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 826 Original 2016 Regular Session Abramson
Abstract: Transfers the responsibility for the collection, enforcement, and administration of local
sales and use taxes to the secretary of the Dept. of Revenue beginning July 1, 2017.
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, administered, and enforced by the secretary, effective July
1, 2017. The secretary required to adopt rules and regulations and to prescribe forms for the
collection, enforcement, and administration of all such taxes.
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 state treasurer to deposit all local sales and use tax collections into special
accounts in the state treasury which shall be established for each taxing authority. Each special
account shall be interest bearing, with the interest accruing in favor of the taxing authority. Monies
in the accounts shall not be considered to be state monies and shall not be subject to appropriation.
Proposed law requires the secretary to remit sales and use taxes promptly to the appropriate taxing
authority. Further, the secretary is authorized to recover expenses associated with the collection of
taxes from the appropriate taxing authority in an amount not to exceed 1% of the tax collected.
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 collection, enforcement, and administration 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 assessment, refunds, overpayments, redetermination of assessments, collection
procedures, interest, and penalties.
Present law provides that each 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 changes present law by providing that the secretary, in his capacity as collector,
enforcer, and administrator of all local sales and use taxes, shall be the proper party to bring suits.
Proposed law redefines the designation of "local collector" or "collectors" in various places in the
Uniform Local Sales Tax Code to conform to collection, enforcement, and administration 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. Further, a local collector is authorized to employ outside counsel to assist in the
collection of taxes, penalties, and interest, and to represent the collector in disputes involving sales
and use taxes.
Proposed law repeals present law.
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, ยง3(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. 47:337.2(C)(3), (4)(a)(ii) and (b)(i)(bb)(II), 337.6(A), 337.16, 337.25, 337.64(A),
337.80(A)(intro. para.), and 337.87(A); Adds R.S. 47:337.22(E), 337.23(L); Repeals R.S. 47:337.13,
337.13.1, and 337.14)