RDCSB95 1814 4074
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
SB 95 Reengrossed 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.
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 Bd. 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 meetings of the board are subject to present law (Open Meetings
Law–R.S. 42:11 et seq.).
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 Bd. 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 authorizes a taxpayer to request a multi-parish audit if the taxpayer:
(1)Has a physical location in the state and is registered to file and remit local sales and
use taxes in at least three 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 litigation with a collector.
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Proposed law authorizes a qualified taxpayer 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 is registered to file and remit local sales and use taxes or obligated to pay sales and
use taxes and to send notice of the multi-parish audit to all identified parishes. Provides that
parishes have 30 days to opt in or opt out of the multi-parish audit. Further provides that if
the parish collector does not respond to the notice within the 30-day period, that parish is
considered to have opted out of the multi-parish audit.
Proposed law prohibits a parish that opts out of a multi-parish audit from auditing the same
taxpayer until after the completion of the multi-parish audit.
Proposed law requires the board to hire and compensate the 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 the board to facilitate consistent treatment of taxability of transactions
between parishes involved in a multi-parish audit.
Proposed law requires each parish participating in a multi-parish audit to review the audit
and make an independent determination regarding the issuance of a notice of intent to assess.
Provides that a notice of intent to assess arising from a multi-parish audit interrupts
prescription for the parish issuing the notice.
Proposed law provides that after notices of intent to assess are issued, the taxpayer may
request a joint administrative hearing in which the parishes that opted into the multi-parish
audit may participate. Requires the board to coordinate the hearing.
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.
Provides that the report shall include the number of multi-parish audits that were requested
by taxpayers and initiated in each fiscal year, the number of multi-parish audits that were
completed in each fiscal year, and the number of multi-parish audits for which each parish
had opted in and opted out. Provides that the report may include recommendations for
legislation to streamline or improve the program and any other information the board
determines to be relevant. Prohibits the report from violating any individual taxpayer's
confidential information pursuant to present law (R.S. 47:1508).
Present law provides that the board shall be funded through a dedication of a percentage of
the total statewide collections of local sales and use tax on motor vehicles, in accordance
with certain limitations and budgetary policy. Proposed law retains present law and provides
that funding shall be as provided in an agreement with local collectors.
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))
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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.
Senate Floor Amendments to engrossed bill
1. Technical changes.
2. Provides that if a parish collector does not respond to a notice within the 30
day period, that parish shall be considered to have opted out of the multi-
parish audit.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
reengrossed bill:
1. In provisions of proposed law requiring the local collector to inform a taxpayer
in the notice of intent to audit that the taxpayer may request a multi-parish audit,
remove provisions providing that the requirement begins July 1, 2023.
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