RÉSUMÉ DIGEST
ACT 249 (SB 8) 2023 Regular Session Luneau
Existing 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.
Existing 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.
Existing 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.
Prior law provided 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.
New law changes the applicable interest rate to the judicial interest rate. (R.S. 13:4202(B))
New 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))