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HLS 26RS-1224 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 658
BY REPRESENTATIVE CARLSON
TAX/SALES & USE: Provides for centralized collection of local sales and use taxes by the
Dept. of Revenue
1 AN ACT
2 To amend and reenact R.S. 47:337.6(A), 337.16, 337.25, 337.64(A), and
3 337.80(A)(introductory paragraph), to enact R.S. 47:337.22(F) and 337.23(J), and
4 to repeal R.S. 47:337.13 and 337.14, relative to the collection of local sales and use
5 taxes; to require that all sales and use taxes levied by any local taxing authority be
6 collected by the state; to provide for the duties and authority of the secretary of the
7 Department of Revenue; to provide for the accounting and disposition of local taxes
8 collected; to require reporting; to authorize the inspection of certain records; to
9 provide for certain administrative remedies; to authorize administrative rulemaking;
10 to repeal certain provisions relating to local collection of sales and use taxes; to
11 provide for effectiveness; and to provide for related matters.
12 Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 47:337.6(A), 337.16, 337.25, 337.64(A), and 337.80(A)(introductory
14 paragraph) are hereby amended and reenacted and R.S. 47:337.22(F) and 337.23(J) are
15 hereby enacted to read as follows:
16 §337.6. Definitions
17 A. The following words, terms, and phrases used in this Chapter shall have
18 the meaning ascribed to them in this Subsection, unless the context clearly indicates
19 a different meaning:
20 (1) "Collector" means the secretary of the Department of Revenue.
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1 (2) "Department" means the Department of Revenue.
2 (3) "Local collector" means the single collector or collection commission for
3 each parish.
4 (1) (4) "Local ordinance", for purposes of this Chapter, shall include both
5 ordinances and resolutions pursuant to which a political subdivision levies a sales
6 and use tax and otherwise provides with respect thereto.
7 (5) "Local taxing authority" or "taxing authority" means a political
8 subdivision.
9 (2) (6) "Political subdivision" means a parish, municipality, and any other
10 unit of local government, including a school board and a special district, authorized
11 by law to levy and collect a sales and use tax.
12 (3) (7) "Secretary" or "secretary of revenue" means the secretary of the
13 Department of Revenue for the state of Louisiana.
14 * * *
15 §337.16. Authority to collect local sales and use taxes; state central collection
16 A. The secretary of the Department of Revenue is hereby authorized to
17 contract with all the governing authorities of any taxing authority, at the request of
18 the subdivisions, to collect and enforce the collection of any sales and use tax, and
19 related penalty, interest, or other charge, levied by the taxing authorities. In order
20 to collect and enforce any such tax, the secretary is vested with all the power and
21 authority conferred by this Title. Notwithstanding any provision of law to the
22 contrary, beginning July 1, 2027, all sales and use taxes levied by a local taxing
23 authority shall be collected by the state through the secretary of revenue. The
24 secretary shall adopt rules and regulations and prescribe forms for the collection of
25 local taxes consistent with the provisions of this Part.
26 B. The contract between the Department of Revenue and such taxing
27 authorities shall be executed by the secretary of the Department of Revenue and the
28 proper official or officials of the governing authorities of the taxing authorities. The
29 contract shall provide the manner, the charges and costs of collection, if any, to be
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1 paid by the taxing authorities, and such other terms and conditions necessary to
2 effectuate the contract. The secretary shall establish a program for the collection and
3 distribution of sales and use taxes levied by all local taxing authorities in the state.
4 The avails of these taxes are referred to hereafter in this Part as "nonstate tax
5 proceeds". Within the department there shall be a specific staff with the primary
6 responsibility of ensuring the prompt collection and remittance of nonstate tax
7 proceeds. A member of the staff shall be available every day of the year,
8 twenty-four hours per day. The department shall provide for and maintain a system
9 which allows for the sharing of real time data on the collection of taxes for the
10 benefit of the local taxing authorities for which the taxes are collected.
11 C. The program shall provide for the transmission of the nonstate tax
12 proceeds to each respective local collector as follows: taxes collected by electronic
13 means shall be transmitted within four days of receipt, and taxes collected by check
14 shall be transmitted within twenty days of receipt. The method for accounting and
15 distribution of nonstate tax proceeds shall be determined by agreement of the
16 secretary and the state treasurer, and nonstate tax proceeds shall not be considered
17 state monies and shall therefore not be subject to appropriation. The secretary shall
18 deduct an amount not greater than one-half of one percent of the taxes collected as
19 compensation for the collection service and to provide for continued support of the
20 staff assigned to this function. The fee to be charged for collection on behalf of each
21 taxing authority shall be determined by agreement of the secretary and the respective
22 taxing authority.
23 D. No later than February 1, 2027, the single collector for each parish shall
24 provide the secretary with a copy of all local ordinances affecting the imposition of
25 sales and use taxes in the parish and shall notify the secretary within ten days after
26 approval of any action imposing a new tax or otherwise affecting the imposition of
27 an existing tax. The notice shall be issued no later than seventy-five days prior to the
28 effective date of the change and shall specify the tax rate or base change and the time
29 period during which the change shall be in effect. The notice shall also include a
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1 copy of the local tax ordinance and any other information as may be required by the
2 secretary.
3 E. The secretary shall cause a monthly reconciliation of the account for each
4 parish to be conducted. The reconciliation shall provide detailed information
5 regarding the amounts of tax collected and remitted to the local collector.
6 F.(1) On a quarterly basis, the secretary shall provide a report of the taxes
7 collected and the cost of collection to each separate local taxing authority for which
8 sales and use taxes were collected and remitted pursuant to this Section. The report
9 shall include the name, address, and account number of each person from whom the
10 secretary has collected a tax payment, or to whom he has made a refund payment or
11 credit, during the quarter covered by the report.
12 (2) Upon the request of a local taxing authority, the secretary shall make an
13 additional quarterly report to the taxing authority that includes the amount of tax due
14 from each person identified by the secretary as doing business in the jurisdiction of
15 the taxing authority who has failed to pay the taxes determined to be due by the
16 secretary. The additional report shall state whether there has been a partial tax
17 payment by the delinquent taxpayer and whether the taxpayer is also delinquent in
18 the payment of state sales and use taxes. The report shall also include an explanation
19 of any action taken by the secretary to collect the delinquent taxes owed to the taxing
20 authority.
21 (3) If the local taxing authority determines that a person doing business in
22 its jurisdiction is not included in the report, the taxing authority may provide to the
23 secretary the name and address of the person, and within ninety days of receipt of the
24 information, the secretary shall send one of the following to the taxing authority:
25 (a) An explanation as to why the person is not obligated to pay the tax.
26 (b) A statement that the person is obligated to pay the tax and that the tax is
27 delinquent.
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1 (c) A statement that the person is obligated to pay the tax, and the amount
2 of the tax that has been collected and credited to the taxing authority's special
3 account.
4 G. Not more than twice per year, the governing authority of a taxing
5 authority may request to investigate the records of the department concerning the
6 collection of the taxes it levies. The secretary shall acknowledge and respond to any
7 such request within ten days, and the investigation shall take place no more than
8 twenty days after the date of the secretary's response or at the convenience of the
9 taxing authority, whichever is later. Upon request of the taxing authority or the
10 secretary, the legislative auditor shall, to the degree practicable, provide assistance
11 to the taxing authority in the investigation of the records.
12 H. The provisions of this Title that apply to the collection of state sales and
13 use taxes shall also apply to the collection of all local sales and use taxes by the
14 secretary in accordance with the provisions of this Section.
15 I. The secretary shall have no duty or authority to in any way administer the
16 levy and enforcement of any tax levied by a local taxing authority. All responsibility
17 for administration and enforcement of sales and use taxes, including audits and the
18 consideration and payment of refund claims, shall remain with the local taxing
19 authority levying the tax.
20 J. Notwithstanding any provision of law to the contrary, any taxpayer who
21 is aggrieved by an assessment of sales and use tax due when the assessment is made
22 by a local collector pursuant the provisions of this Chapter, or who has a claim for
23 a refund or credit for an overpayment of taxes, may appeal to the Board of Tax
24 Appeals for a redetermination of the assessment or a determination of the alleged
25 overpayment. The appeal shall be made in accordance with the applicable provisions
26 of Chapter 17 of this Subtitle.
27 * * *
28 §337.22. Sales and use tax returns
29 * * *
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1 F. Beginning July 1, 2027, the sales and use tax return for the payment of
2 sales and use taxes levied by a local taxing authority shall be prescribed by the
3 secretary pursuant to the authority established in R.S. 47:337.16.
4 §337.23. Uniform electronic local return and remittance system; official record of
5 tax rates and exemptions; filing and remittance of local sales and use taxes;
6 penalties for violations; state central collection
7 * * *
8 J. Beginning July 1, 2027, the secretary shall be responsible for the
9 collection of any sales and use tax levied by a local taxing authority in Louisiana.
10 The tax return and remittance system to be employed by the secretary shall reflect
11 the requirements of this Section to the greatest degree practicable, and shall be
12 established pursuant to rules and regulations promulgated in accordance with the
13 Administrative Procedure Act.
14 * * *
15 §337.25. Authority of local collectors to sue
16 Each local collector of each taxing authority of this state, who is charged by
17 law with the duty of collecting a tax as disbursed by the state, shall be the proper
18 party to bring suits in his official capacity for the collection of such taxes on behalf
19 of a local taxing authority.
20 * * *
21 §337.64. Alternative remedy for dealers
22 A. Any taxpayer who has received a notice of assessment for sales and use
23 taxes from any local collector or local taxing authority and whose remedy is to make
24 a payment under protest may in lieu thereof comply with the alternative provisions
25 of this Section, rather than making a payment under protest.
26 * * *
27 §337.80. Interest on refunds or credits
28 A. Each local collector shall compute on all refunds or credits and allow
29 interest as part of the refund or credit as follows:
30 * * *
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1 Section 2. R.S. 47:337.13 and 337.14 are hereby repealed in their entirety.
2 Section 3. This Act shall become effective on January 1, 2027, but only if the
3 proposed amendment of Articles VI and VII of the Constitution of Louisiana contained in
4 the Act which originated as House Bill No. ____ of this 2026 Regular Session of the
5 Legislature is adopted at a statewide election and becomes effective.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 658 Original 2026 Regular Session Carlson
Abstract: Transfers responsibility for the collection of all local sales and use taxes to the
secretary of the Dept. of Revenue (DOR) beginning July 1, 2027, with duties for
enforcement and administration of local sales and use tax to remain with local tax
collectors.
Present constitution authorizes local governments and other political subdivisions to levy
and collect sales and use taxes. Requires each parish to have a single tax collector or single
collection commission for all taxing authorities in the parish.
Present law authorizes the secretary of DOR ("secretary") to contract with the governing
authority of a local taxing authority ("taxing authority"), at the request of the authority, to
collect and enforce the collection of its sales and use taxes and related penalties, interest, or
other charges.
Proposed law requires that all sales and use taxes levied by any taxing authority in the state
shall be collected by the secretary, beginning July 1, 2027. Requires the secretary to adopt
rules and regulations and prescribe forms for the collection of these taxes.
Proposed law requires the establishment of a program for the collection and distribution of
local sales and use taxes ("nonstate tax proceeds"), to include the designation of specific
staff within the department with the primary responsibility of ensuring the prompt collection
and remittance of nonstate tax proceeds. Requires that a staff member be available every
day of the year, 24 hours per day. Requires the DOR to provide for and maintain a system
which allows for sharing of real time data on the collection of local taxes for the benefit of
the local taxing authorities for whom the taxes are collected.
Proposed law requires that nonstate tax proceeds be transmitted to each respective local
collector as follows: taxes collected by electronic means shall be transmitted within four
days of receipt, and taxes collected by check shall be transmitted within 20 days of receipt.
Requires the state treasurer and the secretary to determine the method for accounting and
distribution of nonstate tax proceeds. Stipulates that these monies shall not be considered
state monies and shall not be subject to appropriation.
Proposed law provides that the distribution of nonstate tax proceeds shall be conducted
without necessity of an appropriation. Requires the secretary to deduct an amount not
greater than one-half of 1% of the taxes collected as compensation for the collection service
and to provide for continued support of the staff assigned to this function. Provides that the
fee to be charged for collection on behalf of each taxing authority shall be determined by
agreement of the secretary and the respective taxing authority.
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Proposed law stipulates that the secretary shall have no duty or authority to in any way
administer the levy and enforcement of any tax levied by any local taxing authority. Further,
provides that all responsibility for administration and enforcement of sales and use taxes,
including the consideration and payment of refund claims, shall remain with the local taxing
authority levying the tax.
Proposed law requires the single collector in each parish, by Feb. 1, 2027, to provide to the
secretary copies of all local ordinances affecting sales and use taxes imposed in the parish.
Requires further that a local taxing authority levying a sales and use tax shall notify the
secretary within 10 days after approval, and no later than 75 days prior to the effective date,
of any action concerning a new tax or the imposition of an existing tax.
Proposed law requires the secretary to prepare a monthly reconciliation of the account for
each parish. Requires that the reconciliation feature detailed information regarding the
amounts of tax collected and remitted to the local collector.
Proposed law requires the secretary to provide to each taxing authority a quarterly report of
taxes collected and the cost of collection. Requires taxing authorities to report to the
secretary the names of any persons doing business in the jurisdiction of the taxing authority
that are not included in the quarterly report.
Proposed law authorizes a taxing authority to request an additional report of persons doing
business in its jurisdiction who have failed to pay taxes due, which report shall include
information regarding partial payments, delinquent taxes, and steps taken to collect the tax
due, and provides for the information to be included in the secretary's report.
Proposed law authorizes, not more than twice per year, the governing authority of a taxing
authority to request to investigate the records of the DOR concerning the collection of the
taxes it levies. Requires the secretary to acknowledge the request and respond within 10
days. Provides that the investigation may occur no more than 20 days after the date of the
secretary's response or at the convenience of the taxing authority, whichever is later.
Requires the legislative auditor, upon request of the taxing authority or the secretary and to
the degree practicable, to provide assistance in the investigation of the records.
Proposed law stipulates that the collection by the secretary of sales and use taxes levied by
a taxing authority is subject to the provisions of present law that govern collection of state
sales and use taxes.
Present law requires that any sales and use tax levied by taxing authorities located within a
single parish may be collected by a single tax collector for that parish and provides for
contract collection agreements and joint sales and use tax commissions as mechanisms for
collection of local sales and use taxes. Proposed law repeals present law.
Present law requires that local sales and use taxes be collected by a central collection
commission in those parishes where a single collector has not been established by July 1,
1992, and provides for the composition and authority of the commission. Proposed law
repeals present law.
Effective Jan. 1, 2027, if the proposed amendment of Articles VI and VII of the Constitution
of La. contained in the Act which originated as House Bill No. ___ of this 2026 R.S. is
adopted at a statewide election and becomes effective.
(Amends R.S. 47:337.6(A), 337.16, 337.25, 337.64(A), and 337.80(A)(intro. para.); Adds
R.S. 47:337.22(F) and 337.23(J); Repeals R.S. 47:337.13 and 337.14)
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