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 54 Engrossed 2016 First Extraordinary Session Broadwater
Abstract: Requires advance sales tax deposits by certain dealers and authorizes a credit or refund
in certain circumstances.
Present law provides for returns and monthly or quarterly payment of sales tax by dealers. Further
requires certain reporting relative to sales by dealers. Authorizes a vendor's compensation of 0.935%
of the sales tax remitted by a dealer for timely remitting the sales tax. Requires registration by
certain nonresident contractors. Provides for payment of the tax by a licensed vehicle dealer.
Proposed law retains present law and requires dealers who have an average monthly sales and use
tax liability of at least $20K between April 1, 2015, and March 30, 2016, to remit an advance sales
tax deposit beginning on April 20, 2016, and then on the 20
th
day of every month thereafter. Further
authorizes the secretary to assess a penalty for failure of a dealer to timely remit.
Proposed law authorizes two methods by which a dealer may determine the amount of the advance
sales tax deposit to be remitted.
Proposed law authorizes the "actual sales method" by which a dealer is required to remit an advance
sales tax deposit in an amount equal to at least 90% of the dealer's sales and use tax liability collected
for the 1
st
through 15
th
of the current month.
Proposed law further authorizes the "estimated sales method" by which a dealer is required to remit
an advance sales tax deposit in an amount equal to at least 75% of the dealer's sales and use tax
liability for the comparable month of the preceding year.
Proposed law requires any adjustments necessary for proper reporting and payment of tax collected
to be completed with the monthly return due on the 20
th
day of the month following the month in
which the advance sales tax deposit was made.
Proposed law authorizes a credit or refund of any advance sales tax deposit collected in excess of
the actual tax due, but prohibits a credit or refund on any advance sales tax deposit prior to the dealer
filing the return for the actual sales taxes collected during the month for which the advance sales tax
deposit applied.
Proposed law exempts any agency, department, or instrumentality of the U.S. government or any
agency, department, institution, instrumentality, or political subdivision of the state. Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 47:306(B))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Delete all proposed law in the original bill.
2. Require dealers who have an average monthly sales and use tax liability of at least $20K
between April 1, 2015, and March 30, 2016, to remit an advance sales tax deposit
beginning on April 20, 2016, and then on the 20
th
day of every month thereafter and
authorize the secretary to assess a penalty for failure to remit timely.
3. Authorize the "actual sales method" requiring a dealer to remit an advanced sales tax
deposit in an amount equal to at least 90% of the dealer's sales and use tax liability
collected for the 1
st
through 15
th
of the current month.
4. Authorize the "estimated sales method" requiring a dealer to remit an advanced sales tax
deposit in an amount equal to at least 75% of the dealer's sales and use tax liability for
the comparable month of the preceding year.
5. Require any adjustment to be completed with the monthly return due on the 20
th
day of
the month following the month in which the advanced sales tax deposit was made.
6. Authorize a credit or refund for any advance sales tax deposit collected in excess of the
actual tax due, but require the dealer to file the return for the actual sales taxes collected
prior to issuance of a credit or refund.
7. Exempt any agency, department, or instrumentality of the U.S. government or any
agency, department, institution, instrumentality, or political subdivision of the state from
the provisions of proposed law.