HLS 183ES-111 ORIGINAL
2018 Third Extraordinary Session
HOUSE CONCURRENT RESOL UTION NO. 7
BY REPRESENTATIVE STOKES
TAX/SALES & USE: Establishes the Sales Tax Streamlining and Modernization
Commission, as the successor to the commission established by Act No. 405 of the
2015 Regular Session of the Legislature, to continue the comprehensive study of
Louisiana's state and local sales and use tax systems
1 A CONCURRENT RESOL UTION
2To establish the Sales Tax Streamlining and Modernization Commission, as the successor
3 to the commission established by Act No. 405 of the 2015 Regular Session of the
4 Legislature, to continue the comprehensive study of Louisiana's state and local sales
5 and use tax systems.
6 WHEREAS, the statutory authority for the Sales Tax Streamlining and
7Modernization Commission established by Act No. 405 of the 2015 Regular Session of the
8Legislature terminates on June 30, 2018; and
9 WHEREAS, the sales and use taxes on tangible personal property, services, rentals,
10and leases, hereinafter referred to as "sales tax", represent one of Louisiana's two major
11revenue sources and provide a substantial portion of state general fund receipts, and sales
12tax is the main source of revenue for most of Louisiana's local governments; and
13 WHEREAS, the average combined sales tax rate of 10.02% for Louisiana was the
14highest in the nation as reported by the Tax Foundation in 2018; and
15 WHEREAS, there exist significant structural issues impacting the state and local
16sales taxes, which include legislative actions that adversely impact the tax base, a distinct
17shift away from a goods-based to a services-based economy, and an increasing shift from
18"brick and mortar" retail transactions to e-commerce purchases; and
19 WHEREAS, the legislature recognizes that it is good public policy to contemplate
20modernization of the sales tax structure to reflect the twenty-first century economy as a way
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HCR NO. 7
1to aid in stabilizing the sales tax as a revenue source for the state and its local governments;
2and
3 WHEREAS, the recent United States Supreme Court decision in South Dakota v.
4Wayfair, Inc., et al. on June 21, 2018, regarding South Dakota's requirements for certain
5out-of-state sellers to collect and remit sales taxes in the same manner as if the seller had a
6physical presence in the state necessitates further examination of Louisiana's state and local
7sales tax structure.
8 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
9create the Sales Tax Streamlining and Modernization Commission, hereinafter referred to
10as "commission", as the successor commission to the commission established by Act No.
11405 of the 2015 Regular Session of the Legislature, to continue the comprehensive study of
12Louisiana's state and local sales tax systems, and to make recommendations to the legislature
13regarding revision of practices, administrative procedure, statutory law, and the Constitution
14of Louisiana, all for the purpose of streamlining and modernizing the vital sales tax revenue
15source for the state and its local governments.
16 BE IT FURTHER RESOLVED that the commission's recommendations shall
17encompass an overall goal of ensuring both revenue stability and taxpayer equity through
18the adoption of proven contemporary tax policies.
19 BE IT FURTHER RESOLVED that the commission shall consist of the following
20members:
21 (1) The speaker of the House of Representatives or his designee.
22 (2) The president of the Senate or his designee.
23 (3) The chairman of the House Committee on Ways and Means or his designee.
24 (4) The chairman of the Senate Committee on Revenue and Fiscal Affairs or his
25designee.
26 (5) A member appointed by the Police Jury Association of Louisiana.
27 (6) A member appointed by the Louisiana Municipal Association.
28 (7) A member appointed by the Louisiana School Boards Association.
29 (8) A member appointed by the Louisiana Association of Tax Administrators.
30 (9) A member appointed by the Louisiana Sheriffs Association.
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HCR NO. 7
1 (10) A member appointed by the Louisiana Multiparish Tax Commission.
2 (11) A member appointed by the Louisiana Association of Business and Industry.
3 (12) A member appointed by the Louisiana Retailers Association.
4 (13) A member appointed by the Louisiana Automobile Dealers Association.
5 (14) A member appointed by the National Federation of Independent Business.
6 (15) A member appointed by Louisiana Industrial Development Executives
7Association.
8 (16) A member appointed by Society of Louisiana Certified Public Accountants.
9 (17) A member appointed by the Public Affairs Research Council of Louisiana.
10 (18) A member appointed by the Tax Foundation.
11 (19) The secretary of the Department of Revenue or his designee.
12 (20) The legislative auditor or his designee.
13 BE IT FURTHER RESOLVED that the members of the commission shall serve
14without compensation except for reasonable and necessary expenses related to the
15performance of their duties as members of the commission, and then only in such amounts
16as is provided by law for state employees and officials, or per diem or expense
17reimbursement to which they may be individually entitled as members of their constituent
18organizations.
19 BE IT FURTHER RESOLVED that the commission shall conduct meetings as
20necessary to fulfill it's functions and duties.
21 BE IT FURTHER RESOLVED that the chairman of the commission established by
22Act No. 405 of the 2015 Regular Session of the Legislature shall convene the first meeting
23of the commission and at that meeting, the commission shall elect a chairman and a vice
24chairman and any other officers it deems necessary.
25 BE IT FURTHER RESOLVED that the following organizations shall assist the
26commission with staff support as may be required:
27 (1) The Department of Revenue.
28 (2) The House of Representatives, Senate, Legislative Fiscal Office, and Legislative
29Auditor's Office.
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HCR NO. 7
1 BE IT FURTHER RESOLVED that the commission shall submit its report of
2recommendations to the governor, the president of the Senate, and the speaker of the House
3of Representatives no later than March 15, 2019, and may submit additional reports as it
4deems necessary.
5 BE IT FURTHER RESOLVED that the commission shall terminate on July 1, 2019.
6 BE IT FURTHER RESOLVED that a copy of this resolution be transmitted to each
7appointing authority.
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)]
HCR 7 Original 2018 Third Extraordinary Session Stokes
Establishes the Sales Tax Streamlining and Modernization Commission, as the successor to
the commission established by Act No. 405 of the 2015 R.S., to continue the comprehensive
study of Louisiana's state and local sales and use tax systems. Provides that the members
shall be:
(1)The speaker of the House or his designee.
(2)The president of the Senate or his designee.
(3)The chairman of the House Ways and Means Committee or his designee.
(4)The chairman of the Senate Revenue and Fiscal Affairs Committee or his designee.
(5)A member appointed by the Police Jury Assoc. of La.
(6)A member appointed by the La. Municipal Assoc.
(7)A member appointed by the La. School Boards Assoc.
(8)A member appointed by the La. Assoc. of Tax Administrators.
(9)A member appointed by the La. Sheriffs Assoc.
(10)A member appointed by the La. Multiparish Tax Commission.
(11)A member appointed by LABI.
(12)A member appointed by the La. Retailers Assoc.
(13)A member appointed by the La. Automobile Dealers Assoc.
(14)A member appointed by National Federation of Independent Businesses.
(15)A member appointed by La. Industrial Development Executives Assoc.
(16)A member appointed by Society of La. Certified Public Accountants.
(17)A member appointed by the PAR.
(18)A member appointed by the Tax Foundation.
(19)The secretary of the Dept. of Revenue or his designee.
(20) The legislative auditor or his designee.
Provides that the members of the commission serve without compensation except for
reasonable and necessary expenses related to the performance of duties as members of the
commission, and then only in such amounts as is provided by law for state employees and
officials, or per diem or expense reimbursement to which they may be individually entitled
as members of their constituent organizations.
Provides that the commission shall submit its report of recommendations to the governor,
the president of the Senate, and the speaker of the House of Representatives no later than
March 15, 2019, may submit additional reports as it deems necessary, and shall terminate
on July 1, 2019.
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