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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) and (5), (G)(1) through (5), the introductory
3 paragraph of (G)(6), (G)(8), and (11), (H)(3), (12), and (13), and (I), to enact R.S.
4 47:339.1, and to repeal R.S. 47:340(H)(15), relative to the administration of local
5 sales and use taxes; to provide for the powers and duties of the Louisiana Sales and
6 Use Tax Commission for Remote Sellers; to authorize the commission to collect
7 local sales and use taxes for collectors that enter into contracts with the commission;
8 to provide for an effective date; and to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:340(E)(3) and (5), (G)(1) through (5), the introductory paragraph
11 of (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 no later than January 1, 2024, the commission shall:
17 (1) Develop a single electronic return for all state and local sales and use
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1 taxes in consultation with the Louisiana Uniform Local Sales Tax Board and the
2 Department of Revenue.
3 (2) Have the authority to enter into contracts with collectors of local sales
4 and use tax and state sales and use tax for the collection of tax from qualifying
5 nonremote sellers. The tax monies received pursuant to these contracts shall, at
6 all times, be and remain the property of the respective taxing authorities.
7 (3) Provide the minimum tax administration, collection, and payment
8 requirements required by federal law with respect to the collection and
9 remittance of sales and use tax imposed on nonremote sales that the commission
10 is authorized by contract to collect.
11 (4) Establish a fiscal agent for the purpose of nonremote sales and use tax
12 remittances.
13 B. Definitions.
14 (1) "Local taxing authority" and "local" means those parishes,
15 municipalities, special tax districts, political subdivisions, parish governing
16 bodies, and school boards who are authorized under the provisions of the
17 Constitution of Louisiana, the Louisiana Revised Statutes of 1950, and
18 jurisprudence to levy and collect local sales and use taxes.
19 (2) The term "nonremote sale" means a sale that is made by a nonremote
20 seller that is not a remote sale.
21 (3) The term "nonremote seller" means a seller that is not a remote
22 seller.
23 (4) The term "remote sale" means a sale that is made by a remote seller
24 for delivery into Louisiana.
25 (5) The term "remote seller" means a seller who sells for sale at retail,
26 use, consumption, distribution, or for storage to be used for consumption or
27 distribution any taxable tangible personal property, products transferred
28 electronically, or services for delivery within Louisiana, but does not have a
29 physical presence in Louisiana. The term "remote seller" includes
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1 "marketplace facilitators" as defined in R.S. 47:340.1.
2 (6) The term "qualifying nonremote sale" means a sale by a qualifying
3 nonremote seller in a parish that has entered into a contract for collection by
4 the commission pursuant to Paragraph (A)(2) of this Section.
5 (7) The term "qualifying nonremote seller" means a nonremote seller
6 that has a physical location in this state and is registered to file and remit local
7 sales and use taxes pursuant to a local ordinance in two or more parishes.
8 (8) "Sales and use taxes" and "taxes" shall mean the sales and use taxes
9 levied by the state of Louisiana under the provisions of Title 47 of the Louisiana
10 Revised Statutes of 1950, and the sales and use taxes levied by local taxing
11 authorities in Louisiana under the provisions of the Constitution of Louisiana,
12 statutory laws authorizing the imposition of such taxes, and local sales and use
13 tax ordinances.
14 C. Notwithstanding the provisions of Subsection A of this Section, if the
15 commission certifies to the Senate Committee on Revenue and Fiscal Affairs
16 and the House Committee on Ways and Means that the commission has
17 insufficient funds available from R.S. 47:340(E)(3) to meet the January 1, 2024,
18 deadline for the development of the single electronic return and the
19 implementation of the other duties set forth in Subsection A of this Section, the
20 commission may request an extension of the deadline from the committees until
21 funds are available.
22 §340. Louisiana Sales and Use Tax Commission for Remote Sellers; members;
23 powers
24 * * *
25 E. * * *
26 (3) The commission and its operations shall be funded by an amount equal
27 to actual expenses incurred which amount shall not exceed one percent of the total
28 amount of state and local sales and use tax collected on remote sales by the
29 commission. Subject to the limitations provided in this Paragraph, this amount shall
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1 be retained by the commission on a monthly basis from current collections of state
2 and local sales tax on remote sales as collected by the commission prior to monthly
3 distribution to the state and local collectors. The commission shall have no authority
4 to retain these monies unless and until a federal law authorizing states to require
5 remote sellers and their agents to collect state and local sales and use taxes on their
6 sales in each state has been enacted and becomes effective or a decision by the
7 United States Supreme Court overrules the physical presence requirement for a
8 remote seller to collect and remit state and local sales and use tax on remote sales for
9 delivery into the state. Upon distribution of the local sales and use tax collected from
10 remote sellers by the commission, the local collectors may retain the usual and
11 customary percentage of collections in accordance with local ordinances or
12 agreements.
13 * * *
14 (5)(a) If use tax collections pursuant to R.S. 47:302(K) yield insufficient
15 revenue to fulfill the dedication for the adjudication of local sales and use tax matters
16 that is made pursuant to R.S. 47:302(K)(7) for interagency transfers to the
17 Department of State Civil Service, Board of Tax Appeals, Local Tax Division, and
18 there is no means of financing available to satisfy the dedication pursuant to R.S.
19 47:337.102(I)(3), the remaining amount necessary to satisfy the dedication shall be
20 considered an actual expense of this commission pursuant to Paragraph (3) of this
21 Subsection, and payment of the interagency transfer due shall be made from local
22 sales and use tax collections of the commission within the first thirty days of the
23 fiscal year.
24 (b) A part of the interagency transfer due pursuant to Section 2 of Act No.
25 198 of the 2014 Regular Session of the Legislature may be designated as an actual
26 expense of the commission pursuant to Paragraph (3) of this Subsection, and
27 payment of that designated part may be made from state sales and use tax collections
28 of the commission pursuant to a written agreement with the secretary.
29 * * *
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1 G. The commission shall have the power, duty, and authority:
2 (1) To serve as the single entity within the state of Louisiana responsible for
3 all state and local sales and use tax administration, return processing, and audits for
4 remote sales delivered into Louisiana and for nonremote sales that the
5 commission is authorized by contract to collect.
6 (2) To serve as the central, single agency to which remote sellers shall make
7 state and local sales and use tax remittances and as the central, single agency to
8 which qualifying nonremote sellers shall make state and local sales and use tax
9 remittances on nonremote sales that the commission is authorized by contract
10 to collect.
11 (3) To assign and direct a single audit of remote sellers for the state and all
12 local taxing authorities and assign and direct a single audit of qualifying
13 nonremote sellers for all state and local taxing authorities that have entered into
14 a contract with the commission pursuant to R.S. 47:339.1.
15 (4) To serve as the single state of Louisiana agency to represent both state
16 and local taxing authorities in taking appropriate action to enable Louisiana to
17 participate in programs designed to allow Louisiana to more efficiently enforce and
18 collect state and local sales and use taxes on sales made by remote sellers and
19 qualifying nonremote sellers.
20 (5) To conduct administrative hearings as requested by aggrieved remote
21 sellers and qualifying nonremote sellers, administer oaths, and make adjustments
22 to assessments when justified by the facts and the law, and render decisions
23 following such hearings.
24 (6) To require remote sellers and qualifying nonremote sellers to register
25 with the commission.
26 * * *
27 (8) To enter into agreements to waive or suspend prescription with remote
28 sellers as to state and local taxes and with qualifying nonremote sellers.
29 * * *
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1 (11) To enter into voluntary disclosure agreements with remote sellers as to
2 state and local sales and use taxes and with qualifying nonremote sellers.
3 H. Nothing in this Chapter shall be construed to:
4 * * *
5 (3) Authorize the commission to exercise any right or perform any function
6 presently exercised by local sales and use tax authorities under present law except
7 as provided in contracts entered into pursuant to R.S. 47:339.1.
8 * * *
9 (12) Authorize the commission to serve as a central state collection agency
10 for local sales and use taxes except as provided in contracts entered into pursuant
11 to R.S. 47:339.1.
12 (13) Limit any statutory and ordinal provisions in place as of June 16, 2017,
13 that require dealers and taxpayers, with respect to non-remote sales, to pay and remit
14 directly to the single sales and use tax collector in each parish the sales and use taxes
15 due to each local taxing authority within each parish except as provided in
16 contracts entered into pursuant to R.S. 47:339.1.
17 * * *
18 (15) I. The sums of money collected by the remote seller remote sellers and
19 nonremote sellers and remitted to the commission pursuant to R.S. 47:339 and
20 339.1 for payment of sales and use taxes imposed by the state and local taxing
21 authorities shall, at all times, be and remain the property of the respective taxing
22 authorities and deemed held in trust for taxing authorities, including while in the
23 possession of the commission.
24 I. The Louisiana State Law Institute is hereby authorized and requested to
25 review all statutes which contain phrases being changed by this Chapter and in all
26 locations it deems appropriate change the references, particularly those that apply to
27 the levy and collection of state and local sales and use taxes.
28 Section 2. R.S. 47:340(H)(15) is hereby repealed.
29 Section 3. This Act shall become effective on January 1, 2023; if vetoed by the
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1 governor and subsequently approved by the legislature, this Act shall become effective on
2 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 Reengrossed 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, and beginning January 1,
2024, requires the commission to develop a single electronic return for all state and local
sales and use taxes in consultation with the Uniform Local Sales Tax Board and the Dept.
of Revenue, and authorizes the commission to enter into contracts with collectors of state
and 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 authorizes the commission to request an extension of the January 1, 2024
deadline if there is insufficient funding to carry out its new duties established under proposed
law.
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.
Present law provides for funding of the Board of Tax Appeals and further provides that if
consumer use 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, that
the remaining funds first be an obligation of the Louisiana Uniform Local Sales Tax Board
(the board), and if the board does not have sufficient funds, that the balance shall be an
obligation of the commission as a necessary expense of the commission.
Proposed law removes the requirement that the board provide any deficit funding for the
Local Tax Division.
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.
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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.
Proposed law deletes obsolete language in present law and that conditioned the authority of
the commission to collect sales and use tax on the passage of a federal law authorizing states
to require remote sellers and their agents to collect state and local sales and use taxes or
when the United States Supreme Court overrules the physical presence requirement for a
remote seller to collect and remit state and local sales and use tax.
Effective January 1, 2023.
(Amends R.S. 47:340(E)(3) and (5), (G)(1) - (5), (6) (intro para), (8), and (11), (H)(3), (12),
and (13), and (I); adds R.S. 47:339.1; repeals R.S. 47:340(H)(15))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Requires the commission to develop a single electronic return for all local
taxing authorities in consultation with the Uniform Local Sales Tax Board
and the Dept. of Revenue by January 1, 2024.
2. Authorizes the commission to request an extension of the January 1, 2024
deadline if there is insufficient funding to carry out its new duties.
3. Removes provision 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 nonremote sales.
4. Removes the requirement that the Louisiana Uniform Local Sales Tax Board
provide any deficit funding for the Local Tax Division of the BTA.
5. Provides for technical changes.
Committee Amendments Proposed by Senate Committee on Finance to the
engrossed bill
1. Requires the commission to develop a single electronic return that includes
state sales and use tax in addition to taxes collected by local taxing
authorities.
2. Authorizes the Dept. of Revenue to contract with the commission for the
collection of state sales and use tax on nonremote sales.
3. Removes obsolete provisions that conditioned the ability of the commission
to collect sales and use tax on remote sales.
4. Provides for technical changes.
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