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 562 Reengrossed 2021 Regular Session Bourriaque
Abstract: Makes changes to the administration of state and local sales, use, and certain occupancy
tax collections, specifically through the La. Uniform Local Sales Tax Board and the La. Sales
and Use Tax Commission for Remote Sellers; makes changes to the membership of and
employee status of the Board of Tax Appeals and makes changes to the procedures for
payment of certain judgments against the state rendered by the Board of Tax Appeals.
Present law requires certain board member appointments for the La. Uniform Local Sales Tax Board
(board) to be made no later than Aug. 31, 2017.
Proposed law repeals present law.
Present law requires the board to hold its organization meeting no later than Oct. 15, 2017.
Proposed law repeals present law.
Present law provides the board is funded through a dedication of a percentage of the total statewide
collections of local sales and use tax on motor vehicles.
Proposed law retains present law, but provides the funding of the board through certain dedications
shall be as provided for in agreements with local collectors.
Present law provides for funding of the board through a dedication of a percentage of the total
statewide collections of local sales and use taxes on motor vehicles, not to exceed:
(1)In Fiscal Year 2017-2018, one-fifth of 1% of the collections.
(2) In Fiscal Year 2018-2019, one-quarter of 1% of the collections.
(3)In Fiscal Year 2019-2020 and each fiscal year thereafter, three-tenths of 1% of the
collections.
Proposed law repeals provisions of present law pertaining to specific fiscal years and retains present
law that provides any budget adopted by the board shall not exceed three-tenths of 1% of the
collections.
Present law provides that if tax collections yield insufficient revenue to fulfill dedications for interagency transfers to the Dept. of State Civil Service, Board of Tax Appeals, Local Tax Division
the board shall pay any remaining amount necessary to satisfy the dedication. Further provides that
the board is authorized to enter into an agreement with the Dept. of State Civil Service, Board of Tax
Appeals or the Local Tax Division to pay an amount sufficient to compensate the Local Tax
Division.
Proposed law retains present law and adds the stipulation that if tax collections yield insufficient
revenue to fulfill the dedication and there is no means of financing available, the board shall pay any
remaining amount necessary to satisfy the dedication.
Present law requires the board to adopt a strategic plan for operations. Proposed law retains present
law.
Present law provides the strategic plan shall be adopted by July 1, 2018.
Proposed law repeals present law and provides the strategic plan shall be updated not less than once
every five fiscal years.
Proposed law further provides that payments to fulfill the dedication for interagency transfers shall
be made within 30 days of the beginning of the fiscal year.
Present law establishes the Board of Tax Appeals (BTA) and authorizes the BTA to make certain
expenditures.
Proposed law provides that any BTA expenditure funded pursuant to a written agreement shall be
included in any budget request or recommendation of the BTA.
Present law defines a state collector to include:
(1)The secretary of the Dept. of Revenue and other duly authorized assistants.
(2)The assistant secretary of the office of motor vehicles and duly authorized assistants.
(3)The commissioner of alcohol and tobacco control.
(4)Any other collector of state taxes or fees, or other state agency where an agency action is
appealable to the BTA.
(5)The agent or successor of any of the offices above when administering a state tax or fee.
Proposed law expands the present law definition of state collector to include state agencies in which
the agency action is related to state taxes or fees, including contracts.
Present law provides for certain procedures for the payment of Board of Tax Appeals judgments
against the state.
Present law provides that judgments issued by the BTA for the payment of a claim when the amount
approved does not exceed $20,000 shall be paid out of current tax collections without interest.
Further limits the total amount of judgments paid in a fiscal year from current collections to two
million dollars, unless a higher amount for that fiscal year is approved by the commissioner of
administration and the Joint Legislative Committee on the Budget (JLCB).
Present law provides that when the BTA approves a claim against the state and the amount of the
claim exceeds $20,000 but is not more than $250,000, the claim shall be submitted to the litigation
subcommittee of JLCB for review. If the claim is approved by the litigation subcommittee, the
approved claim shall be paid out of current tax collections following submission of the authorization
to the secretary of the Dept. of Revenue.
Proposed law provides that if the BTA approves a claim for an amount less than the amount claimed
by the claimant, the BTA shall submit the new amount to the claimant. Further provides that if the
claimant accepts the new amount, the claim shall be approved as a judgment provided for in present
law.
Proposed law provides that if the claimant does not accept the new amount, the claim shall be
denied.
Proposed law provides that any denied claim shall be subject to prohibitions provided in present law
(R.S. 47:1786). Further provides that no cause of action shall be maintained before the BTA or any
court for a claim that has been paid pursuant to the provisions of proposed law.
Proposed law provides any amount agreed upon by both parties in a stipulated or consent judgment
shall be submitted to the BTA pursuant to present law.
Proposed law provides that any stipulated or consent judgment submitted jointly not exceeding
$100,000, shall be paid in the same manner as certain judgments provided for in present law (R.S.
47:1483(B)(1)), during the 45 day period after the last day of the fiscal year, to the extent funds are
available after payment of all other approved judgments for the fiscal year pursuant to present law.
(Amends R.S. 47:337.102(B)(3) and (5), (I)(1) and (3), and (K), 340(A) and (E)(5), 1402(E)(1) and
(2), 1404, 1406, and 1418(7)(d); Adds R.S.47:338.223 and 1483(A)(2) and (3); Repeals R.S.
47:340(I)) Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Add provisions relative to the collection and administration of certain occupancy taxes
collected or administered by the Dept. of Revenue.
2. Add provisions relative to the collection and administration of certain occupancy taxes
collected or administered by local governing authorities.
3. Change the requirement that Board of Tax Appeal (board) members who have served on
the board for more than two and a half terms within three consecutive terms are ineligible
for reappointment to a requirement that members who have served on the board for three
consecutive terms are ineligible for reappointment.
4. Add provisions that allow the board to fix salaries of certain board employees pursuant
to administrative rules.
5. Add provisions that any item funded pursuant to a written agreement for a particular
service shall be included in any budget request or recommendation for the board.
6. Expand the definition of state collector to include any collector of state taxes or fees or
any other state agency where an agency action is appealable to the board or is related to
state taxes or fees including contracts.
7. Add provisions related to the payment of certain Board of Tax Appeal judgments,
including procedures for a change in claim amount, denial of a claim, and the submission
for payment of a claim in an amount not exceeding $100,000.
8. Make technical changes