Louisiana House Bill HB721

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15
• Report Pass: 5/19/15
• Engrossed: 6/3/15
• Report Pass: 6/5/15
• Enrolled: 6/11/15
• Chaptered: 6/19/15
• Passed: 6/19/15

Caption

Provides relative to penalties collected by the Department of Revenue (EN +$5,900,000 SG RV See Note)

Impact

The passage of HB 721 is expected to streamline the process by which taxpayers can potentially receive waivers for penalties incurred due to late submissions, thus alleviating financial burdens in certain cases. This law introduces a more structured approach to penalty waivers that may increase taxpayer compliance while also enhancing the Department of Revenue’s administrative efficiency. However, the bill also emphasizes greater legislative oversight, which might affect how penalties are enforced and assessed moving forward.

Summary

House Bill 721 aims to amend existing state laws concerning the imposition and waiver of civil penalties within the jurisdiction of the Louisiana Department of Revenue. The bill explicitly outlines penalties related to the late submission of tax returns and provides guidelines for waiving these penalties under specific circumstances. Notably, it introduces mechanisms for increased transparency and oversight regarding penalties exceeding $25,000, involving both the House and Senate committees responsible for revenue and fiscal affairs.

Sentiment

The sentiment surrounding HB 721 appears to be generally positive among lawmakers advocating for more taxpayer-friendly regulations. Supporters see the bill as a necessary step towards improving taxpayer relations and ensuring fairness in penalty assessments. Conversely, there are concerns from some legislators about the implications of waiving large penalties and the potential for misuse, which has sparked debate regarding the balance of administrative discretion and accountability in tax enforcement.

Contention

Notable points of contention within discussions of the bill relate to the thresholds for penalty waivers and the legislative oversight introduced by the new amendments. Some legislators express concerns that increased oversight might complicate what is intended to be a simplified waiver process and possibly dissuade timely tax filings amid uncertainties. Furthermore, the definitions regarding negligence and the potential for penalty remittance based on taxpayer intent remain critical points of debate, as they could affect treatment of various taxpayers unequally.