RÉSUMÉ DIGEST
ACT 685 (SB 235) 2022 Regular Session Allain
Existing 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.
New law retains existing 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.
New 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 new 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 new law or an appropriation.
New 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.
New 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 new law.
Existing law funds the commission for its actual expenses with up to 1% of the tax collected
from remote sales.
New law authorizes the commission to retain up to 1% of all taxes it collects from both
remote and nonremote sales to fund its operations.
Prior law provided for funding of the Board of Tax Appeals and further provided that if
consumer use tax collections yielded 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 did not have sufficient funds, that the balance
was an obligation of the commission as a necessary expense of the commission.
New law removes the requirement that the board provide any deficit funding for the Local
Tax Division of the Board of Tax Appeals.
Existing law provides for the powers and duties of the commission with respect to remote
sales and remote sellers.
New law retains the commission's existing law powers and duties and extends them to
nonremote sales that the commission is authorized under new law by contract to collect.
Existing law provides for limitations on the authority of the commission with respect to sales
other than remote sales.
New law retains the existing law limitations on nonremote sales except for those nonremote
sales that the commission is authorized under new law by contract to collect.
Existing 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.
New law retains existing law and extends the provisions to taxes collected on nonremote
sales that the commission is authorized under new law by contract to collect. New law deletes obsolete language in prior law that authorized the Law Institute to change
references.
New law deletes obsolete language in prior 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.
New 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))