La. Revenue and Taxation § 47:340

Current with changes from the 2024 First and Second Extraordinary Sessions

Section 47:340 - Louisiana Sales and Use Tax Commission for Remote Sellers; members; powers

A. The duties of the commission shall be exercised and discharged under the supervision and direction of a commission with voting power and a non-voting executive director, all of whom shall be appointed and shall serve as provided in this Section:

B. The commission shall be comprised of eight voting commissioners as follows:

(1) The secretary of the Department of Revenue.

(2) Three employees or other officials of the Department of Revenue as appointed by the secretary.

(3) The members of the Louisiana Uniform Local Sales Tax Board appointed as provided in R.S. 47:337.102(B)(1)(e) through (h). In the absence of such a member, the chairman of the Louisiana Uniform Local Sales Tax Board may appoint a designee to attend commission meetings and vote on their behalf. A person eligible to serve as a designee shall be a permanent member of the board.

C. The commission shall elect its own chairman, vice chairman, and such other officers as its rules may direct.

(1) The commission shall meet as often and at such locations as directed by the chairman, who shall provide timely notice to the public as to the time and location of each meeting. A majority of the commission membership shall constitute a quorum for the transaction of business and no action shall be taken by the commission unless approved by a majority vote of the members present.

(2) The domicile of the commission shall be East Baton Rouge Parish. The commission may meet and conduct commission business at other locations within the state of Louisiana as it may from time to time determine, after timely notice to those persons who may be affected by the change in location.

(1) The commission shall select and employ an executive director who shall serve at the pleasure of the commission. The executive director, under and subject to the direct supervision and control of the commission, shall direct the day-to-day administration and enforcement of all laws, rules, policies, and regulations which it is the duty of the commission to administer and enforce. The executive director shall receive compensation and benefits as may be determined and fixed by the commission. The executive director may employ professional and administrative staff and set their rate of compensation and benefits, plus necessary expenses incurred in performing their duties, as may be approved by the commission. The commission may enter into a joint services agreement with any other agency, board, or political subdivision concerning the performance of its functions.

(2) The commission shall monthly remit monies, less any refunds, fees owed to the board pursuant to the provisions of R.S. 47:337.102(C)(1)(k), and amounts retained for expenses as defined in Paragraph (3) of this Subsection, to the appropriate state or local collector by electronic funds to the designated bank account of that state or local collector on or before the tenth business day of the month following the month of collection. Records of gross collections, refunds, and amounts retained for expenses shall be made accessible to the respective state or local collector on a monthly basis.

(3) The commission and its operations shall be funded by an amount equal to actual expenses incurred which amount shall not exceed one percent of the total amount of state and local sales and use tax collected on sales by the commission. Subject to the limitations provided in this Paragraph, this amount shall be retained by the commission on a monthly basis from current collections of state and local sales tax on sales as collected by the commission prior to monthly distribution to the state and local collectors. Upon distribution of the local sales and use tax collected from sellers by the commission, the local collectors may retain the usual and customary percentage of collections in accordance with local ordinances or agreements.

(4) Upon the request of a state or local collector, the commission shall provide taxpayer information and associated taxpayer history maintained by the commission to the state or local collector in accordance with R.S. 47:1508.

(5)

(a) If use tax collections pursuant to R.S. 47:302(K) yield insufficient revenue to fulfill the dedication for the adjudication of local sales and use tax matters that is made pursuant to R.S. 47:302(K)(7) for interagency transfers to the Department of State Civil Service, Board of Tax Appeals, Local Tax Division, the remaining amount necessary to satisfy the dedication shall be considered an actual expense of this commission pursuant to Paragraph (3) of this Subsection, and payment of the interagency transfer due shall be made from local sales and use tax collections of the commission within the first thirty days of the fiscal year.

(b) A part of the interagency transfer due pursuant to Section 2 of Act No. 198 of the 2014 Regular Session of the Legislature may be designated as an actual expense of the commission pursuant to Paragraph (3) of this Subsection, and payment of that designated part may be made from state sales and use tax collections of the commission pursuant to a written agreement with the secretary.

(6)

(a) The commission is authorized to enter into a cooperative endeavor agreement for the purposes specified in R.S. 47:1439(F)(3), and any payments due pursuant thereto shall be added to any amounts due pursuant to Paragraph (5) of this Subsection.

(b) Any amount due pursuant to this Paragraph or Paragraph (5) of this Subsection shall be in addition to any amounts otherwise retained pursuant to Paragraph (3) of this Subsection.

(1) The commission shall develop rules and procedures in accordance with the Administrative Procedure Act with respect to implementation of the provisions of this Chapter. Unless contrary to a rule adopted in accordance with this Subsection, the provisions of Chapter 18 of this Subtitle may be utilized by the commission, or its duly authorized agents and employees, in the exercise of any power authorized by this Section in the same manner that the provisions of Chapter 18 of this Subtitle may be utilized by the secretary.

(2) The commission, or its duly authorized agents and employees, may take any action related to the collection of tax within its jurisdiction that the secretary in Chapter 18 of this Subtitle is authorized to take and any person aggrieved by any such action shall have the same rights, including appeal or review as provided for in Chapter 18 of this Subtitle.

(3) Any consideration of a request for refund and any appeal of the commission's denial of a refund made to the Board of Tax Appeals shall occur in the same manner and be subject to the same deadlines as provided for in Chapter 18 of this Subtitle.

(4) The commission shall be considered a state collector for the purposes of R.S. 47:1418(7)(d) and the related provisions of Chapter 17 of this Subtitle.

G. The commission shall have the power, duty, and authority:

(1) To serve as the single entity within the state of Louisiana responsible for all state and local sales and use tax administration, return processing, and audits for remote sales delivered into Louisiana and for nonremote sales that the commission is authorized by contract to collect.

(2) To serve as the central, single agency to which remote sellers shall make state and local sales and use tax remittances and as the central, single agency to which qualifying nonremote sellers shall make state and local sales and use tax remittances on nonremote sales that the commission is authorized by contract to collect.

(3) To assign and direct a single audit of remote sellers for the state and all local taxing authorities and assign and direct a single audit of qualifying nonremote sellers for all state and local taxing authorities that have entered into a contract with the commission pursuant to R.S. 47:339.1.

(4) To serve as the single state of Louisiana agency to represent both state and local taxing authorities in taking appropriate action to enable Louisiana to participate in programs designed to allow Louisiana to more efficiently enforce and collect state and local sales and use taxes on sales made by remote sellers and qualifying nonremote sellers.

(5) To conduct administrative hearings as requested by aggrieved remote sellers and qualifying nonremote sellers, administer oaths, and make adjustments to assessments when justified by the facts and the law, and render decisions following such hearings.

(6) To require remote sellers and qualifying nonremote sellers to register with the commission.

(a) No later than thirty calendar days after surpassing either of the criteria of R.S. 47:301(4)(m)(i), a remote seller shall submit an application for approval to collect state and local sales and use tax on remote sales for delivery into Louisiana to the commission on a form prescribed by the commission. A remote seller shall commence collection of state and local sales and use tax, once notified the commission has approved the application, no later than sixty days after surpassing either of the criteria of R.S. 47:301(4)(m)(i).

(b) The commission shall publish the date remote sellers are required to be registered by policy statement as authorized by LAC 61:III.101 no later than thirty days prior to the effective date of the enforcement. In no event shall the date of enforcement be later than July 1, 2020.

(c) Notwithstanding the duty to register with the commission, the state and local sales and use tax required to be collected by the remote seller shall be due and payable monthly. For the purpose of ascertaining the amount of tax payable, all remote sellers shall transmit to the commission returns on forms prescribed, prepared, and furnished by the commission showing the gross sales arising from all transactions during the preceding calendar month, on or before the twentieth day of the month following the month in which this tax is required to be collected. These returns shall show any further information the commission may require to correctly compute and collect the tax levied. At the time of making the return required pursuant to this Subparagraph, every remote seller shall compute and remit to the commission the required tax due for the preceding calendar month, and failure to remit the tax shall cause the tax to become delinquent. In the event the tax becomes delinquent, interest and penalties imposed by this Subtitle shall be an obligation to be assessed, collected, and enforced against the remote seller in the same manner as if it were a tax due. The commission shall collect interest and penalties on delinquent taxes and distribute such collections to the state or local collector in the same manner as provided by Subsection E of this Section. For purposes of Paragraph (E)(3) of this Section, "state and local sales and use tax collected on remote sales" shall include interest and penalties collected on delinquent taxes.

(d) Vendor's compensation shall be allowed as a deduction against tax due if the return is filed timely on or before the twentieth day of the month following the month of collection and all tax shown due on the return is remitted on or before the twentieth day of the month following the month of collection. The commission shall apply each taxing jurisdiction's specific rate of vendor's compensation as a deduction against tax due and shall reduce the monthly distribution provided for by Paragraph (E)(2) of this Section accordingly.

(7) To provide to the single tax collector for each parish an annual report of revenues collected and distributed for the previous calendar year, which report shall be provided on or before June first of each year.

(8) To enter into agreements to waive or suspend prescription with remote sellers as to state and local taxes and with qualifying nonremote sellers.

(9) With the consent of the affected local taxing authority, to issue notices of intent to assess, notices of assessments, enforce collection of local sales and use taxes by distraint and sale, and institute summary proceedings or ordinary proceedings for collection of local taxes.

(10) To sue and be sued.

(11) To enter into voluntary disclosure agreements with remote sellers as to state and local sales and use taxes and with qualifying nonremote sellers.

H. Nothing in this Chapter shall be construed to:

(1) Authorize or require any expenditure unless and until a federal law authorizing states to require remote sellers and their agents to collect state and local sales and use taxes on their sales in each state has been enacted and becomes effective or a decision by the United States Supreme Court overrules the physical presence requirement for a remote seller to collect and remit state and local sales and use tax on remote sales for delivery into the state.

(2) Limit the right of local taxing authorities to levy and collect sales and use taxes as provided in the Constitution of Louisiana, statutory law, and jurisprudence.

(3) Authorize the commission to exercise any right or perform any function presently exercised by local sales and use tax authorities under present law except as provided in contracts entered into pursuant to R.S. 47:339.1.

(4) Create, repeal, or amend any local tax exclusions or exemptions.

(5) Authorize the commission to grant local tax amnesty.

(6) Authorize the commission to promulgate rules, regulations, issue private letter rulings or give to dealers or taxpayers other advice that is inconsistent with the Constitution of Louisiana, statutory law, or controlling jurisprudence.

(7) Require local taxing authorities to make refunds, give tax credit, waive penalties, or waive audit costs.

(8) Repeal or amend any provisions of any local tax ordinances.

(9) Extend to any local taxes any state exclusions, exemptions, credits, rebates, or other tax relief provisions that do not presently apply to local taxes.

(10) Repeal or amend any provision of the Uniform Local Sales Tax Code, R.S. 47:337.1 et seq.

(11) Make the state of Louisiana a member of the Streamlined Sales and Use Tax Agreement.

(12) Authorize the commission to serve as a central state collection agency for local sales and use taxes except as provided in contracts entered into pursuant to R.S. 47:339.1.

(13) Limit any statutory and ordinal provisions in place as of June 16, 2017, that require dealers and taxpayers, with respect to nonremote sales, to pay and remit directly to the single sales and use tax collector in each parish the sales and use taxes due to each local taxing authority within each parish except as provided in contracts entered into pursuant to R.S. 47:339.1.

(14) Limit or amend any provision of R.S. 47:1508 and 1508.1.

(15) Repealed by Acts 2022, No. 685, §2, eff. Jan. 1, 2023.

I. The sums of money collected by remote sellers and nonremote sellers and remitted to the commission pursuant to R.S. 47:339 and 339.1 for payment of sales and use taxes imposed by the state and local taxing authorities shall, at all times, be and remain the property of the respective taxing authorities and deemed held in trust for taxing authorities, including while in the possession of the commission.

La. Revenue and Taxation § 47:340

Acts 2017, No. 274, §2, eff. June 16, 2017; Acts 2019, No. 360, §1; Acts 2019, No. 367, §1, eff. June 18, 2019; Acts 2020, No. 216, §1, eff. July 1, 2020; Acts 2020, No. 278, §1, eff. July 1, 2020; Acts 2022, No. 685, §§1, 2, eff. Jan. 1, 2023; Acts 2023, No. 375, §1, eff. Jan. 1, 2024.