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)]
HB 545 Original 2015 Regular Session Geymann
Abstract: Requires vendors of student assessment materials and services to receive a permit to sell
to public schools. Imposes a sales tax on the sale of student assessment materials to schools
in the state.
Proposed law defines "student assessment materials and services" as materials sold and services
provided for the development, implementation, and administration of standards and related
assessments for students enrolled in public elementary and secondary schools pursuant to R.S.
17:24.4 if such standards and assessments are not developed in the state and if the development,
implementation, and administration process for the standards and assessments are not promulgated
in accordance with the Administrative Procedure Act. "Student assessment materials and services"
shall not include college entrance examinations, including the ACT, SAT, high school equivalency
examinations, or industry-based certification examination.
Proposed law requires every distributor who wishes to sell student assessment materials and services
to schools in the state to apply for a permit with the Dept. of Revenue (the department). Permit fees
are $10,000 for a one-year permit. Permits are non-transferrable and shall be prominently displayed.
A statement attesting to the possession of the permit shall be included in any contract for the sale of
student assessment materials and services.
Proposed law requires an application be filed for each place of business owned and operated by the
distributor. Defines "place of business" as any place where student assessment materials and
services are received, stored, or sold in the state. For any sale involving a remote seller, "place of
business" means the destination in the state of student assessment materials or services sold to a
school.
Proposed law imposes a tax on every distributor for selling student assessment materials and
services, based on the dollar value of each sale.
(1) For a sale of $1,000 or less, 10%.
(2) For a sale greater than $1,000, but less than $10,000, 9%.
(3) For a sale of $10,000 or more, 8%. If the tax has not been paid by the distributor, the tax shall be paid by a retailer selling the student
assessment materials and services.
A distributor shall add the amount of tax levied to the price of student assessment materials and
services sold to a retailer, and the retailer shall pass the amount of the tax through to the school as
a component of the final retail purchase price. The amount of the taxes may be stated separately on
all invoices, signs, sales or delivery slips, bills, and statements that advertise or indicate the price of
those educational materials and services.
Any distributor or retailer liable for the tax shall submit the tax due and other information required
by the department by the 20
th
day of each month. Requires more frequent filing if a taxpayer's
monthly tax liability was $20,000 or more during the preceding calendar year.
Every distributor and every retailer shall keep applicable records for four years and such records shall
be subject to inspection by the department at all reasonable times during normal business hours.
Proposed law provides penalties for failure to pay the entire amount of the tax due. Authorizes the
suspension of permits if a permittee has violated any provisions of proposed law.
The tax required to be collected by proposed law and any such tax collected shall constitute a debt
owed by that person to the state.
(Adds R.S. 47:2711-2717)