Louisiana House Bill HB845

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 5/11/10
• Engrossed: 5/18/10
• Refer: 5/19/10
• Report Pass: 6/15/10
• Enrolled: 6/21/10
• Chaptered: 7/8/10
• Passed: 7/8/10

Caption

Provides relative to requirements for private contracts with agencies or firms for the collection of local sales and use tax (EN NO IMPACT LF EX See Note)

Impact

This legislation directly impacts state and local tax collection practices by formalizing the processes that private contractors must adhere to when conducting audits or examinations of taxpayers’ financial records. It mandates that these contractors limit their activities strictly to auditing and prohibits them from engaging in actual tax assessments or collections unless explicitly allowed by other law. This is intended to create a clear boundary about the roles of private auditors and to enhance the protection of taxpayer information, thereby fostering trust in the auditing process.

Summary

House Bill 845 seeks to amend the Louisiana Revised Statutes with respect to the collection and oversight of local sales and use taxes. The bill specifically outlines the governing requirements for private agencies or auditing firms that are contracted to collect these taxes on behalf of local collectors. A significant focus of the legislation is on maintaining the confidentiality of taxpayer information, establishing strict guidelines about how this information can be shared, and ensuring that any external agencies abide by specific professional standards. Additionally, the bill imposes oversight requirements on these contracts by the legislative auditor, adding a level of scrutiny to the contract procedures.

Sentiment

The sentiment around HB 845 appears to be largely favorable among lawmakers who support clearer guidelines and oversight in tax collection activities. Supporters highlight the importance of protecting taxpayer information and view the establishment of professional standards for auditors as a step towards greater transparency and accountability. However, some skepticism may exist regarding the effectiveness of these measures in the real-world application of tax collection and whether these requirements will pose additional burdens on local governments in terms of compliance and administration.

Contention

While the bill aims to increase accountability and protect sensitive information, discussions might arise about the potential limitations it imposes on local collectors' autonomy. Opponents may argue that increased regulation could hinder the efficiency of local tax collection efforts, with concerns that the oversight process may complicate existing operations. There may also be divergent views over who qualifies as a suitable auditing agency and whether the legislative auditor's oversight effectively safeguards taxpayer interests without stifling necessary local engagement in tax matters.