Louisiana House Bill HB736

Louisiana 2020 Regular Session

• Introduced: 3/31/20
• Refer: 5/4/20
• Report Pass: 5/7/20
• Engrossed: 5/15/20
• Refer: 5/18/20
• Report Pass: 5/21/20
• Enrolled: 6/1/20
• Chaptered: 6/12/20
• Passed: 6/12/20

Caption

Authorizes the Louisiana Tax Commission to order the refund of statutory impositions declared invalid (EN SEE FISC NOTE LF RV See Note)

Impact

The passing of HB 736 is expected to have a notable impact on the relationship between taxpayers and local government entities in Louisiana. By formalizing the refund process for statutory impositions declared invalid, it empowers citizens to reclaim funds that they should not have had to pay. Additionally, it sets a precedent for the prompt review of claims and reinforces the authority of the Louisiana Tax Commission in overseeing these matters. The bill also clarifies the time frame within which individuals must act to secure their rights, thus enhancing taxpayer protections against erroneous charges.

Summary

House Bill 736 aims to streamline the process by which individuals can claim refunds for statutory impositions, specifically ad valorem taxes that have been erroneously paid to political subdivisions. The bill amends Louisiana Revised Statute 47:2132(A) to establish clear guidelines for individuals seeking reimbursement. It allows claims to be submitted to the Louisiana Tax Commission within set time limits, ensuring that those who prevail in court over invalidated statutory impositions can reclaim their funds more efficiently. The bill emphasizes the importance of timely action, mandating that claims be filed within three years of payment or five years if related to a homestead exemption.

Sentiment

The sentiment around HB 736 appears to be overwhelmingly supportive among legislators, as evidenced by the unanimous vote—97 yeas with no nays—during the vote on May 31, 2020. This indicates a broad consensus on the necessity of providing a systematic avenue for claims of tax refunds. Positive sentiments are likely fueled by a desire to enhance taxpayer rights and streamline administrative processes, positioning the bill as a constructive legislative reform.

Contention

While the bill enjoys broad bipartisan support, potential contention may arise around how efficiently the Louisiana Tax Commission can handle the increased volume of claims following its enactment. Concerns could emerge about the administrative burden placed on the Commission and political subdivisions in processing these refunds in a timely manner. Additionally, stakeholders critical of certain ad valorem taxes may still voice issues related to the validity of these taxes, potentially complicating the implementation of HB 736.