Transcript Act # 1019 HB 667 Nowlin

47:337.28.1 Arbitrary assessments prohibited
Effective date July 8, 2010
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The Arbitrary Assessment bill
I prefer to use the term “estimated’ not
arbitrary.
The purpose of the bill was to prohibit
assessments at year end without an audit
being completed in order to stop prescription
of the tax from occurring.
It provides for the taxpayer to collect court
costs and will not stop prescription of tax if
the collector does not follow the proper
procedures.
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Can you still file an Estimated Assessment?
YES
When can you file an Estimated Assessment?
* 47:337.48(A) Determination and notice of
tax due (failure to file)
The taxpayer fails to file a tax return. The
collector shall determine the amount of tax,
interest and penalty due by estimate or
otherwise.
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* 47:337.53 Assessment and notice when tax
is in jeopardy
47:337.53(A) If the collector finds that a
taxpayer designs quickly to depart from the
taxing jurisdiction, or to remove property
subject to any tax or any lien for a tax, or to
discontinue business, or do any other act
tending to prejudice or render wholly or
partly ineffectual any proceedings that might
be instituted to collect such tax…
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* 47:337.35 Collectors duty to determine
correct tax
After the taxpayer records have been audited,
it remains allowable to estimated the tax due
by projecting the audit findings or by the use
of sampling.
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* 47:337.29 Dealers required to keep
records
If the collector requests and the taxpayer
does not provide the collector with the tax
records required by the statute, then the
collector may prepare an estimated
assessment against the taxpayer.
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* 47:337.36 Power to examine records and
premises of taxpayer
If requested by the collector, the taxpayer
must provide business records to the
collector or his designee (auditor). Failure to
provide records by taxpayer allows the
collector to estimate the tax due with an
assessment.
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What if the collector violates the provisions of
the law?
1. The taxpayer must prove the collector is
not in compliance with the law in court.
2. If the court determines the assessment to
be arbitrary, then prescription will not be
interrupted. Also, the dealer shall be
reimbursed by the collector for the cost of
litigation. (not to exceed 10% of tax, pen, int)
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Summary
Except for the provisions in the new law, the
collector may not make an arbitrary
assessment at year end to stop prescription
of the tax.
If an audit has been performed, the
assessment is not arbitrary (or estimated),
but the collector must issue a proposed
assessment and then a final assessment to
stop prescription before year end.
 Questions?
24:513(B) Requires footnote disclosure on financial
statement.
Effective date January 1, 2011
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Law applies to all collectors collecting for
other jurisdictions.
Requires a new footnote to the collector’s
annual financial statements.
Requires a schedule disclosing total
collections and a schedule of distributions by
taxing authority.
Collector must distribute the report to the
Legislative Auditor and to each taxing
authority.
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Effective date is for fiscal periods beginning
after December 31, 2010. Reports shall be
completed within six months of the close of
the fiscal year.
Provides that fines for violating the provisions
are $1000 and violators are deemed guilty of
malfeasance in office.
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Example of the footnote schedule for 2009
Sales Tax Collections:
• City-Parish
• EBRP School Bd
• EBRP Sewer Fund
• City-Parish Street Impr
• Baker Street Impr
• Zachary Street Impr
• Central Street Impr
• City of Baker
• Baker School District
• City of Zachary
• Zachary School Distr
• City of Central
• Central School Distr
Total Sales Tax Collections
$153,933,776
142,878,072
36,324,145
34,034,539
553,906
1,066,962
669,736
3,605,880
2,829,389
5,833,272
7,216,298
4,203,228
4,864,191
$398,013,394
Other Tax Collections:
• Hotel-Motel Tax
• TIF District Tax
• Public Utility Tax
• Occupational License Tax
• Insurance Premium Tax
• Gaming Admissions Fees
Total Other Tax Collections
$ 4,457,627
970,821
22,192,193
10,511,717
3,550,405
7,555,129
$49,237,892
Note: All collections within a month are
distributed to the proper jurisdiction by the 10th of
the following month.
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A copy of this presentation may be found on
the LATA website. To print a copy of this
presentation go to www.laota.com.