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: (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)).
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 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.
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.