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Rep. Desotel’s bill to curb duplicative sales-tax audits reported as amended after committee pares one provision
Summary
Representative Desotel told the Ways and Means Committee HB1039 aims to increase fairness and transparency in local sales-tax audits; the committee adopted most amendments but held amendment 4 (requiring auditing firms be domiciled in Louisiana) for further work and reported the bill as amended.
Representative Desotel introduced House Bill 1039 on May 5 to standardize local sales-and-use tax audit procedures and to add consistency and transparency across taxing authorities.
Desotel presented a nine-amendment package and said the bill grew from constituent complaints and his own experience that businesses sometimes face multiple simultaneous audits from different parishes. "We have out of state firms that are coming into to our locals and, saying, you know, we'll do you audits for you ... and they'll start auditing for, let's say, 3 or 4 parishes, or in some cases ... 7 parishes at 1 time," Desotel said, arguing the practice places a "tremendous burden" on businesses.
Amendment 4 would have required private auditing firms that contract with taxing authorities to be domiciled in Louisiana. Several members expressed concern about that provision; the sponsor said he did not intend to prevent audits of out‑of‑state headquartered businesses and that he was willing to work on or strike the language. The committee agreed to adopt all of the amendments except amendment 4 and authorized staff to make technical changes while the sponsor continues work on the domiciled-firm language.
Representative Billings raised a policy concern about an amendment that would allow a taxpayer and a collector to agree to suspend the accrual of interest and delinquency penalties after executing a waiver of the prescriptive period. "So just dragging that out, that's worrisome," Billings said, asking whether the provision could remove a financial incentive to resolve audits. The sponsor said suspension would require agreement by both parties.
Representative Bridal and others described cases in which businesses faced multiple simultaneous audits and substantial administrative burdens; Desotel said the amendments had reduced some of the bill’s original teeth but represented a step toward guardrails for both parishes and businesses.
Representative Orsgeron and others filed support; committee staff read multiple witness cards in support from business groups including the Louisiana Retailers Association and the NFIB. Representative Orsgeron moved to report HB1039 as amended; there were no objections and the committee ordered the bill reported as amended.
