Senate Bill No. 112, introduced by Senator Jackson-Andrews, aims to enhance the compensation structure for dealers and remote sellers who collect and remit sales and use taxes in Louisiana. The bill enacts new provisions in the Louisiana Revised Statutes, specifically R.S. 47:337.2(B)(3)(e), 337.18(A)(3), 337.23(C)(1)(a)(ii), and 340(G)(6)(d). It allows dealers to receive compensation in the form of a deduction against local sales and use taxes due, based on the rates specified in local ordinances. To qualify for this deduction, dealers must file their returns timely, on or before the 20th day of the month following the month of collection, and remit all taxes shown due by the same deadline. The bill also clarifies that taxes previously paid to wholesalers cannot be claimed as compensation.

Additionally, the bill mandates that the Uniform Electronic Local Return and Remittance System and the Louisiana Sales and Use Tax Commission for Remote Sellers manage the inclusion of this compensation as a deduction on relevant tax returns. The commission is tasked with applying the specific vendor's compensation rates for each taxing jurisdiction. The legislation is set to take effect on July 1, 2025, and will apply to taxable periods beginning on or after that date. Notably, the bill eliminates a previously proposed maximum compensation limit of $750 for local sales and use taxes for dealers operating multiple business locations within Louisiana.