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 rate of state compensation 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 a similar compensation structure for local sales taxes, allowing dealers to receive 0.84% of the amount of local taxes collected and remitted, also capped at $750 per month.

The bill also introduces provisions for vendor's compensation to be included as a deduction on electronic tax returns, contingent upon timely filing and payment. It clarifies that the compensation will not be affected by any credits claimed for taxes already paid to wholesalers. Furthermore, the bill specifies that the vendor's compensation will be applied uniformly across different taxing jurisdictions, ensuring that the specific rates are deducted accordingly from the taxes due. 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.

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