Louisiana Senate Bill SB164

Louisiana 2020 Regular Session

• Introduced: 2/26/20
• Refer: 2/26/20
• Refer: 3/9/20
• Report Pass: 5/11/20
• Engrossed: 5/15/20
• Report Pass: 5/18/20
• Enrolled: 6/1/20
• Chaptered: 6/12/20
• Passed: 6/12/20

Caption

Provides relative to local sales and use tax adjudication. (7/1/20) (EN SEE FISC NOTE LF RV)

Impact

The enactment of SB164 is expected to affect local government authorities' ability to manage sales and use tax disputes effectively. It introduces summary proceedings for tax claims, which are designed to expedite the resolution of disputes. By outlining specific guidelines for interest on refunds, the bill mandates that taxpayers be compensated satisfactorily when overpayments occur. This approach intends to provide more consistency and fairness within the local sales tax framework, which could enhance taxpayer confidence in the administration of local taxes.

Summary

Senate Bill 164 addresses local sales and use tax administration in Louisiana, resulting in significant modifications to existing laws concerning tax disputes, assessment notifications, and refund procedures. The bill amends key provisions of R.S. 47:337 by clarifying the process for taxpayers receiving assessments, especially when the assessed amount exceeds one hundred thousand dollars or when the taxpayer has no physical presence in the state. These changes aim to streamline tax administration at the local level, ensuring timely communication and improved processes for taxpayers injured by excessive assessments.

Sentiment

The overall sentiment regarding SB164 reflects a mixture of support and concerns. Proponents of the bill, including representatives from local governments and business sectors, argue that the modifications will simplify the tax dispute process, ultimately benefiting both taxpayers and local taxing authorities. However, opponents express apprehensions regarding the potential for local tax revenues to be impacted due to streamlined assessments and refund processes. This dichotomy highlights the ongoing struggle between administrative efficiency and the protection of local revenue streams.

Contention

Key points of contention include provisions that some local government representatives find restrictive, fearing that they may hinder their capability to manage local taxation effectively. The requirement for summary proceedings could be seen as an overreach, where local authorities feel that their autonomy in handling disputes is compromised. Additionally, debates around the appropriate interest rate for tax refunds underline tension between the need for fair taxpayer treatment and the financial implications for local governments. As such, the bill encapsulates broader discussions regarding the balance of power between state and local governments in tax policy.