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2015 Regular Session
SENATE BILL NO. 271
BY SENATORS WHITE AND ADLEY AND REPRESENTATIVE ST. GERMAIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/TAXATION. Provides for equivalency of the special fuels tax with the gasoline tax
on motor vehicles that operate on the highways using liquefied natural gas, liquefied
petroleum gas, or compressed natural gas. (8/1/15)
1 AN ACT
2 To amend and reenact R.S. 3:4602(12.1), the introductory paragraph of R.S. 47:818.2, and
3 R.S. 47:818.2(18), (22), (43), (44), and (63), to enact R.S. 3:4690.1 and R.S.
4 47:818.111 through 818.133, and to repeal R.S. 47:818.101 through 104, relative to
5 taxes on petroleum products; to provide for taxes on special fuels; to levy taxes on
6 special fuels according to energy content equivalencies; to provide for licensing,
7 inspection, tax collection, and enforcement; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. The introductory paragraph of R.S. 47:818.2 and R.S. 47:812(18), (22),
10 (43), (44), and (63) are hereby amended and reenacted and R.S. 47:818.111 through 818:133
11 are hereby enacted to read as follows:
12 §818.2. Definitions
13 As used in this Part, unless the context requires otherwise, the following
14 terms have the meaning meanings ascribed herein:
15 * * *
16 (18) "Compressed natural gas" means natural gas that has been compressed
17 and dispensed into motor fuel storage containers and is advertised, offered for sale,
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1 suitable for use, sold, or used as an engine motor fuel.
2 * * *
3 (22) "Distributor" means any person who purchases their motor fuel from a
4 supplier, permissive supplier, or licensed distributor in this state for subsequent sale
5 and distribution at wholesale to a licensed distributor, retail dealer, or bulk consumer.
6 * * *
7 (43) "Liquefied natural gas" means natural gas that has been cooled to about
8 a negative 160 degrees Celsius for storage or shipment as a liquid in high-pressure
9 cryogenic containers a liquid state and is advertised, offered for sale, sold,
10 suitable for use, or used as an engine motor fuel.
11 (44) "Liquefied petroleum gas" means the gas derived from petroleum or
12 natural gas which is in a gaseous state at normal atmospheric temperature and
13 pressure and maintained in the liquid state at normal atmospheric temperature by
14 means of suitable pressure and which is dispensed into motor fuel storage containers
15 and is advertised, offered for sale, sold, suitable for use, or used as an engine motor
16 fuel. The term "liquified petroleum gas" or "LPG" as used in this Part means
17 propane.
18 * * *
19 (63) "Special fuel decal user" means the owner or operator of a motor vehicle
20 that is propelled by an internal combustion engine or motor capable of using
21 liquefied natural gas, liquefied petroleum gas, or compressed natural gas as fuel.
22 "Special fuel fleet user" means a person who produces compressed natural gas,
23 liquified natural gas, or liquified petroleum gas or who maintains storage
24 facilities for such fuels and who delivers all or part of the fuel produced or
25 stored into the fuel supply tank of a motor vehicle.
26 * * *
27 §818.111. Taxes levied; rates; unit of measurement
28 A. There is hereby levied a tax of sixteen cents per gallon or gallon
29 equivalent on all special fuels including compressed natural gas as defined by
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1 R.S. 47:818.2(18), liquefied natural gas as defined by R.S. 47:818.2(43), and
2 liquefied petroleum gas as defined by R.S. 47:818.2(44) sold, used, or consumed
3 in the state of Louisiana for the operation of motor vehicles licensed or required
4 to be licensed for highway use.
5 B. The taxes herein levied are in addition to the tax levied in R.S.
6 47:820.1.
7 C. The tax is to be computed, collected, reported, and paid as provided
8 in this Subpart.
9 D. Until December 31, 2015, the tax levied pursuant to the provisions of
10 this Section shall be assessed per gallon. Beginning January 1, 2016, the tax
11 levied pursuant to the provisions of this Section shall be converted from a tax
12 levied per gallon on such fuel to a tax levied per gallon equivalent determined
13 by the special fuel's energy content as follows:
14 (1) Gasoline gallon equivalent for compressed natural gas. The gasoline
15 gallon equivalent for compressed natural gas shall be equal to 5.660 pounds of
16 compressed natural gas and shall be the unit of measurement for purposes of
17 the tax levied pursuant to the provisions of this Section if the natural gas
18 dispenser lists the price in gasoline gallon equivalents and the natural gas is
19 supplied to the dispenser from a pipeline or other non-liquefied source.
20 (2) Diesel gallon equivalent for liquified natural gas. The diesel gallon
21 equivalent for liquified natural gas shall be equal to 6.060 pounds of liquified
22 natural gas and shall be the unit of measurement for purposes of the tax levied
23 pursuant to the provisions of this Section if the natural gas dispenser lists the
24 price in diesel gallon equivalents and the natural gas is supplied to the dispenser
25 from a liquified source.
26 (3) Diesel gallon equivalent for liquified petroleum gas. The diesel gallon
27 equivalent for liquified petroleum gas shall be equal to 4.2 pounds of liquified
28 petroleum gas and shall be the unit of measurement for purposes of the tax
29 levied pursuant to the provisions of this Section if the petroleum gas dispenser
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1 lists the price in diesel gallon equivalents and the petroleum gas is supplied to
2 the dispenser from a liquified source.
3 E. Beginning January 1, 2016, the tax levied pursuant to the provisions
4 of this Section shall be levied and collected in the manner set forth in this
5 Subpart and shall not be levied or collected pursuant to a decal program or on
6 an annual basis.
7 §818.112. Imposition of tax
8 A. A tax is imposed on the sale of compressed natural gas, liquefied
9 natural gas, or liquefied petroleum gas delivered into the fuel supply tank of a
10 motor vehicle in connection with a sale of the compressed natural gas, liquefied
11 natural gas, or liquefied petroleum gas. The person or entity possessing a
12 compressed natural gas, liquified natural gas, or liquified petroleum gas license
13 shall be considered a dealer for purposes of imposition of the tax levied on such
14 fuels and shall be the party liable for the tax imposed in this Subpart. The
15 dealer shall add the amount of the tax to the selling price of the fuel so that the
16 tax is paid by the ultimate consumer or purchaser of the fuel. The amount of
17 the tax shall become part of the sales price of the fuel, it shall be considered a
18 debt of the purchaser to the dealer, and, if unpaid, it shall be recoverable at law
19 in the same manner as the original sales price. The dealer shall provide an
20 invoice or receipt to the purchaser that states the rate and amount of tax added
21 to the selling price or that indicates that no tax was added to the selling price.
22 B. A tax is imposed on the delivery of compressed natural gas, liquefied
23 natural gas, or liquefied petroleum gas into the fuel supply tank of a motor
24 vehicle by a special fuel fleet user or other dealer not in connection with a sale
25 of the compressed natural gas, liquefied natural gas, or liquefied petroleum gas.
26 The special fuel fleet user or other dealer shall be liable for the tax imposed
27 under this Subpart. The dealer shall add the amount of the tax to the selling
28 price of the fuel so that the tax is paid by the ultimate consumer or purchaser
29 of the fuel. The amount of the tax shall become part of the sales price of the
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1 fuel, it shall be considered a debt of the purchaser to the dealer, and, if unpaid,
2 it shall be recoverable at law in the same manner as the original sales price. The
3 dealer shall provide an invoice or receipt to the purchaser that states the rate
4 and amount of tax added to the selling price or indicates that no tax was added
5 to the selling price.
6 §818.113. Presumption of use; backup tax
7 A. All compressed natural gas, liquefied natural gas, and liquefied
8 petroleum gas sold by a special fuels dealer and delivered into the fuel supply
9 tank of a motor vehicle is presumed to be subject to taxation, and the dealer is
10 liable for the tax unless the dealer maintains adequate records to establish that
11 the fuel was exempt from the tax.
12 B. All compressed natural gas, liquefied natural gas, and liquefied
13 petroleum gas delivered into the fuel supply tank of a motor vehicle by a special
14 fuel fleet user or other special fuels dealer not in connection with a sale is
15 presumed to be subject to taxation, and the special fuel fleet user or other dealer
16 is liable for the tax unless the special fuel fleet user or other dealer maintains
17 adequate records to establish that the fuel was exempt from the tax.
18 C. The tax levied pursuant to the provisions of this Subpart shall be due
19 in all of the following circumstances:
20 (1) If a person obtains a refund of tax on compressed natural gas,
21 liquefied natural gas, or liquefied petroleum gas by claiming the fuel was used
22 for an exempt purpose, but actually used the fuel for a taxable purpose.
23 (2) If a person operates a motor vehicle on a highway using compressed
24 natural gas, liquefied natural gas, or liquefied petroleum gas and the tax has not
25 been paid on the special fuel. If the person operating the motor vehicle is not
26 the owner or lessee of the motor vehicle, both the owner or lessee and the
27 operator are liable for the tax.
28 (3) If a person sells or delivers compressed natural gas, liquefied natural
29 gas, or liquefied petroleum gas that is delivered into the fuel supply tank of a
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1 motor vehicle, on which tax was not paid, and the person knew or had reason
2 to know that the fuel would be used for a taxable purpose. The tax due pursuant
3 to the provisions of this Paragraph shall also be imposed on the ultimate
4 consumer.
5 D. The tax liability imposed by this Section shall be in addition to any
6 other penalty imposed under this Subpart.
7 §818.114. Special fuel dealer's license; application procedure
8 A. A person may not sell or deliver compressed natural gas, liquefied
9 natural gas, or liquefied petroleum gas that is delivered into the fuel supply tank
10 of a motor vehicle and on which tax is imposed unless the person holds a
11 compressed natural gas, liquefied natural gas, or liquefied petroleum gas special
12 fuel dealer's license issued by the secretary.
13 B. In order to apply for a special fuel dealer's license, an applicant shall
14 submit an application to the Department of Revenue on a form provided by the
15 secretary and shall furnish a bond as required in R.S. 47:818.118 in an amount
16 applicable to the license for which the applicant is applying. Applications shall
17 include all of the following:
18 (1) The legal name of the applicant and name under which the applicant
19 transacts or intends to transact business.
20 (2) The mailing and physical address of the applicant's principal office,
21 residence, or place of business in this state, or other location of the applicant.
22 (3) The applicant's federal employer identification number or, if an
23 individual, the social security number in the absence of the federal employer
24 identification number.
25 (4) The applicant's Louisiana revenue account number, if already
26 assigned.
27 (5) If the applicant is not an individual, the names and social security
28 numbers of the principal officers of an applicant corporation or the members
29 of an applicant partnership or limited liability company, the managers of the
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1 facility, and the office, street, and post office box addresses of each.
2 (6) Any other information required by the secretary.
3 C. Upon approval of the bond required in R.S. 47:818.118, the secretary
4 shall issue the appropriate license or licenses to the applicant.
5 D. A special fuel dealer's license for compressed natural gas, liquefied
6 natural gas, or liquefied petroleum gas is not transferable and shall remain in
7 effect until surrendered, canceled, or revoked. The license shall be posted in a
8 conspicuous place or kept available for inspection at the principal place of
9 business of the license holder. A copy of the license shall be kept at each place
10 of business or other place of storage from which compressed natural gas,
11 liquefied natural gas, or liquefied petroleum gas is sold, distributed, or used and
12 in each motor vehicle used by the license holder to transport compressed
13 natural gas, liquefied natural gas, or liquefied petroleum gas purchased by the
14 license holder for resale, distribution, or use.
15 E. A compressed natural gas, liquefied natural gas, or liquefied
16 petroleum gas special fuel dealer's license is permanent and shall be valid
17 during the period the license holder has in force and effect the required bond
18 or security and furnishes timely reports and supplements as required by the
19 secretary, or until the license is surrendered by the license holder or canceled
20 by the secretary. The secretary shall cancel a license if the license holder has
21 not reported a delivery of compressed natural gas, liquefied natural gas, or
22 liquefied petroleum gas during the previous nine months.
23 F. The secretary shall maintain a record of all persons to whom a license
24 has been issued under this Subpart and all persons holding a current license
25 issued under this Subpart by license category.
26 §818.115. Interstate trucker's license
27 A. An interstate trucker's license authorizes a person who commercially
28 operates a motor vehicle fueled by compressed natural gas, liquefied natural
29 gas, or liquefied petroleum gas with two axles and a registered gross weight in
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1 excess of twenty-six thousand pounds, a motor vehicle that has three or more
2 axles, or a motor vehicle used in combination and the registered gross weight
3 of the combination exceeds twenty-six thousand pounds, to report and pay the
4 tax and take a credit or claim a refund as provided by this Subpart.
5 B. An interstate trucker's license is valid from the date of issuance until
6 December thirty-first of each calendar year or until the license is surrendered
7 by the license holder or canceled by the secretary, whichever occurs first. The
8 secretary may renew an interstate trucker's license each calendar year if the
9 license holder furnishes timely reports as required in this Subpart. The
10 interstate trucker's license holder shall reproduce the license and carry a
11 photocopy in each motor vehicle being operated in or traveling to or from this
12 state.
13 C. An interstate trucker's license shall not be transferable.
14 §818.116. License application procedure; grounds for denial of a license
15 A. In order to obtain a license under this Subpart an applicant shall file
16 an application with the secretary on forms provided by the secretary and shall
17 furnish a bond as required in R.S. 47:818.118 in an amount applicable to the
18 license for which the applicant is applying. Applications shall include all of the
19 following information:
20 (1) The legal name of the applicant and name under which the applicant
21 transacts or intends to transact business.
22 (2) The mailing and physical address of the applicant's principal office
23 or place of business in this state, the applicant's residence, and the address of
24 any other location in this state in which the applicant operates.
25 (3) The applicant's federal employer identification number or, if an
26 individual, the applicant's social security number in the absence of a federal
27 employer identification number.
28 (4) The applicant's Louisiana revenue account number, if already
29 assigned.
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1 (5) If the applicant is not an individual, the names and social security
2 numbers of the principal officers of the applicant's corporation or the members
3 of an applicant's partnership or limited liability company, the managers of the
4 facility, and the office, street, and post office box addresses of each.
5 (6) Any other information required by the secretary.
6 B. Upon approval of the bond required in R.S. 47:818.118, the secretary
7 shall issue the appropriate license or licenses to an applicant.
8 C. The secretary may refuse to issue a license under this Subpart if any
9 of the following conditions apply to the applicant or any principal of the
10 applicant:
11 (1) A license or registration issued under this Subpart was canceled by
12 the secretary for any reason set forth in R.S. 47:818.42 or 818.117.
13 (2) A license or registration issued by another state was revoked, denied,
14 or canceled for cause.
15 (3) A federal certificate of registry issued under 26 U.S.C. 4101 and the
16 regulations adopted thereunder, or a similar federal authorization, was
17 revoked.
18 (4) The applicant or any principal of the applicant has been convicted of
19 any offense involving fraud or misrepresentation or has been convicted of any
20 other offense that indicates that the applicant or any principal of the applicant
21 may not comply with this Subpart if issued a license.
22 (5) The applicant or any principal of the applicant is in arrears to the
23 state for any taxes.
24 (6) The applicant or any principal of the applicant is determined not to
25 be the real party in interest.
26 (7) The applicant or any principal of the applicant's agents, officers, or
27 employees has a prior conviction for motor fuel tax evasion in this state or in
28 any state, federal, or foreign jurisdiction.
29 (8) For good cause as determined by the secretary.
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1 D. The secretary shall be prohibited from issuing a license when an
2 applicant or anyone connected with the applicant's business has been previously
3 convicted of any violation of this Subpart or of any felony under the laws of this
4 state or of the United States.
5 §818.117. License revocation; cancellation
6 A. The secretary may revoke the license of any person licensed under this
7 Subpart, upon written notice sent by certified mail to the licensee's last known
8 address, for any of the following reasons:
9 (1) Filing by the licensee of a false return, or a false report of the data or
10 information required by this Subpart.
11 (2) Failure, refusal, or neglect of the licensee to file a return, report or
12 information required by this Subpart.
13 (3) Failure of the licensee to pay the full amount of all taxes due or to pay
14 any penalties or interest due required to be paid by the licensee.
15 (4) Failure of the licensee to keep accurate records of the quantities of
16 compressed natural gas, liquefied natural gas, or liquefied petroleum gas
17 received, produced, refined, manufactured, compounded, sold, or used in
18 Louisiana.
19 (5) Failure to file a new, larger, or additional surety bond as required by
20 the secretary pursuant to R.S. 47:818.118.
21 (6) Conviction of the licensee, licensee's agents, officers, or employees, or
22 a principal of the licensee for any act prohibited under this Subpart.
23 (7) Failure, refusal, or neglect of a licensee to comply with any other
24 provision of this Subpart or any rule promulgated pursuant to this Subpart.
25 (8) Having a license or registration issued by another state canceled for
26 cause.
27 (9) The licensee is determined not to be the real party in interest.
28 (10) Any prior license of the real party in interest has been revoked for
29 cause.
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1 (11) The licensee, or any of the licensee's agents, officers, or employees,
2 has a prior conviction for motor fuel tax evasion in this state or any state,
3 federal, or foreign jurisdiction and the conviction was not disclosed on the
4 application.
5 B. The secretary shall be prohibited from granting a license and shall be
6 required to suspend any license previously granted for a period of at least thirty
7 days, or until such time as the applicant supplies the secretary with evidence to
8 the contrary, where there is prima facie evidence that the applicant, in the
9 discretion of the secretary, is not a person of good moral character, or has
10 violated the provisions of this Subpart or any rules, regulations, or instructions
11 issued in connection with issuance of a license. The period of suspension set
12 forth in this Section shall not exceed ninety calendar days from the date of
13 suspension, unless at the end of the ninety-day period the secretary determines
14 that the reason for the suspension still exists. In such instances, the secretary
15 may continue the period of suspension until sufficient evidence has been
16 provided by the licensee that the reason for suspension no longer exists.
17 C. The secretary shall cancel any license upon the written request of the
18 licensee or upon a change in ownership or control of the licensed business.
19 D. Upon revocation or cancellation of a license, the license shall be
20 surrendered to the secretary and the tax levied in accordance with the
21 provisions of this Subpart shall become due and payable within fifteen days on
22 all untaxed compressed natural gas, liquified natural gas, and liquified
23 petroleum gas held in storage or otherwise in the possession of the licensee and
24 all compressed natural gas, liquified natural gas, and liquified petroleum gas
25 sold, delivered, or used prior to the revocation or cancellation on which the tax
26 has not been paid.
27 E. If the secretary revokes a license, the secretary shall be prohibited
28 from issuing a new license to the same applicant for a period of three years from
29 the date of revocation.
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1 §818.118. Bond requirements; amounts
2 A. Upon approval of the application by the secretary, the applicant shall
3 file a surety bond executed in favor of the secretary in an amount as follows:
4 (1) For a compressed natural gas dealer, liquefied natural gas dealer, or
5 liquefied petroleum dealer, the amount of the bond shall be the greater of fifty
6 thousand dollars or an amount equal to three months' tax liability.
7 (2) For an interstate trucker, the amount of the bond shall be the greater
8 of twenty thousand dollars or an amount equal to three months' tax liability.
9 (3) Only one surety bond shall be required for a person requiring
10 multiple licenses and for any such person the minimum bond shall be the
11 highest bond level required.
12 B. The secretary may require an additional bond amount from the
13 licensee when liability upon the previous bond is discharged or reduced by a
14 judgment rendered, a payment made, or another disposition, the licensee no
15 longer meets the conditions for waiver of bond as set forth in Subsection F of
16 this Section, or if , in the opinion of the secretary, any surety on the previous
17 bond becomes unsatisfactory.
18 C. The licensee shall file the additional bond amount within thirty days
19 from the date such notice is mailed by the secretary. The secretary may
20 immediately revoke the licensee's license upon the expiration of the thirty-day
21 period if the licensee fails to provide the additional bond amount required.
22 D. The surety must be authorized to engage in business within this state.
23 The surety bond shall be conditioned upon faithful compliance with the
24 provisions of this Part, including the filing of the returns and payment of all
25 taxes prescribed by this Subpart. The surety bond shall be approved by the
26 secretary as to sufficiency and form and shall indemnify the state against any
27 loss arising from the failure of the licensee for any cause whatever to pay the tax
28 levied by this Subpart.
29 E. Any surety on an existing bond furnished by a person required to be
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1 licensed may notify the secretary in writing of its intent to cancel the bond. The
2 secretary shall immediately notify the licensee of the intent of the surety to
3 cancel, and the licensee shall have thirty days from the date of receipt of such
4 notice to provide a sufficient replacement bond. The secretary may
5 immediately cancel the licensee's license upon expiration of the thirty-day
6 period set out above if the licensee fails to provide a new replacement bond.
7 The surety requesting cancellation shall remain liable for any liability already
8 accrued or which accrues during the thirty-day period set out above but shall
9 not be responsible for any liability which accrues after the thirty-day period.
10 F. The secretary is authorized to waive the furnishing of this surety bond
11 by any licensee who meets all the following:
12 (1) Has and agrees to maintain assets in Louisiana of a net value of not
13 less than one hundred twenty-five percent of the amount of the bond which
14 would otherwise be required.
15 (2) Has not been delinquent in remitting taxes accrued or accruing under
16 this Subpart during the three-year period immediately preceding the filing of
17 an application for waiver of the bond.
18 G. If any licensee whose bond has been waived by the secretary becomes
19 delinquent in remitting taxes due under this Subpart, the secretary may require
20 that the licensee furnish a bond in the amount required in this Section, and such
21 licensee shall not be eligible for a waiver of the bond for a period of three years
22 from the date the bond is furnished.
23 §818.119. Duties of persons holding tax payments as trustees
24 A. A person who receives or collects tax due in accordance with the
25 provisions of this Subpart shall hold the amount received or collected in trust
26 for the benefit of the state and shall have a fiduciary duty to remit the amount
27 of taxes received or collected to the secretary in the manner required pursuant
28 to the provisions of this Subpart.
29 B. A dealer who receives a payment of tax under this Subpart may not
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1 apply the payment of tax to a debt that the person making the payment owes for
2 compressed natural gas, liquefied natural gas, or liquefied petroleum purchased
3 from the dealer.
4 C. A person required to receive or collect a tax under this Subpart is
5 liable for and shall pay the tax in the manner provided by this Subpart.
6 §818.120. Returns and payments; discounts; penalties for failure to file
7 A. A licensed dealer shall file a quarterly return no later than the twenty-
8 fifth day of the month following the end of the reporting period. If a licensed
9 dealer files a return and remits the tax due on or before the due date, one
10 percent of the tax due is allocated to the licensed dealer for the expense of
11 collecting, accounting for, reporting, and timely remitting the taxes collected
12 and for keeping the records. The licensed dealer shall deduct the allocated
13 amount from the tax due when paying the tax to the state. A licensed dealer
14 who has not made taxable deliveries during the reporting period shall file a
15 return with the secretary that includes those facts or that information. A return
16 shall be filed with the secretary on forms provided for that purpose and shall
17 contain the total gallons or gallon equivalents sold and used and other
18 information required by the secretary.
19 B. A licensed interstate trucker shall file a quarterly return and shall
20 remit the amount of the tax due by the twenty-fifth day of the month following
21 the end of the reporting period. If a licensed interstate trucker files a return
22 and remits the tax due on or before the due date, one-half of one percent of the
23 tax paid on compressed natural gas, liquefied natural gas, and liquefied
24 petroleum gas used in this state by the interstate trucker shall be allocated to
25 the interstate trucker for the expense of accounting for, reporting, and timely
26 remitting the taxes due and for keeping the records. The licensed interstate
27 trucker shall deduct the allocated amount from the tax due when paying the tax
28 to the state. If the allocated amount exceeds the amount of tax due, the
29 interstate trucker may file a refund claim with the secretary. A return shall be
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1 filed with the secretary on forms provided for that purpose and shall contain the
2 number of miles traveled in this state, the number of miles traveled outside this
3 state, and other information required by the secretary. An interstate trucker
4 who is required to file a return and who has not made interstate trips or used
5 compressed natural gas, liquefied natural gas, or liquefied petroleum gas in
6 motor vehicles in this state during the reporting period shall file a return with
7 the secretary that includes those facts or that information.
8 C. A licensed dealer may take a credit on a filed return if the dealer paid
9 the taxes imposed by this Subpart on compressed natural gas, liquefied natural
10 gas, or liquefied petroleum gas sold on account and the dealer determines that
11 the account is uncollectible and worthless. The credit authorized by this Section
12 shall only be applicable if the licensed dealer writes off the account as a bad
13 debt on the dealer's accounting books. The return on which the credit shall be
14 taken shall state, if applicable, the name of the person whose account has been
15 written off as a bad debt or who failed to remit the tax and any other
16 information required by the secretary. The amount of the credit may equal, but
17 shall not exceed the amount of taxes paid on the compressed natural gas,
18 liquefied natural gas, or liquefied petroleum gas to which the written-off
19 account applies. If, after a credit is taken, the account on which the credit was
20 based is paid, or if the secretary otherwise determines that the credit was not
21 authorized, the dealer who took the credit shall pay the unpaid taxes plus a
22 penalty of ten percent of the amount of the unpaid taxes and interest. Interest
23 shall accrue beginning on the day the return showing the credit was filed and
24 ending on the date the taxes and penalty are paid.
25 D. The provisions of this Section shall not apply to a sale of compressed
26 natural gas, liquefied natural gas, or liquefied petroleum gas for which payment
27 is made through the use and acceptance of a credit card. The credit granted
28 pursuant to the provisions of this Section shall be taken at the time the account
29 is written off as a bad debt but before the tax reporting period prescribes. The
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1 secretary may take action against a person in relation to whom a dealer has
2 taken a credit for collection of the tax owed and for penalty and interest.
3 E. Failure to file any informational report or return within thirty days
4 of the due date of the report or return shall result in a penalty of one hundred
5 dollars and may result in a revocation of the license.
6 §818.121. Credit for certain taxes paid; school bus operators
7 A. The owner of any school bus, including school-board owned buses,
8 used to transport Louisiana students and propelled by an internal combustion
9 engine or motor capable of using liquefied natural gas, liquefied petroleum gas,
10 or compressed natural gas as fuel shall pay the tax levied on such fuel but shall
11 be entitled to a credit equal to fifty percent of the taxes paid. The credit
12 provided for in this Section shall be claimed on a return filed for the period in
13 which a fuel purchase occurred.
14 B. The right to claim a credit pursuant to the provisions of this Section
15 shall not be assignable.
16 C. Claims for refund by school bus owners shall be submitted annually
17 by the first day of August of each year on forms provided by the secretary and
18 shall list the taxes paid during the academic school year ending no later than
19 June thirtieth of the year for which the credit is being filed. The reimbursement
20 provided for in this Subsection shall be paid from the Parish Transportation
21 Fund allocable to the parish from which the credit is claimed if the credit is
22 from a public school district in this state and the fuel was delivered into the fuel
23 supply tank of a school bus operated exclusively by the district.
24 D. The secretary may promulgate rules and regulations in accordance
25 with the provisions of the Administrative Procedure Act specifying procedures
26 and requirements to be fulfilled in order to file for and receive the credit.
27 §818.122. Refund claims
28 A. All claims for a refund shall be filed on a form provided by the
29 secretary, shall be supported by the original invoice issued by the dealer, and
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1 shall contain all of the following:
2 (1) The stamped or preprinted name and address of the dealer.
3 (2) The name of the purchaser or person who received the delivery of the
4 fuel.
5 (3) The date of delivery of the fuel or the date the invoice was issued, if
6 different from the date the fuel was delivered.
7 (4) The number of gasoline or diesel gallon equivalents of compressed
8 natural gas, liquefied natural gas, or liquefied petroleum gas delivered.
9 (5) The rate and amount of tax, separately stated from the selling price.
10 (6) The type of vehicle or equipment into which the fuel is delivered.
11 B. The purchaser or person who received the delivery of compressed
12 natural gas, liquefied natural gas, or liquefied petroleum gas shall obtain the
13 original invoice from the dealer not later than the thirtieth day after the date
14 the fuel was delivered. If the purchase or delivery of fuel is made through an
15 automated method in which the purchase or delivery is automatically applied
16 to the purchaser or recipient's account, one invoice may be issued at the time
17 of billing that covers multiple purchases or deliveries made during a thirty-day
18 billing cycle.
19 C. The secretary shall pay a refund to a person who files a valid refund
20 claim. After examining the refund claim and before issuing the refund, the
21 secretary shall deduct from the amount of the refund, the one percent originally
22 deducted by the dealer.
23 D. A person who files a claim for a tax refund on compressed natural
24 gas, liquefied natural gas, or liquefied petroleum gas used for a purpose for
25 which a tax refund is not authorized or who files an invoice supporting a refund
26 claim on which the date, figures, or any material information has been falsified
27 or altered, shall forfeit his right to the entire amount of the refund claim filed
28 unless the claimant provides satisfactory proof to the secretary that the
29 incorrect refund claim filed was due to a clerical or mathematical calculation
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1 error.
2 §818.123. Records required to be maintained; inspection by the secretary
3 A. A dealer shall keep a record of all of the following:
4 (1) Compressed natural gas, liquefied natural gas, and liquefied
5 petroleum gas inventories at the first of each month.
6 (2) The amount of natural gas compressed by the dealer, the amount of
7 natural gas liquefied by the dealer, and the amount of petroleum gas liquefied
8 by the dealer.
9 (3) All compressed natural gas, liquefied natural gas, and liquefied
10 petroleum gas purchased or received, showing the name of the seller and the
11 date of each purchase or receipt.
12 (4) All compressed natural gas, liquefied natural gas, and liquefied
13 petroleum gas sold and delivered into the fuel supply tank of a motor vehicle,
14 including the date of each sale.
15 (5) All compressed natural gas, liquefied natural gas, and liquefied
16 petroleum gas sold but not delivered into the fuel supply tank of a motor
17 vehicle, including the date of each sale.
18 (6) All compressed natural gas, liquefied natural gas, and liquefied
19 petroleum gas delivered into the fuel supply tank of a motor vehicle not in
20 connection with a sale, including the date of each delivery.
21 (7) All compressed natural gas, liquefied natural gas, and liquefied
22 petroleum gas delivered into the fuel supply tank of a motor vehicle or other
23 equipment exempt from tax or sold to the operator of a motor vehicle or owner
24 of equipment exempt from the tax, including the name of the operator of the
25 vehicle or the owner of the equipment and the date of the delivery or sale.
26 (8) All compressed natural gas, liquefied natural gas, and liquefied
27 petroleum gas lost by fire, theft, or accident.
28 B. An interstate trucker shall keep a record of the total miles traveled in
29 all states by all vehicles traveling to or from this state and the total quantity of
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1 compressed natural gas, liquefied natural gas, or liquefied petroleum gas
2 consumed in those vehicles and the total miles traveled in this state and the total
3 quantity of compressed natural gas, liquefied natural gas, or liquefied
4 petroleum gas purchased and delivered into the fuel supply tanks of motor
5 vehicles in this state.
6 C. The records required to be kept pursuant to the provisions of this
7 Section shall be kept until the fourth anniversary of the date they were created
8 and shall be open to inspection at all times by the secretary or his designee. In
9 addition to the records specifically required by this Section, a licensee or a
10 person required to hold a license shall keep any other records required by the
11 secretary.
12 §818.124. Notice of discontinuance, sale, or transfer of business
13 A. Prior to discontinuing any business issued a license pursuant to the
14 provisions of this Subpart, the licensee shall notify the secretary in writing at
15 least thirty days prior to the effective date of the discontinuance, sale, or
16 transfer and shall surrender the license to the secretary. The notice shall state
17 the effective date of the discontinuance and, if the licensee has transferred the
18 business or otherwise relinquished control to another person by sale or
19 otherwise, the date of the sale or transfer and the name and address of the
20 person to whom the business was transferred or relinquished. The notice shall
21 also include any other information required by the secretary.
22 B. If a licensee liable for any tax, interest, or penalty levied in accordance
23 with this Subpart sells or transfers the business or quits the business, the
24 licensee shall make a final return and payment within fifteen days after the date
25 of selling, transferring, or quitting the business. The successor, successors, or
26 assigns, if any, shall withhold sufficient amounts of the purchase monies to
27 cover the amount of taxes, interest, and penalties due and unpaid until such
28 time as the former owner shall produce a receipt from the secretary showing
29 that all taxes, interest, and penalties have been paid, or a certificate stating that
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1 no taxes, interest, or penalties are due. If the purchaser of a business fails to
2 withhold purchase money, the purchaser shall be personally liable for the
3 payment of the taxes, interest, and penalties accrued and unpaid on the account
4 of the operation of the business by any former owner, owners, or assigns.
5 C. In the case of a licensee who has quit a business but who subsequently
6 opens another similar business under the same ownership, whether that
7 ownership is individual, partnership, corporation, or other, that licensee shall
8 be liable for any tax, interest, or penalty owed by the original business.
9 §818.125. Engaging in business without a license; penalty
10 Any person who engages in or performs any business activity for which
11 a license is required by this Subpart without having first obtained and
12 subsequently retained a valid license shall be subject to a penalty of ten
13 thousand dollars for a first violation. For each subsequent violation, the penalty
14 shall be multiplied by the sum of the current violation plus all prior violations.
15 Penalties prescribed under this Section shall be assessed, collected, and paid in
16 the same manner as the tax.
17 §818.126. Failure to pay tax or furnish bond; subject to attachment; suit to
18 enjoin further pursuit of business
19 A. Failure to pay any tax levied in this Subpart or any interest, penalties,
20 or applicable costs or failure to furnish bond as provided in this Subpart shall
21 ipso facto and without demand or putting in default, make the tax, penalties,
22 and interest delinquent and shall be construed as an attempt to avoid the
23 payment of the tax, penalties, and interest, which shall be sufficient grounds for
24 attachment of the compressed natural gas, liquefied natural gas, or liquefied
25 petroleum gas, wherever fuel may be located or found, whether the delinquent
26 taxpayer is a resident or nonresident of this state and whether the compressed
27 natural gas, liquefied natural gas, or liquefied petroleum gas is in the possession
28 of the delinquent taxpayer or in the possession of other persons. Each
29 compressed natural gas, liquefied natural gas, or liquefied petroleum gas
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1 licensee shall be responsible for the payment of the applicable tax levied in this
2 Subpart, together with any interest, penalties, and costs accruing thereon, and
3 the secretary may attach, seize, or sequester any compressed natural gas,
4 liquefied natural gas, or liquefied petroleum gas subject to tax under this
5 Subpart when a tax is not paid when it was due and payable. The procedure
6 prescribed by law shall be followed except that the secretary shall not be
7 required to provide a bond.
8 B. When a licensee fails to pay any tax levied under this Subpart, or any
9 interest, penalties, or applicable costs or fails to furnish bond as provided in this
10 Subpart, the secretary may take a rule on the licensee, by motion in a court of
11 competent jurisdiction, to show cause as to why the licensee should not be
12 ordered to cease from further pursuit of business as a licensee. The rule shall
13 be heard by the court not less than two days nor more than ten days, exclusive
14 of holidays, after service of the rule on the licensee. Furthermore, the rule may
15 be tried out of term and in chambers, and shall always be tried by preference.
16 In case the rule is made absolute, the order rendered by the court shall be
17 considered a judgment in favor of the state prohibiting the licensee from the
18 further pursuit of the business until the licensee has paid the delinquent tax,
19 penalties, and interest and has furnished the bond required by this Subpart.
20 Every violation of the injunction shall be considered a contempt of court and
21 shall be punishable in accordance with the law.
22 C. When a bond has been furnished by the licensee, the surety on the
23 bond may be joined in the rule with the licensee and condemned in solido for the
24 amount of tax, interest, penalties, attorney fees, and costs.
25 §818.127. Power to stop and investigate vehicles; fines, collection, and
26 enforcement
27 A. The secretary, his authorized designee, any weights and standards
28 police officer, or any motor carrier safety police officer shall be empowered to
29 stop any commercial motor vehicle which appears to be operating with
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1 compressed natural gas, liquefied natural gas, or liquefied petroleum gas for the
2 purpose of examining the invoices and for any other investigative purposes
3 reasonably necessary to determine whether the taxes imposed by this Subpart
4 have been paid or whether the vehicle is being operated in compliance with the
5 provisions of this Subpart.
6 B. If, after examination or investigation, it is determined that the tax
7 imposed by this Subpart has not been paid with respect to the compressed
8 natural gas, liquefied natural gas, or liquefied petroleum gas being used in the
9 vehicle, the secretary, his authorized designee, the weights and standards police
10 officer, or the motor carrier safety police officer may assess the tax due together
11 with the applicable penalty provided in this Subpart, to the owner or driver of
12 the vehicle.
13 C. The secretary, his authorized designee, the weights and standards
14 police officer, or the motor carrier safety police officer may impound any
15 vehicle found to be operating in violation of this Subpart or any vehicle for
16 which inspection has been refused until such time as an inspection has been
17 completed or any tax, interest, penalties, and other charges assessed as provided
18 in this Subpart have been paid.
19 §818.128. Authorization to search; seizure of equipment for evidence
20 A. The secretary may search and examine any warehouse, boat, store,
21 storeroom, automobile, truck, conveyance, vehicle, any and all places of storage,
22 and any and all means of transportation, where there is probable cause to
23 believe the terms of this Subpart have been, or are being violated.
24 B. Any automobile, truck, boat, conveyance, vehicle, or other means of
25 transportation caught or detected transporting compressed natural gas,
26 liquefied natural gas, or liquefied petroleum gas on which the tax levied
27 pursuant to this Subpart has not been paid shall be prohibited and the means
28 used in the transportation of the compressed natural gas, liquefied natural gas,
29 or liquefied petroleum shall be subject to seizure by the collection and forfeiture
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1 and sale as provided in this Subpart.
2 §818.129. Inspection of records, storage facilities; penalty
3 A. The secretary may examine the books, records, and other documents
4 of all companies, agencies, or firms operating in this state, whether the
5 companies, agencies, or firms conduct their business by rail, water, or
6 otherwise, in order to identify licensees that are importing or otherwise shipping
7 compressed natural gas, liquefied natural gas, or liquefied petroleum which are
8 liable for tax under this Part. The examination by the secretary authorized by
9 this Section shall be conducted during reasonable business hours of the licensee.
10 B. Any person who refuses to permit an inspection of records or storage
11 facilities or refuses to permit an audit shall be subject to a penalty of five
12 thousand dollars in addition to any other penalty imposed in accordance with
13 provisions of this Subtitle.
14 §818.130. Unlawful importing, transportation, delivery, storage, or sale of
15 compressed natural gas, liquefied natural gas, or liquefied
16 petroleum; sale to enforce assessment
17 A. Upon the discovery of any compressed natural gas, liquefied natural
18 gas, or liquefied petroleum gas illegally imported into or illegally transported,
19 delivered, stored, or sold within this state, the secretary shall order the tank or
20 other storage receptacle in which the compressed natural gas, liquefied natural
21 gas, or liquefied petroleum gas is located to be seized and locked or sealed until
22 the tax, interest, and penalties levied or imposed in accordance with the
23 provisions of this Subpart are assessed and paid.
24 B. If the tax is not paid within thirty days of the assessment, the secretary
25 may, in addition to other remedies authorized in this Subpart, sell the
26 compressed natural gas, liquefied natural gas, or liquefied petroleum gas and
27 use the proceeds of the sale to satisfy the assessment due. Any funds collected
28 from the sale that exceed the assessment and costs of the sale shall be returned
29 to the owner of the compressed natural gas, liquefied natural gas, or liquefied
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1 petroleum gas.
2 C. All compressed natural gas, liquefied natural gas, or liquefied
3 petroleum gas, and any property, tangible or intangible, found on the person or
4 in any vehicle that the person is using, including the vehicle itself, to aid in the
5 transportation or sale of illegally transported, delivered, stored, sold, imported,
6 or acquired compressed natural gas, liquefied natural gas, or liquefied
7 petroleum gas, and any property found in the immediate vicinity of any place
8 where the illegally transported, delivered, stored, sold, imported, or acquired
9 compressed natural gas, liquefied natural gas, or liquefied petroleum gas is
10 located, including motor vehicles, tanks, and other storage devices, used to aid
11 in the illegal transportation or sale of compressed natural gas, liquefied natural
12 gas, or liquefied petroleum gas shall be subject to seizure, forfeiture, and sale
13 by the secretary in the manner provided for in this Subpart.
14 §818.131. Procedure for forfeiture and sale
15 A. The secretary may, in a summary proceeding or by an action against
16 the owner or operator of any automobile, truck, boat, conveyance, vehicle, or
17 other means of transportation used to transport any compressed natural gas,
18 liquefied natural gas, or liquefied petroleum on which a tax is levied by this
19 Subpart, and on which the tax has not been paid in the manner herein provided,
20 demand the forfeiture and sale of the automobile, truck, boat, conveyance,
21 vehicle, or other means of transportation used in the illegal transportation.
22 B. In all cases where it is made to appear by affidavit that the residence
23 of the owner of the automobile, truck, boat, conveyance, vehicle, or other means
24 of transportation is out of state or is unknown to the secretary, the court having
25 jurisdiction of the proceeding shall appoint an attorney to represent the absent
26 owner against whom the rule shall be tried contradictorily within ten days after
27 the filing of the rule. The affidavit may be made by the secretary, or by one of
28 his assistants or the attorney representing the secretary, if it is not convenient
29 to obtain the affidavit from the secretary. The attorney appointed to represent
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1 the absent owner may waive service and citation of the petition or rule but shall
2 not waive time or any legal defense.
3 C. If it is established during the trial that the automobile, truck, boat,
4 conveyance, vehicle, or other means of transportation was used to transport
5 compressed natural gas, liquefied natural gas, or liquefied petroleum gas on
6 which the tax had not been paid, then the court shall order the forfeiture of the
7 automobile, truck, boat, conveyance, vehicle, or other means of transportation.
8 The court shall also order the sale of the vessel subject to forfeiture after ten
9 days notice by advertisement in the official parish paper where the seizure was
10 made. The sale shall be made by the civil sheriff of the parish of Orleans, or by
11 the sheriff of the parish in which the seizure is made, at public auction at the
12 courthouse to the highest bidder for cash and without appraisal. It is the intent
13 and purpose of this Section to afford the owner of the automobile, truck, boat,
14 conveyance, vehicle, or other means of transportation a fair opportunity for a
15 court hearing and that the forfeiture and sale of the automobile, truck, boat,
16 conveyance, vehicle, or other means of transportation shall operate as a penalty
17 for the violation of this Subpart by illegal transportation. The payment of the
18 tax due at the moment of the seizure or thereafter shall not prevent, abate,
19 discontinue, or defeat the forfeiture and sale of the seized property.
20 D. All funds collected from the seized and forfeited property shall be
21 paid into the state treasury and credited to the same fund or funds that would
22 have received credit for the tax on the product illegally transported.
23 E. The court shall fix the fee of the attorney representing the owner when
24 appointed by the court, at a nominal sum not to exceed ten percent. The
25 attorney fees shall be taxed as costs and shall be paid out of the proceeds of the
26 sale of the property.
27 §818.132. Commission of prohibited acts; misdemeanors; felonies; penalties
28 A. Any person who commits any of the following offenses is guilty of a
29 misdemeanor, and upon conviction shall be fined not less than one thousand
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1 dollars nor more than five thousand dollars or imprisoned for not more than
2 two years, or both:
3 (1) Failure to maintain any record required by this Subpart.
4 (2) Making a tax-free sale or delivery of compressed natural gas,
5 liquefied natural gas, or liquefied petroleum gas into the fuel supply tank of a
6 motor vehicle.
7 (3) Making a false statement in a license application, return, invoice,
8 statement, or any other document required under this Subpart.
9 (4) Making a false statement in an application for a refund.
10 (5) Failure to make a required disclosure of the correct amount of
11 compressed natural gas, liquefied natural gas, or liquefied petroleum gas sold
12 or used in this state.
13 (6) Failure to file a new, replacement, larger, or additional surety bond
14 as required under this Subpart.
15 (7) Interference with or refusal to permit seizures authorized by this
16 Subpart.
17 (8) Operating a liquefied gas-propelled motor vehicle that is required to
18 be licensed in this state, including a motor vehicle equipped with dual
19 carburetion, and without displaying a multi-state fuels tax agreement decal.
20 (9) Refusal to permit the secretary or his designee or the Louisiana
21 Liquefied Gas Commission or its designee to measure or gauge the contents of
22 or take samples from a storage tank or container on premises where
23 compressed natural gas, liquefied natural gas, or liquefied petroleum gas is
24 produced, processed, stored, sold, delivered, or used.
25 (10) Transporting compressed natural gas, liquefied natural gas, or
26 liquefied petroleum gas under a false cargo manifest or shipping document, or
27 transporting compressed natural gas, liquefied natural gas, or liquefied
28 petroleum gas to a location without delivering a shipping document relating to
29 that shipment.
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1 B. Any person who commits any of the following offenses with the intent
2 either to evade or to circumvent the tax levied by this Subpart or to assist any
3 other person in efforts to evade or to circumvent the tax levied by this Subpart
4 shall be guilty of a felony, and upon conviction shall be fined not less than five
5 thousand dollars nor more than an amount commensurate with the amount of
6 tax combined with interest and penalties lost to the state due to the illegal
7 actions or imprisoned with or without hard labor for not less than two nor more
8 than ten years, or both:
9 (1) Altering, manipulating, replacing, or in any other manner tampering
10 or interfering with, or causing to be altered, manipulated, replaced, tampered,
11 or interfered with, a totalizer attached to compressed natural gas, liquefied
12 natural gas, or liquefied petroleum gas to measure the dispensing of compressed
13 natural gas, liquefied natural gas, or liquefied petroleum gas.
14 (2) Failure to pay compressed natural gas, liquefied natural gas, or
15 liquefied petroleum gas taxes and diversion of the tax proceeds for other
16 purposes.
17 (3) As a licensee or the agent or representative of a licensee, conversion
18 or attempting to convert compressed natural gas, liquefied natural gas, or
19 liquefied petroleum gas tax proceeds for the use of the licensee or the licensee's
20 agent or representative with the intent to defraud the state.
21 (4) Collection of compressed natural gas, liquefied natural gas, or
22 liquefied petroleum gas taxes when not authorized or licensed by the secretary
23 to do so.
24 (5) Selling or delivering compressed natural gas, liquefied natural gas,
25 or liquefied petroleum gas on which the person knows the tax is required to be
26 collected, if at the time the sale is made the person does not hold a valid dealer's
27 license.
28 (6) Importing compressed natural gas, liquefied natural gas, or liquefied
29 petroleum gas into this state in contravention of this Subpart.
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1 (7) Conspiring with any person or persons to engage in an act, plan, or
2 scheme to defraud this state of compressed natural gas, liquefied natural gas,
3 or liquefied petroleum gas tax proceeds.
4 (8) Concealing compressed natural gas, liquefied natural gas, or liquefied
5 petroleum gas with the intent of engaging in any conduct prohibited by this
6 Subpart.
7 (9) Refusal to make sales of compressed natural gas, liquefied natural
8 gas, or liquefied petroleum gas on the volume-corrected basis prescribed by this
9 Subpart.
10 (10) Failure to remit any tax levied pursuant to this Subpart to the
11 secretary, if the person has added or represented that the tax was added to the
12 sales price of the compressed natural gas, liquefied natural gas, or liquefied
13 petroleum gas and has collected the amount of the tax.
14 C. Each offense shall be subject to a separate penalty.
15 §818.133. Collaboration with commissioner of agriculture
16 Notwithstanding any provision of law to the contrary, the commissioner
17 of agriculture shall have the duty and authority to assist the secretary of the
18 Department of Revenue in collecting the taxes and any interest or penalties due
19 pursuant to the provisions of this Subpart, and the provisions of Subpart E of
20 Part II of Chapter 30 of Title 3 of the Louisiana Revised Statutes of 1950 that
21 are not inconsistent with this duty shall apply for such purposes. Subject to the
22 oversight of the House Committee on Ways and Means and the Senate
23 Committee on Revenue and Fiscal Affairs, the commissioner, in consultation
24 with the secretary, shall promulgate rules pursuant to the Administrative
25 Procedure Act to provide procedures and processes for the orderly regulation
26 and enforcement of the laws governing taxation of compressed natural gas,
27 liquified natural gas, and liquified petroleum gas.
28 Section 2. R.S. 3:4602(12.1) is hereby amended and reenacted and R.S. 3:4690.1 is
29 hereby enacted to read as follows:
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1 §4602. Definitions
2 As used in this Chapter, the following terms shall have the following
3 meanings:
4 * * *
5 (12.1) "Petroleum (a) Except as provided in Subparagraph (b) of this
6 Paragraph, "petroleum product" means any refined hydrocarbon mixture including
7 motor oil, kerosene, gasoline, gasohol, diesel fuel, aviation fuel, heating kerosene,
8 and any blend of two or more refined hydrocarbon mixtures except liquefied
9 petroleum gas and natural gas.
10 (b) For purposes of enforcement of the provisions of R.S. 47:818.111 et
11 seq. regarding taxes on special fuels, "petroleum product" shall include
12 compressed natural gas, liquified natural gas, and liquified petroleum gas as
13 those terms are defined in R.S. 47:818.2.
14 * * *
15 §4690.1. Enforcement of certain tax provisions
16 Notwithstanding any provision of law to the contrary, the commissioner
17 shall have the duty and authority to assist the secretary of the Department of
18 Revenue in collecting the taxes and any interest or penalties due pursuant to the
19 provisions of R.S. 47:818.111 et seq., and the provisions of this Subpart that are
20 not inconsistent with this duty shall apply for such purposes. Subject to the
21 oversight of the House Committee on Ways and Means and the Senate
22 Committee on Revenue and Fiscal Affairs, the commissioner, in consultation
23 with the secretary, shall promulgate rules pursuant to the Administrative
24 Procedure Act to provide procedures and processes for the orderly regulation
25 and enforcement of the laws governing taxation of compressed natural gas,
26 liquified natural gas, and liquified petroleum gas.
27 Section 3. R.S. 47:818.101 through 104 are hereby repealed.
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Laura Gail Sullivan.
DIGEST
SB 271 Original 2015 Regular Session White
Present law provides for taxation of special fuels - including compressed natural gas,
liquified natural gas, and liquified petroleum gas - sold, used, or consumed in La. for the
operation of motor vehicles licensed or required to be licensed for highway use at the rate
of 16¢ per gallon.
Proposed law retains present law.
Present law specifies that present law 16-cent-per-gallon tax does not apply to compressed
natural gas, liquefied natural gas, or liquefied petroleum gas sold to, delivered to, or used by
any person who pays the annual fuel tax levied under other provisions of present law.
Proposed law deletes this exception and removes the provisions allowing for an annual fuel
tax.
Proposed law provides for determinations of a special fuel's energy content in relation to a
gallon of gasoline or diesel beginning Jan. 1, 2016. Specifies that for purposes of levying
the 16-cent-per-gallon tax:
(1)The gasoline gallon equivalent shall be 5.660 pounds of compressed natural gas.
(2)The diesel gallon equivalent shall be 6.060 pounds of liquified natural gas.
(3)The diesel gallon equivalent shall be 4.2 pounds of liquified petroleum gas.
Proposed law provides for licensing of persons utilizing, delivering, or selling the special
fuels; requirements for collection of the per-gallon tax by the licensed users, dealers, and
sellers; application, suspension, cancellation, and revocation of licenses; bond requirements;
returns, payments, credits, refunds, and fines, penalties, and interest for failure to pay
associated with the tax; records retention and inspection; and investigative and enforcement
authority, including authorization for search and seizure and criminal penalties for certain
prohibited acts.
Proposed law authorizes and requires the Commissioner of Agriculture to assist the secretary
of the Dept. of Revenue in collecting the taxes and any interest or penalties due pursuant to
the provisions of proposed law. Requires the commissioner, in consultation with the
secretary, to promulgate rules pursuant to the Administrative Procedure Act to provide
procedures and processes for the orderly regulation and enforcement of the laws governing
taxation of compressed natural gas, liquified natural gas, and liquified petroleum gas.
Effective August 1, 2015.
(Amends R.S. 3:4602(12.1) and R.S. 47:818.2(intro para), (18), (22), (43), (44), and (63);
adds R.S. 3:4690.1 and R.S. 47:818.111-818.133; repeals R.S. 47:818.101-104)
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.