House Bill No. 523, introduced by Representative Romero, aims to authorize municipalities in Louisiana to compensate dealers for their efforts in accounting for and remitting local sales taxes. The bill enacts several provisions under R.S. 47, including allowing dealers to receive compensation at a rate specified by local ordinances when submitting their sales tax reports, provided that the amounts due are not delinquent. Additionally, it specifies that any credits claimed for taxes already paid to wholesalers cannot be deducted when calculating the compensation for dealers.

The bill also modifies the existing uniform electronic local return and remittance system to include vendor's compensation as an item exempt from uniformity requirements, allowing for variations based on local ordinances. Furthermore, it establishes that vendor's compensation can be deducted against tax due if the sales tax return is filed timely and all taxes are remitted on time. 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 the time for gubernatorial action.