HLS 16RS-351 ORIGINAL
2016 Regular Session
HOUSE BILL NO. 825
BY REPRESENTATIVE CONNICK
TAX/SALES & USE: Provide for the centralized collection of local sales and use taxes by
the Department of Revenue
1 AN ACT
2To amend and reenact R.S. 47:337.6(A), 337.16, 337.25, 337.64(A), and
3 337.80(A)(introductory paragraph), and to enact R.S. 47:337.22(E) and 337.23(L),
4 and to repeal R.S. 47:337.13 and 337.14, relative to the collection of local sales and
5 use taxes; to require that all sales and use taxes levied by a local taxing authority in
6 the state be collected by the state; to provide for the duties and authority of the
7 secretary of the Department of Revenue; to provide for the accounting and
8 disposition of the local taxes collected; to require reporting; to authorize the
9 inspection of certain records; to provide for certain administrative remedies; to
10 authorize rulemaking; to repeal certain provisions relating to local collection of sales
11 and use taxes; to provide for effectiveness; and to provide for related matters.
12Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 47:337.6(A), 337.16, 337.25, 337.64(A), and 337.80(A)(introductory
14paragraph) are hereby amended and reenacted and R.S. 47:337.22(E) and 337.23(L) are
15hereby enacted to read as follows:
16 §337.6. Definitions
17 A. The following words, terms, and phrases used in this Chapter shall have
18 the meaning ascribed to them in this Subsection, unless the context clearly indicates
19 a different meaning:
20 (1) "Collector" means the secretary of the Department of Revenue.
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1 (2) "Department" means the Department of Revenue.
2 (3) "Local collector" means the single collector or collection commission for
3 each parish.
4 (1) (4) "Local ordinance", for purposes of this Chapter, shall include both
5 ordinances and resolutions pursuant to which a political subdivision levies a sales
6 and use tax and otherwise provides with respect thereto.
7 (5) "Local taxing authority" or "taxing authority" means a political
8 subdivision.
9 (2) (6) "Political subdivision" means a parish, municipality, and any other
10 unit of local government, including a school board and a special district, authorized
11 by law to levy and collect a sales and use tax.
12 (3) (6) "Secretary" or "secretary of revenue" means the secretary of the
13 Department of Revenue for the state of Louisiana.
14 * * *
15 §337.16. Authority to collect local sales and use taxes; state central collection
16 A. The secretary of the Department of Revenue is hereby authorized to
17 contract with all the governing authorities of any taxing authority, at the request of
18 the subdivisions, to collect and enforce the collection of any sales and use tax, and
19 related penalty, interest, or other charge, levied by the taxing authorities. In order
20 to collect and enforce any such tax, the secretary is vested with all the power and
21 authority conferred by this Title. Notwithstanding any provision of law to the
22 contrary, beginning July 1, 2017, all sales and use taxes levied by a local taxing
23 authority shall be collected by the state through the secretary of the Department of
24 Revenue. The secretary shall adopt rules and regulations and prescribe forms for the
25 collection of the local taxes that are consistent with the provisions of this Part.
26 B. The contract between the Department of Revenue and such taxing
27 authorities shall be executed by the secretary of the Department of Revenue and the
28 proper official or officials of the governing authorities of the taxing authorities. The
29 contract shall provide the manner, the charges and costs of collection, if any, to be
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1 paid by the taxing authorities, and such other terms and conditions necessary to
2 effectuate the contract. The secretary shall establish a program for the collection and
3 distribution of sales and use taxes levied by all local taxing authorities in the state,
4 hereinafter referred to as "non-state tax proceeds". Within the department there shall
5 be a specific staff with the primary responsibility of ensuring the prompt collection
6 and remittance of non-state tax proceeds. A member of the staff shall be available
7 every day of the year, twenty-four hours per day, and provide for and maintain a
8 system which allows for the sharing of real time data on the collection of taxes for
9 the benefit of the local taxing authorities for whom the taxes are collected.
10 C. The program shall provide for the transmission of the non-state tax
11 proceeds to each respective local collector as follows: taxes collected by electronic
12 means shall be transmitted within four days of receipt, and taxes collected by check
13 shall be transmitted within twenty days of receipt. The method for accounting and
14 distribution of non-state tax proceeds shall be determined by agreement of the
15 secretary and the state treasurer, and non-state tax proceeds shall not be considered
16 state monies and shall therefore not be subject to appropriation. The secretary shall
17 deduct an amount not greater than one-half of one percent of the taxes collected as
18 compensation for the collection service and to provide for continued support of the
19 staff assigned to this function. The fee to be charged for collection on behalf of each
20 taxing authority shall be determined by agreement of the secretary and the respective
21 taxing authority.
22 D. No later than February 1, 2017, the single collector for each parish shall
23 provide the secretary with a copy of all local ordinances affecting the imposition of
24 sales and use taxes in the parish and shall notify the secretary within ten days after
25 approval of any action imposing a new tax or otherwise affecting the imposition of
26 an existing tax. The notice shall be no later than seventy-five days prior to the
27 effective date of the change and shall specify the tax rate or base change, the time
28 period during which the change shall be in effect, and include a copy of the local tax
29 ordinance and any other information as may be required by the secretary.
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1 E. There shall be a monthly reconciliation of the account for each parish,
2 which shall provide detailed information regarding the amounts of tax collected and
3 remitted to the local collector.
4 F.(1) On a quarterly basis, the secretary shall provide a report of the taxes
5 collected and the cost of collection to each separate local taxing authority for which
6 sales and use taxes were collected and remitted pursuant to this Section. The report
7 shall include the name, address, and account number of each person from whom the
8 secretary has collected a tax payment, or to whom he has made a refund payment or
9 credit, during the quarter covered by the report.
10 (2) Upon the request of a local taxing authority, the secretary shall make an
11 additional quarterly report to the taxing authority that includes the amount of tax due
12 from each person identified by the secretary as doing business in the jurisdiction of
13 the taxing authority who has failed to pay the taxes determined to be due by the
14 secretary. The additional report shall state whether there has been a partial tax
15 payment by the delinquent taxpayer and whether the taxpayer is also delinquent in
16 the payment of state sales and use taxes. The report shall also include an explanation
17 of any action taken by the secretary to collect the delinquent taxes owed to the taxing
18 authority.
19 (3) If the local taxing authority determines that a person doing business in
20 its jurisdiction is not included in the report, the taxing authority may provide to the
21 secretary the name and address of the person, and within ninety days of receipt of the
22 information, the secretary shall send one of the following to the taxing authority:
23 (a) An explanation as to why the person is not obligated to pay the tax.
24 (b) A statement that the person is obligated to pay the tax and that the tax is
25 delinquent.
26 (c) A statement that the person is obligated to pay the tax, and the amount
27 of the tax that has been collected and credited to the taxing authority's special
28 account.
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1 G. The governing authority of a taxing authority may request to investigate
2 the records of the office concerning the collection of the taxes it levies, no more than
3 twice per year. The secretary shall acknowledge and respond to such a request
4 within ten days, and the investigation shall take place no more than twenty days after
5 the date of the secretary's response or at the convenience of the taxing authority,
6 whichever is later. Upon request of the taxing authority or the secretary, the
7 legislative auditor shall, to the degree practicable, provide assistance to the taxing
8 authority in the investigation of the records.
9 H. The collection of all local sales and use taxes collected by the secretary
10 pursuant to the provisions of this Section shall be subject to the provisions of Title
11 47 of the Louisiana Revised Statutes of 1950, with respect to the collection of state
12 sales and use taxes.
13 I. The secretary shall have no duty or authority to in any way administer the
14 levy and enforcement of any tax levied by any local taxing authority. All
15 responsibility for administration and enforcement of sales and use taxes, including
16 audits, and the consideration and payment of refund claims, shall remain with the
17 local taxing authority levying the tax.
18 J. Notwithstanding any provision of law to the contrary, any taxpayer who
19 is aggrieved by an assessment of sales and use tax due made by a local collector
20 under the provisions of this Chapter, or who has a claim for a refund or credit for an
21 overpayment of taxes, may appeal to the Board of Tax Appeals for a redetermination
22 of the assessment or a determination of the alleged overpayment. The appeal shall
23 be made in accordance with the provisions of Chapter 17 of Subtitle II of Title 47 of
24 the Louisiana Revised Statutes of 1950.
25 * * *
26 §337.22. Sales and use tax returns
27 * * *
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1 E. Beginning July 1, 2017, the sales and use tax return for the payment of
2 sales and use taxes levied by a local taxing authority shall be prescribed by the
3 secretary pursuant to the authority established in R.S. 47:337.16.
4 §337.23. Uniform electronic local return and remittance system; official record of
5 tax rates, and exemptions; filing and remittance of local sales and use taxes;
6 penalties for violations; state central collection
7 * * *
8 L. Beginning July 1, 2017, the secretary shall be responsible for the
9 collection of any sales and use tax levied by a local taxing authority in Louisiana.
10 The tax return and remittance system to be employed by the secretary shall reflect
11 the requirements of this Section to the greatest degree practicable, and shall be
12 established pursuant to regulation and to administrative law promulgated in
13 accordance with the Administrative Procedure Act.
14 * * *
15 §337.25. Authority of local collectors to sue
16 Each local collector of each taxing authority of this state, who is charged by
17 law with the duty of collecting a tax as disbursed by the state, shall be the proper
18 party to bring suits in his official capacity for the collection of such taxes on behalf
19 of a local taxing authority.
20 * * *
21 §337.64. Alternative remedy for dealers
22 A. Any taxpayer who has received a notice of assessment for sales and use
23 taxes from any local collector or a local taxing authority and whose remedy is to
24 make a payment under protest may in lieu thereof comply with the alternative
25 provisions of this Section, rather than making a payment under protest.
26 * * *
27 §337.80. Interest on refunds or credits
28 A. Each local collector shall compute on all refunds or credits and allow
29 interest as part of the refund or credit as follows:
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1 * * *
2 Section 2. R.S. 47:337.13, and 337.14 are hereby repealed in their entirety.
3 Section 3. This Act shall take effect and become operative on January 1, 2017, if and
4when the proposed amendment of Article VII of the Constitution of Louisiana contained in
5the Act which originated as House Bill No. of this 2016 Regular Session of the
6Legislature is adopted at a statewide election and becomes effective.
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 825 Original 2016 Regular Session Connick
Abstract: Transfers the responsibility for the collection of local sales and use taxes to the
secretary of the Dept. of Revenue beginning July 1, 2017, with the enforcement and
administration of local sales and use tax to remain with the local tax collector.
Present constitution authorizes local governments and other political subdivisions to levy
and collect sales and use taxes. Each parish is required to have a single tax collector or
single collection commission for all taxing authorities in the parish.
Present law authorizes the secretary of the Dept. of Revenue ("secretary") to contract with
the governing authority of a local taxing authority ("taxing authority"), at the request of the
authority, to collect and enforce the collection of its sales and use taxes and related penalty,
interest, or other charges.
Proposed law changes present law by requiring that all sales and use taxes levied by any
taxing authority in the state shall be collected by the secretary, effective July 1, 2017. The
secretary is required to adopt rules and regulations and to prescribe forms for the collection
of all such taxes.
Proposed law requires the establishment of a program for the collection and distribution of
local sales and use taxes ("non-state tax proceeds"), to include the designation of specific
staff within the department with the primary responsibility of ensuring the prompt collection
and remittance of non-state tax proceeds. A staff member shall be available every day of the
year, 24 hours per day, and shall provide for and maintain a system which allows for the
sharing of real time data on the collection of the taxes for the benefit of the local taxing
authorities for whom the taxes are collected.
Proposed law provides that the non-state tax proceeds shall be transmitted to each respective
local collector as follows: taxes collected by electronic means shall be transmitted within
four days of receipt, and taxes collected by check shall be transmitted within 20 days of
receipt. The state treasurer and the secretary shall determine the method for accounting and
distribution of non-state tax proceeds, which monies shall not be considered state monies and
shall not be subject to appropriation.
Proposed law provides that the distribution of the non-state tax proceeds shall be conducted
without the need for an appropriation. The secretary is required to deduct an amount not
greater than one-half of one percent of the taxes collected as compensation for the collection
service and to provide for continued support of the staff assigned to this function. The fee
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to be charged for collection on behalf of each taxing authority shall be determined by
agreement of the secretary and the respective taxing authority.
Proposed law provides that secretary shall have no duty or authority to in any way
administer the levy and enforcement of any tax levied by any local taxing authority. Further,
all responsibility for administration and enforcement of sales and use taxes, including the
consideration and payment of refund claims, shall remain with the local taxing authority
levying the tax.
Proposed law requires the single collector in each parish, by Feb. 1, 2017, to provide the
secretary copies of all local ordinances affecting sales and use taxes imposed in the parish.
Further, a local taxing authority levying a sales and use tax shall notify the secretary within
10 days after approval, and no later than 75 days prior to the effective date of, any action
concerning a new tax or the imposition of an existing tax.
Proposed law requires the secretary to prepare a monthly reconciliation of the account for
each parish, which shall provide detailed information regarding the amounts of tax collected
and remitted to the local collector.
Proposed law requires the secretary to provide a quarterly report of taxes collected and the
cost of collection to each taxing authority. A taxing authority is required to report to the
secretary the names of persons it determines who are doing business in the jurisdiction of
the taxing authority which are not included in the quarterly report.
Proposed law authorizes a taxing authority to request an additional report of persons doing
business in the jurisdiction of the taxing authority who have failed to pay taxes due, which
shall include information regarding partial payments, delinquent taxes, and steps taken to
collect the tax due, and provides for the information to be included in the secretary's report.
Proposed law provides that the governing authority of a taxing authority may request to
investigate the records of the office concerning the collection of the taxes it levies, no more
than twice per year. The secretary is required to acknowledge the request and respond
within 10 days. The investigation may occur no more than 20 days after the date of the
secretary's response or at the convenience of the taxing authority, whichever is later. Upon
request of the taxing authority or the secretary, the legislative auditor is required, to the
degree practicable, to provide assistance to the taxing authority in the investigation of the
records.
Proposed law provides that the collection by the secretary of sales and use taxes levied by
a taxing authority is subject to the same provisions as state sales and use taxes regarding the
collection of taxes.
Present law provides that each local collector of each taxing authority of this state, who is
charged by law with the duty of collecting a tax, shall be the proper party to bring suits in
his official capacity for the collection of taxes.
Proposed law retains present law.
Proposed law redefines the designation of "collector", defines "local collector" and
"department", and clarifies provisions specific to local collectors in various places in the
Uniform Local Sales Tax Code to conform to collection of taxes by the secretary rather than
the various single collectors for each parish.
Present law requires that any sales and use tax levied by taxing authorities located within a
single parish may be collected by a single tax collector for that parish and provides for
contract collection agreements and joint sales and use tax commissions as mechanisms for
collection of local sales and use taxes.
Proposed law repeals present law.
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Present law provides that local sales and use taxes shall be collected by a central collection
commission in those parishes where a single collector has not been established by July 1,
1992, and provides for the composition and authority of the collection commission.
Proposed law repeals present law.
Effective Jan. 1, 2017, if the proposed amendment of Const. Art. VII, §3(C) contained in the
Act which originated as House Bill No. ___ of this 2017 R.S. of the Legislature is adopted
at the statewide election to be held on Nov. 8, 2017, and becomes effective.
(Amends R.S. 47:337.6(A), 337.16, 337.25, 337.64(A), and 337.80(A)(intro. para.); Adds
R.S. 47:337.22(E) and 337.23(L); Repeals R.S. 47:337.13 and 337.14)
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