Provides for a waiver of certain income tax penalties and interest (OR -$47,600,000 GF RV See Note)
Impact
The enactment of HB 140 will specifically benefit individuals and businesses, including sole proprietorships, LLCs, partnerships, and corporations, that owe Louisiana income tax. By waiving the customary penalties and interest associated with late filings due to the pandemic, the bill is expected to provide an estimated relief of approximately $47.6 million in general fund revenue. This represents a significant economic relief measure aimed at supporting taxpayers during challenging times, fostering goodwill between the state and its citizens.
Summary
House Bill 140, introduced by Representative Echols, addresses the issue of late filing and payment penalties for income tax returns in Louisiana. The bill mandates that the secretary of the Department of Revenue must waive all penalties and interest for tax returns and payments that were due during the public health emergency declared by Proclamation Number 25 JBE 2020, provided that the late submissions are made by April 30, 2022. This legislative action aims to alleviate the financial burdens on taxpayers who may have experienced difficulties during the public health crisis.
Sentiment
Discussions surrounding HB 140 generally reveal a positive sentiment, particularly among taxpayer advocacy groups and business associations that support provisions aimed at reducing financial penalties. Supporters view the bill as a necessary response to unprecedented challenges brought forth by the pandemic. However, there may be some criticism targeting the implementation of such waivers, as potential concerns about the long-term impact on state revenues could arise.
Contention
While the bill appears to garner broad support, notable points of contention could arise regarding the fairness of limiting the waivers to those who submit their filings or payments by a specific date. Opponents might argue that taxpayers who face ongoing challenges should also receive some form of relief beyond the stipulated deadline. Additionally, there may be discussions around the broader implications for state revenue and the Department of Revenue’s capacity to manage an influx of waiver applications.
Requires the Department of Revenue to waive penalties and interest for certain taxpayers for tax years 2019 and 2020 (Item #29) (RE1 DECREASE SG RV See Note)
Provides for certain penalties imposed by the Department of Revenue and provides for the disposition of the monies collected from penalties and the self-generated revenue of the department
Provides for penalties for employers who fail to withhold due to misclassification of employees. (2/3 - CA7s2.1(A)) (1/1/21) (Item #24) (OR INCREASE GF RV See Note)
Provides for uniform definitions of independent contractor and employee, and for penalties for the misclassification of employees. (2/3 - CA7s2.1(A)) (1/1/22) (OR INCREASE SG RV See Note)