House Bill No. 404, introduced by Representative Willard, seeks to amend various provisions concerning the tax administration functions of the Louisiana Department of Revenue. Key changes include a requirement for shippers of alcoholic beverages to notify the department's secretary of shipments and a stipulation that overpayments of sales and use tax on exempt purchases will not accrue interest on refunds. The bill introduces a new definition for "drop shipment sale," establishing that these sales will be sourced to the location of the transfer of title or possession. Additionally, it mandates a comprehensive return on investment analysis for tax incentives that have led to significant revenue loss, while repealing outdated provisions and certain reporting requirements.

The legislation also modifies interest rates on unpaid taxes, specifying that from July 1, 2025, interest will accrue at the annual rate set in existing law. It revises the tax exemption budget process, requiring assessments of tax exemptions based on effectiveness and analyses for those with substantial revenue loss. The bill repeals the authorization for a no-return option in income tax administration, prohibits refunds of certain sales and use tax overpayments to taxpayers with direct payment numbers, and aligns the interest rate on delinquent tax liabilities with the judicial interest rate. Furthermore, it retains the authority of the office of debt recovery to recover delinquent tax debts from gaming winnings, including sports wagering, while streamlining the overall tax administration process. Various sections of the bill will take effect on July 1, 2025, or upon the governor's signature.

Statutes affected:
HB404 Original: 26:364(C), 47:1601(A)(2), 47:4(B)(1), 47:1517(C), 47:1621(D)(1), 47:1676(C)(4), 26:346(B), 26:354(C)(2), 47:1517(B)(1), 47:1624(A)(2)
HB404 Engrossed: 26:364(C), 47:1601(A)(2), 47:4(B)(1), 47:1517(C), 47:1621(D)(1), 47:1676(C)(4), 26:346(B), 26:354(C)(2), 47:1517(B)(1), 47:1624(A)(2)