RÉSUMÉ DIGEST
ACT 596 (SB 95) 2022 Regular Session Allain
Existing 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.
New law retains existing law and further requires the notice to advise the taxpayer that the
taxpayer may request a multi-parish audit beginning July 1, 2023.
Existing 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.
New law retains existing law and requires collectors to notify taxpayers of the new law
multi-parish audit program when notifying taxpayers of their intent to conduct an
examination or investigation.
Existing 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.
Existing law provides that meetings of the board are subject to existing law (Open Meetings
Law – R.S. 42:11 et seq.).
New 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.
New 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.
Prior law authorized 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.
New law requires the board to implement and coordinate the multi-parish audit program
created by new law.
New 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.
New 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.
New law requires the taxpayer to notify the board of 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 requires the board to send notice of the multi-parish audit to all parishes identified.
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.
New 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.
New law requires the board to hire and compensate the auditors who conduct multi-parish
audits and requires these auditors to follow existing 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.
New law requires the board to facilitate consistent treatment of taxability of transactions
between parishes involved in a multi-parish audit.
New 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.
New 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.
New law requires the board to develop audit procedures, hearing procedures, and any other
provisions necessary for the implementation of the program.
New 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 existing law (R.S. 47:1508).
Existing 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. New law retains existing 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))