The original instrument was prepared by Leonore Heavey. The following digest,
which does not constitute a part of the legislative instrument, was prepared by
Thomas L. Tyler.
DIGEST
SB 235 Re-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, requires that the commission not
begin development of the single electronic return for all state and local sales and use taxes in
consultation with the Uniform Local Sales Tax Board and the Department of Revenue. Provides that
once a contract is executed, the single electronic return shall be available to taxpayers on the first day
of the second calendar quarter after the contract is executed.
Proposed law provides that if the commission certifies at a joint meeting of the Senate Committee
on Revenue and Fiscal Affairs and the House Committee on Ways and Means that the commission
has insufficient funds available from the monies available to the commission from the amounts for
the commission from the one percent of total state and local sales and uses taxes collected to meet
the deadline set forth in proposed law for the development of the single electronic return, the
commission may request an extension of the deadline from the committees until funds are available
either through proposed law or an appropriation.
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.
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.
Proposed law, on or before January 31, 2023, requires the Department of Revenue, the Louisiana
Uniform Local Sales Tax Board, and the Louisiana Sales and Use Tax Commission for Remote
Sellers to jointly submit an informational report on the benefits, challenges, savings, and costs
associated with the development, implementation, and maintenance of a combined state and local
sales and use tax return for remote and nonremote sales and the designation of a centralized
processor of state and local sales tax returns and remittances. Requires that the report include
information on best practices from other states in which a single entity receives and remits revenues
directly to all taxing authorities in the state and information on the feasibility of remitting local sales
and use taxes daily as received from dealers to the local sales tax collectors. Requires submission
of the report to the Senate Committee on Revenue and Fiscal Affairs and the House Committee on
Ways and Means and that after publication of the report, allows interested stakeholders to provide
written comments within 45 days of publication which shall be added as an appendix to the report and submitted to the committees.
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.
Senate Floor Amendments to reengrossed bill 1. Removes "no later than January 1, 2024" the time by which the commission is to act
under proposed law.
2. Adds provisions for the commission not begin development of the single electronic
return until either a local collector or the revenue department executes a contract
under proposed law.
3. Add provisions for submission of a informational jointly by the Department of
Revenue, the Louisiana Uniform Local Sales Tax Board, and the Louisiana Sales and
Use Tax Commission for Remote Sellers.