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 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 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 for local sales taxes will be calculated similarly to state taxes, ensuring uniformity in the treatment of vendor's compensation across different jurisdictions. The changes outlined in this bill will take effect for all taxable transactions occurring on or after July 1, 2025.

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