Louisiana House Bill HB797

Louisiana 2015 Regular Session

• Introduced: 4/22/15

Caption

Provides relative to the collection of taxes, penalties, or interest

Impact

By authorizing an increase in attorney fees, HB 797 aims to enhance the Department of Revenue's capacity to recover delinquent taxes. This could potentially accelerate the collection process and generate more revenue for the state. However, the bill may also impact taxpayers, particularly those with outstanding debts, as the cost of attorney fees associated with collection could increase substantially. This raises questions about the burden on taxpayers and the balance between efficient tax collection and fair treatment of individuals facing financial difficulties.

Summary

House Bill 797, introduced by Representative Arnold, modifies the existing laws related to the collection of taxes, penalties, and interest by amending R.S. 47:1512. Key modifications include increasing the attorney fees that can be collected for services rendered in enforcing tax collection. The bill raises the cap on the fees that attorneys employed by the Department of Revenue can charge from 10% to 25%, which is significant in the context of maintaining fiscal responsibility and efficiency in tax collection.

Sentiment

The sentiment surrounding HB 797 appears to be mixed. Supporters argue that the increased fees are necessary to provide adequate incentives for attorneys to recover delinquent accounts effectively. They believe that efficient collection is crucial for state funding and fiscal stability. Conversely, opponents express concern that higher fees could disproportionately impact those already struggling to pay their taxes and further complicate their financial situations. This debate highlights the tension between the need for effective tax collection and the fairness of imposing higher fees on taxpayers.

Contention

The primary point of contention regarding HB 797 is its impact on taxpayers. While proponents see the fee increase as a means to incentivize better collection efforts, critics question whether the proposed changes might worsen the financial burden on individuals and families in debt. The bill's implications for the taxpayer's ability to manage and resolve their tax obligations will be a focal point in discussions, as many stakeholders will weigh the benefits of potentially increased state revenues against the potential hardships imposed on those required to pay the increased fees.