SLS 25RS-355 ORIGINAL
2025 Regular Session
SENATE BILL NO. 112
BY SENATOR JACKSON-ANDREW S
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/TAXATION. Authorizes a deduction as compensation for certain dealers and remote
sellers that collect and remit sales and use taxes. (7/1/25)
1 AN ACT
2 To enact R.S. 47:337.2(B)(3)(e), 337.18(A)(3), 337.23(C)(1)(a)(ii) and 340(G)(6)(d),
3 relative to sales and use tax; to authorize compensation for certain dealers and
4 remote sellers for the collection and remittance of taxes; to provide compensation in
5 the form of a deduction against taxes due; to authorize compensation at the rate or
6 percentage as specified in law; to require the inclusion of compensation as a
7 deduction on certain returns; to provide for an effective date; and to provide for
8 related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:337.2(B)(3)(e), 337.18(A)(3), 337.23(C)(1)(a)(ii), and
11 340(G)(6)(d) are hereby enacted to read as follows:
12 §337.2. Intent; application and interpretation of Chapter
13 * * *
14 B.(1) * * *
15 (3) Other provisions of law or local ordinance shall control and be applicable
16 only with respect to the following:
17 * * *
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1 (e) Vendor's compensation.
2 * * *
3 §337.18. Returns and payment of tax; penalty for absorption
4 A. * * *
5 (3) For the purpose of compensating the dealer in accounting for and
6 remitting the tax levied by the local ordinance, each dealer shall be allowed
7 compensation at the rate specified in the local ordinance in the form of a
8 deduction in submitting his report and paying the amount due by him, provided
9 the amount due was not delinquent at the time of payment. The aggregate
10 compensation for a dealer who operates one or more business locations within
11 Louisiana shall not exceed seven hundred fifty dollars per calendar month. The
12 amount of any credit claimed for taxes already paid to a wholesaler shall not be
13 deducted in computing the compensation allowed by the dealer.
14 * * *
15 §337.23. Uniform electronic local return and remittance system; official record of
16 tax rates and exemptions; filing and remittance of local sales and use
17 taxes; penalties for violations
18 * * *
19 C. The uniform electronic local return and remittance system and the posting
20 of the information required by Subsection H of this Section shall be managed,
21 maintained, and supervised by the board with the advice of the advisory committee
22 and the secretary, and the system shall include the following:
23 (1)(a) The system shall allow the taxpayer to file a sales and use tax return
24 that is uniform for each taxing authority except for the following:
25 * * *
26 (ii) The vendor's compensation allowed.
27 * * *
28 §340. Louisiana Sales and Use Tax Commission for Remote Sellers; members;
29 powers
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1 * * *
2 G. The commission shall have the power, duty, and authority:
3 * * *
4 (6) To require remote sellers and qualifying nonremote sellers to register with
5 the commission.
6 * * *
7 (d) Vendor's compensation shall be allowed as a deduction against tax
8 due if the return is filed timely on or before the twentieth day of the month
9 following the month of collection and all tax shown due on the return is remitted
10 on or before the twentieth day of the month following the month of collection.
11 The commission shall apply each taxing jurisdiction's specific rate of vendor's
12 compensation as a deduction against tax due and shall reduce the monthly
13 distribution provided for by Paragraph (E)(2) of this Section accordingly.
14 * * *
15 Section 2. This Act shall become effective on July 1, 2025, and shall be applicable
16 to taxable periods beginning on and after July 1, 2025.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Senate Legislative Services.
The keyword, summary, 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)]
DIGEST
SB 112 Original 2025 Regular Session Jackson-Andrews
Present law provides compensation to dealers for the collection and remittance of state sales
and use taxes in the form of a deduction against taxes due on the state sales and use tax
return.
Proposed law allows each dealer compensation in the form of a deduction against the taxes
due at the local rate of vendor's compensation specified in local ordinances but sets the
aggregate maximum amount a dealer may retain for collecting and remitting local sales and
use taxes at $750 per month. Proposed law authorizes a dealer to claim the compensation
through a deduction against local sales and use taxes due, if the return is filed timely on or
before the 20th day of the month following the month of collection, and all tax shown due
on the return is remitted on or before the 20th day of the month following the month of
collection.
Proposed law prohibits sales and use taxes previously paid to a wholesaler from being
claimed as compensation by a dealer.
Proposed law requires the inclusion of compensation as a deduction on certain returns
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SLS 25RS-355 ORIGINAL
managed and maintained by the Uniform Electronic Local Return and Remittance System
for local sales and use taxes and by the Louisiana Sales and Use Tax Commission for
Remote Sellers for state and local sales and use taxes.
Proposed law requires the Uniform Electronic Local Return and Remittance System to
provide for compensation at the rate specified by local ordinances or other provisions of law.
Proposed law authorizes a deduction to compensate a remote seller for the collection and
remittance of state and local sales and use taxes to the Louisiana Sales and Use Tax
Commission for Remote Sellers.
Proposed law requires the Louisiana Sales and Use Tax Commission for Remote Sellers to
provide for compensation at the rate specified by each taxing jurisdiction.
Effective on July 1, 2025, and applicable to taxable periods beginning on and after July 1,
2025.
(Adds R.S. 47:337.2(B)(3)(e), 337.18(A)(3), 337.23(C)(1)(a)(ii), and 340(G)(6)(d))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.