2022 Regular Session ENROLLED
SENATE BILL NO. 242
BY SENATOR ALLAIN
1 AN ACT
2 To amend and reenact R.S. 47:337.63(A)(3), (D), and (E), 337.69(B), 337.70(A)(1) and (2),
3 and 337.80(A)(4)(b) and (B) and to enact R.S. 47:337.69(C) and 337.70(A)(4),
4 relative to interest and penalties applicable to local sales and use tax; to provide for
5 remittance of tax under protest; to provide for a limitation on the maximum interest
6 rate on unpaid taxes; to equalize interest rates for taxes due, taxes paid under protest,
7 and refunds of overpayments; to provide for the calculation of late filing and
8 payment penalties; and to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:337.63(A)(3), (D), and (E), 337.69(B), 337.70(A)(1) and (2), and
11 337.80(A)(4)(b) and (B) are hereby amended and reenacted and R.S. 47:337.69(C) and
12 337.70(A)(4) are hereby enacted to read as follows:
13 §337.63. Remittance of tax under protest; suits to recover
14 A. * * *
15 (3) To the extent the taxpayer prevails, the collector shall refund the amount
16 to the claimant, with interest at the rate established pursuant to R.S. 47:337.80 R.S.
17 47:337.69(C), except as provided in Subsection E of this Section. To the extent the
18 collector prevails, the taxpayer shall pay the collector additional interest
19 calculated on the disputed amount at the same rate established for tax
20 obligations pursuant to R.S. 47:337.69(C), except as provided in Subsection E
21 of this Section.
22 * * *
23 D.(1) Upon request of a taxpayer and upon proper showing by such taxpayer
24 that the principle of law involved in an additional assessment is already pending
25 before the courts for judicial determination or before the Board of Tax Appeals, the
26 taxpayer, upon agreement to abide by the decision of the courts, the Board of Tax
ACT No. 87
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1 Appeals, or by a final judgment of a court upon a timely appeal of a decision of the
2 Board of Tax Appeals, may remit the additional assessment under protest, but need
3 not file an additional suit or petition. In such cases, the tax so paid under protest shall
4 be placed in an escrow account and held by the collector until the question of law
5 involved has been determined by the courts, the Board of Tax Appeals, or by a final
6 judgment of a court upon a timely appeal of a decision of the Board of Tax Appeals,
7 and shall then be disposed of as therein provided.
8 (2) Upon request of a collector and if a principle of law involved in a
9 refund claim filed by a taxpayer is already pending before the collector at the
10 administrative stage, before the courts for judicial determination, or before the
11 Board of Tax Appeals, the taxpayer may, upon agreement to abide by the
12 decision of the courts, the Board of Tax Appeals, or by a final judgment of a
13 court upon a timely appeal of a decision from the collector, the courts, or the
14 Board of Tax Appeals, remit the taxes involving the same principle of law for
15 all current and future tax periods under protest, but need not file an additional
16 suit or petition. The tax paid under protest pursuant to this Paragraph shall be
17 placed in an escrow account and held by the collector until the principle of law
18 involved has been determined by the courts, the Board of Tax Appeals, or by a
19 final judgment of a court upon a timely appeal of a decision of the Board of Tax
20 Appeals.
21 E.(1) When the collector has pursued collection of taxes pursuant to any
22 remedy provided for in R.S. 47:337.45(A)(2) or (3) and the taxpayer has made a
23 timely payment under protest concerning the same tax obligation, and if the collector
24 has deposited the monies into an interest-bearing account in accordance with this
25 Section, the interest to be paid on the tax obligation to the party or parties adjudged
26 to be entitled to the interest shall be that interest actually earned and received by the
27 collector on the payment.
28 (2) When the taxpayer has pursued an appeal remedy provided for in
29 R.S. 47:337.81 and the collector and the taxpayer have entered into an
30 agreement to abide for current and future tax periods, the interest to be paid
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1 on the tax obligation to the party or parties adjudged to be entitled to the
2 interest shall be only that interest actually earned and received by the collector
3 on the payments.
4 * * *
5 §337.69. Interest on unpaid taxes
6 * * *
7 B. Notwithstanding any provision of law to the contrary, for all taxes
8 that become due on or after January 1, 2023, the rate of interest on any amount
9 of outstanding tax shall not exceed one percent per month.
10 B.(C) Notwithstanding any provision of this Section or of this Chapter, the
11 interest on any amount of tax outstanding on a specific date shall be computed at the
12 rate applicable on such date.
13 §337.70. Penalty for failure to make timely return
14 A.(1) When any taxpayer fails to make and file any return required to be
15 made under the provisions of this Chapter before the time that the return becomes
16 delinquent or when any taxpayer fails to timely remit to the collector the total
17 amount of tax that is due on a return which he has filed, there shall be imposed, in
18 addition to any other penalties provided, a specific penalty to be added to the tax in
19 the amount of five percent of the tax owed for each and every thirty-day period
20 after the return was required to be filed or the tax was required to be remitted,
21 subject to the limitations of this Paragraph.
22 (2) In the case of the filing of a return without remittance of the full amount
23 due, the specific penalty imposed by this Paragraph in the amount of five percent
24 of the tax owed for each thirty-day period shall be calculated only on the additional
25 amount due from the taxpayer after the deduction of payments timely submitted, or
26 submitted during any preceding thirty-day period, subject to the limitations of this
27 Paragraph. The penalty provided by this Paragraph shall not be imposed for any
28 thirty-day period for which a penalty for failure to file a tax return or for filing after
29 the return becomes delinquent is assessed.
30 * * *
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1 (4) The penalties for delinquent returns and failure to remit the total
2 amount of tax due shall accrue beginning the day after the due date subject to
3 the limitations of this Subsection.
4 * * *
5 §337.80. Interest on refunds or credits
6 A. * * *
7 (4) * * *
8 (b)(i) Interest shall be at the average prime or reference rate as computed by
9 the commissioner of financial institutions pursuant to R.S. 13:4202(B), per year, but
10 without the addition of one percentage point to the average prime or reference rate
11 and without regard to the limitations contained in R.S. 13:4202(B).
12 (ii) Notwithstanding any provision of law to the contrary, all taxes that
13 become due on or after January 1, 2023, interest shall be computed at the same
14 rate established for tax obligations pursuant to R.S. 47:337.69(C).
15 * * *
16 B. No interest on refunds or credits shall be allowed if it is determined that
17 a person taxpayer has deliberately overpaid a tax in order to derive the benefit of the
18 interest allowed by this Section or if a taxpayer has not entered into an agreement
19 to abide authorized by R.S. 47:337.63(D)(2) and the same principle of law is
20 involved. Payments of interest authorized by this Section shall be made from funds
21 derived from current collections of the tax to be refunded or credited.
22 * * *
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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