Provides for alternatives in lieu of payment under protest for certain ad valorem taxes. (8/1/22) (EN SEE FISC NOTE LF RV See Note)
Impact
The bill is poised to streamline the process for companies challenging their tax assessments, offering them the option to provide a bond or other security instead of making a direct payment under protest. This shift aims to alleviate immediate financial burdens, allowing companies to pursue their appeals more confidently, knowing they don’t have to front the disputed tax amounts. Moreover, the bill also sets expectations for how quickly the Louisiana Tax Commission must address claims related to errors in tax assessments, enhancing clarity and expedited resolution processes for taxpayers.
Summary
Senate Bill 241 aims to amend existing laws regarding the challenge of ad valorem tax assessments in Louisiana. The bill focuses on the timing and requirement of payments made under protest when disputing the correctness of tax assessments. Specifically, it provides provisions allowing taxpayers to challenge assessments without necessarily having to pay the disputed amounts upfront, thereby rearranging the timelines and forms of security that can be utilized in cases of tax disputes. This change potentially impacts many companies and businesses operating within the jurisdiction, offering them a more equitable process for contesting assessments they believe to be incorrect or unjust.
Sentiment
General sentiment around SB 241 appears to be positive among proponents who see it as a necessary reform for improving the fairness and efficiency of the tax assessment process. Stakeholders argue that the bill provides critical protections for taxpayers and helps ensure that businesses are not unduly harmed by erroneous assessments. However, there may be concerns from tax collectors and policymakers regarding the implications this bill has on state revenue stability and the administrative burden it may introduce to the tax review process.
Contention
One notable point of contention could arise around the implications of allowing alternative forms of security instead of immediate payment under protest. Some critics may argue that this could lead to increased disputes, delays in tax revenue collection, or unfair advantages for larger corporations over smaller ones in disputes. Furthermore, additional scrutiny may be warranted to ensure that the provisions put in place do not create loopholes that could be exploited by taxpayers at the expense of the state's fiscal health.
Provides for procedures for the collection of delinquent ad valorem taxes and statutory impositions, tax auctions, tax auction certificates, and the redemption of certain property (RE SEE FISC NOTE LF RV See Note)
Removes the restriction against taxes paid under protest concerning claims for the ad valorem tax credit for certain offshore vessels (RE1 SEE FISC NOTE See Note)
Provides for death and disability benefits for Louisiana National Guardsmen activated by the governor or the president. (gov sig) (EN +$8,200,000 SD EX See Note)
Requires the secretary of state to compare the names of candidates with certain criminal history records and to inform the district attorney of his findings under certain circumstances
Authorizes certain parties to protest the assessed valuation of certain public service property for purposes of ad valorem property tax (OR INCREASE GF EX See Note)