HLS 16RS-2118 ENGROSSED
2016 Regular Session
HOUSE BILL NO. 1121
BY REPRESENTATIVE LEGER
TAX/SALES & USE: Establish notification and reporting requirements relative to retail
sales made in Louisiana by remote retailers
1 AN ACT
2To amend and reenact R.S. 47:302(U) and 309.1, relative to sales and use taxes; to provide
3 with respect to sales of tangible personal property and taxable services in Louisiana;
4 to require the provision of lists of sales under certain circumstances; to require that
5 certain notifications be provided to purchasers of such property and services for
6 purposes of collection of use taxes under certain circumstances; to require the filing
7 of annual statements by certain remote retailers; to provide for definitions; to provide
8 for the powers and duties of the secretary of the Department of Revenue; to authorize
9 rulemaking; to authorize the subpoena of certain information; to establish and
10 authorize the assessment of penalties; to provide with respect to implementation and
11 enforcement; to provide for effectiveness; and to provide for related matters.
12Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 47:302(U) and 309.1 are hereby amended and reenacted to read as
14follows:
15 §302. Imposition of tax
16 * * *
17 U. Collection of consumer use tax. It is the duty of the secretary of the
18 Department of Revenue to collect all taxes imposed pursuant to this Chapter and
19 Chapters 2-A and 2-B of this Subtitle which may be due upon the sale by a remote
20 seller retailer of tangible personal property or services in Louisiana. The secretary
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1 is authorized and directed to employ all means available to ensure the collection of
2 the tax in an equitable, efficient, and effective manner.
3 * * *
4 §309.1. Dealers required to furnish list of purchasers Sales in Louisiana of tangible
5 personal property and taxable services by a dealer or remote retailer; the
6 provision of lists, notices, and statements by a dealer or remote retailer
7 A. Any dealer selling property or services, the aggregate value per sale of
8 which exceeds two hundred fifty dollars, to residents of this state, shall, upon request
9 of the secretary, provide a list of such sales to the secretary of the Department of
10 Revenue. The list shall include the names and addresses of the purchasers and the
11 amount of the sale. The secretary shall pay to any dealer furnishing a list under this
12 Section, an amount equal to the reasonable cost of reproducing the list.
13 A. Any dealer selling property or services, the aggregate value per sale of
14 which exceeds two hundred fifty dollars, to residents of this state, shall, upon request
15 of the secretary, provide a list of such sales to the secretary of the Department of
16 Revenue. The list shall include the names and addresses of the purchasers and the
17 amount of the sale. The secretary shall pay to any dealer furnishing a list under this
18 Section, an amount equal to the reasonable cost of reproducing the list.
19 B. Definitions. As used in this Section, the following words and phrases
20 have the following meanings unless the context clearly indicates otherwise:
21 (1) "Engaging in business in Louisiana" means any of the following:
22 (a) The manufacture or production of tangible personal property for retail
23 sale, or for use, consumption, or storage to be used or consumed in this state.
24 (b) The retail sale of tangible personal property for use, consumption, or
25 storage to be used or consumed in this state.
26 (c) The lease or rental of tangible personal property for consideration,
27 permitting the use or possession of the property without transferring the title thereto.
28 (d) The sale or furnishing of taxable services in this state.
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1 (e) The regular or systematic solicitation of a market in Louisiana by the
2 distribution of catalogs or periodicals, or by advertising by means of print, radio,
3 television, mobile telecommunications, or any other type of digital media or
4 communication system.
5 (2) "Louisiana purchaser" or "purchaser" means a person who purchases
6 tangible personal property or taxable services in a transaction with a remote retailer
7 for property or a service that is delivered for use or benefit in Louisiana, and no
8 Louisiana sales and use tax was collected or paid on the transaction.
9 (3) "Remote retailer" or "retailer" means a retailer engaging in business in
10 Louisiana who meets all of the following criteria:
11 (a) Is not required by applicable law, ordinance, or regulation to register as
12 a dealer in Louisiana, and thus is not otherwise required to collect Louisiana sales
13 and use taxes.
14 (b) Makes retail sales of tangible personal property or taxable services where
15 the property is delivered into Louisiana or the beneficial use of the service occurs in
16 Louisiana, and the cumulative annual gross receipts for the retailer and its affiliates
17 from those sales exceeds fifty thousand dollars per calendar year.
18 (c) Does not collect and remit Louisiana sales and use tax with respect to
19 their retail sales in this state, including the tax imposed under R.S. 47:302(K).
20 (4) "Secretary" means the secretary of the Department of Revenue.
21 C. Notification of purchaser. (1) At the time of sale, the remote retailer
22 shall notify the Louisiana purchaser that the purchase is subject to Louisiana use tax
23 unless it is specifically exempt, and that there is no exemption specifically based on
24 the fact that a purchase is made over the Internet, by catalog, or by other remote
25 means. Further, the sale notice shall include a statement that Louisiana law requires
26 that use tax liability be paid annually on the individual income tax return, or through
27 other means as may be required by administrative rule by the secretary in accordance
28 with the Administrative Procedure Act, hereinafter referred to as "administrative
29 rule". Failure to provide a sale notice shall subject the retailer to a penalty of five
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1 dollars for each failure; however, all or a portion of the penalty may be waived by
2 the secretary if the retailer shows reasonable cause for the failure.
3 (2) By January thirty-first of each year, a remote retailer shall send to each
4 Louisiana purchaser who has purchased property or services from the retailer in the
5 immediately preceding calendar year an annual notice containing the total amount
6 paid by the purchaser for purchasers in that preceding calendar year, and other
7 information required by the secretary as established through administrative rule. If
8 available, the annual notice shall include a listing of the dates and amounts of
9 purchasers, and if known by the retailer, whether the property or service is exempt
10 from sales and use taxes. The annual notice shall clearly disclose the name of the
11 retailer and shall state that Louisiana use tax may be due on the purchases made from
12 the retailer and that Louisiana law requires the payment of an individual's use tax
13 liability on the individual income tax return or through other means as may be
14 required by administrative rule. The notification shall be sent by first class mail and
15 shall not be included with any other shipment or mailing from the retailer. Further,
16 the exterior of the envelope in which the notice is sent shall include the words
17 "IMPORTANT TAX DOCUMENT ENCLOSED". Failure to send an annual notice
18 shall subject the retailer to a penalty of ten dollars for each failure; however, all or
19 a portion of the penalty may be waived by the secretary if the retailer shows
20 reasonable cause for the failure.
21 D. Annual statement submitted by remote retailer. By March first of each
22 year a remote retailer who made retail sales of tangible personal property or taxable
23 services to Louisiana purchasers in the immediately preceding calendar year shall
24 file with the secretary an annual statement for each purchaser which includes the
25 total amount paid by the purchaser to that retailer in the immediately preceding
26 calendar year. Under no circumstances shall the statement contain detail as to
27 specific property or services purchased, but it shall include the total amount paid.
28 The statement shall be submitted on forms to be developed and provided by the
29 secretary. The secretary is authorized to require the electronic filing of statements
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1 by a remote retailer who had sales in Louisiana in excess of one hundred thousand
2 dollars in the immediately preceding calendar year. Failure to submit an annual
3 statement shall subject the retailer to a penalty of ten dollars for each purchaser for
4 whom an annual statement was not submitted; however, all or a portion of the
5 penalty may be waived by the secretary if the retailer shows reasonable cause for the
6 failure.
7 E. Powers and Duties of the secretary. (1) In addition to the powers and
8 duties of the secretary established under Chapter 18 of Subtitle II of this Title, the
9 secretary may, by subpoena, compel witnesses and the production of documents for
10 purposes of enforcement of the requirements of this Section relative to the required
11 notices and annual statements concerning taxable transactions occurring in Louisiana
12 which involve a remote retailer. The secretary may also seek letters rogatory when
13 appropriate for the enforcement of this Section. If the retailer fails to respond to the
14 subpoena, the secretary may request that the subpoena be enforced on the order of
15 a court.
16 (2) With respect to all penalties assessable under this Section, the conditions
17 for assessment of the penalty and a definition of "reasonable cause" shall be
18 established by the secretary through administrative rule.
19 B. Any dealer F. Any dealer or remote retailer selling property or services
20 to residents of this state, where the property is delivered into this state or the
21 beneficial use of the service occurs in this state, is considered to have consented to
22 the jurisdiction of the courts of this state Louisiana and the Board of Tax Appeals for
23 the exclusive purpose of enforcing this Section. Notwithstanding any other provision
24 of law to the contrary, service of process upon dealers subject to this Section may be
25 made by service outside this state in the same manner provided for service within
26 this state with the same force and effect as though service had been made within this
27 state.
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HB NO. 1121
1 G. The secretary may establish specific procedures and requirements
2 concerning purchaser notifications and the filing of annual statements through rules
3 promulgated in accordance with the Administrative Procedure Act.
4 Section 2. This Act shall become effective upon signature by the governor or, if not
5signed by the governor, upon expiration of the time for bills to become law without signature
6by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
7vetoed by the governor and subsequently approved by the legislature, this Act shall become
8effective on the day following such approval.
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 1121 Engrossed 2016 Regular Session Leger
Abstract: Requires annual notifications to purchasers and the Dept. of Revenue by remote
retailers who make sales in La. in excess of $50,000 per year.
Present law authorizes the secretary of the Dept. of Revenue "secretary" to require that a
dealer furnish a list to the secretary concerning their sales of property and services which
exceed $250. The secretary is authorized to compensate a dealer for the preparation and
submission of the list.
Proposed law retains present law.
Proposed law establishes requirements for the provision of notices to consumer and annual
statements to the Dept. of Revenue concerning sales by remote retailers of property delivered
into La. or services occurring in La.
Proposed law establishes definitions for "engaging in business in Louisiana", "Louisiana
purchaser", and "remote retailer".
Proposed law excludes from the requirements of proposed law remote retailers who make
retail sales in La. whose cumulative annual gross receipts from those sales is less than
$50,000 per calendar year.
Proposed law requires, at the time of sale, that the remote retailer notify the La. purchaser
that their purchase is subject to La. use tax unless it is specifically exempt, and that there is
no exemption specifically based on the fact that a purchase is made over the Internet, by
catalog, or by other remote means. A retailer is subject to a $5 penalty for each failure to
provide this sales notice; however, all or a portion of the penalty may be waived by the
secretary if the retailer shows reasonable cause for the failure.
Proposed law requires a remote retailer to send, by Jan. 31
st
of each year, an annual notice
to all La. purchasers who made purchases from them in the immediately preceding calendar
year. The annual notice shall report the total amount paid for purchases in that preceding
calendar year, and other information required by the secretary through administrative rule.
If available, this notice may include a listing of the dates and amounts of purchasers, and
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whether the property or service is exempt from sales and use taxes. A retailer is subject to
a penalty of $10 for each annual notice which was not sent; however, all or a portion of the
penalty may be waived by the secretary if the retailer shows reasonable cause for the failure.
Proposed law requires a remote retailer who made retail sales of tangible personal property
or taxable services to La. purchasers in the immediately preceding calendar year to file with
the secretary an annual statement with regard to each purchaser by March first of each year.
The statement shall provide the total amount paid by the purchaser to that retailer in the
immediately preceding calendar year, but shall not contain any detail as to specific property
or services purchased. The secretary is authorized to require the electronic filing of annual
statements by a remote retailer who had sales in La. in excess of $100,000 in the
immediately preceding calendar year. A retailer is subject to a penalty of $10 for each annual
statement that was not sent; however, all or a portion of the penalty may be waived by the
secretary if the retailer shows reasonable cause for the failure.
Proposed law establishes powers of the secretary for purposes of enforcement of proposed
law which include the authority to subpoena or compel witnesses and the production of
documents. The secretary is also authorized to seek letters rogatory when appropriate, and
in the event of the failure by a retailer to respond to a subpoena, the secretary may request
that the subpoena be enforced through a court order.
Present law provides that any dealer selling property or services to residents of La., where
the property is delivered into the state or the beneficial use of the service occurs in the state,
is considered to have consented to the jurisdiction of the courts of La. for the exclusive
purpose of enforcing present law. Further, service of process upon dealers subject to present
law may be made by service outside of La. in the same manner provided for service within
the state with the same force and effect as though service had been made within the state.
Proposed law retains present law and adds jurisdiction for the Board of Tax Appeals.
Proposed law authorizes rulemaking in accordance with the Administrative Procedure Act
regarding procedures and requirements concerning purchaser notifications and the filing of
annual statements.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:302(U) and 309.1))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Remove requirement for the promulgation of rules necessary for proposed law
to be implemented.
2. Authorize rulemaking for procedures and requirements concerning purchaser
notifications and the filing of annual statements.
3. Establish Jan. 31
st
of each year as the deadline by which a remote dealer is
required to send annual notice to La. purchasers required in proposed law.
4. Establish March 1
st
of each year as the deadline by which a remote dealer has to
file the annual statement required by proposed law with the Secretary.
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