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2022 Regular Session
SENATE BILL NO. 95
BY SENATOR ALLAIN
TAX/LOCAL. Creates the multi-parish audit program for local sales tax. (7/1/22)
1 AN ACT
2 To amend and reenact R.S. 47:337.36, 337.102(H) and (I)(1) and to enact R.S.
3 47:337.102(C)(10) and (I)(4), relative to the Uniform Local Sales Tax Board; to
4 create a multi-parish audit program; to provide for confidentiality of taxpayer
5 information; to provide for the operations of the program; to provide relative to the
6 funding of the board; to provide for reporting on the program to legislative
7 committees; to provide for an effective date; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:337.36, 337.102(H) and (I)(1) are hereby amended and reenacted
10 and R.S. 47:337.102(C)(10) and (I)(4) are hereby enacted to read as follows:
11 §337.36. Power to examine records and premises of taxpayer
12 For the purpose of administering the provisions of the local ordinance and
13 this Chapter, the collector, whenever he deems it expedient, may make or cause to
14 be made by any of his authorized assistants, an examination or investigation of the
15 place of business, if any, the tangible personal property, and the books, records,
16 papers, vouchers, accounts, and documents of any taxpayer. The collector shall
17 notify the taxpayer of the availability of the multi-parish audit program when
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1 the taxpayer is initially notified of the collector's intent to conduct an
2 examination or investigation pursuant to this Section. Every taxpayer and every
3 director, officer, agent, or employee of every taxpayer, shall exhibit to the collector
4 or to any of his authorized assistants, the place of business, the tangible personal
5 property and all of the books, records, papers, vouchers, accounts, and documents
6 of the taxpayer and to facilitate any such examination or investigation so far as it
7 may be in his or their power so to do.
8 * * *
9 §337.102. Louisiana Uniform Local Sales Tax Board; creation; membership; powers
10 and duties
11 * * *
12 C. Powers and duties of the board. The board may:
13 * * *
14 (10) Hold an executive session pursuant to R.S. 42:16 for any of the
15 reasons contained in R.S. 42:17 and for the discussion of matters involving
16 confidential taxpayer information including policy advice, private letter rulings,
17 multi-parish audits, or other matters. The records and files of the board held
18 for the purpose of enforcement of the tax laws of this state and its political
19 subdivisions shall be deemed to be the files and records of a political subdivision
20 of the state subject to the provisions of R.S. 47:1508 in the same manner as any
21 other political subdivision enforcing tax laws related to sales and use taxes.
22 * * *
23 H. Multi-parish audits.
24 (1) The Beginning July 1, 2022, the board may develop a coordinated shall
25 implement and coordinate the multi-parish audit process which program.
26 (2) Multi-parish audit program.
27 (a) A multi-parish audit may be requested by a taxpayer having a location
28 in the state and registered to file and remit local sales and use taxes pursuant to a
29 local ordinance in at least three parishes. If a coordinated multi-parish audit program
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1 is developed, the program shall be implemented through a pilot program prior to
2 statewide availability. A taxpayer that qualifies may request a multi-parish audit
3 from the board within thirty days from the issuance of a notice of intent to audit
4 from any of the parishes in which the taxpayer is registered to file and remit
5 local sales and use taxes.
6 (b)(i) The board shall assist the taxpayer identify all parishes in which
7 the taxpayer is registered to file and remit local sales and use taxes and shall
8 send a notice of the multi-parish audit to all parishes identified. Parishes shall
9 have fifteen days from the date of the notice to opt in or out of the multi-parish
10 audit.
11 (ii) Any parish identified by the taxpayer that opts out of a multi-parish
12 audit shall be prohibited from auditing the requesting taxpayer for three years
13 from the date the field work for the multi-parish audit is completed. This
14 prohibition shall not apply to parishes that the taxpayer failed to disclose to the
15 board.
16 (c) The board shall select and compensate the auditors who will conduct
17 the multi-parish audit. All auditors selected by the board shall be bound by R.S.
18 47:337.26 and any audit protocols in rules promulgated by the board.
19 (d) The board shall facilitate consistent treatment of taxability of
20 transactions between parishes involved in a multi-parish audit.
21 (e)(i) Each parish shall review the completed audit and shall make an
22 independent determination regarding the issuance of a notice of intent to assess
23 with forty-five days of receipt of the completed audit.
24 (ii) Notwithstanding any provision of law to the contrary, a notice of
25 intent to assess arising from a multi-parish audit shall interrupt prescription for
26 the parish issuing the notice of intent to assess.
27 (f) After the issuance of the notices of intent to assess, the taxpayer may
28 request a joint administrative hearing in which all parishes that opted into the
29 multi-parish audit may participate. The board shall coordinate the hearing.
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1 (g) The board may provide by rule for audit procedures, hearing
2 procedures, and any other provision necessary for the implementation of the
3 multi-parish audit program.
4 (3) On or before January 1, 2024, the board shall report to the Senate
5 Committee on Revenue and Fiscal Affairs and the House Committee on Ways
6 and Means on the multi-parish audit program. The report shall include the
7 number of multi-parish audits that were requested and initiated in each fiscal
8 year, the number of multi-parish audits that were completed in each fiscal year,
9 the percentage of local sales and use tax audits that are multi-parish audits, and
10 the number of multi-parish audits for which each parish had opted in and opted
11 out. The report may include recommendations for legislation to streamline or
12 improve the program and any other information the board determines to be
13 relevant.
14 * * *
15 I. Funding. (1) The board shall be funded through a dedication of a
16 percentage of the total statewide collections of local sales and use tax on motor
17 vehicles, as provided for in an agreement with local collectors and in accordance
18 with the limitations provided in this Paragraph and the budgetary policy as provided
19 in Paragraph (2) of this Subsection. Monies shall be payable monthly from the
20 current collections of the tax. The dedication shall be considered a cost of collection
21 and shall be deducted by the state and disbursed to the board prior to distribution of
22 tax collections to local taxing authorities. The dedication shall be in addition to any
23 fee imposed by the office of motor vehicles for the collection of the local sales and
24 use tax on motor vehicles. The amount to be disbursed to the board in any fiscal year
25 after Fiscal Year 2018-2019 shall not, under any circumstances and notwithstanding
26 any budget adopted by the board, exceed the following:
27 (a) In Fiscal Year 2017-2018, one-fifth of one percent of the collections.
28 (b) In Fiscal Year 2018-2019, one-quarter of one percent of the collections.
29 (c) In Fiscal Year 2019-2020 and each fiscal year thereafter, three-tenths of
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1 one percent of the collections.
2 * * *
3 (4) Notwithstanding the provisions of R.S. 47:303(B)(3)(b) or any other
4 law to the contrary, the tax imposed by the political subdivisions on the sale or
5 use of vehicles subject to the Vehicle Registration License Tax Law shall not be
6 collected by the vehicle commissioner for any local taxing authority if the
7 collector for that taxing authority does not enter into a contract with the board
8 to provide funding as provided in Paragraph (3) of this Subsection. Beginning
9 January 1, 2023, agreements entered into pursuant to R.S. 47:303(B)(3)(b) shall
10 be suspended for all such taxing authorities until their collector has entered into
11 a contract with the board to provide funding as provided in Paragraph (3) of
12 this Subsection.
13 Section 2. This Act shall become effective on July 1, 2022; if vetoed by the governor
14 and subsequently approved by the legislature, this Act shall become effective on the day
15 following such approval by the legislature or July 1, 2022, 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 95 Original 2022 Regular Session Allain
Present law authorizes local tax collectors to examine or investigate the place of business,
the tangible personal property, and the books, records, papers, vouchers, accounts, and
documents of any taxpayer for purposes of enforcing the local sales and use tax laws.
Proposed law retains present law and requires collectors to notify taxpayers of the proposed
law multi-parish audit program when notifying taxpayers of their intent to conduct an
examination or investigation.
Present law authorizes the Uniform Local Sales Tax Board to advise local sales and use tax
collectors concerning the imposition, collection, and administration of local sales and use
taxes and issue private letter rulings to taxpayers.
Present law provides that all meetings of the board are subject to the open meetings law.
Proposed law authorizes the board to hold executive sessions for the discussion of matters
involving confidential taxpayer information including policy advice, private letter rulings,
and multi-parish audits.
Proposed law requires that the records and files of the board held for the purpose of
enforcement of the tax laws of this state be treated as confidential and subject to penalty for
unauthorized disclosure.
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Present law authorizes the Uniform Local Sales Tax Board to develop and coordinate a
multi-parish audit process for taxpayers located in the state that are registered to file and
remit local sales tax in three or more parishes.
Proposed law requires the board to implement and coordinate the multi-parish audit program
created by proposed law.
Proposed law creates the multi-parish audit program.
Proposed law authorizes taxpayers that have a physical location in the state and that are
subject to sales and use tax in three or more parishes to request a multi-parish audit
whenever the taxpayer receives a notice of intent to audit from any of the parishes in which
the taxpayer is required to file and remit sales and use tax.
Proposed law requires qualifying taxpayers to notify the board of their request for a multi-
parish audit within 30 days of the issuance of the notice of intent to audit.
Proposed law requires the board to assist the taxpayer in identifying all parishes in which the
taxpayer does business and the board will send the multi-parish audit notice to all identified
parishes. Parishes will have 15 days to opt in or opt out of the multi-parish audit.
Proposed law provides that parishes that were identified by the taxpayer that opt out of a
multi-parish audit will be prohibited from auditing the same taxpayer for three years from
the date of completion of the multi-parish audit field work.
Proposed law requires that the board hire and compensate auditors who conduct multi-parish
audits and requires these auditors to follow present law standards of conduct for contract
auditors hired by local tax collectors and any additional audit protocols set forth in rules
promulgated by the board.
Proposed law requires that the board facilitate consistent treatment of taxability of
transactions between parishes involved in a multi-parish audit.
Proposed law requires that each parish participating in a multi-parish audit will review the
audit and make an independent determination regarding the issuance of a notice of intent to
assess and further provides that if issued a notice of intent to assess will interrupt
prescription for the parish issuing the notice.
Proposed law provides that if a notice of intent to assess is issued, the board will coordinate
an administrative hearing at the request of the taxpayer in which all parishes involved in the
audit may participate.
Proposed law authorizes the board to issue rules to provide for audit procedures, hearing
procedures, and any other provisions necessary for the implementation of the program.
Proposed law requires the board to report to the Senate Committee on Revenue and Fiscal
Affairs and the House Committee on Ways and Means by Jan. 1, 2024, on the number of
multi-parish audits initiated and completed, the percentage of local audits that are multi-
parish audits, and the number of times each parish has opted in of out of the multi-parish
audits. The board may also report any recommended legislative changes to the program as
well as other information the board determines to be relevant.
Present law authorizes the board to enter into contracts with local tax collectors to fund the
operations of the board.
Present law authorizes the vehicle commissioner to collect the local sales and use tax on
motor vehicles subject to the Vehicle Registration License Tax Law.
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Proposed law provides that the vehicle commissioner shall not collect the local sales and use
tax on motor vehicles subject to the Vehicle Registration License Tax Law if the collector
for the local taxing authority has not entered into a contract with the board to provide
funding.
Proposed law suspends any agreements between collectors that have not entered into an
agreement with the board for participation in the multi-parish audit program from January
1, 2023, until a funding contract is entered into.
Effective July 1, 2022.
(Amends R.S. 47:337.36, 337.102(H) and (I)(1); adds R.S. 47:337.102(C)(10) and (I)(4))
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