301.519.9237 exdirector@nesaus.org

4.4.22 – KALB –BATON ROUGE, La.

In the Senate Revenue and Fiscal Affairs Committee, Sen. R.L. Bret Allian introduced legislation to create a hybrid centralized state sales tax collection system. The effort to create such a system failed in the November 2021 election, despite widespread legislative support.

SB95 and SB244 address the auditing process for businesses.

SB95 creates a multi-parish audit program for local sales tax, allowing businesses operating in multiple parishes to file one audit. It does not remove the local authority’s ability to audit businesses, and it would allow for those entities to opt-in to the program.ADVERTISEMENT

SB244 seeks to create more uniformity between the legislative auditor and the Louisiana Uniform Local Sales Tax Board for collecting audit reports. Lawmakers said it is a bill focused not only on uniformity but also on transparency.

SB242 provides for a maximum interest rate on unpaid taxes in an attempt to equalize interest rates, hopefully making them fairer. The interest rate would not exceed 1% per month (or 12% per year), and it could be adjusted below the cap for local governments, within reason.

Lastly, SB235 looks again at a collection system. It would allow the Louisiana Sales and Use Tax Commission for remote sellers to develop an electronic return for local tax authorities. Local collectors would have the option to hire the commission to collect all of their taxes, not just remote sales taxes.

All bills were reported favorably out of committee and will be making their way to the Senate floor for consideration.