LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 21 SLS 201ES 110
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 16, 2020 3:35 PM Author: MCMATH
Dept./Agy.: Revenue
Subject: Vendor’s Compensation Analyst: Benjamin Vincent
TAX/SALES EG DECREASE GF RV See Note Page 1 of 1
Provides for the amount of compensation dealers may retain for timely filing and remittance of state sales tax. (Item #30)
(7/1/20)
Present law provides that dealers may retain 0.935% of taxes levied under R.S. 47:302, 47:321, 47:331, and 51:1286, not
to exceed $1,500 per month, provided the return is filed timely and payment is made timely.
Proposed law increases the amount that may be retained to 1.1% of the applicable taxes collected. Proposed law additionally
reduces the maximum retained amount allowed per dealer to $1,200 per month, and sets a minimum retained amount for
monthly filers of $15 monthly.
Effective July 1, 2020.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. DECREASE DECREASE DECREASE DECREASE DECREASE
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other DECREASE DECREASE DECREASE DECREASE DECREASE
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
LDR anticipates that the implementation of proposed law will incur programming, development, and testing costs of
$103,000 of staff time to revise multiple forms for tax returns.
REVENUE EXPLANATION
Proposed law would reduce the net amount remitted to the state under sales and use tax for general and motor vehicle
sales, by increasing the amount that dealers are allowed to retain for timely filing and remittance, provided that they are
sufficiently below the current maximum of eligible sales. Proposed law additionally reduces the monthly maximum that
dealers are allowed to retain from $1,500 to $1,200, and sets a minimum amount retained of $15 per dealer.
Under the assumption that the proportion of eligible tax collections remains roughly stable at its FY19 level, proposed law
would reduce total net remittances by a maximum of approximately $3.3 million in FY21. However, the monthly amount
retained by large vendors who are already constrained by the $1,500 monthly cap would be reduced to $1,200. This would
mitigate the negative impact to net state revenue collections by an unknown extent. The magnitude of the negative impact
of the $15 monthly minimum per dealer is similarly indeterminable.
The Dept of Revenue reports that it does not have data available to determine what share of vendor compensation is
constrained by the monthly cap, and thus can not estimate the share that would be lost to the state as a result of this bill.
The bulk of the impact that does occur would fall upon general fund collections, but a portion would reduce net revenues
dedicated for state and local purposes such as the Tourism Promotion District, the LA Economic Development Fund, various
hotel/motel room rental dedications etc.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Gregory V. Albrecht
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}


Statutes affected:
SB21 Original: 47:306(A)(3)
SB21 Engrossed: 47:306(A)(3)