Provides criteria for the definition of "dealer" for purposes of the sales tax imposed on transactions involving a remote seller (Item #26) (EN SEE FISC NOTE GF RV See Note)
Impact
Should the bill pass, it would significantly expand the definition of dealer to include any person or entity that makes substantial sales into Louisiana, even if they are not physically located within the state. This legal shift is intended to increase tax revenues from online sales as more remote sellers qualify as dealers obligated to collect and remit sales tax. The legislation reflects a broader trend of states seeking to capture revenue from e-commerce, thereby potentially leveling the playing field between local brick-and-mortar businesses and online retailers.
Summary
House Bill 17 aims to establish specific criteria for defining 'dealer' in relation to sales tax imposed on remote sellers in Louisiana. The bill seeks to clarify who qualifies as a dealer for purposes of collecting state and local sales taxes, especially focusing on those who sell goods into the state without having a physical presence there. By defining parameters such as revenue thresholds and transaction counts, the bill is a direct response to the evolving nature of e-commerce and the impact of remote sales on state tax collections. This aligns with recent judicial rulings that have set precedents for how states can tax online transactions.
Sentiment
The sentiment surrounding HB 17 appears to be largely supportive among lawmakers focused on increasing state revenue through taxation of remote sellers. Supporters argue that it allows for a fair assessment of tax responsibilities essential for state funding priorities. However, there are concerns from some business groups regarding compliance burdens that may arise from additional tax responsibilities, especially for smaller businesses that might struggle with the logistics of navigating sales tax collection across various states.
Contention
Key points of contention include the implications for smaller online retailers who may find the increased regulatory requirements challenging. The thresholds set by HB 17 raise concerns about the ability of smaller businesses to compete, as they may not have the resources to manage the compliance aspects of becoming a registered dealer. Additionally, the discussion touches on the balance between generating necessary state revenue and ensuring that regulatory frameworks do not stifle the growth of small businesses in the state’s evolving digital economy.
Provides criteria for the definition of "dealer" for purposes of the sales tax imposed on transactions involving a remote seller (Item #26) (REF +$507,000,000 GF RV See Note)
Provides for the definition of a dealer for purposes of collection of sales and use taxes due on sales made in Louisiana by a remote dealer (EG SEE FISC NOTE GF RV See Note)
Changes the effective date for the definition of "dealer" for purposes of the sales and use tax imposed on transactions involving a remote seller. (gov sig) (EG SEE FISC NOTE See Note)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.