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)]
HB 581 Original 2020 Regular Session Echols
Abstract: Beginning January 1, 2022, transfers the responsibility for the collection of local sales
and use taxes to the secretary of the Dept. of Revenue. Establishes a local tax parish auditor
and the Parish Local Tax Auditor Board.
Present law creates the Dept. of Revenue (DOR) which is responsible for assessing, evaluating, and
collecting state taxes including state sales and use taxes.
Proposed law retains present law but adds responsibility for DOR to be the central collector of local
taxes including local sales and use taxes and occupational license taxes.
Present law provides for an office within DOR designated as group I which is responsible for the
administration and assessment of individual income taxes and state sales taxes. Proposed law retains
present law but designates group I as the office that shall have authority within the DOR over the
collection of local taxes.
Proposed law retains present law related to DOR's powers, duties, and responsibilities necessary to
collect and administer state sales and use taxes. Proposed law expands DOR's powers, duties, and
responsibilities to include the collection of local taxes.
Proposed law repeals provisions related to the collection of local sales and use taxes collected by
local single collectors and local central collection commissions as provided for in the present
constitution and present law.
Proposed law authorizes the secretary of the Dept. of Revenue and staff as the central collector for
state sales and use tax and local taxes effective January 1, 2022.
Proposed law provides that all the powers and duties conferred to the secretary of the DOR related
to the collection of taxes shall apply to the collection of local taxes.
Proposed law defines local tax as any local sales or use tax or occupational license tax levied by a
political subdivision authorized to do so. Proposed law defines political subdivision as any political
subdivision that is authorized by the constitution and the laws of the state to levy and impose a local
tax.
Proposed law retains present law that states local sales and use taxes are due and payable on the first
day of the month, and returns must be submitted to the collector on or before the 20
th
day of the month.
Proposed law requires the collector remit to remit monthly local taxes collected to the political
subdivision, less any refunds and amounts retained to pay for the administration of collection.
Proposed law requires that taxes collected by electronic means be remitted to the political
subdivision within four days of receipt and taxes collected by check shall be remitted to the political
subdivision within 20 days of receipt.
Proposed law provides that money collected by the collector on behalf of political subdivisions
remains the property of the respective political subdivision and is deemed held in trust for the
political subdivision by the collector.
Proposed law requires the collector retain 1% of the total local sales and use taxes collected in each
parish as compensation for the collection. This money is retained by the department on a monthly
basis from current collections prior to remitting to the political subdivision.
Proposed law requires the collector withhold one quarter of 1% of the total local sales and use taxes
collected in each parish for the purpose of compensating the parish auditor.
Proposed law requires the collector to provide and maintain an electronic and downloadable database
of products and tax rates for every delivery address in the state.
Proposed law provides that no later than Feb. 1, 2022, every political subdivision levying a local tax
shall provide the collector with a copy of all local ordinances imposing a local tax in the parish.
Proposed law requires the political subdivision to forward notice to the collector of any change in
any rate within 10 days after approval of the change.
Proposed law requires the collector to provide a monthly report of the taxes collected and the cost
of the collection to each political subdivision and the corresponding parish auditor.
Proposed law provides that upon the request of a political subdivision or parish auditor the collector
shall make an additional quarterly report that includes the amount of tax due from taxpayers doing
business in the political subdivision who have failed to pay the taxes determined to be due by the
collector and any action the collector has taken with regard to that taxpayer.
Proposed law authorizes that an aggrieved taxpayer to appeal to the Board of Tax Appeals for a
redetermination of the assessment or alleged overpayment.
Proposed law establishes a Parish Local Tax Auditor for the purpose of reviewing the collector and
the collector's staff in the execution of the collection of local sales and use taxes.
Proposed law authorizes each sheriff to choose and hire an auditor who possess or has attains any
of the following: 1. An active certified public accountant license.
2. A bachelor's degree with a minimum of 18 hours of accounting.
3. An active certified tax examiners certificate issued by the La. Association of Tax
Administers.
4. A minimum of 6 years of experience with state or local sales and use tax.
Proposed law provides that a parish auditor may investigate the collector at any time and a political
subdivision or sheriff may request the auditor to initiate an investigation of the collector. Proposed
law further provides that if such a request is made the auditor shall respond to the request for an
investigation within 10 days and the investigation shall take place no later than 20 days after the
response. The auditor shall make detailed reports to the local taxing authorities and the sheriff
specifically setting forth his findings.
Proposed law requires that any tax information furnished by DOR to the auditor shall be considered
confidential and privileged. Any person who divulges such information shall be in violation of
present law.
Proposed law establishes the scope of any investigation of the collector by the auditor and that upon
completion of the investigation, all information shall be returned to the collector.
Proposed law requires each parish auditor to be a member of the Parish LocalTax Auditor Board.
Proposed law creates the Parish Local Tax Auditor Board and mandates that the board consist of all
Parish Local Tax Auditors in the state and that the board meetings shall be held in the La. State
Capitol. Proposed law further requires that for the first year, the board shall meet monthly and after
the first year the board shall meet quarterly.
Proposed law provides that members shall serve without compensation but may be reimbursed for
expenses. The board shall elect a president, vice president, secretary, and a treasurer.
Proposed law provides the board may assist political subdivisions with challenges against the
collector, issue policy advice with DOR , prescribe uniform model procedures for parish auditors.
The board may hire employees to assist in their work.
Proposed law requires each sheriff to name a Parish Local Tax Auditor no later than July 1, 2021.
Proposed law requires the Parish Local Tax Auditor Board to hold its organizational meeting no late
than October 1, 2021 and elect its officers.
Proposed law terminates the board on June 30, 2027.
(Amends R.S. 36:451(B) and 458(B) and R.S. 47:301(2), (10)(a)(ii), (14)(i), and (25), 302(K)(4),
(6) and (7)(a)(ii), and (W)(1), 303.1(C) through (H), 306(A)(1)(a) through (c) and (5) and (D)(1)(c) and (3), 306.1, 307(A), 308(A), 309(A)(1), 311 through 314, 337.2(A)(1)(b), (C)(introductory
paragraph), (1)(a), (c), and (d), (3), and (4)(a)(ii) and (b)(i), (iii), and (iv), 337.4(A) and (C), 337.5,
337.6(A)(2), 337.9(E)(2) and (4), 337.15(A)(2), 337.19(A), 337.87(A), 338.1(A)(1)(introductory
paragraph), 1439(D)(2) and (3), 1541(D)(2)(introductory paragraph), 1542.2(A),
1561(A)(introductory paragraph) and (4), 1561.1(A), 1566(A), 1567, 1569, 1570, 1574(introductory
paragraph) and (1), 1575, 1577(A), 1579, 1580(A) and (C)(2), 1581, 1582(A), 1601(A)(1) and (2)(d),
1604, 1604.1(A), (C), and (D)(2), 1604.2, 1641, 1642(introductory paragraph), and 1673; Adds
47:337.2(C)(1)(e) and (f), 1695.1 through 1695.4; Repeals R.S. 47:337.4(D), 337.13, 337.13.1,
337.18, 337.20 through 337.23, 337.25 through 337.63, 337.65 through 337.85, and 337.91 through
337.102)