Completely Compliance- Louisiana Updates

by DMA Staff | Jul 03, 2017
DMA_CC_Louisiana Update
Louisiana, after ending their regular legislative session without a budget, ended their special session on June 16. While the special session did produce a state budget, it did not address all of the states multiple sales tax proposals that were introduced in the regular session.

Legislation that passed includes: H.B. 333 (now Act 150) which requires the electronic filing of certain tax returns and reports, H.B. 601 (now Act 274) which establishes a Louisiana Sales and Use Tax Commission for Remote Sellers contingent on enactment of federal remote sales tax collection legislation, and H.B. 307 (now Act 211) which requires the Department of Revenue to issue a tax clearance before tax resale certificates are issued or renewed and before certain state procurement contracts are approved.

Governor Edwards is likely to reconvene the Louisiana Legislature for another special session before they are scheduled to meet again in March 2018 to address the state’s pending budget shortfall. This second special session is likely to see the re-introduction of failed revenue raising measures from the 2017 regular session. HB 655 would expand certain sales and services into the tax base to include data processing and storage services, security services, and information services. HB 638 would extend the sunset date of the 1% increase in sales tax rate to June 30, 2023. The rate is currently set to expire June 30, 2018. Other bills proposed would affect state income and franchise tax, such as HB 648 and HB 355. Included in HB 355, however, was a proposal to remove the vendor compensation of 0.935%.

Louisiana is another state considering a commercial activity tax (CAT). HB 628 would have imposed a CAT tax effective January 1, 2018. While this has been tabled, it may appear again in future sessions.