La. Revenue and Taxation § 47:337.102

Current with changes from the 2024 Legislative Session

Section 47:337.102 - Louisiana Uniform Local Sales Tax Board; creation; membership; powers and duties

A. Creation of the board. The Louisiana Uniform Local Sales Tax Board, hereinafter referred to in this Section as "board", is hereby created as a political subdivision of the state as such term is defined in the Constitution of Louisiana. The board shall be subject to all legal requirements applicable to a public body, including procurement, ethics, record retention, fiscal and budgetary controls, and legislative audit in the same manner as any local political subdivision. The domicile of the board shall be East Baton Rouge Parish. The board may meet and conduct business at other locations within the state of Louisiana.

B. Board membership and organization.

(1) The board shall consist of eight members, as follows:

(a) The executive director of the Louisiana Municipal Association.

(b) The executive director of the Louisiana School Boards Association.

(c) The executive director of the Police Jury Association of Louisiana.

(d) The executive director of the Louisiana Sheriffs Association.

(e) The head of a single parish collector's office appointed by the executive board of the Louisiana Municipal Association.

(f) The head of a single parish collector's office appointed by the board of directors of the Louisiana School Boards Association.

(g) The head of a single parish collector's office appointed by the executive board of the Police Jury Association of Louisiana.

(h) The head of a single parish collector's office appointed by the executive committee of the Louisiana Sheriff's Association.

(2) The board members established in Subparagraphs (B)(1)(a) through (d) of this Section shall be permanent members of the board.

(3) The board member appointments provided for in Subparagraphs (B)(1)(e) through (h) of this Section shall be made no later than August 31, 2017. Employees, legal counsel, and vendors of a single parish collector's office shall not be eligible for appointment to the board. Members appointed to the board pursuant to Subparagraphs (B)(1)(e) through (h) of this Section shall serve at the pleasure of the respective appointing authority. The appointing authorities shall coordinate their appointments to the board in order that the board's membership is representative of the diverse regions of the state and to ensure that no two members represent a single parish.

(4) A permanent member of the board may appoint a designee to attend board meetings and vote by proxy on his behalf, the procedure for which shall be determined by rule of the board.

(5) The board shall hold its organizational meeting no later than October 15, 2017, at which time it shall elect a chairman, vice chairman, and such other officers as determined necessary at the first meeting.

(6) Board members shall serve without compensation, but may be reimbursed for reasonable expenses incurred in the performance of their duties.

C. Powers and duties of the board.

(1) The board may:

(a) Support and advise local sales and use tax collectors concerning the imposition, collection, and administration of local sales and use taxes authorized under the constitution and laws of this state.

(b) Promulgate rules and regulations in accordance with this Part.

(c) Enter into agreements with local tax collectors.

(d) Enter into contracts for the services of legal counsel, analysts, auditors, appraisers, and witnesses, as well as any agency or department of the state or any state or local political subdivision.

(e) Issue policy advice on matters concerning the imposition, collection, and administration of local sales and use tax.

(f) Prescribe uniform forms and model procedures to be used by local sales and use tax collectors.

(g) Procure the development of computer software and equipment for the collection and administration of local sales and use taxes.

(h) Employ an executive director and any necessary agents, assistants, auditors, clerks, inspectors, investigators, or other experts and employees.

(i) Issue private letter rulings when requested pursuant to this Section as to the imposition, collection, and administration of local sales and use tax.

(j) Hold an executive session pursuant to R.S. 42:16 for any of the reasons contained in R.S. 42:17 and for the discussion of matters involving confidential taxpayer information including policy advice, private letter rulings, multi-parish audits, or other matters. The records and files of the board held for the purpose of enforcement of the tax laws of this state and its political subdivisions shall be considered to be the files and records of a political subdivision of the state subject to the provisions of R.S. 47:1508 in the same manner as any other political subdivision enforcing tax laws related to sales and use taxes.

(k) Impose a fee on any local collector that does not have an executed agreement as provided for in Subparagraph (c) of this Paragraph in an amount equal to the pro rata share of the total actual costs incurred by the board for the creation, implementation, and ongoing maintenance and operation of the uniform local return and remittance system. The pro rata fee owed by each local collector shall be based on the parish's share of the state's total population according to the most recent federal decennial census. The fee authorized in this Subparagraph shall be billed by the board to each collector not having an agreement as provided for in Subparagraph (c) of this Paragraph. If a collector does not pay the fee authorized pursuant to the provisions of this Subparagraph within thirty calendar days after imposition of the fee by the board, the board shall notify the Louisiana Sales and Use Tax Commission for Remote Sellers of the delinquency, and the Louisiana Sales and Use Tax Commission for Remote Sellers shall deduct the amount of the unpaid fee from the collector's next monthly distribution and remit the funds directly to the board.

(2) The board shall do all of the following:

(a) Manage, maintain, and supervise a uniform electronic local return and remittance system pursuant to the provisions of R.S. 47:337.23 by which taxpayers can electronically file and remit state and local sales and use taxes.

(b) Design, implement, manage, maintain, and supervise a single remittance system whereby each taxpayer can remit state and local sales and use taxes through a single transaction. Any contract for the selection of a vendor or service provider to design the single remittance system, including the procurement of software, hardware, or any other technology or electronic platform, or service shall be procured through the office of technology services and shall be in compliance with the provisions of R.S. 39:196 et seq.

(c) Design, manage, and maintain a link on the board's web page for the posting of information required to be posted pursuant to the provisions of R.S. 47:337.23(H).

D. Issuance of policy advice.

(1) The board may issue policy advice intended to provide guidance to taxpayers or dealers with respect to any local sales and use tax issue. A taxpayer or dealer may request a private letter ruling from the board by sending a certified letter to the board and to the respective local tax collectors. Prior to the issuance of a private letter ruling, the board may solicit additional information from the respective local tax collectors. A private letter ruling issued by the board shall be transmitted by certified mail simultaneously to both the requesting party and the respective local tax collectors. A private letter ruling shall be posted in redacted form on the board's website within ten days of its issuance.

(2) If a request for a private letter ruling involves a single local tax collector, the tax collector may elect to decline to participate in the private letter ruling process provided for in this Subsection with respect to that request for a private letter ruling by notifying the board and the requesting party within ten days of receipt of the request. If the board receives this notification, the board shall decline the request for the ruling.

(3) Except as otherwise provided in Paragraph (2) of this Subsection, a private letter ruling shall bind the decision or discretion of a local tax collector served with notice of the request pursuant to Paragraph (1) of this Subsection. However, any party to the dispute may seek a review of the ruling within twenty days of the date of its certified mailing by filing a petition to the Local Tax Division of the Louisiana Board of Tax Appeals. The only grounds for overturning a private letter ruling on appeal shall be that the ruling is contrary to law or a controlling ordinance, conflicts with pre-existing jurisprudence, or otherwise is clearly arbitrary and capricious. Any private letter ruling that is appealed shall be stayed until the appeal is resolved by final judgment or by settlement.

E. Rulemaking. The board, after consultation with the Board of Directors of the Louisiana Association of Tax Administrators, hereinafter referred to in this Section as "LATA", is hereby authorized and directed to promulgate rules and regulations pursuant to R.S. 47:337.94. The board shall request a non-binding recommendation from LATA prior to the issuance of a rule or regulation. The recommendation shall be submitted to the board within thirty days of the request, and a failure on the part of LATA to provide a recommendation shall not preclude the promulgation of a rule or regulation by the board.

F. Voluntary disclosure program. The board shall promulgate rules pursuant to the Administrative Procedure Act to establish a uniform voluntary disclosure program for taxpayers seeking relief from penalties in cases where a liability to more than one local sales and use tax collector is owed. The board shall accept applications from taxpayers seeking to participate in the program and may issue a recommendation for the waiver of penalties for taxpayers who have complied with program requirements, including full payment of taxes and interest. This recommendation shall be binding on local tax collectors absent fraud, material misrepresentation, or any such misrepresentation of the facts by the taxpayer.

G. Refunds. The board shall establish uniform standards and forms for the purpose of refund requests for all local sales and use taxes. The refund denial form shall include notice to taxpayers that a refund request denial is appealable to the Board of Tax Appeals, and shall provide specific information as to deadlines and other requirements as provided by law for such an appeal. The board shall serve as the central filing agency for all refund claims involving two or more Louisiana parishes having transactions similar in fact. The filing of a refund claim with the board shall suspend the running of prescription. The board shall notify the respective tax collector within fifteen days of receipt of a refund request. The function of the board with respect to refund requests shall be ministerial in nature and the board shall have no authority over the approval or denial of a request.

H. Multi-parish audits.

(1) Beginning July 1, 2022, the board shall implement and coordinate the multi-parish audit program.

(2) Multi-parish audit program.

(a) A multi-parish audit may be requested by a taxpayer that:

(i) Has a location in the state and registered to file and remit local sales and use taxes pursuant to a local ordinance in at least three parishes.

(ii) Is not a recipient of a jeopardy assessment issued by any collector.

(iii) Is not engaged in a current audit by a collector for which a notice of intent to assess was issued prior to July 1, 2022.

(iv) Agrees to promptly sign all necessary agreements to suspend prescription.

(v) Is not involved in any litigation with any collector.

(b)

(i) A taxpayer that qualifies may request a multi-parish audit from the board within thirty days from the issuance of a notice of examination from all of the parishes in which the taxpayer engaged in taxable transactions during the audit period.

(ii) The taxpayer shall notify the board of all parishes in which the taxpayer is registered to file and remit local sales and use taxes or obligated to pay sales or use tax. The board shall send a notice of the multi-parish audit to all parishes identified. Parishes shall have thirty days from the date of the notice to opt in or out of the multi-parish audit. If the parish collector does not respond to the notice within the thirty-day period, that parish shall be considered to have opted out of the multi-parish audit.

(iii) Any parish identified by the taxpayer that opts out of a multi-parish audit shall be prohibited from auditing the requesting taxpayer until after the completion of the multi-parish audit. This prohibition shall not apply to parishes that the taxpayer failed to disclose to the board.

(c) The board shall select and compensate the auditors who will conduct the multi-parish audit. Nothing in this Subsection shall prevent a local collector from furnishing auditors at its own expense to assist the board's auditors in conducting the multi-parish audit. All auditors participating in the multi-parish audit shall be bound by R.S. 47:337.26 and any audit protocols required by the board.

(d) The board shall facilitate consistent treatment of taxability of transactions between parishes involved in a multi-parish audit.

(e)

(i) Each parish shall review the completed audit and shall make an independent determination regarding the issuance of a notice of intent to assess within forty-five days of receipt of the completed audit.

(ii) Notwithstanding any provision of law to the contrary, a notice of intent to assess arising from a multi-parish audit shall interrupt prescription for the parish issuing the notice of intent to assess.

(iii) The board shall notify any parish that opted out of the multi-parish audit that the audit has been completed within thirty days of the completion of the audit.

(f) After the issuance of the notices of intent to assess, the taxpayer may request a joint administrative hearing in which all parishes that opted into the multi-parish audit may participate. The board shall coordinate the hearing.

(g) The board shall develop audit procedures, hearing procedures, and any other provision necessary for the implementation of the multi-parish audit program.

(3) Beginning January 1, 2024, the board shall report annually to the Senate Committee on Revenue and Fiscal Affairs and the House Committee on Ways and Means on the multi-parish audit program. The report shall include the number of multi-parish audits that were requested by taxpayers and initiated in each fiscal year, the number of multi-parish audits that were completed in each fiscal year, and the number of multi-parish audits for which each parish had opted in and opted out. The report may include recommendations for legislation to streamline or improve the program and any other information the board determines to be relevant. The report prepared and provided pursuant to this Paragraph shall not violate any individual taxpayer's confidential information under R.S. 47:1508.

I. Funding.

(1) Except as provided for in Paragraph (4) of this Subsection, the board shall be funded through a dedication of a percentage of the total statewide collections of local sales and use tax on motor vehicles, as provided for in an agreement with local collectors and in accordance with the limitations provided in this Paragraph and the budgetary policy as provided in Paragraph (2) of this Subsection. Monies shall be payable monthly from the current collections of the tax. The dedication shall be considered a cost of collection and shall be deducted by the office of motor vehicles and disbursed to the board prior to distribution of tax collections to local taxing authorities. The dedication shall be in addition to any fee imposed by the office of motor vehicles for the collection of the local sales and use tax on motor vehicles. The amount to be disbursed to the board in any fiscal year shall not exceed three-tenths of one percent of the collections.

(2)

(a) The actual amount to be disbursed to the board by the office of motor vehicles in any fiscal year shall be determined by the requirements of the annual budget adopted by the board for that year, subject to the limitations established in Subparagraphs (1)(a) through (c) of this Subsection. To accomplish this, by the first day of June each year the chairman of the board shall notify the commissioner of the office of motor vehicles regarding the amount to be disbursed to the board for the ensuing fiscal year.

(b) The board shall develop and adopt a budget as required by the Louisiana Local Government Budget Act, R.S. 39:1301, et seq. The board shall have the same fiscal year as the state. The adopted budget may be amended as deemed necessary by the board.

(3) If use tax collections pursuant to R.S. 47:302(K) yields insufficient revenue to fulfill the dedication 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 board shall pay any remaining amount necessary to satisfy the dedication, which payment shall be made into the Local Tax Division Expense Fund within the first thirty days of the fiscal year. The board is authorized to enter into an agreement with the Department of State Civil Service, Board of Tax Appeals, Local Tax Division to pay an amount sufficient to compensate the Local Tax Division for workload increases.

(4)

(a) The board shall fund the initial costs incurred for designing and implementing a single remittance system from the percentage of funding it currently receives pursuant to the provisions of Paragraph (1) of this Subsection. Thereafter, the board shall fund the costs associated with the management, maintenance, and supervision of the single remittance system from the funding it currently receives pursuant to the provisions of Paragraph (1) of this Subsection, subject to the state providing funding for any maintenance or modifications to the single remittance system requested by the state.

(b) The Department of Revenue shall continue to operate the electronic local return and remittance system used and administered by the department as of January 1, 2024, until the board certifies to the Department of Revenue that the uniform electronic local return and remittance system required in this Section is fully designed, implemented, and available for use by taxpayers. The uniform electronic local return and remittance system required in this Section shall be fully designed, implemented, and available for use by taxpayers no later than January 1, 2026. However, from January 1, 2024, through December 31, 2025, the Department of Revenue's annual cost to continue to operate the electronic local return and remittance system shall not exceed five hundred four thousand dollars. Any enhancement to the electronic local return and remittance system requested between January 1, 2024, and December 31, 2025, shall be paid for on a pro rata basis by the collector or collectors requesting the enhancement.

J. Employees. Employees of the board shall serve in unclassified positions.

K. The board shall adopt a strategic plan for its operations, which shall include specific goals and objectives. The plan shall be adopted by July 1, 2018.

L. The board shall provide for the education and training of collectors of local sales and use taxes. Programs shall be offered from time to time as determined by the board, but not less than once per fiscal year.

La. Revenue and Taxation § 47:337.102

Acts 2017, No. 274, §2, eff. June 16, 2017; Acts 2022, No. 596, §1, eff. July 1, 2022; Acts 2023, No. 375, §1, eff. Jan. 1, 2024.