Louisiana House Bill HB601

Louisiana 2017 Regular Session

• Introduced: 3/31/17
• Refer: 3/31/17
• Refer: 4/10/17
• Report Pass: 5/15/17
• Engrossed: 5/30/17
• Report Pass: 6/1/17
• Enrolled: 6/7/17
• Chaptered: 6/16/17
• Passed: 6/16/17

Caption

Establishes the Louisiana Uniform Local Sales Tax Board (EN INCREASE OF EX See Note)

Impact

The bill has a significant impact on state laws regarding tax administration by centralizing and enhancing the efficiency of tax collection from remote sellers. It maintains local jurisdictions' authority to levy taxes but ensures uniform regulations across the state. The establishment of the Louisiana Sales and Use Tax Commission provides a dedicated body focused on managing sales tax from remote sales, potentially increasing revenue and simplifying compliance for both businesses and tax administrators.

Summary

House Bill 601 creates the Louisiana Sales and Use Tax Commission for Remote Sellers and establishes the Louisiana Uniform Local Sales Tax Board aimed at standardizing the sales and use tax collection processes across the state. The bill seeks to streamline the collection of sales tax from remote sellers, ensuring that they comply with state and local tax laws efficiently. By establishing a single point of contact for remote sellers, it is expected that businesses selling into Louisiana will face fewer regulatory hurdles and that local jurisdictions will benefit from more consistent tax revenue streams.

Sentiment

General sentiment surrounding HB 601 appears to be positive among many stakeholders, including lawmakers and business groups, who see it as a necessary step to modernize tax collection in the age of digital commerce. However, there is some concern among local governments about preserving their authority and revenues, as centralizing tax collection could lead to tensions regarding local fiscal autonomy. The bill has sparked discussions about the balance between local control and state oversight in tax matters.

Contention

Notable points of contention include debates about how much power should be in the hands of the new commission versus local collectors, and whether this centralized approach will adequately serve the diverse needs of local jurisdictions. Some critics are worried about the potential for diminished local input and control over tax matters, leading to fears that certain localities may receive less funding as a result of standardized state policies that do not address their unique circumstances. The bill aims for efficiency but raises questions about fairness and local governance.