Louisiana House Bill HB555

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15
• Report Pass: 4/28/15
• Engrossed: 5/14/15
• Refer: 5/18/15
• Report Pass: 5/25/15
• Refer: 5/26/15
• Report Pass: 6/4/15
• Enrolled: 6/10/15
• Vetoed: 6/19/15

Caption

Provides relative to the collection of state sales and use taxes due on sales made in Louisiana by a remote dealer (EN SEE FISC NOTE GF RV See Note)

Impact

The legislation is intended to enhance the state's ability to collect taxes from remote sellers, aiming to close tax revenue gaps created by online transactions. It delineates responsibilities for remote dealers and aims to streamline the process through which they comply with state tax laws. The bill articulates that any remote seller who reaches a certain threshold of sales in Louisiana will be required to register for and collect the appropriate sales taxes.

Summary

House Bill 555 focuses on the collection and remittance of state sales and use taxes concerning transactions made by remote sellers in Louisiana. The bill proposes to amend existing tax laws by defining what constitutes a 'dealer' and providing guidelines for how these dealers should report and remit taxes. This is particularly relevant in the context of the increasing volume of online sales and the necessity for state revenue systems to adapt to changing market dynamics.

Sentiment

Overall, the sentiment around HB 555 appears to be positive among legislative supporters who view it as a necessary adaptation to the evolving retail landscape. They argue that it levels the playing field between local brick-and-mortar businesses and remote sellers. However, there are concerns regarding the compliance burden on smaller vendors and the practicalities of enforcing tax collection from businesses not physically present in the state.

Contention

Notable points of contention include the potential challenges for remote sellers in understanding and fulfilling their tax responsibilities, especially smaller businesses that may lack the resources to navigate additional compliance requirements. Critics argue that while the bill aims to enhance revenue for the state, it could inadvertently stifle small business growth if not carefully implemented, particularly in terms of the administrative burden it places on these sellers.