SLS 23RS-90 ORIGINAL
2023 Regular Session
SENATE BILL NO. 8
BY SENATOR LUNEAU
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/LOCAL. Provides relative to interest applicable to local sales and use taxes paid under
protest. (8/1/23)
1 AN ACT
2 To amend and reenact R.S. 47:337.63(A)(3), relative to interest applicable to local sales and
3 use tax paid under protest; to require local tax collectors to remit judicial interest to
4 prevailing taxpayers in certain circumstances; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:337.63(A)(3) is hereby amended and reenacted to read as follows:
7 ยง337.63. Remittance of tax under protest; suits to recover
8 A. * * *
9 (3) To the extent the taxpayer prevails, the collector shall refund the amount
10 to the claimant, with interest at the rate established pursuant to R.S. 47:337.69(C)
11 R.S. 13:4202(B), except as provided in Subsection E of this Section. To the extent
12 the collector prevails, the taxpayer shall pay the collector additional interest
13 calculated on the disputed amount at the same rate established for tax obligations
14 pursuant to R.S. 47:337.69(C), except as provided in Subsection E of this Section.
15 * * *
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 8
SLS 23RS-90 ORIGINAL
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 8 Original 2023 Regular Session Luneau
Present law provides for the payment of local sales and use taxes paid under protest and
authorizes interest on refunds in a suit to recover the amount paid under protest.
Present law requires taxes paid under protest be placed in an escrow account and held by the
collector until the principle of law involved has been finally determined by the courts, the
Board of Tax Appeals, or by a final judgment of a court upon a timely appeal of a decision
of the Board of Tax Appeals.
Present law provides that if the collector has deposited the payment under protest into an
interest bearing account that interest paid to the prevailing party after final judgement is
limited to the interest that is actually earned in that account.
Present law provides that when the collector deposits the payment under protest into a
non-interest bearing escrow account, the interest paid by the party that does not prevail will
be at the rate applicable to all unpaid taxes, not to exceed 12% per year.
Proposed law changes the applicable interest rate to the judicial interest rate.
Proposed law eliminates the requirement that the taxpayer making the payment under protest
pay additional interest.
Effective August 1, 2023.
(Amends R.S. 47:337.63(A)(3))
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.