HLS 16RS-1267 ENGROSSED
2016 Regular Session
HOUSE BILL NO. 772
BY REPRESENTATIVE ABRAMSON
TAX/TAX REBATES: Provides relative to contracts for procurement processing company
rebates
1 AN ACT
2To amend and reenact R.S. 47:6351(B)(1), relative to rebate programs administered by the
3 state; to provide relative to the Procurement Processing Company Rebate program;
4 and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:6351(B)(1) is hereby amended and reenacted to read as follows:
7 ยง6351. Rebates; contracts for certain state sales and use tax rebates
8 B. Contract. (1) The secretary of the Department of Economic
9 Development department is authorized to enter into a contract with a procurement
10 processing company to recruit to Louisiana, purchasing companies that generate
11 sales of items subject to the taxes imposed under this Title the business of which
12 shall have a significant positive economic benefit to the state. The initial term of a
13 contract shall not exceed twenty years and shall be renewable for up to an additional
14 twenty years. The contract shall provide an incentive to the procurement processing
15 company which shall be paid in the form of a rebate of a portion of the state sales
16 and use taxes collected on new taxable sales by a purchasing company which is
17 managed by a procurement processing company.
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 16RS-1267 ENGROSSED
HB NO. 772
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 772 Engrossed 2016 Regular Session Abramson
Abstract: Authorizes the secretary of the Dept. of Revenue to enter into certain contracts
for incentive rebate payments.
Present law authorizes the secretary of the Dept. of Economic Development (DED) to enter
into a contract with a procurement processing company which recruits purchasing companies
to La. for incentive rebate payments (hereinafter "rebates") in exchange for the generation
of new state tax revenue from new taxable sales. Further requires the secretary of the Dept.
of Revenue (DOR) to pay rebates from the state tax revenue generated by the new taxable
sales occurring in La. as a result of the operation of a procurement processing company in
La.
Proposed law changes the agency head authorized to enter into contracts for benefits under
present law from the secretary of DED to the secretary of DOR.
(Amends R.S. 47:6351(B)(1))
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. Change the agency head authorized to enter into contracts for procurement
processing company rebate contracts from the secretary of the DED to the
secretary of the DOR.
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.