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.
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 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 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.
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)) 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.
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.