GREEN SHEET REDIGEST
HB 791 2020 Regular Session Magee
TAX/SALES & USE: Requires the Department of Revenue to create and manage a
technology solution to centralize sales and use tax registration, filing, and remittance
DIGEST
Present law establishes a uniform electronic local return and remittance system for sales and
use taxes.
Present law establishes the Uniform Electronic Local Return and Remittance Advisory
Committee (committee) which makes recommendations to the secretary of the Dept. of
Revenue (dept.) regarding the design, implementation, and operation of the uniform
electronic local return and remittance system.
Present law requires local sales and use tax collectors to furnish all necessary forms and
instructions for filing sales and use tax returns and remitting monies.
Present law requires the committee to design a standard, uniform, paper return to be used by
the collectors of the sales and use tax of political subdivisions. Present law further directs the
committee to include space in the return for the state tax identification number.
Proposed law retains present law but changes "state tax identification number" to
"registration number".
Proposed law provides that beginning Jan. 1, 2022, every local sales and use tax collector
shall require electronic filing of returns and remittance by all taxpayers, unless the taxpayer
receives a waiver from the dept.
Proposed law establishes a technological solution created and maintained by the dept. to
provide taxpayers centralized electronic registration and to be used for taxpayer registration
with the dept. and local sales tax collectors.
Proposed law provides for the definitions of "department", "local sales tax collector",
"registration number", "secretary", and "technological solution".
Proposed law authorizes the technological solution to convert a taxpayer's state tax
identification number and local sales and use tax identification number into a single, unique
registration number.
Present law provides the registration number shall be provided to the dept., the La. Sales and
Use Tax Commission for Remote Sellers (commission), and local sales tax collectors in a
data or image file transferred in a machine-readable format.
Proposed law, to the extent permitted by appropriation and available funding, creates an
independent application or program available to taxpayers for obtaining the unique
registration number.
Proposed law provides that pertinent taxpayer information such as the parish in which the
taxpayer engages in transactions, shall be related to the registration number.
Proposed law provides that the technological solution shall provide multiple return and
remittance portals to enable taxpayers a single electronic application or program to file sales
and use tax returns and remit all sales and use taxes to the appropriate taxing bodies. The
solution shall also allow taxpayers to edit information and data maintained by the dept. to
validate the taxpayer's registration number.
Proposed law provides the dept. shall assign all taxpayers who have registered with the dept.
for the filing and remittance of state tax prior to Jan. 1, 2021 a registration number. The dept.
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Prepared by Curry J. Lann. shall also provide the registration number and associated information to local sales tax
collectors in which the taxpayer is located or conducts business no later than Jan. 1, 2022.
Proposed law further provides taxpayers who have registered through the technological
solution on or after Jan. 1, 2021, shall be assigned a unique registration number and state and
local tax collectors shall have access to the number and associated information.
Proposed law provides that the technological solution shall reconcile the conversion of
identification or registration number previously issued by the local sales tax collectors of all
taxpayers who have registered with one or more local sales tax collectors prior to Jan. 1,
2021. The local sales tax collectors shall provide the dept. with access to relevant
information related to the taxpayer.
Proposed law does not require the secretary or any local sales tax collector to provide
information that they are contractually required to keep confidential.
Proposed law authorizes the secretary to suspend implementation of the technological
solution until the secretary and the commissioner certify that sufficient funds have been
appropriated from the general fund or from monies received from local sales tax collectors.
Present law establishes the La. Sales and Use Tax Commission for Remote Sellers for the
purpose of collecting sales and use taxes from remote sellers without a physical presence in
La. Proposed law retains present law.
Present law provides that the commission’s operations shall be funded by an amount not to
exceed 1% of the total amount of state and local sales and use taxes collected on remote sales
by the commission.
Proposed law retains present law.
Present law provides the commission shall establish a fiscal agent for remote seller
remittances. Proposed law changes present law to require a fiscal agent for any remittances.
Present law allows for the commission to take any action related to the collection of sales and
use tax within its jurisdiction as permitted by law that the secretary of the dept. is authorized
to take to enforce administration.
Present law authorizes the commission to take the same actions as the secretary of dept.
necessary in order to enforce the remittance of sales and use tax.
Present law provides the commission shall collect taxpayer information from remote sellers
and coordinate with tax collectors through the technological solution to ensure remote sellers
are properly registered with a unique resignation number.
Present law provides the commission shall remit money monthly less any refund or
administrative collection fees to the appropriate collector. Present law further provides the
remittance shall be completed by electronic funds on or before the 10th day of the month of
collection. Proposed law changes present law to require the remittance to be completed by
electronic funds on or before the 10th day of the month monies were received.
Present law authorizes state or local collectors on a monthly basis, to access records of gross
collections, refunds, and amounts retained for administrative expenses. Proposed law
expands present law to allow access of records of gross remittance.
Present law gives the commission the power, duty, and authority to provide to the single tax
collector for each parish, on or before June first of each year, an annual report of revenues
collected and distributed in the previous calendar year. Proposed law requires the report to
include revenues remitted in the previous calendar year.
Present law authorizes the commission with the consent of the affected local taxing authority
to issue certain notices and enforce collection of sales and use tax collection. Proposed law
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and use taxes.
Present law provides that nothing in present law provisions related to the commission shall
be construed to:
(1)Authorize the commission to exercise any right or perform any function presently
exercised by local sales and use tax authorities.
(2)Authorize the commission to serve as a central state collection agency for local sales
and use taxes.
(3)Limit any statutory and ordinal provisions in place as of June 16, 2017, that require
dealers and taxpayers, with respect to non-remote sales, to pay and remit directly to
the single sales and use tax collector in each parish the sales and use taxes due to
each local taxing authority within each parish.
Present law authorizes the La. State Law Institute to review all statutes related to the
commission and remote sales and make appropriate changes to references.
Proposed law provides local taxing authorities shall maintain exclusive right to administer
local tax levies and conduct audits related to local taxes.
Effective upon signature of the governor.
(Amends R.S. 47:337.22(C)(1), 337.23(K)(2), 339(A)(4), and 340(A), (E)(2) and (4), (F)(2),
(G)(7) and (9), and (I); Adds R.S. 47:337.23(K)(3), 337.103, 339(A)(5), 340(J), and
1520(A)(4))
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Remove provisions related to the La. Sales and Use Tax Commission for
Remote Sellers remitting local sales and use tax on behalf of taxpayers.
2. Require electronic registration and the sharing of taxpayer information among
the Dept. of Revenue, local sales tax collectors and the La. Sales and Use Tax
Commission for Remote Sellers.
3. Establish a technological solution for the purpose of centralized sales and use
tax taxpayer registration and filing sales and use tax returns and remitting
monies owed.
4. Change effectiveness to upon signature of the governor.
5. Make technical changes.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the reengrossed bill
1. Specifies that the secretary and local sales tax collectors are not required to
provide information that they are contractually required to keep confidential.
2. Authorizes the secretary to suspend implementation of the technological
solution until the secretary and the commissioner certify that sufficient funds
have been appropriated from the general fund or from monies received from
local sales tax collectors.
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