Provides for the rate and aggregate amount of compensation authorized for the collection and remittance of state sales and use taxes (Item #30) (OR -$14,000,000 GF RV See Note)
Impact
The implementation of HB 22 is set to influence the financial responsibilities of dealers in Louisiana. By enhancing the compensation rate and total amount that can be retained, the bill is intended to ease the burden on businesses that are responsible for collecting and remitting sales and use taxes. This change could result in increased compliance with sales tax laws, affecting the state’s revenue dynamics, as dealers will have more incentive to ensure accurate and timely remittance of collected taxes.
Summary
House Bill 22, introduced by Representative Davis, modifies the compensation rate and aggregate allowance for dealers involved in the collection and remittance of state sales and use taxes. The bill proposes increasing the compensation rate from 0.935% to 1.5% of the total taxes due, allowing dealers to retain a greater portion of their collected taxes. Furthermore, the maximum allowable aggregate state compensation for dealers would rise from $1,500 to $2,500 per month. This adjustment aims to provide support to dealers in managing the costs associated with tax compliance.
Sentiment
Overall, the sentiment surrounding HB 22 appears to be supportive among business stakeholders and dealers who perceive the legislative change as beneficial. Many proponents argue that the increased compensation will foster better relationships between the state and tax-collecting entities, ultimately promoting a more compliant environment. However, there may be concerns raised by fiscal watchdog groups about the potential strain on state resources and whether the increased compensation is justified in the long term.
Contention
While there is general support, some discussions hint at underlying contentions regarding the proportionate impact this bill might have on state revenue. Critics could argue that increasing the compensation limits may affect the overall tax revenue generated for state programs. The balance between supporting local businesses and maintaining adequate funding for state services remains a potential point of contention within legislative and public discourse surrounding the bill.
Provides for the amount of compensation dealers may retain for timely filing and remittance of state sales tax. (Item #30) (7/1/20) (EGF DECREASE GF RV See Note)
Provides for the payment of vendor's compensation for the timely collection and remittance of state and local sales taxes (EG1 DECREASE LF RV See Note)
Provides for the amount of compensation persons required to collect state sales and use tax may deduct for remitting taxes (Item #30) (EN -$2,100,000 GF RV See Note)
Authorizes a deduction as compensation for certain dealers and remote sellers that collect and remit sales and use taxes. (7/1/25) (EN DECREASE LF RV See Note)
Includes accommodations intermediaries within the definition of a marketplace facilitator for purposes of collection and remittance of sales and use taxes on remote sales (EN +$350,000 OF EX See Note)
(Constitutional Amendment) Authorizes the legislature to provide by law for the collection of sales and use taxes levied within the state (Item #27) (EG SEE FISC NOTE SG EX See Note)