Louisiana Senate Bill SB23

Louisiana 2020 1st Special Session

• Introduced: 6/10/20
• Refer: 6/11/20

Caption

Requires the Department of Revenue to waive penalties and abate interest for certain taxpayers. (Item #29) (7/1/20) (OR DECREASE SG RV See Note)

Impact

If enacted, SB 23 will amend existing tax law to provide a clear period during which taxpayers can escape penalties for late filings and payments related to their 2019 taxes. By allowing for the abatement of these penalties and interest, the bill is expected to lessen the financial burden on many taxpayers and encourage compliance with tax filings. This change could potentially lead to increased revenue for the state as more individuals and businesses may be incentivized to file their taxes without the fear of incurring heavy penalties.

Summary

Senate Bill 23, introduced by Senator Ward, aims to provide significant tax relief by requiring the Louisiana Department of Revenue to waive penalties and abate interest for certain taxpayers regarding the 2019 tax year. The bill proposes to eliminate penalties and interests for late filing and payments for various types of entities, including individuals, corporations, fiduciaries, and partnerships, as long as the returns and payments are made by a specified deadline. This measure is intended to offer relief to taxpayers who may have faced challenges during the tax season due to unforeseen circumstances.

Sentiment

The sentiment around SB 23 appears to be generally positive among taxpayers who view it as a necessary relief measure, especially in light of broader economic challenges. Proponents argue that the bill acknowledges the difficulties taxpayers faced and demonstrates a compassionate response from the government. However, there are concerns among some legislators about the implications of waiving these fees, which may raise questions about long-term revenue for the state. The division in sentiment reflects a typical legislative balance between supporting taxpayers and ensuring the state budget remains robust.

Contention

One point of contention surrounding SB 23 is whether the waiver of penalties and interest for a specific tax year might set a precedent for future tax legislation, potentially leading to expectations of similar measures in the future. Opponents of the bill may argue that such waivers could encourage lax fiscal responsibility among taxpayers, while supporters counter that it fosters goodwill and acknowledges genuine difficulties faced during the tax filing period. The discussions around these points highlight the ongoing debate regarding state tax policy and fiscal management.