Louisiana House Bill HB708

Louisiana 2013 Regular Session

• Introduced: 4/17/13

Caption

Suspends the payment of dealer's compensation for dealers who collect and remit state sales and use taxes

Impact

The suspension of dealer compensation means that dealers would bear more financial responsibility for the tax collection process without the incentive of receiving compensation for their efforts. This could lead to potential pushback from dealers, particularly small businesses that may rely on this compensation as part of their revenue structure. By removing this financial support, the bill shifts the burden onto the dealers, which may affect their willingness or ability to maintain compliance with tax collection duties, thus impacting overall state tax revenues.

Summary

House Bill 708 proposes to suspend the authorization for dealer's compensation relating to the collection and remittance of state sales and use taxes from July 1, 2013, to June 30, 2019. Under the existing law, dealers are entitled to retain a percentage of the taxes they collect as compensation for their services in reporting and remitting these taxes. This bill aims to temporarily eliminate such compensation, which could significantly affect the financial landscape for dealers tasked with collecting these taxes. The intent behind this suspension is likely to enhance state revenue or streamline tax collection processes during the specified period.

Sentiment

The sentiment around HB 708 appears to be mixed. Proponents may argue that suspending the dealer's compensation is a necessary step towards ensuring that tax revenues are maximized without undue reliance on dealer incentives. Conversely, opponents could express concern that this move places an unfair burden on dealers, particularly in a challenging economic environment. The debate would likely capture issues of fairness and the implications for local business operations amid state fiscal pressures.

Contention

Discussion around HB 708 could be contentious, particularly regarding its impact on small businesses and the administrative cost implications of enforcing this bill. Stakeholders may raise concerns about the long-term sustainability of tax collection practices if dealers feel overburdened without adequate compensation. This could lead to significant backlash from the business community, arguing that the bill undermines their operational viability and could inadvertently lead to lower tax compliance among dealers adjusting to the new financial landscape.