The State of Louisiana Announces Voters Will Decide to Overtake the Sales Tax Collection System

The Louisiana Legislature recently passed H.B 199, that would establish a centralized sales tax commission and ultimately break up the state’s current systems of collections. Presently, the state allows parishes to independently collect their own sales and use taxes from in-state businesses while the Louisiana Remote Sellers Commission collects for out of state sellers. The Bill is a proposed constitutional amendment, which while require voter approval. The constitutional amendment suggests creating the State and Local Streamlined Sales and Use Tax Commission. (“Commission”) to “provide for the streamlined electronic filing and remittance of sales and use taxes levied by all taxing authorities within the state,” according to H.B 199. Additionally, the “Commission” would issue policy advice regarding sales and use tax levied by all taxing jurisdictions in the state and would develop rules, regulations, and guidance to simplify and streamline the audit process. The creation of the new “Commission” would abolish after one year the Louisiana Sales and Use Tax Commission for Remote Sellers and the Louisiana Uniform Local Sales Tax Board and would assume such responsibilities. Voters that reside in Louisiana will have the opportunity to cast their ballots on October 9, 2021, to vote on this proposed amendment. If passed by voters, it will allow legislature to authorize statutory sales tax provisions with a two-thirds vote. (H.B. 199, Laws 2021)

UPDATE: Due to complications with Hurricane Ida, Louisiana is postponing their elections by one month. The October election tax referendums are now pushed to November 13, 2021. The referendum is regarding a centralized sales tax commission (to handle all state and local sales and use taxes) and income tax code overhaul.

Posted on September 28, 2021