HLS 23RS-821 REENGROSSED
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. 47:337.5, 337.23, 337.102(C) and (I)(1) and (2)(a), and
3 340(E)(2) and to enact R.S. 47:337.102(I)(4), relative to the collection and
4 remittance of sales and use taxes; to provide with respect to the duties of the
5 Louisiana Uniform Local Sales Tax Board; to authorize the Louisiana Uniform Local
6 Sales Tax Board to impose a fee on certain collectors; to provide for notice
7 requirements for certain changes in tax, interest, and penalty rates; to require certain
8 collectors to submit certain information to the Louisiana Uniform Local Sales Tax
9 Board; to authorize the Louisiana Sales and Use Tax Commission for Remote Sellers
10 to deduct the amount of unpaid fees from a collector's monthly distribution under
11 certain circumstances; to provide for the responsibilities of the Department of
12 Revenue with respect to the collection and remittance of sales and use taxes; to
13 provide relative to the Uniform Electronic Local Return and Remittance Advisory
14 Committee; to require the board to manage and maintain a uniform electronic local
15 return and remittance system; to require the board to design and implement a single
16 remittance system for state and local sales and use taxes; to provide for the operation
17 of the single remittance system; to provide for requirements and limitations; to
18 provide for the funding of certain technology and programs; to provide for an
19 effective date; and to provide for related matters.
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1Be it enacted by the Legislature of Louisiana:
2 Section 1. R.S. 47:337.5, 337.23, 337.102(C) and (I)(1) and (2)(a), and 340(E)(2)
3are hereby amended and reenacted and R.S. 47:337.102(I)(4) is hereby enacted to read as
4follows:
5 §337.5. Local sales and use taxes effective date
6 A.(1) No political subdivision shall impose or increase a sale and use tax
7 unless that tax or increase The tax, interest, or penalty rates in a taxing jurisdiction,
8 as established pursuant to R.S. 47:337.4, shall not be changed unless the change has
9 an effective date of the first of January, the first of April, the first of July, or the first
10 of October, and the secretary Louisiana Uniform Local Sales Tax Board and the
11 Uniform Electronic Local Return and Remittance Advisory Committee have been
12 notified in advance as provided for in R.S. 47:337.23. For purposes of this Section,
13 a tax rate change shall include any of the following:
14 (a) A rate change due to the levy of a new tax.
15 (b) The change in a rate for an existing tax.
16 (c) A rate change due to an annexation or other boundary modification by
17 the taxing authority.
18 (d) A rate change caused by the execution or expiration of a cooperative
19 endeavor agreement to which the taxing authority is a party.
20 (e) Implementation, amendment, or repeal of an optional sales tax exemption
21 or exclusion.
22 (2) Except for the notice to the secretary Louisiana Uniform Local Sales Tax
23 Board and the advisory committee, the provisions of this Section shall not apply to
24 the renewal of an existing sales tax.
25 B. A taxing authority shall notify the appropriate single collector for the
26 parish no less than sixty days prior to the date a change in a tax, interest, or penalty
27 rate becomes effective. However, the single collector for the parish may authorize
28 a shorter time for a taxing authority to provide the notice required pursuant to the
29 provisions of this Subsection. Failure or refusal of a taxing authority to provide
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1 timely notice to the single collector for a parish in accordance with the requirements
2 of this Subsection shall be an absolute defense against any claim by a taxing
3 authority against the single tax collector for the parish relating to a change in tax,
4 interest, or penalty rate.
5 §337.23. Uniform electronic local return and remittance system; official record of
6 tax rates and exemptions; filing and remittance of local sales and use taxes;
7 penalties for violations
8 A.(1) The legislature recognizes both the need to make Louisiana a better
9 environment in which to do business and the complexities of the existing sales and
10 use tax system. It is the intention of this Section to provide taxpayers with a simple,
11 efficient, and cost-effective means of transmitting accurate sales and use tax returns
12 and remittances to political subdivisions of the state from a central site in the
13 quickest manner possible.
14 (2) Notwithstanding any other law to the contrary, beginning on the date
15 provided for in Subsection H of this Section, but no later than January 1, 2005, a A
16 taxpayer may file a sales and use tax return of a taxing authority and remit any tax,
17 interest, penalty, or other charge due by means of the uniform electronic local return
18 and remittance system provided for in this Section unless insufficient funds are
19 appropriated to fund the system as provided for in Subsection J of this Section.
20 B.(1) The system by which such taxpayers file electronically and pay their
21 taxes and by which the information provided for in Subsection I H of this Section is
22 to be posted on the internet shall be established, managed, maintained, and
23 supervised by the secretary of the Department of Revenue Louisiana Uniform Local
24 Sales Tax Board, hereinafter referred to in this Section as the "board". The Uniform
25 Electronic Local Return and Remittance Advisory Committee shall provide advice
26 and may make enforceable recommendations to the secretary board for his
27 consideration with regard to the design, implementation, and operation, and
28 maintenance of the system in the manner provided for by this Section. The advisory
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1 committee is hereby created within the Department of Revenue under the jurisdiction
2 of the board and shall be composed of the following members:
3 (a) The secretary of the Department of Revenue or his designee.
4 (b) The chairman of the Louisiana Uniform Local Sales Tax Board board,
5 or in the absence of the chairman, the vice chairman of the board, who shall serve as
6 chair of the advisory committee.
7 (c) A member appointed by the governor from a list of three names provided
8 to him by the Louisiana Society of Certified Public Accountants, to serve at the
9 pleasure of the governor.
10 (d) The Two members who shall each be the head of a collector's office,
11 appointed by the Louisiana Uniform Local Sales Tax Board board from a list of three
12 six names provided by the board of directors of the Louisiana Association of Tax
13 Administrators, to serve for a three-year term.
14 (e) A representative of a business that is required to file sales and use tax
15 returns for multiple collectors in the state, who shall be appointed by the governor
16 from a list of three names provided to him jointly by the Louisiana Retailers
17 Association and the Louisiana Association of Business and Industry. The member
18 shall serve at the pleasure of the governor.
19 (f) A representative of a business that is required to file sales and use tax
20 returns for multiple collectors in the state, who shall be appointed by the governor
21 from a list of three names provided by the Louisiana Association of Business and
22 Industry. The member shall serve at the pleasure of the governor.
23 (2) Each appointment by the governor shall be submitted to the Senate for
24 confirmation. All vacancies shall be filled in the same manner that is provided for
25 the original member.
26 (3) The members of the advisory committee shall serve without additional
27 compensation except for their reasonable and necessary expenses related to the
28 performance of their duties as members of the committee, and then only in such
29 amounts as is provided by law for state employees.
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1 (4) Meetings shall be called by the chair at a time and place to be selected
2 by the chair, or at a time and place provided for upon the written request of three
3 members. Four members of the advisory committee shall be considered a quorum
4 and the committee may make official recommendations and take other official action
5 upon the affirmative vote of four members.
6 (5)(a) If at any time the advisory committee believes the secretary board has
7 taken action contrary to the advice or recommendation of the committee, it may
8 make a written request to the secretary board specifying the advice or
9 recommendation, the action which the committee believes the secretary board has
10 taken, and asking him the board to provide written reasons for such the action. The
11 secretary the chairman of the board shall provide a written answer to the chairman
12 of the committee within fifteen days or such a longer time as the committee shall
13 allow allows.
14 (b) If, after receiving and considering the written answer of the secretary
15 board, the committee believes it unsatisfactory, the committee may make a written
16 request to the Senate Committee on Revenue and Fiscal Affairs and the House
17 Committee on Ways and Means specifying the recommendation and asking the
18 committees to make it an enforceable recommendation.
19 (c)(i) The request of the advisory committee shall be considered as a
20 proposed rule or regulation of the Department of Revenue board and shall be
21 subjected to the same oversight procedure as is set forth provided for in the
22 Administrative Procedure Act for such rules and regulations, except for the need for
23 publication.
24 (ii) Notwithstanding any other law to the contrary, if the oversight procedure
25 under the Administrative Procedure Act results in approval of the advisory
26 committee's request to make its recommendation an enforceable recommendation,
27 then the advisory committee's recommendation shall be followed by the secretary
28 board.
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1 C. The uniform electronic local return and remittance system and the posting
2 of the information required by Subsection I H of this Section shall be established,
3 managed, maintained, and supervised by the secretary board with the advice of the
4 advisory committee and the secretary and the system shall include the following:
5 (1)(a) The system shall allow the taxpayer to file a sales and use tax return
6 that is uniform for each taxing authority except for the following:
7 (i) The rate of the taxing authority's tax.
8 (ii) The vendor's compensation allowed.
9 (iii) Optional exclusions or exemptions allowed by state sales and use tax
10 law, adopted by the a local ordinance pursuant to such state law.
11 (iv) Exclusions and exemptions in the local ordinance which were adopted
12 prior to July 1, 2003, pursuant to state law authorizing such its adoption, but not
13 allowed as an exclusion or exemption from state sales and use tax.
14 (v) Exclusions and exemptions adopted by local ordinance pursuant to
15 legislation enacted under Article VI, Section 29(D)(1) of the Constitution of
16 Louisiana, but not allowed as an exclusion or exemption from state sales and use tax.
17 (vi) Penalty, Penalties and interest, or attorney fees due on the sales and use
18 tax. The amount of such penalty, penalties and interest, and attorney fees, shall be
19 limited as provided by law, including relevant jurisprudence, until such the statute
20 or jurisprudence is changed.
21 (b) The filing and remittance shall be done at no charge to the taxpayer by
22 the state, the collector, or any taxing authority levying a tax.
23 (2) A web page through which a secured electronic local sales and use tax
24 return may be filed, which return shall be established by the Department of Revenue.
25 The board shall maintain the secured electronic local sales and use tax return as well
26 as the web page in which the return shall be accessed by taxpayers and collectors.
27 (3) A system to allow for the remittance of any tax, penalty, interest, or other
28 amounts due.
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1 (4) A system for the transmission and retrieval of the appropriate a
2 collector's data and funds to him.
3 D.(1) Each collector shall provide to the secretary board and the advisory
4 committee within ninety days of its written request, or such other time as may be
5 allowed by the advisory committee, the information necessary to design and
6 implement maintain the system provided for in this Section. Each collector shall
7 follow the data validation procedures established recommended by the advisory
8 committee and adopted by the board. If the collector fails or refuses to timely
9 provide such the required information, the secretary board and the advisory
10 committee shall design and implement the system from the best information
11 available to them. A collector's failure or refusal to provide the requested
12 information as required in this Paragraph shall be an absolute defense against any
13 claim by a taxing authority or collector against the board or advisory committee
14 relating to the data utilized in the system provided for in this Section.
15 (2) Each collector shall provide written notification to the secretary board
16 and the advisory committee by certified mail, return receipt requested, of any change
17 in the information provided to it pursuant to Subparagraph (C)(1)(a) thirty days prior
18 to such changes becoming effective, or such other shorter time as may be allowed
19 by the advisory committee. Each collector shall follow the data validation
20 procedures established recommended by the advisory committee and adopted by the
21 board.
22 E. A taxpayer may rely on the information on the uniform electronic local
23 return and remittance system and such the reliance shall be an absolute defense
24 against any claim for a taxing authority's sales and use tax.
25 F.(1) It shall be the duty of the state through the Department of Revenue
26 board, with the advice of the advisory committee, to design, implement, maintain and
27 operate the system required by this Section and to provide the staff and equipment
28 necessary to receive and transmit to the collectors the electronic returns and funds.
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1 (2)(a) It shall be the duty of the collector of each parish to provide and make
2 available the appropriate staff, equipment, and information necessary for the receipt
3 and transmission of electronic returns and funds. The Department of Revenue board
4 shall not be responsible for any loss of revenue attributable to the failure of a
5 collector to comply with the provisions of this Paragraph.
6 (b) The advisory committee may determine alternate distribution methods
7 and the appropriate fees to be charged for such these methods when a collector fails
8 to comply with the provisions of this Paragraph. The amount of the fee shall not
9 exceed the cost of the alternate distribution method.
10 G.(1) It is the intention of this Section only to provide to taxpayers a simple,
11 efficient, and cost-effective means of transmitting accurate tax returns and taxes to
12 taxing authorities of the state from a central site in the quickest manner possible.
13 This Section shall not be construed to grant to the advisory committee or the
14 Department of Revenue board any authority to collect or administer such taxes. In
15 addition, any funds transmitted through the system as provided for in this Section
16 shall be considered the funds of the taxing authorities to be distributed by the
17 collector in the manner provided by local ordinances and shall not in any way be
18 considered state funds or funds of the board.
19 (2) The advisory committee shall provide a method for all questions related
20 to the application and interpretation of the sales and use tax law of a particular taxing
21 authority received by the committee, the board, or the Department of Revenue to be
22 forwarded to the appropriate collector for response.
23 H.(1) The uniform electronic local return and remittance system provided in
24 this Section shall become operative on a date that the advisory committee determines
25 such system is ready, but no later than January 1, 2005.
26 (2) However, the system shall not become operative until all of the following
27 occurs:
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1 (a) Notice is provided to each collector of the date upon which the system
2 is to be operative and the date of the public meeting provided for in Subparagraph
3 (2)(b).
4 (b) After the notice is provided as required by Subparagraph (2)(a), but in
5 no case less than thirty days before the date the system becomes operative, the
6 advisory committee shall hold a public hearing to receive comments on the system.
7 I.(1)(a) In addition to the uniform electronic local return and remittance
8 system provided for in this Section, a link shall be created on the Department of
9 Revenue's board's web site to a web page where the following information provided
10 by the collectors shall be posted:
11 (i) A list of Applicable tax rates.
12 (ii) A list of the Applicable optional exemptions enacted by a tax authority
13 as provided for in R.S. 47:337.10.
14 (b) The secretary board and the advisory committee shall be notified of any
15 changes in such the information as provided for in Subsection D of this Section. and
16 R.S. 47:337.5. Each collector shall follow the data validation procedures established
17 by the advisory committee and adopted by the board. A collector's failure or refusal
18 to provide the information as required in this Paragraph shall be an absolute defense
19 against any claim by a taxing authority or collector against the board or advisory
20 committee relating to the data utilized in the system provided for in this Section.
21 (2) The tax rates and optional exemptions posted on the web page as
22 provided for in this Section shall be considered an official record of such the tax
23 rates and optional exemptions and any court, whether requested to do so or not, shall
24 take judicial notice thereof. A taxpayer may rely on the optional exemptions and tax
25 rates posted on the web page and such this reliance shall be an absolute defense
26 against any claim for a taxing authority's sales and use tax.
27 J. If the secretary of the Department of Revenue and the commissioner of
28 administration certify to the advisory committee that there was not a separate line
29 item in the general appropriations bill appropriating funds to the Department of
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1 Revenue for the design, implementation, and operation of the system provided for
2 in this Section for the fiscal year, or that insufficient funds were appropriated in such
3 line item, then such electronic filing and remittance shall not be available to
4 taxpayers from the first of the month following such certification and the secretary
5 may take such steps as he deems necessary to prevent access to the system until the
6 secretary and the commissioner certify that such funds have been appropriated in a
7 separate line item.
8 K. I.(1) Beginning January 1, 2015, the The collector for each taxing
9 authority may require the electronic filing and remittance of local sales and use tax
10 by any taxpayer required to electronically file or electronically remit state sales and
11 use tax by the Department of Revenue. If the local collector for a taxing authority
12 chooses the option of requiring the electronic filing and remittance of local sales and
13 use tax returns in accordance with the provisions of this Subsection, then all
14 taxpayers required to collect and remit sales or use tax on taxable events occurring
15 within the jurisdiction of the taxing authority who are required by the Department
16 of Revenue to electronically file and remit such taxes shall file all applicable sales
17 and use tax returns and remittances through the electronic filing options available for
18 such those purposes; however, in cases where the taxpayer can show cause that the
19 electronic filing of a return and remittance would create an undue hardship on the
20 taxpayer, the collector for the taxing authority may exempt the taxpayer from the
21 requirements of this Subsection.
22 (2) Failure of a taxpayer to comply with the electronic filing requirements
23 set forth in this Subsection shall result in the collector for the taxing authority
24 assessing a penalty of one hundred dollars or five percent of the tax owed on the
25 return, whichever is greater; however, the total penalty per return shall not exceed
26 five thousand dollars. The local collector for the taxing authority may waive
27 remittance and payment of the penalty in whole or in part if the local collector
28 determines that the failure to comply by the taxpayer was reasonable and was
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1 attributable, not to any negligence on the part of the taxpayer, but for a cause which
2 is submitted to the local collector in writing.
3 * * *
4 §337.102. Louisiana Uniform Local Sales Tax Board; creation; membership;
5 powers and duties
6 * * *
7 C. Powers and duties of the board. (1) The board may:
8 (1) (a) Support and advise local sales and use tax collectors concerning the
9 imposition, collection, and administration of local sales and use taxes authorized
10 under the constitution and laws of this state.
11 (2) (b) Promulgate rules and regulations in accordance with Part H of
12 Chapter 2-D of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950.
13 (3) (c) Enter into agreements with local tax collectors.
14 (4) (d) Enter into contracts for the services of legal counsel, analysts,
15 auditors, appraisers, and witnesses, as well as any agency or department of the state
16 or any state or local political subdivision.
17 (5) (e) Issue policy advice on matters concerning the imposition, collection,
18 and administration of local sales and use tax.
19 (6) (f) Prescribe uniform forms and model procedures to be used by local
20 sales and use tax collectors.
21 (7) (g) Procure the development of computer software and equipment for the
22 collection and administration of local sales and use taxes.
23 (8) (h) Employ an executive director, and any necessary agents, assistants,
24 auditors, clerks, inspectors, investigators, or other experts and employees.
25 (9) (i) Issue private letter rulings when requested pursuant to this Section as
26 to the imposition, collection, and administration of local sales and use tax.
27 (10) (j) Hold an executive session pursuant to R.S. 42:16 for any of the
28 reasons contained in R.S. 42:17 and for the discussion of matters involving
29 confidential taxpayer information including policy advice, private letter rulings,
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1 multi-parish audits, or other matters. The records and files of the board held for the
2 purpose of enforcement of the tax laws of this state and its political subdivisions
3 shall be considered to be the files and records of a political subdivision of the state
4 subject to the provisions of R.S. 47:1508 in the same manner as any other political
5 subdivision enforcing tax laws related to sales and use taxes.
6 (k) Impose a fee on any local collector that does not have an executed
7 agreement as provided for in Subparagraph (c) of this Paragraph in an amount equal
8 to the pro-rata share of the total actual costs incurred by the board for the creation,
9 implementation, and on-going maintenance and operation of the uniform local return
10 and remittance system. The pro-rata fee owed by each local collector shall be based
11 on the parish's share of the state's total population according to the most recent
12 federal decennial census. The fee authorized in this Subparagraph shall be billed by
13 the board to each collector not having an agreement as provided for in Subparagraph
14 (c) of this Paragraph. If a collector does not pay the fee authorized pursuant to the
15 provisions of this Subparagraph within thirty calendar days after imposition of the
16 fee by the board, the board shall notify the Louisiana Sales and Use Tax Commission
17 for Remote Sellers of the delinquency, and the Louisiana Sales and Use Tax
18 Commission for Remote Sellers shall deduct the amount of the unpaid fee from the
19 collector's next monthly distribution and remit the funds directly to the board.
20 (2) The board shall do all of the following:
21 (a) Manage, maintain, and supervise a uniform electronic local return and
22 remittance system pursuant to the provisions of R.S. 47:337.23 by which taxpayers
23 can electronically file and remit state and local sales and use taxes.
24 (b) Design, implement, manage, maintain, and supervise a single remittance
25 system whereby each taxpayer can remit state and local sales and use taxes through
26 a single transaction. Any contract for the selection of a vendor or service provider
27 to design the single remittance system, including the procurement of software,
28 hardware, or any other technology or electronic platform, or service shall be
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1 procured through the office of technology services and shall be in compliance with
2 the provisions of R.S. 39:196 et seq.
3 (c) Design, manage, and maintain a link on the board's web page for the
4 posting of information required to be posted pursuant to the provisions of R.S.
5 47:337.23(H).
6 * * *
7 I. Funding. (1) Except as provided for in Paragraph (4) of this Subsection,
8 the The board shall be funded through a dedication of a percentage of the total
9 statewide collections of local sales and use tax on motor vehicles, as provided for in
10 an agreement with local collectors and in accordance with the limitations provided
11 in this Paragraph and the budgetary policy as provided in Paragraph (2) of this
12 Subsection. Monies shall be payable monthly from the current collections of the tax.
13 The dedication shall be considered a cost of collection and shall be deducted by the
14 state office of motor vehicles and disbursed to the board prior to distribution of tax
15 collections to local taxing authorities. The dedication shall be in addition to any fee
16 imposed by the office of motor vehicles for the collection of the local sales and use
17 tax on motor vehicles. The amount to be disbursed to the board in any fiscal year
18 after Fiscal Year 2018-2019 shall not, under any circumstances and notwithstanding
19 any budget adopted by the board, exceed three-tenths of one percent of the
20 collections.
21 (2)(a) The actual amount to be disbursed to the board by the office of motor
22 vehicles in any fiscal year shall be determined by the requirements of the annual
23 budget adopted by the board for that year, subject to the limitations established in
24 Subparagraphs(1) (a) through (c) of Paragraph (1) of this Subsection. To accomplish
25 this, by the first day of June each year the chairman of the board shall notify the
26 commissioner of the office of motor vehicles regarding the amount to be disbursed
27 to the board for the ensuing fiscal year, with the exception of Fiscal Year 2018, when
28 the date for such notification shall be determined by agreement of the chairman and
29 the commissioner.
30 * * *
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1 (4) The board shall fund the initial costs incurred for designing and
2 implementing a single remittance system from the percentage of funding it currently
3 receives pursuant to the provisions of Paragraph (1) of this Subsection. The state and
4 local collectors shall share the initial costs equally; however, funding for initial costs
5 shall not extend for more than twenty-four months. Thereafter, the board shall fund
6 the costs associated with the management, maintenance, and supervision of the
7 single remittance system from the funding it currently receives pursuant to the
8 provisions of Paragraph (1) of this Subsection, subject to the state providing funding
9 for any maintenance or modifications to the single remittance system requested by
10 the state. The Department of Revenue shall continue to operate the electronic local
11 return and remittance system used and administered by the department as of January
12 1, 2024, until the board certifies to the Department of Revenue that the uniform
13 electronic local return and remittance system required in this Section is fully
14 designed, implemented, and available for use by taxpayers. The uniform electronic
15 local return and remittance system required in this Section shall be fully designed,
16 implemented, and available for use by taxpayers no later than January 1, 2026.
17 * * *
18 §340. Louisiana Sales and Use Tax Commission for Remote Sellers; members;
19 powers
20 * * *
21 E.
22 * * *
23 (2) The commission shall monthly remit monies, less any refunds, fees owed
24 to the board pursuant to the provisions of R.S. 47:337.102(C)(1)(k), and amounts
25 retained for expenses as defined in Paragraph (3) of this Subsection, to the
26 appropriate state or local collector by electronic funds to the designated bank account
27 of that state or local collector on or before the tenth business day of the month
28 following the month of collection. Records of gross collections, refunds, and
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1 amounts retained for expenses shall be made accessible to the respective state or
2 local collector on a monthly basis.
3 * * *
4 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 Reengrossed 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, appointment, terms, 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 and removes the requirement that the chair of the
board also serve as chair of the committee.
Proposed law expands membership of the committee from five members to seven members
as follows:
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(1)An additional member who must be the head of a collector's office. This member
shall be appointed by the board from a list of six names provided by the board of
directors of the La. Association of Tax Administrators.
(2)A representative of a business that is required to file sales and use tax returns for
multiple collectors in the state, who shall be appointed by the governor from a list
of three names provided by the La. Association of Business and Industry.
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:
(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 present law (Administrative Procedure
Act) 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 adds authority for the board to impose a fee on any
local collector that does not have an executed agreement with the board to provide for the
costs incurred by the board for the creation, implementation, and on-going maintenance and
operation of the uniform local return and remittance system. The amount of the fee shall be
equal to the local collector's pro-rata share of the total actual costs incurred by the board for
cost to implement and maintain the system based on the parish's share of the state's total
population according to the most recent federal decennial census.
Proposed law provides that if the local collector does not pay the fee within 30 calendar days
after imposition by the board, the board shall notify the La. Sales and Use Tax Commission
for Remote Sellers of the delinquency, and the La. Sales and Use Tax Commission for
Remote Sellers shall deduct the amount of the unpaid fee from the collector's next monthly
distribution and remit the funds directly to the board.
Proposed law 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)).
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Present law prohibits a political subdivision from imposing or increasing a sales and use tax
unless that tax or increase is effective on the first of Jan., April, July, or Oct. and the
secretary of DOR and the committee have been notified 30 days prior to the change
becoming effective.
Proposed law changes present law by prohibiting tax, interest, or penalty rates in a taxing
jurisdiction from being changed unless that tax or increase is effective on the first of Jan.,
April, July, or Oct. and the board and the committee have been notified 60 days prior to the
change becoming effective. Proposed law defines a tax rate change as any of the following:
(1)A rate change due to the levy of a new tax.
(2)The change in a rate for an existing tax.
(3)A rate change due to an annexation or other boundary modification by the taxing
authority.
(4)A rate change caused by the execution or expiration of a cooperative endeavor
agreement to which the taxing authority is a party.
(5)Implementation, amendment, or repeal of an optional sales tax exemption or
exclusion.
Proposed law provides that failure or refusal of a taxing authority to provide timely notice
to the single collector for a parish of a change in a tax, interest, or penalty rate shall be an
absolute defense against any claim by a taxing authority against the single tax collector for
the parish relating to such a change.
Present law requires each collector to provide information necessary to design and
implement the uniform electronic local return and remittance system to the secretary of DOR
and the committee within 90 days of receiving a written request by the secretary. Further
requires each collector to follow data validation procedures established by the committee.
Proposed law retains present law but requires each collector to provide the requested
information to the board and the committee rather than the secretary of DOR and extends
the requirement for submission of information to information necessary to maintain the
uniform electronic local return and remittance system.
Proposed law changes present law to require each collector to follow data validation
procedures recommended by the committee and adopted by the board rather than procedures
established by the committee.
Proposed law provides that a collector's failure or refusal to provide the requested
information necessary for design and maintenance of the uniform electronic local return and
remittance system shall be an absolute defense against any claim by a taxing authority or
collector against the board or committee relating to the data utilized in the system.
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
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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 subject to the state providing funding for any
maintenance or modifications to the single remittance system requested by the state.
Proposed law requires DOR to continue operating the electronic local return and remittance
system used and administered by the department as of Jan. 1, 2024, until the board certifies
that the uniform electronic local return and remittance system is available for use by
taxpayers. Further requires the uniform electronic local return and remittance system
required to be available for use by taxpayers no later than Jan. 1, 2026.
Effective Jan. 1, 2024.
(Amends R.S. 47:337.5, 337.23, 337.102(C) and (I)(1) and (2)(a) and 340(E)(2); Adds R.S.
47:337.102(I)(4))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Prohibit the tax, interest, or penalty rates in a taxing jurisdiction, from being
changed unless the change is effective on the first day of Jan., April, July, or
Oct., and the board and advisory committee have been notified in advance.
Requires a taxing authority to notify the single collector for the parish of the date
a change in a tax, interest, or penalty rate becomes effective.
2. Authorize the failure or refusal of a taxing authority to provide timely notice of
a rate change to the single collector for a parish to be an absolute defense against
a claim by a taxing authority against the single tax collector for the parish.
3. Define a "tax rate change" for purposes of proposed law.
4. Remove present law requirement that the chair of the board also serve as chair
of the committee.
5. Remove attorney fees from the list of information excepted in present law from
information that must be uniform on sales tax returns for all taxing authorities.
6. Require each collector to provide certain requested information to the board and
the committee rather than the secretary of DOR and the committee and extend
the requirement for submission of information to information necessary to
maintain the uniform electronic local return and remittance system.
7. Authorize failure or refusal of a collector to provide requested information to the
board or the advisory committee within the time frame required in present law
to design and maintain the uniform electronic local return and remittance system
to be an absolute defense against any claim by a taxing authority or collector
against the board or advisory committee related to the data utilization system.
8. Add requirement that collectors follow the data validation procedures
recommended by the advisory committee and adopted by the board.
9. Authorize the board to impose a fee on any local collector that does not have an
executed agreement with the board for the creation, implementation, and on-
going maintenance and operation of the uniform local return and remittance
system and provide for the amount of the fee and a collection procedure if a
collector does not pay the fee within 30 calendar days after imposition.
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10.Require the Dept. of Revenue to continue to operate the electronic local return
and remittance system used and administered by the department as of Jan. 1,
2024, until the board certifies that the uniform electronic local return and
remittance system is available for use by taxpayers.
11.Require the board to implement the uniform electronic local return and
remittance system to be available for use by taxpayers no later than Jan. 1, 2026.
The House Floor Amendments to the engrossed bill:
1. Increase the members of the committee who shall be the head of a collector's
office from one to two. These members shall be appointed by the board from a
list of six, rather than three, names provided by the board of directors of the La.
Association of Tax Administrators.
2. Add a member to the committee who is a representative of a business that is
required to file sales and use tax returns for multiple collectors in the state, who
shall be appointed by the governor from a list of three names provided by the La.
Association of Business and Industry.
3. Specify that the notice of a change in a sales tax rate shall be submitted to the
board rather than the secretary of DOR.
4. Make technical changes.
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