The state chapter of the National Federation of Independent Business will push for a state constitutional amendment creating a single sales tax collector for Louisiana, says NFIB Louisiana Director Dawn Starns.
As The Watchdog reports, Starns says the potential amendment has a promised sponsor and supporters from both major parties. The details are being ironed out, but ideally, the state Department of Revenue would handle collection.
Local government taxing entities, which currently collect their own local sales taxes, are wary of relying on the state to provide their funding streams. But supporters of the single-collector concept say it would simplify compliance and improve the state’s business climate.
Dannie Garrett III, an attorney who frequently represents local government entities, says two primary objections to a state entity collecting local sales taxes. First, local officials aren’t sure the state always will be able to send them their money in a timely fashion.
The second concern deals with audits. Say a vendor in a rural parish owes the school board $8,000. For the school board, that might be a significant sum, but the state might not have the time, resources or motivation to audit that vendor, Garrett says. Read the full story.