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HB1039 • 2026

TAX/SALES-USE, LOCAL: Provides for local sales and use tax audit procedures (EN SEE FISC NOTE LF RV See Note)

TAX/SALES-USE, LOCAL: Provides for local sales and use tax audit procedures (EN SEE FISC NOTE LF RV See Note)

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Daryl Deshotel
Last action
2026-05-27
Official status
Sent to Governor
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific consequences if a collector fails to follow these procedures, leaving this detail uncertain.

Local Sales and Use Tax Audit Procedures

This bill changes how local tax collectors can audit taxpayers by requiring them to follow certain steps before starting an audit, such as sending written notices and requests for documents.

What This Bill Does

  • Requires local tax collectors to send a notice by certified mail to the taxpayer's last known address before beginning an audit.
  • Specifies that the notice must inform the taxpayer about their right to voluntarily sign a waiver of the prescriptive period.
  • Allows taxpayers and collectors to agree in writing to suspend interest and penalties during the suspension of the prescriptive period.
  • Requires local tax collectors to provide written requests for specific documents before making an estimated assessment.

Who It Names or Affects

  • Local tax collectors who conduct sales and use tax audits.
  • Taxpayers subject to these audits.

Terms To Know

prescriptive period
The time limit within which a taxpayer must pay taxes or face penalties.
waiver of prescription
A written agreement that stops the prescriptive period from running and allows for suspension of interest and penalties.

Limits and Unknowns

  • The bill does not specify what happens if a collector fails to follow these new procedures.
  • It is unclear how this will affect taxpayers who do not receive proper notice or requests.
  • There are no details on enforcement mechanisms for the provisions outlined in the bill.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Adopted

Plain English: HFAHB1039 4883 5128 FOR OFFICE USE ONLY HOUSE FLOOR AMENDMENTS 2026 Regular Session Amendments proposed by Representative Deshotel to Engrossed House Bill No.

  • HFAHB1039 4883 5128 FOR OFFICE USE ONLY HOUSE FLOOR AMENDMENTS 2026 Regular Session Amendments proposed by Representative Deshotel to Engrossed House Bill No.
  • 1039 by Representative Deshotel 1 AMENDMENT NO.
  • 1 2 On page 1, line 19, after "taxpayer that" delete the remainder of the line in its entirety and 3 at the beginning of line 20, delete "execute" and insert "executing" Page 1 of 1 CODING: Words in struck through type are deletions from existing law; words underscored are additions.
Adopted

Plain English: HFAHB1039 4883 5074 FOR OFFICE USE ONLY HOUSE FLOOR AMENDMENTS 2026 Regular Session Amendments proposed by Representative Deshotel to Engrossed House Bill No.

  • HFAHB1039 4883 5074 FOR OFFICE USE ONLY HOUSE FLOOR AMENDMENTS 2026 Regular Session Amendments proposed by Representative Deshotel to Engrossed House Bill No.
  • 1039 by Representative Deshotel 1 AMENDMENT NO.
  • 1 2 On page 1, line 4, after "47:337.26(D)(1)(g)" and before "and 337.28(E)" delete the comma 3 "," and delete "337.26.1," 4 AMENDMENT NO.
  • 2 5 On page 1, line 5, after "collectors;" delete the remainder of the line in its entirety and at the 6 beginning of line 6, delete "selecting taxpayers for audit by certain collectors;" 7 AMENDMENT NO.
Adopted

Plain English: HCAHB1039 4883 4984 HOUSE COMMITTEE AMENDMENTS 2026 Regular Session Amendments proposed by House Committee on Ways and Means to Original House Bill No.

  • HCAHB1039 4883 4984 HOUSE COMMITTEE AMENDMENTS 2026 Regular Session Amendments proposed by House Committee on Ways and Means to Original House Bill No.
  • 1039 by Representative Deshotel 1 AMENDMENT NO.
  • 1 2 On page 1, line 2, after "reenact" delete the remainder of the line in its entirety and delete 3 lines 3 through 11 in their entirety and insert the following: 4 "R.S.
  • 47:337.26(D)(1)(introductory paragraph), 337.67(C)(introductory paragraph) 5 and (1), 337.69(A), and 337.70(C)(3) and to enact R.S.
Draft

Plain English: HCAHB1039 4883 4834 HOUSE COMMITTEE AMENDMENTS 2026 Regular Session Amendments proposed by House Committee on Ways and Means to Original House Bill No.

  • HCAHB1039 4883 4834 HOUSE COMMITTEE AMENDMENTS 2026 Regular Session Amendments proposed by House Committee on Ways and Means to Original House Bill No.
  • 1039 by Representative Deshotel 1 AMENDMENT NO.
  • 1 2 On page 1, line 2, after "reenact" delete the remainder of the line in its entirety and delete 3 lines 3 through 11 in their entirety and insert the following: 4 "R.S.
  • 47:337.26(D)(1)(introductory paragraph), 337.67(C)(introductory paragraph) 5 and (1), 337.69(A), and 337.70(C)(3) and to enact R.S.

Bill History

  1. 2026-05-27 H

    Sent to the Governor for executive approval.

  2. 2026-05-26 S

    Signed by the President of the Senate.

  3. 2026-05-26 H

    Enrolled and signed by the Speaker of the House.

  4. 2026-05-26 H

    Received from the Senate without amendments.

  5. 2026-05-25 S

    Rules suspended. Read by title, passed by a vote of 36 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

  6. 2026-05-19 S

    Reported without Legislative Bureau amendments. Read by title and passed to third reading and final passage.

  7. 2026-05-19 S

    Rules suspended. Reported favorably. Rules suspended. Read by title and referred to the Legislative Bureau.

  8. 2026-05-12 S

    Read second time by title and referred to the Committee on Revenue and Fiscal Affairs.

  9. 2026-05-11 S

    Received in the Senate. Read first time by title and placed on the Calendar for a second reading.

  10. 2026-05-07 H

    Read third time by title, amended, roll called on final passage, yeas 98, nays 0. Finally passed, title adopted, ordered to the Senate.

  11. 2026-05-06 H

    Scheduled for floor debate on 05/07/2026.

  12. 2026-05-06 H

    Read by title, amended, ordered engrossed, passed to 3rd reading.

  13. 2026-05-05 H

    Reported with amendments (12-0).

  14. 2026-03-31 H

    Read by title, under the rules, referred to the Committee on Ways and Means.

  15. 2026-03-30 H

    Read by title. Lies over under the rules.

Official Summary Text

TAX/SALES-USE, LOCAL: Provides for local sales and use tax audit procedures (EN SEE FISC NOTE LF RV See Note)

Current Bill Text

Read the full stored bill text 
ENROLLED
2026 Regular Session
HOUSE BILL NO. 1039
BY REPRESENTATIVE DESHOTEL
1 AN ACT
2 To amend and reenact R.S. 47:337.26(D)(1)(introductory paragraph),
3 337.67(C)(introductory paragraph) and (1), 337.69(A), and 337.70(C)(3) and to enact
4 R.S. 47:337.26(D)(1)(g) and 337.28(E), relative to local sales and use tax audit
5 procedures; to establish requirements for local collectors; to require collectors to
6 provide written requests for certain documentation; to authorize the suspension of
7 interest and penalties under certain circumstances; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:337.26(D)(1)(introductory paragraph), 337.67(C)(introductory
10 paragraph) and (1), 337.69(A), and 337.70(C)(3) are hereby amended and reenacted and R.S.
11 47:337.26(D)(1)(g) and 337.28(E) are hereby enacted to read as follows:
12 §337.26. Contracts for purposes relating to collection of sales and use taxes
13 * * *
14 D.(1) Prior to initiating an examination or audit of a taxpayer, the local
15 collector shall provide notice of the intent to audit which shall be sent by certified
16 mail to the taxpayer at the taxpayer's last known address. Such The notice shall:
17 * * *
18 (g) Advise the taxpayer that executing a waiver of the prescriptive period
19 pursuant to R.S. 47:337.67(C)(1) is voluntary.
20 * * *
21 §337.28. Collector's authority to determine the tax in certain cases
22 * * *
23 E. Prior to making an estimate of tax due pursuant to Subsection A of this
24 Section, the collector shall provide the dealer with a written request that identifies
25 all books, records, papers, vouchers, accounts, and documents sought for
26 examination pursuant to R.S. 47:337.36. If the collector does not comply with the
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HB NO. 1039 ENROLLED
1 requirements of this Subsection before issuing an estimated assessment, the
2 assessment shall be considered arbitrary pursuant to R.S. 47:337.28.1.
3 * * *
4 §337.67. Suspension and interruption of prescription
5 * * *
6 C. The running of such the prescriptive period may also be suspended as
7 follows:
8 (1) By means of a written agreement between the taxpayer and the collector
9 made prior to the lapse of such the prescriptive period. If a taxpayer and a collector
10 execute an agreement pursuant to this Paragraph, the parties may suspend the accrual
11 of additional interest or delinquency penalties on unpaid sales and use taxes during
12 the suspension of the prescriptive period.
13 * * *
14 §337.69. Interest on unpaid taxes
15 A. When any taxpayer fails to pay a tax, or any portion thereof, on or before
16 the day where it is required to be paid under the provisions of this Chapter, interest
17 shall be added to the amount of tax due. Such The interest shall be computed from
18 the due date until the tax is paid. The interest shall be an obligation to be collected
19 and accounted for in the same manner as if it were a part of the tax due and can may
20 be enforced in a separate action or in the same action for collection of the tax. and
21 Except as provided in R.S. 47:337.67(C)(1), interest shall not be waived or remitted.
22 * * *
23 §337.70. Penalty for failure to make timely return
24 * * *
25 C.
26 * * *
27 (3) The provisions of this Section shall not apply if the taxpayer has paid the
28 amount due under protest in accordance with R.S. 47:337.63, has executed a waiver
29 of prescription and an agreement to suspend the accrual of additional delinquency
30 penalties pursuant to R.S. 47:337.67(C)(1), or has entered into an installment
Page 2 of 3
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are additions.
HB NO. 1039 ENROLLED
1 agreement with the department for the payment of the amount due and is in
2 compliance with the terms of the agreement.
3 * * *
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.