GREEN SHEET REDIGEST
HB 601 2017 Regular Session Stokes
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX/SALES-USE, LOCAL: Establishes the Louisiana Uniform Local Sales Tax
Board
DIGEST
Proposed law creates the La. Uniform Local Sales Tax Board (board) and grants the board
the following authority:
(1)Support and advise local tax collectors concerning collection and administration of
local taxes.
(2)Promulgate rules and regulations pursuant to the Administrative Procedure Act
relating to local sales and use tax, specifically including rules for a voluntary
disclosure program and a uniform refund request and approval process.
(3)Enter into agreements with local tax collectors.
(4)Enter into contracts for the services of legal counsel, analysts, auditors, appraisers,
and witnesses, as well as any agency or department of the state or any state or local
political subdivision.
(5)Prescribe uniform forms and model procedures to be used by local sales and use tax
collectors.
(6)Procure the development of computer software and equipment for the collection and
administration of local sales and use taxes.
(7)Employ an executive director, and any necessary agents, assistants, auditors, clerks,
inspectors, investigators, or other experts and employees.
(8)Develop a coordinated multi-parish audit process.
Proposed law provides that the board be composed of the following eight members:
(1)The executive director of the La. Municipal Association.
(2)The executive director of the School Boards Association.
(3)The executive director of the Police Jury Association.
(4)The executive director of the Sheriffs Association.
(5)The head of a single parish collector's office appointed by the executive board of the
La. Municipal Association.
(6)The head of a single parish collector's office appointed by the board of directors of
the La. School Boards Association.
(7)The head of a single parish collector's office appointed by the executive board of the
Police Jury Association of La.
(8)The head of a single parish collector's office appointed by the executive committee
of the Sheriffs Association.
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Prepared by Leonore F. Heavey. Proposed law provides that members of the board shall serve at the pleasure of the appointing
authority.
Proposed law requires that the board be domiciled in East Baton Rouge Parish, but may hold
meetings at any location within the state.
Proposed law provides for funding of the board through a dedication of a percentage of the
total statewide collections of local sales and use taxes on motor vehicles, not to exceed:
(a)In Fiscal Year 2017-2018, one-fifth of 1% of the collections.
(b) In Fiscal Year 2018-2019, one-quarter of 1% of the collections.
(c)In Fiscal Year 2019-2020 and each fiscal year thereafter, three-tenths of 1% of the
collections.
Proposed law provides that the actual amount to be disbursed to the board by the office of
motor vehicles in any fiscal year shall be determined by the requirements of the annual
budget adopted by the board for that year, subject to the limitations established in proposed
law with regard to maximum percentages of tax collections.
Proposed law requires that by the first day of June each year the chairman of the board notify
the commissioner of the office of motor vehicles regarding the amount to be disbursed to the
board for the ensuing fiscal year based on the adopted budget, with the exception of Fiscal
Year 2017-2018, when the date for the notification shall be determined by agreement of the
chairman and the commissioner.
Proposed law requires the board to adopt a strategic plan for its operations no later than
July 1, 2018.
Proposed law requires the board to provide for education and training of collectors of local
sales and use tax, with at least one program being offered each year.
Proposed law authorizes the board to transfer monies to assist in funding the Local Tax
Division of the Board of Tax Appeals in the event that state use tax collections under R.S.
47:302(K) are insufficient to fund the dedication for the operations of the Local Tax Division
made under R.S. 47:302(K)(7).
Present law provides that a single transaction shall only be taxed once and provides for a
process for requesting a refund in the event that taxes collected are remitted to the wrong
taxing jurisdiction.
Proposed law creates an optional concursus process in which a dealer or taxpayer can remit
the amount of tax to the Local Tax Division of the Board of Tax Appeals for deposit into
their escrow account and request a determination by the board of the proper taxing
jurisdiction.
Proposed law creates the La. Sales and Use Tax Commission for Remote Sellers as an
independent agency within the Dept. of Revenue for the administration and collection of state
and local sales and use taxes related to remote sales, and for the promotion of uniformity and
simplicity in sales and use tax compliance for remote sellers.
Proposed law provides that the commission serve as the single entity in La. required under
any federal law that may require remote sellers to collect and remit sales and use tax on La.
sales. To accomplish this, activities of the commission shall include:
(1)Establish the minimum tax administration, collection, and payment requirements
required by federal law with respect to the collection and remittance of sales and use
tax imposed on remote sales.
(2)Establish a fiscal agent solely for the purpose of remote seller remittances.
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Prepared by Leonore F. Heavey. Proposed law provides that the La. Sales and Use Tax Commission for Remote Sellers is to
be composed of eight members as follows:
(1)The secretary of the Dept. of Revenue.
(2)Three employees of the Dept. of Revenue appointed by the secretary.
(3)Four appointed members selected to serve on the La. Uniform Local Sales Tax
Board.
Proposed law requires the commission to be domiciled in East Baton Rouge Parish, but may
hold meetings at any location within the state.
Proposed law requires the commission to employ an executive director to direct the day-to-
day operations of the commission and to develop procedures to govern its day-to-day
operations in accordance with the Administrative Procedures Act.
Proposed law establishes a method of funding the operations of the commission through a
dedication of a percentage of the state and local sales and use taxes collected on remote sales
by the commission, not to exceed 1%. However, the commission shall not be authorized to
utilize these monies unless and until a federal law authorizing states to require remote seller
and their agents to collect state and local sales and use taxes on their sales has been enacted
and becomes effective.
Proposed law provides for the powers and duties of the commission, to include:
(1)To serve as the single entity within the state responsible for all state and local sales
and use tax administration for remote sales sourced to La.
(2)To serve as the central, single agency to which remote sellers shall make state and
local sales and use tax remittances.
(3)To assign and direct a single audit of remote sellers for the state and all local taxing
authorities.
(4)To serve as the single state of La. agency to represent both the state and local taxing
authorities in taking appropriate action to enable La. to participate in programs
designed to allow La. to more efficiently enforce and collect state and local sales and
use taxes on sales made by a remote seller.
(5)To conduct administrative hearings as requested by aggrieved remote sellers and
render decisions following hearings.
(6)To require remote sellers to register with the commission.
(7)To provide to the single tax collector for each parish an annual report of revenues
collected and distributed.
(8)To enter into agreements to waive or suspend prescription of state and local taxes.
(9)With the consent of the affected local taxing authority, issue notices of intent to
assess, notices of assessments, enforce collection of local taxes by distraint and sale,
and institute summary proceedings or ordinary proceedings for collection of local
taxes.
Proposed law provides that nothing in proposed law shall be construed to extend the
authority of the commission beyond what is provided in proposed law, including:
(1)Authorize or require any expenditure unless and until a federal law authorizing states
to require remote sellers and their agents to collect state and local sales and use taxes
on their sales in each state has been enacted and becomes effective.
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Prepared by Leonore F. Heavey. (2) Limit the right of local taxing authorities to levy and collect sales and use taxes as
provided in the Constitution of Louisiana, statutory law, and jurisprudence.
(3)Authorize the commission to exercise any right or perform any function presently
exercised by local sales and use tax authorities under present law.
(4)Create, repeal, or amend any local tax exclusions or exemptions.
(5)Authorize the commission to grant local tax amnesty.
(6)Authorize the commission to promulgate rules, regulations, issue private letter
rulings or give to dealers or taxpayers other advice that is inconsistent with the
Constitution of Louisiana, statutory law, or controlling jurisprudence.
(7)Require local taxing authorities to make refunds, give tax credit, waive penalties, or
waive audit costs.
(8)Extend to any local taxes any state exclusions, exemptions, credits, rebates, or other
tax relief provisions that do not presently apply to local taxes.
(9)Authorize the commission to serve as a central state collection agency for local sales
and use taxes.
(10) Limit any statutory and ordinal provisions in place as of the effective date of this Act
that require dealers and taxpayers, with respect to non-remote sales, to pay and remit
directly to the single sales and use collector in each parish the sales and use taxes due
to each local taxing authority within each parish.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:302(K)(6), 337.2(C)(1)(a), 337.19(A), 337.23(B)(1)(b), (d), and (e),
337.49, 337.81(A)(1), 337.87(C)(1)(intro. para.), 337.92(1), and 1407(3); Adds R.S.
36:459(A), R.S. 47:337.86(E)(3), 337.87(C)(1)(d), 337.102, 339, and 340)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Add authority for members of the La. Uniform Local Sales Tax Board (board) to
appoint a designee for purposes of attendance at a tax protest hearing or a
meeting of the board.
2. Change the term for board member appointments from a certain number of years
to at the pleasure of the appointing authority.
3. Change the limitations on the annual amount of funding the board may receive.
4. Add provisions concerning the board's budget.
The House Floor Amendments to the engrossed bill:
1. Remove provisions establishing the Louisiana Sales and Use Tax Commission
for Remote Sellers.
The House Floor Amendments to the reengrossed bill:
1. Add a requirement that the board adopt a strategic plan for its operations no later
than July 1, 2018.
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Prepared by Leonore F. Heavey. 2. Add a requirement that the board provide for the education and training of local
sales and use tax collectors, with at least one program being offered each fiscal
year.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the re-reengrossed bill
1. Add provisions establishing the Louisiana Sales and Use Tax Commission for
Remote Sellers and provide for its membership, duties, and powers.
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Prepared by Leonore F. Heavey.