Louisiana House Bill HB776

Louisiana 2016 Regular Session

• Introduced: 3/4/16
• Refer: 3/4/16
• Refer: 3/14/16
• Report Pass: 3/29/16
• Engrossed: 4/14/16
• Refer: 4/18/16

Caption

Provides for remittance of sales and use tax under under protest (EG NO IMPACT GF RV See Note)

Impact

The impact of HB 776 on state tax laws is significant as it shifts the responsibility for holding disputed tax payments from selling dealers to the state. By placing contested funds in an escrow account managed by the DOR, the law aims to provide clearer guidelines on how such disputes are managed and resolved. If a taxpayer files a suit or a petition with the Board of Tax Appeals for recovery of the contested tax, the funds will remain in escrow pending the outcome, providing a fair process for both parties involved in the dispute.

Summary

House Bill 776 is a legislative measure designed to amend the procedure for the remittance of sales and use taxes that are contested by purchasers. Specifically, the bill mandates that any sales or use tax paid under protest by a buyer must be remitted directly to the Louisiana Department of Revenue (DOR) rather than to the selling dealer. This change aims to streamline the process for taxpayers who intend to challenge taxes, ensuring that funds are handled consistently during disputes.

Sentiment

The sentiment surrounding HB 776 was generally supportive, with the bill passing unanimously in the House with a vote of 97 to 0. Proponents argued that this legislative change would enhance taxpayer rights and streamline the management of tax disputes, thereby fostering greater confidence in the administrative process for tax recovery. There were no recorded opposition or notable dissenters during the discussions surrounding the bill's passage, indicating a broad consensus on the need for this adjustment in tax law.

Contention

While there were no prominent points of contention during the discussions, it is essential to note that the bill's provisions may lead to increased responsibilities for the DOR in managing escrow accounts and ensuring proper handling of contested tax claims. Some concerns could arise from taxpayers if the processes involved are not clearly communicated or implemented efficiently, although such risks were not highlighted in the transcripts from the legislative meetings.