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 404 Engrossed 2025 Regular Session Willard
Abstract: Provides with respect to administrative functions of the Dept. of Revenue including
duties and procedures relative to administration of particular taxes, functions of the office
of debt recovery within the department, and reporting on tax exemptions and incentives.
Present law establishes the Dept. of Revenue, referred to hereafter as the "department", as the
collector of revenue for this state. Requires the department to collect and enforce collection of all
taxes, penalties, interest, and other charges due pursuant to present law relative to revenue and
taxation.
Proposed law revises various provisions of present law pertaining to administration by the
department of various types of taxes, functions of the office of debt recovery within the department,
and reporting on tax exemptions and incentives.
With respect to administration of alcoholic beverage taxes, proposed law repeals a requirement that
out-of-state alcoholic beverage shippers mail their notices of shipments into La. and instead allows
the secretary of the department to prescribe the method of reporting.
With respect to income tax administration, proposed law repeals an authorization for the department
to institute a no-return option.
With respect to sales and use tax administration, proposed law prohibits refunding of certain sales
and use tax overpayments to taxpayers holding direct payment numbers. Also establishes a
definition of "drop shipment sale" and rules for sourcing of such sales. Provides that these rules shall
be given prospective and retroactive application.
Proposed law reduces the rate of interest on delinquent tax liabilities from three points above the
judicial interest rate to a rate equal to the judicial interest rate provided for in present law (8.25%
for the period Jan. 1, 2025 through Dec. 31, 2025).
Proposed law repeals a special interest rate applicable to certain severance tax overpayments, thereby
causing the general refund interest rate to apply to those overpayments.
Present law requires the department to prepare and submit to the governor and the legislature a tax
exemption budget on or before March 1
st
annually. Proposed law revises requirements relative to
the content of the tax exemption budget. Present law requires each state agency that administers tax credits and rebates to report certain
information on these tax incentives to the legislature in every even-numbered year. Proposed law
repeals present law and reestablishes certain provisions relative to return-on-investment analysis
within present law included in the tax exemption budget.
Proposed law repeals present law requiring the House Committee on Ways and Means and the
Senate Committee on Revenue and Fiscal Affairs to conduct hearings on the tax exemption budget
every odd-numbered year.
Present law establishes the office of debt recovery within the department. Establishes among the
office's powers and duties the authority to recover delinquent tax debt from taxpayers' winnings from
certain forms of gaming. Proposed law retains present law and extends this authority to winnings
from sports wagering.
Proposed law repeals outdated references and expired provisions of present law.
The following provisions of proposed law become effective July 1, 2025: Prohibition on refunding
of certain sales and use tax overpayments to taxpayers holding direct payment numbers; repeal of
the special interest rate applicable to certain severance tax overpayments; and reduction of the rate
of interest on delinquent tax liabilities. The remainder of proposed law becomes effective upon
signature of the governor.
(Amends R.S. 26:364(C) and R.S. 47:301.4(B)(1), 1517(C), (E), and (F), 1601(A)(2)(a), 1621(D)(1),
and 1676(C)(4), (D)(4)(a)(i) and (ii), (b), and (c), (E), and (F)(1); Adds R.S. 47:301.4(C)(4) and
303.1(D); Repeals R.S. 26:346(B) and 354(C)(2) and R.S. 47:296.1, 1517(B)(1)(c)-(e) and (2)-(4),
1517.1, and 1624(A)(2))