House Bill No. 1039, introduced by Representative Deshotel, aims to amend and enhance local sales and use tax audit procedures in Louisiana. The bill mandates that local tax collectors notify taxpayers of their intent to audit via certified mail, including specific information about the audit and clarifying that any waiver of the prescriptive period is voluntary and cannot be a condition for concluding an audit. It establishes that taxpayers should be selected for audits through random selection, although targeted audits can occur if there is reasonable cause to believe a taxpayer has not properly managed their tax obligations. Additionally, the bill requires collectors to obtain majority approval from relevant commissions before initiating audits and to provide taxpayers with a written request detailing the records needed for examination, allowing 30 days for compliance.

The bill also addresses arbitrary assessments, defining them more comprehensively to include assessments that are grossly disproportionate to the original amount after a taxpayer has agreed to a court decision. It prohibits collectors from conditioning the issuance of tax notices on a taxpayer's agreement to waive the prescriptive period and creates an exception for interest accrual for taxpayers who execute such waivers. Furthermore, it retains existing penalties for late tax filings but exempts taxpayers who have executed a waiver of prescription at the collector's request from accruing additional penalties. Overall, the bill seeks to provide greater protections for taxpayers against coercive practices and arbitrary assessments in local tax administration.

Statutes affected:
HB1039 Original: 47:26(D)(1), 47:1(A), 47:69(A), 47:70(C)(3)