Louisiana voters will have the opportunity this fall to simplify the tax system for businesses, after the House and Senate unanimously approved a final compromise on the constitutional amendment authorizing a major overhaul of Louisiana’s local sales tax collection system.
HB 199 by Speaker Clay Schexnayder seeks to establish a new statewide entity, the State and Local Streamlined Sales and Use Tax Commission, to streamline both electronic filings and remittance of local sales and use taxes.
The Commission will have eight appointed members who must be confirmed by the Senate, four representing local governments and four representing the state. Any promulgation of rules, issuance of policy advice and adoption of rule changes would require a 2/3 majority vote of the Commission. It will also serve as the entity to perform audit functions for out-of-state businesses and develop rules to streamline the audit process for companies with a physical presence in Louisiana.
This compromise constitutional amendment was drafted by the Speaker after months of independent study and lengthy discussion between the business community and local government.
