Louisiana House Bill HB1025

Louisiana 2016 Regular Session

• Introduced: 4/5/16
• Refer: 4/6/16

Caption

Authorizes a limited time frame for exceptions and waivers to penalties and fines for failure to comply with the collection, remittance, accounting, and record keeping for state sales and use tax

Impact

The impact of HB 1025 is primarily aimed at facilitating compliance for new dealers while also potentially increasing state tax revenues by encouraging more businesses to register to collect sales and use taxes without the fear of facing harsh penalties. By authorizing these waivers, the legislation is designed to provide a more supportive atmosphere for businesses starting their operations in Louisiana, particularly in terms of navigating the often complicated tax regulations that exist. This temporary allowance may help to create a smoother transition for newer dealers into the state's tax framework.

Summary

House Bill 1025 aims to provide temporary exceptions and waivers to the penalties and fines associated with the collection, remittance, accounting, and record-keeping requirements for state sales and use taxes. Specifically, the bill allows dealers who first register to collect these taxes between April 1, 2016, and June 15, 2016, to avoid penalties that might otherwise apply from April 1, 2016, to September 30, 2016. The intent behind this bill is to support new dealers in complying with state tax regulations without facing immediate penalties, thus easing their entry into the state taxation system.

Sentiment

The sentiment surrounding the bill appears to be generally positive, as it is perceived as a way to reduce barriers for new businesses entering the market. The character of this legislation indicates a focus on economic growth by easing the regulatory burdens on small businesses. Supporters highlight the significance of providing new businesses with opportunities to thrive without the fear of immediate financial penalties, while critiques may arise about the level of leniency being offered, especially from those concerned about tax compliance and fairness in the marketplace.

Contention

Notable points of contention may arise around concerns that HB 1025 could signal a broader trend towards leniency in tax compliance standards. Critics could argue that while the intention is to support new dealers, this could inadvertently foster a lack of accountability in tax collection, leading to complications for the state in future revenue reporting. There are also discussions to be had about whether exemptions should be made for other types of dealers who might also face challenges complying with existing tax laws, thus raising questions of equity in the treatment of those operating commercial activities across different timelines.