 SEE FISC NOTE GF RV See Note)
The legislation changes the existing sales tax framework by enforcing stricter definitions and requirements regarding who qualifies as a dealer. Under the proposed law, remote sellers must electronically file tax returns and remit sales taxes to both state and local authorities. More significantly, it alters how tax revenue is shared with local governments by changing the distribution frequency from yearly to quarterly. These changes are expected to enhance tax compliance from remote sales and thus potentially increase state revenue available for local governments.
House Bill 355 seeks to address the collection and remittance of sales and use taxes in Louisiana concerning sales made by remote dealers. The bill expands the definition of 'dealer' for the purposes of the additional 4% state sales and use tax. It includes individuals who engage in certain business activities or have substantial connections with local retailers, thereby broadening the net of those responsible for tax collection. This aligns with an effort to ensure that online and remote sellers contribute to state revenue similarly to in-state businesses.
The sentiment around HB 355 appears to be cautiously optimistic among legislative supporters, who believe it is a necessary step to improve tax collection fairness. However, there are concerns among opponents who worry about the implications of the expanded definitions and responsibilities for remote sellers. Some critics argue that the complexities of compliance, particularly for smaller online businesses, could hinder economic activity and result in undue burdens.
The primary points of contention surrounding HB 355 revolve around the specifics of who is classified as a dealer and the practicalities of compliance for remote sellers. Some legislators and advocacy groups are wary that the expanded definitions could lead to an undesirable regulatory burden. Additionally, the interaction between state and federal laws regarding online transactions and sales tax collection remains a significant issue, as the bill includes provisions for adjustments should federal legislation change the landscape of remote sales tax applicability.