SLS 22RS-174 ORIGINAL
2022 Regular Session
SENATE BILL NO. 235
BY SENATOR ALLAIN
TAX/LOCAL. Authorizes parishes to contract with the Louisiana Sales and Use Tax
Commission for Remote Sellers for the collection of local sales and use tax. (1/1/23)
1 AN ACT
2 To amend and reenact R.S. 47:340(E)(3), (G)(1) through (5), the introductory paragraph of
3 (G)(6), (G)(8), and (11), (H)(3), (12), and (13), and (I) and to enact R.S. 47:339.1,
4 relative to the administration of local sales and use taxes; to provide for the powers
5 and duties of the Louisiana Sales and Use Tax Commission for Remote Sellers; to
6 authorize the commission to collect local sales and use taxes for collectors that enter
7 into contracts with the commission; to provide for an effective date; and to provide
8 for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:340(E)(3), (G)(1) through (5), the introductory paragraph of
11 (G)(6), (G)(8), and (11), (H)(3), (12), and (13), and (I) are hereby amended and reenacted
12 and R.S. 47:339.1 is hereby enacted to read as follows:
13 §339.1. Louisiana Sales and Use Tax Commission for Remote Sellers;
14 nonremote sales
15 A. In addition to the duties of the commission pursuant to R.S. 47:339,
16 the commission shall:
17 (1) Develop a single electronic return for all local taxing authorities.
Page 1 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 235
SLS 22RS-174 ORIGINAL
1 (2) Enter into contracts with collectors of local sales and use tax for the
2 collection of tax from qualifying nonremote sellers. The tax monies received
3 pursuant to these contracts shall, at all times, be and remain the property of the
4 respective local taxing authorities.
5 (3) Provide the minimum tax administration, collection, and payment
6 requirements required by federal law with respect to the collection and
7 remittance of local sales and use tax imposed on nonremote sales that the
8 commission is authorized by contract to collect.
9 (4) Establish a fiscal agent for the purpose of nonremote sales and use tax
10 remittances.
11 B. Definitions.
12 (1) "Local taxing authority" and "local" means those parishes,
13 municipalities, special tax districts, political subdivisions, parish governing
14 bodies, and school boards who are authorized under the provisions of the
15 Constitution of Louisiana, the Louisiana Revised Statutes of 1950 and
16 jurisprudence to levy and collect local sales and use taxes.
17 (2) The term "nonremote sale" means a sale that is made by a nonremote
18 seller that is not a remote sale.
19 (3) The term "nonremote seller" means a seller that is not a remote
20 seller.
21 (4) The term "remote sale" means a sale that is made by a remote seller
22 for delivery into Louisiana.
23 (5) The term "remote seller" means a seller who sells for sale at retail,
24 use, consumption, distribution, or for storage to be used for consumption or
25 distribution any taxable tangible personal property, products transferred
26 electronically, or services for delivery within Louisiana, but does not have a
27 physical presence in Louisiana. The term "remote seller" includes
28 "marketplace facilitators" as defined in R.S. 47:340.1.
29 (6) The term "qualifying nonremote sale" means a sale by a qualifying
Page 2 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 235
SLS 22RS-174 ORIGINAL
1 nonremote seller in a parish that has entered into a contract for collection by
2 the commission pursuant to Paragraph (A)(2) of this Section.
3 (7) The term "qualifying nonremote seller" means a nonremote seller
4 that has a physical location in this state and is registered to file and remit local
5 sales and use taxes pursuant to a local ordinance in two or more parishes.
6 (8) "Sales and use taxes" and "taxes" shall mean the sales and use taxes
7 levied by the state of Louisiana under the provisions of Title 47 of the Louisiana
8 Revised Statutes of 1950, and the sales and use taxes levied by local taxing
9 authorities in Louisiana under the provisions of the Constitution of Louisiana,
10 statutory laws authorizing the imposition of such taxes, and local sales and use
11 tax ordinances.
12 C. Notwithstanding the provisions of R.S. 47:339 and 340 or any other
13 law to the contrary, the sales and use tax imposed by the local taxing authorities
14 on remote sales shall not be collected by the commission for any local taxing
15 authority if the collector for that local taxing authority does not enter into an
16 agreement with the commission for collection of tax on nonremote sales.
17 Beginning January 1, 2023, agreements entered into pursuant to R.S. 47:339
18 and 340 shall be suspended for all such taxing authorities until their collector
19 has entered into an agreement for the collection of tax on nonremote sales.
20 §340. Louisiana Sales and Use Tax Commission for Remote Sellers; members;
21 powers
22 * * *
23 E. * * *
24 (3) The commission and its operations shall be funded by an amount equal
25 to actual expenses incurred which amount shall not exceed one percent of the total
26 amount of state and local sales and use tax collected on remote sales by the
27 commission. Subject to the limitations provided in this Paragraph, this amount shall
28 be retained by the commission on a monthly basis from current collections of state
29 and local sales tax on remote sales as collected by the commission prior to monthly
Page 3 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 235
SLS 22RS-174 ORIGINAL
1 distribution to the state and local collectors. The commission shall have no authority
2 to retain these monies unless and until a federal law authorizing states to require
3 remote sellers and their agents to collect state and local sales and use taxes on their
4 sales in each state has been enacted and becomes effective or a decision by the
5 United States Supreme Court overrules the physical presence requirement for a
6 remote seller to collect and remit state and local sales and use tax on remote sales for
7 delivery into the state. Upon distribution of the local sales and use tax collected from
8 remote sellers by the commission, the local collectors may retain the usual and
9 customary percentage of collections in accordance with local ordinances or
10 agreements.
11 * * *
12 G. The commission shall have the power, duty, and authority:
13 (1) To serve as the single entity within the state of Louisiana responsible for
14 all state and local sales and use tax administration, return processing, and audits for
15 remote sales delivered into Louisiana and for nonremote sales that the
16 commission is authorized by contract to collect .
17 (2) To serve as the central, single agency to which remote sellers shall make
18 state and local sales and use tax remittances and as the central, single agency to
19 which qualifying nonremote sellers shall make local sales and use tax
20 remittances on nonremote sales that the commission is authorized by contract
21 to collect.
22 (3) To assign and direct a single audit of remote sellers for the state and all
23 local taxing authorities and assign and direct a single audit of qualifying
24 nonremote sellers for all local taxing authorities that have entered into a
25 contract with the commission pursuant to R.S. 47:339.1.
26 (4) To serve as the single state of Louisiana agency to represent both state
27 and local taxing authorities in taking appropriate action to enable Louisiana to
28 participate in programs designed to allow Louisiana to more efficiently enforce and
29 collect state and local sales and use taxes on sales made by remote sellers and
Page 4 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 235
SLS 22RS-174 ORIGINAL
1 qualifying nonremote sellers.
2 (5) To conduct administrative hearings as requested by aggrieved remote
3 sellers and qualifying nonremote sellers, administer oaths, and make adjustments
4 to assessments when justified by the facts and the law, and render decisions
5 following such hearings.
6 (6) To require remote sellers and qualifying nonremote sellers to register
7 with the commission.
8 * * *
9 (8) To enter into agreements to waive or suspend prescription with remote
10 sellers as to state and local taxes and with qualifying nonremote sellers as to local
11 taxes.
12 * * *
13 (11) To enter into voluntary disclosure agreements with remote sellers as to
14 state and local sales and use taxes and with qualifying nonremote sellers as to
15 local taxes.
16 H. Nothing in this Chapter shall be construed to:
17 * * *
18 (3) Authorize the commission to exercise any right or perform any function
19 presently exercised by local sales and use tax authorities under present law except
20 as provided in contracts entered into pursuant to R.S. 47:339.1.
21 * * *
22 (12) Authorize the commission to serve as a central state collection agency
23 for local sales and use taxes except as provided in contracts entered into pursuant
24 to R.S. 47:339.1.
25 (13) Limit any statutory and ordinal provisions in place as of June 16, 2017,
26 that require dealers and taxpayers, with respect to non-remote sales, to pay and remit
27 directly to the single sales and use tax collector in each parish the sales and use taxes
28 due to each local taxing authority within each parish except as provided in
29 contracts entered into pursuant to R.S. 47:339.1.
Page 5 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 235
SLS 22RS-174 ORIGINAL
1 * * *
2 (15) I. The sums of money collected by the remote seller remote sellers and
3 nonremote sellers and remitted to the commission pursuant to R.S. 47:339 and
4 339.1 for payment of sales and use taxes imposed by the state and local taxing
5 authorities shall, at all times, be and remain the property of the respective taxing
6 authorities and deemed held in trust for taxing authorities, including while in the
7 possession of the commission.
8 I. The Louisiana State Law Institute is hereby authorized and requested to
9 review all statutes which contain phrases being changed by this Chapter and in all
10 locations it deems appropriate change the references, particularly those that apply to
11 the levy and collection of state and local sales and use taxes.
12 Section 2. This Act shall become effective on January 1, 2023; if vetoed by the
13 governor and subsequently approved by the legislature, this Act shall become effective on
14 the day following such approval by the legislature or January 1, 2023, whichever is later.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 235 Original 2022 Regular Session Allain
Present law provides for the Louisiana Sales and Use Tax Commission for Remote Sellers,
hereinafter referred to as "commission", created and established within the Department of
Revenue for the administration and collection of the sales and use tax imposed by the state
and political subdivisions with respect to remote sales.
Proposed law retains present law with respect to remote sellers, requires the commission to
develop a single electronic return for all local taxing authorities, and authorizes the
commission to enter into contracts with collectors of local sales and use tax for the collection
of tax on sales from qualifying nonremote sellers.
Proposed law defines "qualifying nonremote seller" as a nonremote seller that has a physical
location in this state and is registered to file and remit local sales and use taxes pursuant to
a local ordinance in two or more parishes.
Proposed law provides that beginning January 1, 2023, agreements to collect remote sales
tax under present law shall be suspended for all taxing authorities until their collector has
entered into an agreement for the collection of tax on non-remote sales.
Present law funds the commission for its actual expenses with up to 1% of the tax collected
from remote sales.
Proposed law authorizes the commission to retain up to 1% of all taxes it collects from both
remote and nonremote sales to fund its operations.
Page 6 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 235
SLS 22RS-174 ORIGINAL
Present law provides for the powers and duties of the commission with respect to remote
sales and remote sellers.
Proposed law retains the commission's present law powers and duties and extends them to
nonremote sales that the commission is authorized under proposed law by contract to collect.
Present law provides for limitations on the authority of the commission with respect to sales
other than remote sales.
Proposed law retains the present law limitations on nonremote sales except for those
nonremote sales that the commission is authorized under proposed law by contract to collect.
Present law provides that taxes on remote sales collected by the commission shall, at all
times, be and remain the property of the respective taxing authorities and deemed held in
trust for taxing authorities by the commission.
Proposed law retains present law and extends the provisions to taxes collected on nonremote
sales that the commission is authorized under proposed law by contract to collect.
Proposed law deletes obsolete language in present law that authorized the Law Institute to
change references.
Effective January 1, 2023.
(Amends R.S. 47:340(E)(3), (G)(1) - (5), (6) (intro para), (8), and (11), (H)(3), (12), and
(13), and (I); adds R.S. 47:339.1)
Page 7 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.