House Bill No. 523, introduced by Representative Romero, amends existing laws regarding vendor's compensation for the collection and remittance of state and local sales taxes in Louisiana. The bill reduces the state compensation rate for dealers from 1.05% to 0.84% of the amount of tax due and accounted for, while maintaining the maximum compensation limit of $750 per month for dealers operating multiple business locations. Additionally, the bill establishes that local governments can compensate dealers for collecting and remitting local sales taxes at the same rate of 0.84%, also capped at $750 per month.

The bill also introduces new provisions that allow vendor's compensation to be included as a deduction on electronic tax returns, provided that the returns are filed and payments are made timely. It clarifies that the compensation will not be deducted when calculating credits for taxes already paid to wholesalers. Furthermore, the bill specifies that the vendor's compensation will be applied according to each taxing jurisdiction's specific rate and will affect the monthly distributions to political subdivisions accordingly. The provisions of this act will apply to all taxable transactions occurring on or after July 1, 2025, and will take effect upon the governor's signature or after the lapse of time for gubernatorial action.

Statutes affected:
HB523 Engrossed: 47:306(A)(3)