HLS 21RS-595 REENGROSSED
2021 Regular Session
HOUSE BILL NO. 573
BY REPRESENTATIVE STEFANSKI
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX COMMISSION, STATE: Provides for the administration, review, and adjudication
of ad valorem tax assessments
1 AN ACT
2To amend and reenact R.S. 47:1402(D)(2), (3)(introductory paragraph), and (5),
3 1403(B)(6)(c), 1407(3) and (7), 1418(4)(b) and (c), 1431(B), 1432(A), 1436(B),
4 1437(A), 1439(C), 1856(D)(2) and (3) and (G), 1857(B)(1), 1989(C), 1998(A)(1)(a)
5 and (b)(i) and (D), 2132(D), 2134(B)(3), (D), and (E)(1), and 2327, to enact R.S.
6 47:1402(D)(3)(h) and (i), 1418(4)(d), 1431(F), 1432(B), 1856(H), 1857(B)(3),
7 1992(B)(3), and 1998(H) and (I), and to repeal R.S. 47:1432(D), relative to ad
8 valorem taxes; to provide for the qualifications of members of the Board of Tax
9 Appeals; to provide for the membership and qualifications of the Local Tax Division
10 Nominating Committee; to provide for administrative matters for the Board of Tax
11 Appeals; to provide for the jurisdiction of the Board of Tax Appeals; to provide for
12 definitions; to provide for the administration, review, and appeal of ad valorem tax
13 assessments; to provide for actions related to the legality or correctness of certain
14 assessments; to provide for actions related to payment of taxes under protest; to
15 provide for actions for the recovery of taxes paid under protest; to provide for actions
16 related to the assessment of public service properties by the commission; to provide
17 for review of certain cases by the Louisiana Tax Commission; to provide for the
18 refund of certain taxes; to provide for actions related to the payment of an
19 assessment under protest; to provide for limitations and requirements in actions
20 related to ad valorem tax assessments; to provide for a public records exception; to
21 require that notice be afforded to certain parties for certain proceedings; to require
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1 annual reporting under certain circumstances; to authorize the promulgation of rules;
2 to provide for an effective date; and to provide for related matters.
3Be it enacted by the Legislature of Louisiana:
4 Section 1. R.S. 47:1402(D)(2), (3)(introductory paragraph), and (5), 1403(B)(6)(c),
51407(3) and (7), 1418(4)(b) and (c), 1431(B), 1432(A), 1436(B), 1437(A), 1439(C),
61856(D)(2) and (3) and (G), 1857(B)(1), 1989(C), 1998(A)(1)(a) and (b)(i) and (D),
72132(D), 2134(B)(3), (D), and (E)(1), and 2327 are hereby amended and reenacted and R.S.
847:1402(D)(3)(h) and (i), 1418(4)(d), 1431(F), 1432(B), 1856(H), 1857(B)(3), 1992(B)(3),
9and 1998(H) and (I) are hereby enacted to read as follows:
10 §1402. Membership of board; qualifications; appointment; term; vacancy; salary
11 * * *
12 D.
13 * * *
14 (2) The nominating committee shall be responsible for developing a list of
15 not less than one, nor more than three, qualified nominees for any vacancy. Any
16 person nominated by the committee must be an attorney with experience in
17 Louisiana sales tax law, and at least one nominee shall be certified as a Tax Law
18 Specialist by the Louisiana Board of Legal Specialization.
19 (3) The Local Tax Division Nominating Committee is hereby established to
20 be comprised of eight ten members who shall be either an attorney licensed to
21 practice law in Louisiana, a certified public accountant, a certified Louisiana
22 assessor, or a parish tax administrator. The committee shall be comprised of the
23 following members:
24 * * *
25 (h) A representative of the Louisiana Assessor's Association.
26 (i) A representative selected by the Pelican Institute for Public Policy after
27 consultation with the Louisiana Chamber of Commerce Foundation, representing the
28 state's minority Chambers of Commerce.
29 * * *
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1 (5) Six Eight members shall constitute a quorum for the transaction of
2 committee business, and each nomination must be approved by a favorable vote of
3 at least five six committee members.
4 * * *
5 §1403. Designation of officers; domicile; quorum; seal
6 * * *
7 B.
8 * * *
9 (6)
10 * * *
11 (c) For any case assigned to be heard in the Local Tax Division, all
12 references to the "Board of Tax Appeals" in this Chapter, or in Chapter 2-D of this
13 Subtitle, or in Subtitle III of this Title shall mean the board's Local Tax Division,
14 with the board's authority exercised by its local tax judge pursuant to Paragraph
15 (A)(3) of this Section.
16 * * *
17 §1407. Jurisdiction of the board
18 The jurisdiction of the board shall extend to the following:
19 * * *
20 (3)(a) All matters related to state or local taxes or fees, or.
21 (b) All other jurisdiction otherwise provided by law, including jurisdiction
22 concerning ad valorem taxes pursuant to Subtitle III of this Title, rules to cease
23 business, ordinary collection suits, summary tax proceedings, rules to seek
24 uniformity of interpretation of common sales and use tax law or local sales and use
25 tax law, as provided in R.S. 47:337.101(A)(2), and petitions concerning the validity
26 of a collector's rules, regulations, or private letter rulings, as provided in R.S.
27 47:337.102.
28 * * *
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1 (7) A petition for declaratory judgment or other action relating to any state
2 or local tax or fee or contracts related to tax matters, including disputes related to the
3 constitutionality of a law or ordinance or validity of a regulation concerning any
4 matter relating to related matter or concerning any state or local tax or fee excluding
5 those tax matters within the jurisdiction of the Louisiana Tax Commission pursuant
6 to the provisions of Article VII, Section 18(E) of the Constitution of Louisiana..
7 * * *
8 §1418. Definitions
9 For purposes of this Chapter, except when the context requires otherwise, the
10 words and expressions defined in this Section shall have the following meanings:
11 * * *
12 (4) "Local collector" means any of the following:
13 * * *
14 (b) The individual or entity responsible for collecting ad valorem tax,
15 occupational license tax, or occupancy tax, or other collector responsible for
16 collecting local taxes or fees, excluding those tax matters within the jurisdiction of
17 the Louisiana Tax Commission.
18 (c) The Assessor or the Louisiana Tax Commission if the assessor or the
19 commission is a party to a proceeding pursuant to the provisions of R. S. 47:1431.
20 (d) The agent or successor to any of the above, including any joint
21 commission, authority, or other duly constituted single collection entity, created by
22 an agreement, when administering or collecting the taxes of any local political
23 subdivision within the jurisdiction of the Board of Tax Appeals.
24 * * *
25 §1431. Filing of petition
26 * * *
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1 B. If a taxpayer has complied with the provisions of R.S. 47:337.63, or 1576,
2 or 2134, the taxpayer may file a payment under protest petition with the board within
3 the respective periods set forth therein.
4 * * *
5 F.(1) If a relevant party is aggrieved by an action of a parish ad valorem tax
6 collector, assessor, or the Louisiana Tax Commission, and that action is appealable
7 to the board, the aggrieved party may file a petition with the board in accordance
8 with the provisions of R.S. 47:1998 or 2132, or other applicable law.
9 (2) Intervention by and joinder of the relevant assessor shall be permitted or
10 required as provided by law.
11 (3) Nothing in this Subsection shall authorize actions concerning the conduct
12 of tax sales, the nullification of tax sales, or contesting the seizure of movables for
13 collection.
14 (4) An aggrieved taxpayer may file a petition with the board in accordance
15 with the provisions of R.S. 47:1856 or 1857.
16 §1432. Notice; hearing; decision
17 A. The taxpayer, and the collector, and other parties to proceedings pursuant
18 to this Chapter shall be afforded notice and opportunity to be heard in each
19 proceeding for the trial of any redetermination of an assessment, the consideration
20 of a payment under protest petition, or for the determination of an overpayment, or
21 other matter to be tried pursuant to the provisions of this Chapter. A decision or
22 judgment in such these matters shall be made as quickly as practicable.
23 B. An action filed pursuant to this Chapter shall be deemed in any court of
24 Louisiana to be a suit pending in a court of this state for the purposes of Code of
25 Civil Procedure Article 531.
26 * * *
27 §1436. Determination of which appellate court has jurisdiction
28 * * *
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1 B. A judgment of the board in a case by or against a local collector may be
2 reviewed as follows:
3 (1) In the court of appeal for the parish where the tax being litigated is
4 levied, except as provided for in Paragraph (2) of this Subsection.
5 (2) In the case of an agreement between the local collector and taxpayer
6 parties, then by the court of appeal as stipulated in the agreement.
7 (3) In the respective court of appeal for the parish of the appellee for any
8 case appealed by a local collector appealing a ruling issued against another local
9 collector pursuant to R.S. 47:337.101 or other applicable law, and if there are
10 appellees from different circuits, then in the court of appeal designated by the board
11 as having the most connection to the matter at issue.
12 (4) If Paragraphs (1) through (3) of this Subsection do not apply, then to the
13 court of appeal designated by the board as having the most connection to the matter
14 at issue or, if none, then the court of appeal for East Baton Rouge Parish.
15 * * *
16 §1437. Effect of final judgment
17 A. When the decision or judgment of the board which has become final
18 contains a finding that the taxpayer is liable for the payment of an amount of tax,
19 interest and penalty, such the amount shall be paid by the taxpayer upon notice and
20 demand from the collector, and shall be collectible by distraint and sale, as provided
21 in R.S. 47:1570 through 1573, or 337.57 through 337.60, or any other means
22 provided for in Chapter 2-D of Subtitle II or Subtitle III of this Title for a local
23 collector.
24 * * *
25 §1439. Escrow account
26 * * *
27 C. The account, and any related funds included therein, shall be subject to
28 audit by the legislative auditor. An annual report of account transactions concerning
29 state cases shall also be submitted to the Cash Management Review Board secretary
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1 of the Department of Revenue. An annual report of the account's transactions
2 concerning local sales tax cases shall be submitted to the Louisiana Uniform Local
3 Sales Tax Board. An annual report of the account's transactions concerning local ad
4 valorem tax cases shall be submitted to the written designee for the Louisiana
5 Sheriff's Association and the written designee for the Louisiana Assessor's
6 Association.
7 * * *
8 §1856. Notice of valuation, hearings, appeals
9 * * *
10 D.
11 * * *
12 (2) The proceedings in such the suit shall be tried by preference, whether or
13 not out of term time
1
, at such the time as fixed by the district court reviewing the
14 matter. No new trial or rehearing shall be allowed.
15 (3) Any appeal from a judgment of the district court reviewing the matter
16 shall be heard by preference within sixty days of the lodging of the record in the
17 court of appeal. The appeal shall be taken thirty days from the date the judgment of
18 the district court reviewing the matter is rendered. If such the appeal is timely filed,
19 any amount of taxes that were paid under protest pursuant to Subsection E of this
20 Section shall remain segregated and invested pursuant to Subsection E of this Section
21 and no bond or other security shall be necessary to perfect such the appeal.
22 * * *
23 G. Any taxpayer asserting that a law or laws, including the application
24 thereof, of the law or laws related to the valuation or assessment of public service
25 properties is in violation of any act of the Congress of the United States, the
26 Constitution of the United States, or the constitution of the state Constitution of
27 Louisiana shall file suit in accordance with the provisions of R.S. 47:2134(C) and
28 (D). The provisions of R.S. 47:1856(E) and (F) shall be applicable to such the
29 proceedings; however, the tax commission and all affected assessors and the officers
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1 responsible for the collection of any taxes owed pursuant to such the assessment
2 shall be made parties to such the suit. If such the suit affects assessments of property
3 located in more than one parish, such the suit may be brought in either the Board of
4 Tax Appeals, the district court for the parish in which the tax commission is
5 domiciled, or the district court of any one of the parishes in which the property is
6 located and assessed. No bond or other security shall be necessary to perfect an
7 appeal in such the suit. Any appeal from a judgment of the district court shall be
8 heard by preference within sixty days of the lodging of the record in the court of
9 appeal. The appeal shall be taken thirty days from the date the judgment of the
10 district reviewing court is rendered.
11 H. For purposes of this Section, references to the court reviewing the matter
12 or the reviewing court shall be deemed to mean either a district court of proper venue
13 or the Board of Tax Appeals.
14 §1857. Corrections and changes
15 * * *
16 B.(1)(a) Any company may institute suit in the Board of Tax Appeals or any
17 court having jurisdiction of the cause of action, for the purpose of contesting the
18 correctness or legality of any corrections and changes of its assessed valuation for
19 taxation by the Louisiana Tax Commission under this Section, which suit must be
20 instituted within thirty days after receipt of the notice ordering the change. However,
21 to state a cause of action, the petition instituting such the suit shall name the
22 Louisiana Tax Commission as defendant and shall set forth not only the correction
23 or change of its assessed valuation for taxation made by the Louisiana Tax
24 Commission, but also the assessed valuation for taxation that the company deems to
25 be correct and legal and the reasons therefor.
26 (b) The proceedings in such suit shall be tried by preference, whether or not
27 out of term time
1
, at such time as fixed by the district court. No new trial or
28 rehearing shall be allowed.
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1 (c) Any appeal from a judgment of the district court shall be heard by
2 preference within sixty days of the lodging of the record in the court of appeal. The
3 appeal shall be taken thirty days from the date the judgment of the district court is
4 rendered. If such appeal is timely filed, any amount of taxes that were paid under
5 protest pursuant to R.S. 47:1856(E) shall remain segregated and invested pursuant
6 to that Subsection and no bond or other security shall be necessary to perfect such
7 appeal.
8 (d) In the event the supreme court grants a writ of certiorari, the court shall
9 hear the appeal on the next regular docket of the court.
10 * * *
11 (3) The provisions of R.S. 47:1856(D)(2), (3), and (4) shall be applicable to
12 all actions instituted pursuant to this Section. All references to the reviewing court
13 shall be deemed to mean either a district court of proper venue or the Board of Tax
14 Appeals.
15 * * *
16 §1989. Review of appeals by tax commission
17 * * *
18 C.(1) All such appeal hearings shall be conducted in accordance with rules
19 and regulations established by the tax commission. this Section and the
20 Administrative Procedure Act. In all other matters regarding the conduct of its
21 hearings, the Louisiana Tax Commission may prescribe and promulgate rules not
22 inconsistent with the provisions of this Section or other law.
23 (2)(a)(i) Review of the correctness of an assessment by an assessor shall be
24 confined to review of evidence presented to the assessor prior to the close of the
25 deadline for filing a complaint with the board of review provided for in R.S.
26 47:1992. If a taxpayer makes application to present additional evidence before the
27 date set for hearing on the appeal and the Louisiana Tax Commission finds that the
28 additional evidence is material and that there were good reasons for failure to timely
29 present it to the assessor, the Louisiana Tax Commission may order that the
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1 additional evidence be taken by the assessor. The assessor may modify the
2 assessment by reason of the additional evidence and shall notify the Louisiana Tax
3 Commission of any modifications to the assessment within fifteen calendar days of
4 receipt of the additional evidence. The Louisiana Tax Commission may then order
5 any evidence that is otherwise admissible be admitted for the purposes of review.
6 (ii) For purposes of this Subparagraph, good reason for failure to timely
7 present information to the assessor shall be presumed to exist for reports and related
8 attachments of any appraiser or other expert ordered prior to the deadline for filing
9 a complaint with the board of review if the report and attachments are submitted to
10 the assessor within thirty days of receipt of the reports and attachments by the
11 taxpayer and at least twenty-five days prior to a hearing before the Louisiana Tax
12 Commission. Nothing in this Subparagraph shall be construed to limit the ability of
13 the Louisiana Tax Commission to find good reason to admit other expert reports
14 pursuant to the other provisions of this Subsection.
15 (iii) Nothing in this Subparagraph shall be construed to limit the ability of
16 the Louisiana Tax Commission to find good reason to admit otherwise admissible
17 documents or evidence pursuant to this Subsection. For purposes of this
18 Subparagraph, good reason for failure to timely present documents or evidence shall
19 always be presumed to exist when the otherwise admissible document or evidence
20 is either of the following:
21 (aa) Not available to the taxpayer at the time of the deadline for submission
22 to the assessor but is provided to the assessor within fifteen days of availability
23 including but not limited to financial or accounting documents, financial statements,
24 information regarding the useful life of property, depreciation schedules, other
25 records of income data, or environmental assessments or reports relating to the
26 property.
27 (bb) Consists of documents or records of income or expenses concerning the
28 valuation of oil and gas property when the taxpayer has timely provided all
29 information required by rule and the documents or records are supplemental to the
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1 submission. The presumption provided for in this Subparagraph shall not apply to
2 documents or records specifically required to be provided by rule or expressly
3 requested by the assessor pursuant to R.S. 47:1957(C) if the documents were
4 available to the taxpayer but not timely provided in response to the assessor's
5 request.
6 (iv) Witnesses may be utilized to authenticate or explain evidence which is
7 otherwise admissible pursuant to the provisions of this Subsection. Nothing in this
8 Subparagraph shall be construed to limit otherwise admissible witness testimony
9 evidence.
10 (v) For purposes of this Subparagraph, the phrase "otherwise admissible"
11 shall mean evidence admissible pursuant to any provision of this Subsection and
12 evidence admissible pursuant to relevant provisions of the Administrative Procedure
13 Act and Code of Evidence.
14 (vi) Nothing in this Subparagraph shall be construed to limit any of the
15 following otherwise admissible data, guides, and resources that are publicly
16 accessible:
17 (aa) Aerial or other photography.
18 (bb) Public records of Clerks of Court or other political subdivisions in the
19 parish of the assessment, including but not limited to building permits, conveyance
20 records, city directories, occupancy permits, or demolition permits.
21 (cc) Public records of the Department of Natural Resources including but not
22 limited to data from the Strategic Online Natural Resource Information System
23 (SONRIS).
24 (dd) Sales data including but not limited to multiple listing service reports.
25 (ee) Published cost data or cost guides and their related sources.
26 (ff) Rules, advisories, or guidance promulgated by the Louisiana Tax
27 Commission.
28 (b) A decision of the Louisiana Tax Commission to deny a taxpayer’s
29 application to present additional evidence pursuant to Subparagraph (a) of this
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1 Paragraph shall, at the option of the taxpayer, be considered a final determination for
2 purposes of appeal as provided for in R.S. 47:1998 to be decided by preference and
3 priority within twenty-one days and thereafter be subject to review by priority in the
4 same manner as a non-appealable interlocutory judgment, or be subject to immediate
5 review by application for supervisory writ in the same manner as provided for in
6 Rule 4 of the Uniform Rules of Louisiana Courts of Appeal. Except as ordered by
7 a court of appeal, no stay of the proceedings before the Louisiana Tax Commission
8 may be issued pursuant to an action pursuant to this Subparagraph. This
9 Subparagraph shall not apply to an application to present additional evidence not
10 timely filed pursuant to the rules of the Louisiana Tax Commission.
11 (c) Notwithstanding the provisions of Subparagraph (a) of this Paragraph,
12 in an appeal of the correctness of an assessment of real property, the Louisiana Tax
13 Commission may independently appraise the property utilizing the criteria set forth
14 in R.S. 47:2323 and may enter that appraisal into evidence for consideration on
15 review of the correctness of the assessment.
16 (d) The Louisiana Tax Commission may promulgate rules related to the
17 disclosure of evidence to the opposing party and the consideration of evidentiary
18 disputes; however, no provision of this Paragraph shall extend any deadline beyond
19 the date that would be applicable pursuant to Louisiana Tax Commission rules.
20 (3) The Louisiana Tax Commission may affirm the correctness of the
21 assessment, it may remand the matter for further consideration by the assessor, or it
22 may reverse or modify the assessment because the assessment is any of the
23 following:
24 (a) In violation of constitutional or statutory provisions.
25 (b) In excess of the authority of the assessor.
26 (c) Made upon an unlawful procedure.
27 (d) Affected by another error of law.
28 (e) Arbitrary or capricious or characterized by abuse of discretion or clearly
29 unwarranted exercise of discretion.
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1 (f) Not supported and sustainable by a preponderance of evidence as
2 determined by the Louisiana Tax Commission. If the Louisiana Tax Commission
3 finds that an assessment is not supported and sustainable by a preponderance of
4 evidence, the Louisiana Tax Commission shall make its own determination and
5 conclusions of fact by a preponderance of evidence based upon its own evaluation
6 of the record evidence reviewed in its entirety including otherwise admissible first-
7 hand witness testimony.
8 * * *
9 §1992. Inspection of assessment lists; notification and review of assessments by
10 board of review; hearing officers
11 * * *
12 B.
13 * * *
14 (3) Notwithstanding any other provision of this Subsection, if an assessor
15 receives additional information from a taxpayer after the assessment lists have been
16 certified to the board of review but before the filing of a complaint with the board
17 of review, the assessor may modify the assessment to make a reduction based on the
18 additional evidence. Any reduction pursuant to the provisions of this Paragraph shall
19 be communicated to the taxpayer and the board of review no less than twenty-four
20 hours prior to the board of review's public hearing. Nothing in this Paragraph shall
21 be construed to limit any other statutory authority to make modifications.
22 * * *
23 §1998. Judicial review; generally
24 A.(1)(a) Any taxpayer or bona fide representative of an affected tax-recipient
25 body in the state dissatisfied with the final determination of the Louisiana Tax
26 Commission under the provisions of R.S. 47:1989 shall have the right to institute suit
27 within thirty days of the entry of any final decision of the Louisiana Tax Commission
28 in the district court for the parish where the Louisiana Tax Commission is domiciled
29 or the district court of the parish where the property is located contesting for review
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1 of the correctness of an assessment by an assessor. Any taxpayer who owns property
2 assessed in more than one parish may institute this suit in either the district court for
3 the parish where the tax commission is domiciled or the district court of any one of
4 the parishes in which the property is located and assessed, provided at least
5 twenty-five percent of the parishes where the property is located are named in the
6 suit. However, if at least twenty-five percent of the parishes are not named in the
7 suit, then suit must be filed in the parish where the property is located.
8 (b)(i) The proceedings in such the suit shall be tried heard pursuant to R.S.
9 49:964 and by preference, whether or not out of term time
1
, at such the time as fixed
10 by the district court or the Board of Tax Appeals. No new trial or rehearing shall be
11 allowed.
12 * * *
13 D. In all suits relating to property taxes the judge shall hear and try such
14 these cases without delay, in chambers if necessary, without cost to the reviewers or
15 the assessors regardless of whether the suit was instituted by an assessor or a
16 taxpayer.
17 * * *
18 H.(1) For purposes of this Section, references to the district court for the
19 parish where the Louisiana Tax Commission is domiciled shall be deemed to mean
20 either the district court for East Baton Rouge Parish or the Louisiana Board of Tax
21 Appeals.
22 (2) A review by the Board of Tax Appeals pursuant to this Section shall be
23 in accordance with the provisions of this Section applicable to a district court and
24 shall be pursuant to its jurisdiction under Article V, Section 35 of the Constitution
25 of Louisiana over all matters related to state and local taxes or fees, provided that the
26 matter shall be subject to review finally by the courts on appeal pursuant to the
27 provisions of Chapter 17 of Subtitle II of this Title.
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1 I. The Louisiana Tax Commission shall receive a copy of every filing in a
2 suit under this Section, and may intervene in accordance with the applicable
3 provisions of the Code of Civil Procedure.
4 * * *
5 §2132. Refund of taxes erroneously paid
6 * * *
7 D. An action of the assessor or of the tax commission rejecting or refusing
8 to approve any claim made under the provisions of this Section may be appealed by
9 means of ordinary proceedings to the Board of Tax Appeals or to the district court
10 having jurisdiction where the property which is the subject of the claim is located.
11 * * *
12 §2134. Suits to recover taxes paid under protest
13 * * *
14 B.
15 * * *
16 (3)(a) In a correctness challenge suit under either R.S. 47:1856, or 1857, or
17 1998 the officer or officers designated for the collection of taxes in the parish or
18 parishes in which the property is located, the assessor or assessors for the parish or
19 district, or parishes or districts, in which the property is located, and the Louisiana
20 Tax Commission shall be the sole necessary and proper party defendants in any such
21 suit.
22 (b) The officer or officers designated for the collection of taxes in the parish
23 or parishes in which the property is located and the assessor or assessors for the
24 parish or district, or parishes or districts, in which the property is located shall be the
25 sole necessary and proper party defendants in a correctness challenge action under
26 R.S. 47:1989, 1992, or 1998.
27 * * *
28 D.(1) The right to sue for recovery of a tax paid under protest as provided
29 in this Section shall afford a legal remedy and right of action in the Board of Tax
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1 Appeals or any state or federal court having jurisdiction of the parties and subject
2 matter for a full and complete adjudication of all questions arising in connection with
3 a correctness challenge or the enforcement of the rights respecting the legality of any
4 tax accrued or accruing or the method of enforcement thereof.
5 (2) A legality challenge as provided for in Subsection C of this Section may
6 be brought pursuant to Paragraph (1) of this Subsection or by petition for recovery
7 of a tax paid under protest before the Board of Tax Appeals, which shall provide a
8 legal remedy and right of action for a full and complete adjudication of all questions
9 arising in connection with the tax.
10 (3) The right to sue for recovery of a tax paid under protest as provided in
11 this Section shall afford a legal remedy and right of action at law in the state or
12 federal courts where any tax or the collection thereof is claimed to be an unlawful
13 burden upon interstate commerce, or in violation of any act of the Congress of the
14 United States, the Constitution of the United States, or the constitution of the state.
15 (4) The portion of the taxes which is paid by the taxpayer to the collecting
16 officer or officers that is neither in dispute nor the subject of such suit shall not be
17 made subject to the protest.
18 E.(1) Upon request of a taxpayer and upon proper showing by the taxpayer
19 that the principle of law involved in an additional assessment is already pending
20 before the Board of Tax Appeals or the courts for judicial determination, the
21 taxpayer, upon agreement to abide by the pending decision of the Board of Tax
22 Appeals or the courts, may pay the additional assessment under protest but need not
23 file an additional suit. In such cases, the tax so paid under protest shall be segregated
24 and held by the collecting officer or officers until the question of law involved has
25 been determined by the courts, the Board of Tax Appeals, or finally decided by the
26 courts on appeal, and shall then be disposed of as provided in the final decision of
27 the court Board of Tax Appeals or courts, as applicable.
28 * * *
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HB NO. 573
1 §2327. Confidentiality of forms
2 Forms filed by a taxpayer pursuant to this Part shall be confidential and shall
3 be used by the assessor, the governing authority, the Louisiana Tax Commission, and
4 the Louisiana Department of Revenue, solely for the purpose of administering the
5 provisions of this Part and verifying eligibility for tax credits claimed under R.S.
6 47:6006. Such The forms shall not be subject to the provisions of the Public Records
7 Law, provided however, that such the forms shall be admissible in evidence and
8 subject to discovery in judicial or administrative proceedings according to general
9 law relating to the production and discovery of evidence subject to any protection
10 related to use of confidential information provided by an order under the provisions
11 of Article 1426 of the Louisiana Code of Civil Procedure. For purposes of this
12 Section, forms shall include all information provided by a taxpayer to an assessor
13 pursuant to this Part.
14 Section 2. R.S. 47:1432(D) is hereby repealed in its entirety.
15 Section 3. The provisions of this Act amending R.S. 47:1989 shall have prospective
16effect and shall not be applicable to any case actually pending before the Louisiana Tax
17Commission or in any court on August 1, 2021. The provisions of this Act amending R.S.
1847:1998 shall not be applicable to any case actually pending in any court on August 1, 2021.
19The remaining provisions of this Act are procedural and shall become operative on January
201, 2022.
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 573 Reengrossed 2021 Regular Session Stefanski
Abstract: Provides for the administration, review, and adjudication of ad valorem tax
assessments by the Board of Tax Appeals, the La. Tax Commission, and assessors.
Present law provides for the establishment of the Board of Tax Appeals (board) to hear and
decide disputes between taxpayers and any state or local tax collector. Present law provides
for the membership, qualifications, and appointments to the board.
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HB NO. 573
Proposed law retains present law as it relates to the board but expands the qualifications of
a nominee for a board position to include a person who has La. tax law experience rather
than a person with La. sales tax law experience.
Proposed law increases the membership of the Local Tax Division Nominating Committee
from eight to ten members by adding a member who represents the La. Assessor's
Association and a representative selected by the Pelican Institute after consultation with the
La. Chamber of Commerce Foundation. Further expands the qualifications for members of
the nominating committee to include a certified La. assessor.
Present law provides for the jurisdiction of the board which includes petitions for declaratory
judgment or actions related to the constitutionality of a law or ordinance or the validity of
a regulation concerning a state or local tax or fee.
Proposed law retains present law but adds that the board's jurisdiction over petitions for
declaratory judgement or other actions extends to matters related to state or local taxes or
fees and contracts related to fees.
Present law defines a "local collector" as an individual or entity responsible for collecting
occupational license or occupancy taxes, or local taxes or fees except those tax matters
within the jurisdiction of the La. Tax Commission (commission).
Proposed law adds ad valorem taxes to the taxes a local collector may collect and removes
the exclusion for tax matters within the jurisdiction of the commission. Proposed law
further defines a local collector to include an assessor or the commission if it is a party to
a proceeding related to appeals for the redetermination of an assessment or the determination
of an overpayment.
Present law authorizes a taxpayer to appeal to the board for a redetermination of an
assessment or a determination of an overpayment when a taxpayer is aggrieved by an
assessment made by a state collector or by a state collector's action or failure to act on a
claim for refund or credit of an overpayment. Present law establishes a procedure for a
taxpayer to file a petition for payment of taxes under protest.
Proposed law retains present law but specifies that a taxpayer must comply with the present
law procedure related to suits for payment of taxes under protest.
Proposed law sets forth a procedure for a relevant party who is aggrieved by an action of a
local collector, assessor, or the commission, if the action is appealable to the board. Further
authorizes an intervention by and joinder of the relevant assessor as permitted or required
by present law. Proposed law excludes actions concerning local tax sales, the nullification
of tax sales, or the contesting of the seizure of movables for collection from this procedure.
Present law requires the taxpayer and the collector to get notice and an opportunity to be
heard in each proceeding for the redetermination of an assessment, the consideration of a
payment under protest petition, or for the determination of an overpayment. Further requires
decisions or judgments to be made as quickly as practicable.
Proposed law retains present law but adds a requirement that other parties to proceedings be
afforded notice and an opportunity to be heard.
Present law provides for the determination of the appellate court that has jurisdiction over
decisions or judgments of the board including the court of appeal for the parish where the
tax is being litigated, the court the parties stipulate to have jurisdiction, or the court of appeal
for the parish of the appellee for a case appealed by a collector.
Proposed law retains present law but provides that if none of the options for review in
present law are applicable, the judgment may be reviewed by the court of appeal designated
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HB NO. 573
by the board that has the most connection to the matter or, if none, the court of appeal for
East Baton Rouge Parish.
Present law requires the board to select a fiscal agent for its escrow account used to
distribute funds pursuant to certified copies of an order. Further requires the account to be
subject to audit by the legislative auditor and for an annual report of account transactions
concerning state cases to be submitted to the Cash Management Review Board and an annual
report of the account transactions concerning local tax cases to be submitted to the La.
Uniform Local Sales Tax Board.
Proposed law retains present law but changes the entity to which the annual report for state
tax cases must be submitted from the Cash Management Review Board to the secretary of
the Dept. of Revenue and specifies that the annual report regarding local tax cases applies
to local sales tax cases.
Proposed law requires an annual report of the account's transactions concerning local ad
valorem tax cases to be submitted to the written designee for the La. Sheriff's Association
and the written designee for the La. Assessor's Association.
Present law requires the commission to assess public service properties for purposes of ad
valorem taxes. Further requires the commission to give notice of the initial determination
of the assessed valuation in writing to a company and the initial determination becomes final
if no protest is filed with the commission within 30 days after receipt by the company of the
notice of the initial determination. Present law provides for a procedure for a company to
protest an initial valuation and a procedure for the company to appeal decisions of the
commission.
Proposed law retains present law but authorizes parties to appeal to the board in suits
contesting the valuation or assessment of public service properties when the suit affects
assessments of property in more than one parish. Further clarifies that references to
"reviewing court" in proposed law include the board.
Present law authorizes the commission to correct or change the assessment of any company
in order to make the assessment conform to facts. A company may institute a suit to contest
the correctness or legality of any corrections and changes of its assessed valuation by the
commission.
Proposed law retains present law related to the authorization for a company to contest the
correctness of an assessment but specifies that these suits shall be subject to provisions of
present law related to appeals of the final determination of the assessed value of property by
the commission.
Present law requires an assessor to annually assess and value property within the assessor's
jurisdiction for purposes of ad valorem property taxes. Further provides for the assessment
procedure and time line an assessor is required to follow in order to notify a property owner
of the assessed value of his property. Present law also sets forth a procedure for a property
owner to contest a property's valuation including the establishment of boards of review
which consists of the governing authorities in each parish.
Present law requires the commission to conduct public hearings within 10 days of receipt
of the assessment lists to hear real and personal property appeals of taxpayers, tax-recipient
bodies, or assessors from actions of the board of review.
Proposed law retains present law but requires a review of the correctness of an assessment
by an assessor to be confined to review of evidence presented to the assessor prior to the
close of the deadline for filing a complaint with the board of review. If a taxpayer makes
application to present additional evidence before the date set for hearing on the appeal and
the commission finds that the additional evidence is material and there were reasons for
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failure to timely present the evidence to the assessor, the commission may order the assessor
to take the additional evidence. Authorizes an assessor to modify the assessment because
of the additional evidence and to notify the commission of modifications within 15 calendar
days of receipt of the additional evidence.
Proposed law provides that good reason for failure to timely present information to the
assessor is presumed to exist for reports and related attachments of any appraiser or other
expert ordered prior to the deadline for filing a complaint with the board of review if the
report and attachments are submitted to the assessor within 30 days of receipt of the reports
and attachments by the taxpayer and at least 25 days prior to a hearing before the
commission.
Proposed law provides that good reason for failure to timely present documents or evidence
is always presumed to exist when the otherwise admissible document or evidence is not
available to the taxpayer at the time of the deadline for submission to the assessor but is
provided to the assessor within 15 days of availability or consists of documents or records
of income or expenses concerning the valuation of oil and gas property when the taxpayer
has timely provided all information required by rule and the documents or records are
supplemental to the submission.
Proposed law exempts documents or records of income or expenses concerning the valuation
of oil and gas property from the presumption of good reason for failing to timely present
documents or evidence if the documents were available to the taxpayer but not timely
provided in response to the assessor's request.
Proposed law authorizes witnesses to be used to authenticate or explain documents which
are otherwise admissible and provides for the use of publicly accessible data, guides, and
resources.
Proposed law provides that a decision of the commission to deny a taxpayer's application to
present additional evidence shall, at the option of the taxpayer, be considered a final
determination for purposes of appeal or be subject to immediate review by application for
supervisory writ to the court of appeal. Further provides that except as ordered by a court
of appeal, no stay of the proceedings before the La. Tax Commission may be issued pursuant
to an action to deny a taxpayer's application to present additional evidence.
Proposed law in appeals of the correctness of assessments, authorizes the commission to
independently appraise property and to enter that appraisal into evidence for consideration
on review of the correctness of the assessment.
Proposed law sets forth the actions the commission or a district court may take when
reviewing the correctness of an assessment by an assessor and provides for specific reasons
that may warrant the commission or the district court to reverse or modify the assessor's
assessment.
Proposed law provides that if an assessor receives additional information from a taxpayer
after the assessment lists have been certified to the board of review but before the filing of
a complaint with the board of review, the assessor may modify the assessment to make a
reduction based on the additional evidence. Reductions in assessments shall be
communicated to the taxpayer and the board of review no less than 24 hours prior to the
board of review's public hearing.
Present law authorizes a taxpayer who is dissatisfied with the final determination of the
commission concerning the correctness of an assessment to file a suit within 30 days of the
entry of a final decision of the commission in the district court for the parish where the
commission is domiciled or the district court of the parish where the property is located.
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Present law establishes a procedure for claims against a political subdivision for ad valorem
taxes erroneously paid to the political subdivision which includes presenting the claim to the
commission within three years of the date of the payment. Further provides a procedure for
a taxpayer who prevails in their claim to present a claim to the commission to receive a
refund of the payments. Authorizes an appeal to the district court if an assessor or the
commission refuses to approve a claim for a refund.
Proposed law retains present law but authorizes a taxpayer to also appeal to the board.
Present law establishes a procedure for a taxpayer to challenge the correctness of an
assessment or a legality challenge by timely paying the disputed amount under protest to the
tax collector. Present law provides for the proper party defendants who must be included
in these suits.
Proposed law retains present law but provides for the proper party defendants who must be
included in a correctness challenge related to appeals of actions by a board of review related
to the inspection of assessment lists and notification and review of assessments and appeals
of final determinations by the commission. Further provides that a legality challenge may
be brought by a petition for recovery of a tax paid under protest before the board which shall
provide a legal remedy and right of action for a full and complete adjudication of all
questions arising in connection with the tax.
Present law authorizes a taxpayer, in cases of an additional assessment, to pay the additional
assessment under protest without having to file an additional suit if the taxpayer shows that
the principle of law involved in an additional assessment is already pending before the court
for judicial determination and if the taxpayer agrees to abide by the pending court's decision.
Proposed law retains present law but specifies that the assessment under protest may also
be under consideration by the board.
Present law requires forms filed by a taxpayer to be considered confidential and limits use
solely for purposes of administering the provisions of present law and for verifying
eligibility for tax credits. Exempts these forms from the provisions of present law
concerning public records; however, the forms are admissible in evidence and subject to
discovery in judicial or administrative proceedings.
Proposed law retains present law but clarifies that the admissibility of the forms into
evidence shall be subject to present law protections related to use of confidential information
provided by court order. Further provides that forms shall include all information provided
by a taxpayer to an assessor.
Proposed law provides that the provisions of proposed law amending R.S. 47:1989 shall be
prospective and shall not be applicable to any case pending before the La. Tax Commission
or in any court on Aug. 1, 2021. The remaining provisions of proposed law are procedural
and shall become operative on Jan. 1, 2022.
(Amends R.S. 47:1402(D)(2), (3)(intro. para.), and (5), 1403(B)(6)(c), 1407(3) and (7),
1418(4)(b) and (c), 1431(B), 1432(A), 1436(B), 1437(A), 1439(C), 1856(D)(2) and (3) and
(G), 1857(B)(1), 1989(C), 1998(A)(1)(a) and (b)(i) and (D), 2132(D), 2134(B)(3), (D), and
(E)(1), and 2327; Adds R.S. 47:1402(D)(3)(h) and (i), 1418(4)(d), 1431(F), 1432(B),
1856(H), 1857(B)(3), 1992(B)(3) and 1998(H) and (I); Repeals R.S. 47:1432(D))
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HB NO. 573
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Expand jurisdiction of the board to include contracts related to fees and remove
exclusions from the board's jurisdiction matters related solely to the correctness
of an assessment by a parish assessor that is subject to review by the
commission.
2. Change the deadline for submission of evidence for review of the correctness of
an assessment by an assessor from the period for inspection of the assessment
lists to the deadline for filing a complaint with the board of review.
3. Add provisions related to a presumption that good reason for failure to timely
present information to an assessor exists for reports and related attachments if the
report and attachments are submitted to the assessor within 30 days of receipt of
the reports and attachments by the taxpayer and at least 25 days prior to a hearing
before the commission.
4. Add authorization for witnesses to be used to authenticate or explain documents
and provide for the use of publicly accessible data, guides, and resources.
5. Add provisions that a decision of the commission to deny a taxpayer’s
application to present additional evidence shall, at the option of the taxpayer, be
considered a final determination for purposes of appeal or be subject to
immediate review by application for supervisory writ to the court of appeal.
6. Provide for a public records exception for forms and information provided to an
assessor related to the correctness of an assessment.
7. Add an effective date of Jan. 1, 2022.
The House Floor Amendments to the engrossed bill:
1. Change the selection of one of the additional members of the Local Tax Division
Nominating Committee from one selected jointly by the Council of State
Taxation, the Pelican Institute for Public Policy, and the La. Chamber of
Commerce Foundation to a member selected by the Pelican Institute for Public
Policy after consultation with the La. Chamber of Commerce Foundation.
2. Add requirement that other parties to proceedings be afforded notice and
opportunity to be heard in proceedings for the redetermination of an assessment,
the consideration of a payment under protest petition, or for the determination of
an overpayment.
3. Change the entity to which the annual report for state tax cases must be
submitted from the Cash Management Review Board to the secretary of the
Dept. of Revenue and specify that the annual report regarding local tax cases
applies to local sales tax cases.
4. Require an annual report of the escrow account's transactions concerning local
ad valorem tax cases to be submitted to the written designee for the La. Sheriff's
Association and the written designee for the La. Assessor's Association.
5. Add provisions related to the presumption of good reason for failure to timely
present documents or evidence to the La. Tax Commission.
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6. Exempt documents or records of income or expenses concerning the valuation
of oil and gas property from the presumption of good reason for failing to timely
present documents or evidence if the documents were available to the taxpayer
but not timely provided in response to the assessor's request.
7. Prohibit a stay of the proceedings before the La. Tax Commission from being
issued pursuant to an action to deny a taxpayer's application to present additional
evidence.
8. Authorize the La. Tax Commission to promulgate rules related to the disclosure
of evidence to the opposing party and the consideration of evidentiary disputes;
however, the rules shall not extend any deadline beyond what is applicable
pursuant to La. Tax Commission rules.
9. Remove the requirement that information provided by a taxpayer on forms to the
assessor be held confidential but require that forms provided by a taxpayer to an
assessor include all of the information submitted by the taxpayer.
10.Add provisions providing that proposed law amending R.S. 47:1989 has
prospective effect and shall not apply to any case actually pending before the La.
Tax Commission or in any court on Aug. 1, 2021, that provisions of proposed
law amending R.S. 47:1998 shall not apply to any case pending in any court on
Aug. 1, 2021, and that the remaining provisions of proposed law are procedural
and become operative on Jan. 1, 2022.
11.Delete effective date of Jan. 1, 2022.
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