The original instrument was prepared by Leonore Heavey. The following digest,
which does not constitute a part of the legislative instrument, was prepared by Curry
J. Lann.
DIGEST
SB 95 Engrossed 2022 Regular Session Allain
Present law authorizes local tax collectors to enter into contracts for auditing purposes, requires the
local collector to provide notice of the intent to audit to the taxpayer, and provides for notice
requirements.
Proposed law retains present law and further requires the notice to advise the taxpayer that the
taxpayer may request a multi-parish audit beginning July 1, 2023.
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.
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 to request a multi-parish audit whenever the taxpayer:
(1)Has a physical location in the state and registered to file and remit local sales and use taxes
in three or more parishes.
(2)Is not a recipient of a jeopardy assessment issued by any collector.
(3)Is not engaged in a current audit by a collector for which a notice of intent to assess was
issued prior to July 1, 2022.
(4)Agrees to promptly sign all necessary agreements to suspend prescription.
(5)Is not involved in any litigation with any collector.
Proposed law authorizes a taxpayer that qualifies to request a multi-parish audit from the board
within 30 days from the issuance of a notice of examination from all of the parishes in which the
taxpayer engaged in taxable transactions during the audit period.
Proposed law requires the board to assist the taxpayer to identify 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 30 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 until after the completion of the multi-
parish audit.
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 of the board. Further provides that a local
collector may furnish auditors at its own expense to assist the board's auditors in conducting the
multi-parish audit.
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 requires the board to develop audit procedures, hearing procedures, and any other provisions necessary for the implementation of the program.
Proposed law requires the board to report annually to the Senate Committee on Revenue and Fiscal
Affairs and the House Committee on Ways and Means beginning 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. Prohibits the report from violating any individual taxpayer's
confidential information.
Present law authorizes the board to enter into contracts with local tax collectors to fund the
operations of the board.
Effective July 1, 2022.
(Amends R.S. 47:337.36, 337.102(H) and (I)(1); adds R.S. 47:337.26(D)(1)(f) and 337.102(C)(10))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs to
the original bill
1. Requires local collectors to provide notice to taxpayers that they may request a multi-
parish audit beginning July 1, 2023.
2. Provides additional requirements for taxpayer qualifications to request a multi-parish
audit.
3. Authorizes a taxpayer that qualifies to request a multi-parish audit within 30 days
from the issuance of a notice of examination from all of the parishes in which the
taxpayer engaged in taxable transactions during the audit period.
4. Extends the decision to opt in or opt out of the multi-parish audit from 15 to 30 days.
5. Authorizes a local collector to furnish auditors at its own expense to assist the board's
auditors in conducting the multi-parish audit.
6. Requires the board to report annually to the Senate Committee on Revenue and Fiscal
Affairs and the House Committee on Ways and Means beginning Jan. 1, 2024.
7. Removes provisions relative to the collection of the local sales and use tax on motor
vehicles subject to the Vehicle Registration License Tax Law.