HLS 23RS-821 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 558
BY REPRESENTATIVE BEAULLIEU
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
REVENUE DEPARTMENT: Provides for the collection and remittance of state and local
sales and use taxes
1 AN ACT
2To amend and reenact R.S. 47:337.23 and 337.102(C) and (I)(1) and (2)(a) and to enact R.S.
3 47:337.102(I)(4), relative to the collection and remittance of sales and use taxes; to
4 provide with respect to the duties of the Louisiana Uniform Local Sales Tax Board;
5 to provide for the responsibilities of the Department of Revenue with respect to the
6 collection and remittance of sales and use taxes; to provide relative to the Uniform
7 Electronic Local Return and Remittance Advisory Committee; to require the board
8 to manage and maintain a uniform electronic local return and remittance system; to
9 require the board to design and implement a single remittance system for state and
10 local sales and use taxes; to provide for the operation of the single remittance
11 system; to provide for requirements and limitations; to provide for the funding of
12 certain technology and programs; to provide for an effective date; and to provide for
13 related matters.
14Be it enacted by the Legislature of Louisiana:
15 Section 1. R.S. 47:337.23 and 337.102(C) and (I)(1) and (2)(a) are hereby amended
16and reenacted and R.S. 47:337.102(I)(4) is hereby enacted to read as follows:
17 §337.23. Uniform electronic local return and remittance system; official record of
18 tax rates and exemptions; filing and remittance of local sales and use taxes;
19 penalties for violations
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1 A.(1) The legislature recognizes both the need to make Louisiana a better
2 environment in which to do business and the complexities of the existing sales and
3 use tax system. It is the intention of this Section to provide taxpayers with a simple,
4 efficient, and cost-effective means of transmitting accurate sales and use tax returns
5 and remittances to political subdivisions of the state from a central site in the
6 quickest manner possible.
7 (2) Notwithstanding any other law to the contrary, beginning on the date
8 provided for in Subsection H of this Section, but no later than January 1, 2005, a A
9 taxpayer may file a sales and use tax return of a taxing authority and remit any tax,
10 interest, penalty, or other charge due by means of the uniform electronic local return
11 and remittance system provided for in this Section unless insufficient funds are
12 appropriated to fund the system as provided for in Subsection J of this Section.
13 B.(1) The system by which such taxpayers file electronically and pay their
14 taxes and by which the information provided for in Subsection I H of this Section is
15 to be posted on the internet shall be established, managed, maintained, and
16 supervised by the secretary of the Department of Revenue Louisiana Uniform Local
17 Sales Tax Board, hereinafter referred to in this Section as the "board". The Uniform
18 Electronic Local Return and Remittance Advisory Committee shall provide advice
19 and may make enforceable recommendations to the secretary board for his
20 consideration with regard to the design, implementation, and operation, and
21 maintenance of the system in the manner provided for by this Section. The advisory
22 committee is hereby created within the Department of Revenue under the jurisdiction
23 of the board and shall be composed of the following members:
24 (a) The secretary of the Department of Revenue or his designee.
25 (b) The chairman of the Louisiana Uniform Local Sales Tax Board board ,
26 or in the absence of the chairman, the vice chairman of the board, who shall serve as
27 chair of the advisory committee.
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1 (c) A member appointed by the governor from a list of three names provided
2 to him by the Louisiana Society of Certified Public Accountants, to serve at the
3 pleasure of the governor.
4 (d) The head of a collector's office, appointed by the Louisiana Uniform
5 Local Sales Tax Board board from a list of three names provided by the board of
6 directors of the Louisiana Association of Tax Administrators, to serve for a three-
7 year term.
8 (e) A representative of a business that is required to file sales and use tax
9 returns for multiple collectors in the state, who shall be appointed by the governor
10 from a list of three names provided to him jointly by the Louisiana Retailers
11 Association and the Louisiana Association of Business and Industry. The member
12 shall serve at the pleasure of the governor.
13 (2) Each appointment by the governor shall be submitted to the Senate for
14 confirmation. All vacancies shall be filled in the same manner that is provided for
15 the original member.
16 (3) The members of the advisory committee shall serve without additional
17 compensation except for their reasonable and necessary expenses related to the
18 performance of their duties as members of the committee, and then only in such
19 amounts as is provided by law for state employees.
20 (4) Meetings shall be called by the chair at a time and place to be selected
21 by the chair, or at a time and place provided for upon the written request of three
22 members. Four members of the advisory committee shall be considered a quorum
23 and the committee may make official recommendations and take other official action
24 upon the affirmative vote of four members.
25 (5)(a) If at any time the advisory committee believes the secretary board has
26 taken action contrary to the advice or recommendation of the committee, it may
27 make a written request to the secretary board specifying the advice or
28 recommendation, the action which the committee believes the secretary board has
29 taken, and asking him the board to provide written reasons for such the action. The
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1 secretary the chairman of the board shall provide a written answer to the chairman
2 of the committee within fifteen days or such a longer time as the committee shall
3 allow allows.
4 (b) If, after receiving and considering the written answer of the secretary
5 board, the committee believes it unsatisfactory, the committee may make a written
6 request to the Senate Committee on Revenue and Fiscal Affairs and the House
7 Committee on Ways and Means specifying the recommendation and asking the
8 committees to make it an enforceable recommendation.
9 (c)(i) The request of the advisory committee shall be considered as a
10 proposed rule or regulation of the Department of Revenue board and shall be
11 subjected to the same oversight procedure as is set forth provided for in the
12 Administrative Procedure Act for such rules and regulations, except for the need for
13 publication.
14 (ii) Notwithstanding any other law to the contrary, if the oversight procedure
15 under the Administrative Procedure Act results in approval of the advisory
16 committee's request to make its recommendation an enforceable recommendation,
17 then the advisory committee's recommendation shall be followed by the secretary
18 board.
19 C. The uniform electronic local return and remittance system and the posting
20 of the information required by Subsection I H of this Section shall be established,
21 managed, maintained, and supervised by the secretary board with the advice of the
22 advisory committee and the secretary and the system shall include the following:
23 (1)(a) The system shall allow the taxpayer to file a sales and use tax return
24 that is uniform for each taxing authority except for the following:
25 (i) The rate of the taxing authority's tax.
26 (ii) The vendor's compensation allowed.
27 (iii) Optional exclusions or exemptions allowed by state sales and use tax
28 law, adopted by the a local ordinance pursuant to such state law.
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1 (iv) Exclusions and exemptions in the local ordinance which were adopted
2 prior to July 1, 2003, pursuant to state law authorizing such its adoption, but not
3 allowed as an exclusion or exemption from state sales and use tax.
4 (v) Exclusions and exemptions adopted by local ordinance pursuant to
5 legislation enacted under Article VI, Section 29(D)(1) of the Constitution of
6 Louisiana, but not allowed as an exclusion or exemption from state sales and use tax.
7 (vi) Penalty, interest, or attorney fees due on the sales and use tax. The
8 amount of such a penalty, interest, and attorney fees, shall be limited as provided by
9 law, including relevant jurisprudence, until such the statute or jurisprudence is
10 changed.
11 (b) The filing and remittance shall be done at no charge to the taxpayer by
12 the state, the collector, or any taxing authority levying a tax.
13 (2) A web page through which a secured electronic local sales and use tax
14 return may be filed, which return shall be established by the Department of Revenue.
15 The board shall maintain the secured electronic local sales and use tax return as well
16 as the web page in which the return shall be accessed by taxpayers and collectors.
17 (3) A system to allow for the remittance of any tax, penalty, interest, or other
18 amounts due.
19 (4) A system for the transmission and retrieval of the appropriate collector's
20 data and funds to him.
21 D.(1) Each collector shall provide to the secretary board and the advisory
22 committee within ninety days of its written request, or such other time as may be
23 allowed by the advisory committee, the information necessary to design and
24 implement maintain the system provided for in this Section. Each collector shall
25 follow the data validation procedures established by the advisory committee. If the
26 collector fails or refuses to timely provide such information, the secretary board and
27 the advisory committee shall design and implement the system from the best
28 information available to them.
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1 (2) Each collector shall provide written notification to the secretary board
2 and the advisory committee by certified mail, return receipt requested, of any change
3 in the information provided to it pursuant to Subparagraph (C)(1)(a) thirty days prior
4 to such changes becoming effective, or such other shorter time as may be allowed
5 by the advisory committee. Each collector shall follow the data validation
6 procedures established by the advisory committee.
7 E. A taxpayer may rely on the information on the uniform electronic local
8 return and remittance system and such the reliance shall be an absolute defense
9 against any claim for a taxing authority's sales and use tax.
10 F.(1) It shall be the duty of the state through the Department of Revenue
11 board, with the advice of the advisory committee, to design, implement, maintain and
12 operate the system required by this Section and to provide the staff and equipment
13 necessary to receive and transmit to the collectors the electronic returns and funds.
14 (2)(a) It shall be the duty of the collector of each parish to provide and make
15 available the appropriate staff, equipment, and information necessary for the receipt
16 and transmission of electronic returns and funds. The Department of Revenue board
17 shall not be responsible for any loss of revenue attributable to the failure of a
18 collector to comply with the provisions of this Paragraph.
19 (b) The advisory committee may determine alternate distribution methods
20 and the appropriate fees to be charged for such these methods when a collector fails
21 to comply with the provisions of this Paragraph. The amount of the fee shall not
22 exceed the cost of the alternate distribution method.
23 G.(1) It is the intention of this Section only to provide to taxpayers a simple,
24 efficient, and cost-effective means of transmitting accurate tax returns and taxes to
25 taxing authorities of the state from a central site in the quickest manner possible.
26 This Section shall not be construed to grant to the advisory committee or the
27 Department of Revenue board any authority to collect or administer such taxes. In
28 addition, any funds transmitted through the system as provided for in this Section
29 shall be considered the funds of the taxing authorities to be distributed by the
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1 collector in the manner provided by local ordinances and shall not in any way be
2 considered state funds or funds of the board.
3 (2) The advisory committee shall provide a method for all questions related
4 to the application and interpretation of the sales and use tax law of a particular taxing
5 authority received by the committee, the board, or the Department of Revenue to be
6 forwarded to the appropriate collector for response.
7 H.(1) The uniform electronic local return and remittance system provided in
8 this Section shall become operative on a date that the advisory committee determines
9 such system is ready, but no later than January 1, 2005.
10 (2) However, the system shall not become operative until all of the following
11 occurs:
12 (a) Notice is provided to each collector of the date upon which the system
13 is to be operative and the date of the public meeting provided for in Subparagraph
14 (2)(b).
15 (b) After the notice is provided as required by Subparagraph (2)(a), but in
16 no case less than thirty days before the date the system becomes operative, the
17 advisory committee shall hold a public hearing to receive comments on the system.
18 I.(1)(a) In addition to the uniform electronic local return and remittance
19 system provided for in this Section, a link shall be created on the Department of
20 Revenue's board's web site to a web page where the following information provided
21 by the collectors shall be posted:
22 (i) A list of tax rates.
23 (ii) A list of the optional exemptions enacted by a tax authority as provided
24 for in R.S. 47:337.10.
25 (b) The secretary board and the advisory committee shall be notified of any
26 changes in such the information as provided for in Subsection D of this Section.
27 Each collector shall follow the data validation procedures established by the advisory
28 committee.
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1 (2) The tax rates and optional exemptions posted on the web page as
2 provided for in this Section shall be considered an official record of such the tax
3 rates and optional exemptions and any court, whether requested to do so or not, shall
4 take judicial notice thereof. A taxpayer may rely on the optional exemptions and tax
5 rates posted on the web page and such this reliance shall be an absolute defense
6 against any claim for a taxing authority's sales and use tax.
7 J. If the secretary of the Department of Revenue and the commissioner of
8 administration certify to the advisory committee that there was not a separate line
9 item in the general appropriations bill appropriating funds to the Department of
10 Revenue for the design, implementation, and operation of the system provided for
11 in this Section for the fiscal year, or that insufficient funds were appropriated in such
12 line item, then such electronic filing and remittance shall not be available to
13 taxpayers from the first of the month following such certification and the secretary
14 may take such steps as he deems necessary to prevent access to the system until the
15 secretary and the commissioner certify that such funds have been appropriated in a
16 separate line item.
17 K.I.(1) Beginning January 1, 2015, the The collector for each taxing
18 authority may require the electronic filing and remittance of local sales and use tax
19 by any taxpayer required to electronically file or electronically remit state sales and
20 use tax by the Department of Revenue. If the local collector for a taxing authority
21 chooses the option of requiring the electronic filing and remittance of local sales and
22 use tax returns in accordance with the provisions of this Subsection, then all
23 taxpayers required to collect and remit sales or use tax on taxable events occurring
24 within the jurisdiction of the taxing authority who are required by the Department
25 of Revenue to electronically file and remit such taxes shall file all applicable sales
26 and use tax returns and remittances through the electronic filing options available for
27 such those purposes; however, in cases where the taxpayer can show cause that the
28 electronic filing of a return and remittance would create an undue hardship on the
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1 taxpayer, the collector for the taxing authority may exempt the taxpayer from the
2 requirements of this Subsection.
3 (2) Failure of a taxpayer to comply with the electronic filing requirements
4 set forth in this Subsection shall result in the collector for the taxing authority
5 assessing a penalty of one hundred dollars or five percent of the tax owed on the
6 return, whichever is greater; however, the total penalty per return shall not exceed
7 five thousand dollars. The local collector for the taxing authority may waive
8 remittance and payment of the penalty in whole or in part if the local collector
9 determines that the failure to comply by the taxpayer was reasonable and was
10 attributable, not to any negligence on the part of the taxpayer, but for a cause which
11 is submitted to the local collector in writing.
12 * * *
13 §337.102. Louisiana Uniform Local Sales Tax Board; creation; membership;
14 powers and duties
15 * * *
16 C. Powers and duties of the board. (1) The board may:
17 (1)(a) Support and advise local sales and use tax collectors concerning the
18 imposition, collection, and administration of local sales and use taxes authorized
19 under the constitution and laws of this state.
20 (2)(b) Promulgate rules and regulations in accordance with Part H of Chapter
21 2-D of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950.
22 (3)(c) Enter into agreements with local tax collectors.
23 (4)(d) Enter into contracts for the services of legal counsel, analysts,
24 auditors, appraisers, and witnesses, as well as any agency or department of the state
25 or any state or local political subdivision.
26 (5)(e) Issue policy advice on matters concerning the imposition, collection,
27 and administration of local sales and use tax.
28 (6)(f) Prescribe uniform forms and model procedures to be used by local
29 sales and use tax collectors.
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1 (7)(g) Procure the development of computer software and equipment for the
2 collection and administration of local sales and use taxes.
3 (8)(h) Employ an executive director, and any necessary agents, assistants,
4 auditors, clerks, inspectors, investigators, or other experts and employees.
5 (9)(i) Issue private letter rulings when requested pursuant to this Section as
6 to the imposition, collection, and administration of local sales and use tax.
7 (10)(j) Hold an executive session pursuant to R.S. 42:16 for any of the
8 reasons contained in R.S. 42:17 and for the discussion of matters involving
9 confidential taxpayer information including policy advice, private letter rulings,
10 multi-parish audits, or other matters. The records and files of the board held for the
11 purpose of enforcement of the tax laws of this state and its political subdivisions
12 shall be considered to be the files and records of a political subdivision of the state
13 subject to the provisions of R.S. 47:1508 in the same manner as any other political
14 subdivision enforcing tax laws related to sales and use taxes.
15 (2) The board shall do all of the following:
16 (a) Manage, maintain, and supervise a uniform electronic local return and
17 remittance system pursuant to the provisions of R.S. 47:337.23 by which taxpayers
18 can electronically file and remit state and local sales and use taxes.
19 (b) Design, implement, manage, maintain, and supervise a single remittance
20 system whereby each taxpayer can remit state and local sales and use taxes through
21 a single transaction. Any contract for the selection of a vendor or service provider
22 to design the single remittance system, including the procurement of software,
23 hardware, or any other technology or electronic platform, or service shall be
24 procured through the office of technology services and shall be in compliance with
25 the provisions of R.S. 39:196 et seq.
26 (c) Design, manage, and maintain a link on the board's web page for the
27 posting of information required to be posted pursuant to the provisions of R.S.
28 47:337.23(H).
29 * * *
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1 I. Funding. (1) Except as provided for in Paragraph (4) of this Subsection,
2 the The board shall be funded through a dedication of a percentage of the total
3 statewide collections of local sales and use tax on motor vehicles, as provided for in
4 an agreement with local collectors and in accordance with the limitations provided
5 in this Paragraph and the budgetary policy as provided in Paragraph (2) of this
6 Subsection. Monies shall be payable monthly from the current collections of the tax.
7 The dedication shall be considered a cost of collection and shall be deducted by the
8 state and disbursed to the board prior to distribution of tax collections to local taxing
9 authorities. The dedication shall be in addition to any fee imposed by the office of
10 motor vehicles for the collection of the local sales and use tax on motor vehicles.
11 The amount to be disbursed to the board in any fiscal year after Fiscal Year
12 2018-2019 shall not, under any circumstances and notwithstanding any budget
13 adopted by the board, exceed three-tenths of one percent of the collections.
14 (2)(a) The actual amount to be disbursed to the board by the office of motor
15 vehicles in any fiscal year shall be determined by the requirements of the annual
16 budget adopted by the board for that year, subject to the limitations established in
17 Subparagraphs(1) (a) through (c) of Paragraph (1) of this Subsection. To accomplish
18 this, by the first day of June each year the chairman of the board shall notify the
19 commissioner of the office of motor vehicles regarding the amount to be disbursed
20 to the board for the ensuing fiscal year, with the exception of Fiscal Year 2018, when
21 the date for such notification shall be determined by agreement of the chairman and
22 the commissioner.
23 * * *
24 (4) The board shall fund the initial costs incurred for designing and
25 implementing a single remittance system from the percentage of funding it currently
26 receives pursuant to the provisions of Paragraph (1) of this Subsection. The state and
27 local collectors shall share the initial costs equally; however, funding for initial costs
28 shall not extend for more than twenty-four months. Thereafter, the board shall fund
29 the costs associated with the management, maintenance, and supervision of the
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1 single remittance system from the funding it currently receives pursuant to the
2 provisions of Paragraph (1) of this Subsection.
3 Section 2. This Act shall become effective on January 1, 2024.
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)]
HB 558 Original 2023 Regular Session Beaullieu
Abstract: Moves responsibility for the management and supervision of the uniform
electronic local return and remittance system from the Dept. of Revenue to the La.
Uniform Local Sales Tax Board and requires the board to design and implement a
single remittance system whereby each taxpayer can remit state and local sales and
use taxes through a single transaction.
Present law provides for the establishment of a uniform electronic local return and
remittance system whereby a taxpayer may file a sales and use tax return of a taxing
authority and remit any tax, interest, penalty, or other charge due by means of the uniform
electronic local return and remittance system. The uniform electronic local returns and
remittance system shall be established, managed, and supervised by the Dept. of Revenue
(DOR) and shall be done at no charge to the taxpayer by the state, the collector, or any
taxing authority levying a tax.
Present law establishes the Uniform Electronic Local Return and Remittance Advisory
Committee (committee) which is under the jurisdiction of DOR and which is charged with
advising DOR concerning the design, implementation, and operation of the uniform
electronic local returns and remittance system. Present law authorizes the committee to
make enforceable recommendations to DOR concerning the design, implementation, and
operation of the uniform electronic local returns and remittance system.
Proposed law changes present law by transferring management and supervision of the
uniform electronic local returns and remittance system including the posting of certain
information and links on a web page and providing for the staffing and equipment necessary
to operate the system from DOR to the La. Uniform Local Sales Tax Board (board) and
moving jurisdiction over the committee from DOR to the board. Proposed law further
requires the board to maintain the uniform electronic local returns and remittance system and
authorizes the committee to make recommendations concerning the maintenance of the
uniform electronic local returns and remittance system.
Present law provides for the membership, duties, and responsibilities of the committee.
Proposed law retains present law but requires the committee to work in conjunction with the
board rather than the secretary of DOR.
Present law provides for the board as a political subdivision of the state, for the purpose of
promoting uniform procedures and policies concerning the collection and administration of
local sales and use taxes, and to provide policy advice and support to local sales and use tax
collectors. Present law provides for membership of the board, member appointments and
other aspects of membership on the board.
Present law provides for the authority of the board, including the following activities: HLS 23RS-821 ORIGINAL
HB NO. 558
(1)Support and advise local tax collectors concerning collection and administration of
local sales and use taxes, including the prescription of uniform forms and model
procedures, and the provision of educational and training programs for tax collectors.
(2)Promulgate rules and regulations pursuant to the APA relating to local sales and use
tax, specifically including rules for a voluntary disclosure program and a uniform
refund request and approval process.
(3)Procure the development of computer software and equipment for the collection and
administration of local sales and use taxes.
(4)Implement and coordinate a multi-parish audit program.
Proposed law retains present law but requires the board to do all of the following:
(1)Manage, maintain, and supervise the uniform electronic local return and remittance
system by which taxpayers can electronically file and remit sales and use taxes.
(2)Design, implement, manage, maintain, and supervise a single remittance system
whereby each taxpayer can remit state and local sales and use taxes through a single
transaction. Proposed law requires any contract or the selection of a provider by the
board to design a single remittance system, including the procurement of software,
hardware, or any other technology or electronic platform, or service to be procured
through the office of technology services and in compliance with present law.
(3)Design, manage, maintain, and supervise a link on the board's web page for the
posting of information required to be posted pursuant to present law (R.S.
47:337.23(I)).
Present law provides for funding of the board through a dedication of a percentage of the
total statewide collections of local sales and use taxes on motor vehicles, not to exceed three-
tenths of 1% of the collections.
Proposed law retains present law with respect to the funding of the board and the maximum
amount of monies the board may deduct from collections; however, proposed law requires
the board to fund the initial costs incurred for designing and implementing a single
remittance system from the percentage of funding it currently receives.
Proposed law requires the state and local collectors to share the initial costs of designing and
implementing a single remittance system; however, funding for initial costs shall not extend
for more than 24 months. Thereafter, the board shall fund the costs associated with the
management, maintenance, and supervision of the single remittance system from the funding
it currently receives pursuant to present law.
Effective January 1, 2024.
(Amends R.S. 47:337.23 and 337.102(C) and (I)(1) and (2)(a); Adds R.S. 47:337.102(I)(4))