Provides relative to collection of certain disallowed tax benefits from taxpayers. (8/1/18) (EN SEE FISC NOTE GF RV See Note)
Impact
If enacted, SB259 will modify existing statutes regarding tax credit disallowances by clarifying the procedures and timelines associated with their recovery. This change is expected to strengthen the state's ability to recoup tax benefits that were improperly granted, thereby enhancing compliance with tax laws and potentially increasing state revenues. The new approach is designed to deter tax credit mismanagement and ensure that taxpayers adhere to regulations governing tax benefits.
Summary
Senate Bill 259, proposed by Senator Carter, aims to provide the Louisiana Department of Revenue with enhanced authority to recover nonrefundable tax credits that have been disallowed. Specifically, the bill allows the secretary of the Department of Revenue to initiate recovery actions for these tax benefits within specified timeframes, namely two years from the end of the year the benefit was paid, or three years from when taxes due for the filing period expired. The bill introduces provisions that ensure these recovery efforts can be conducted through any authorized collection remedy by the secretary.
Sentiment
The sentiment among legislators regarding SB259 appears to be largely supportive, particularly among those emphasizing the need for fiscal responsibility and the integrity of the tax system. Advocates for the bill argue that recovering disallowed credits will protect state resources and contribute to sound financial management. However, there may be some apprehension from taxpayers who fear the implications of increased scrutiny on their tax filings and the potential for retroactive claims on credits previously thought to be secure.
Contention
A notable point of contention surrounding SB259 is the balance between enforcement of tax recovery and the rights of taxpayers. While supporters advocate for stringent measures to recover funds, critics could express concerns over the fairness of such actions and the potential for undue pressure on individual taxpayers. The discussion around this bill might also highlight the need for clear communication and procedures to ensure that all parties understand their rights and obligations under the proposed law.
Authorizes the recapture of disallowed tax credits from owners of entities created or organized for the primary purpose of receiving or selling motion picture investor tax credits. (gov sig) (RE SEE FISC NOTE GF RV See Note)