‘LaPolitics’: Steve Carter mulling mayoral run, another swing at Internet sales taxes

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Rep. Steve Carter, a Republican, is thinking about entering the race to replace Baton Rouge Mayor Kip Holden this fall. “I’ve had several groups asking me to get involved and I’m taking a look at it,” Carter tells LaPolitics.

That takes the number of interested lawmakers to three. Sen. Bodi White, a fellow Republican, is exploring his options and Rep. C. Denise Marcelle, a Democrat, has expressed interest in the election too. Rep. Ted James said Thursday he has decided not to run. Councilman John Delgado, former state Sen. Sharon Weston Broome and former Metro Councilman Smokie Bourgeois are all actively campaigning. Activist Sarah Holliday-James has also formed an exploratory committee as has realtor Darryl Gissel. Marty Maley, who ran last year for attorney general, is also thinking about it.

— The author of Act 22 from the first special session, which created a framework for collecting Internet sales taxes, is back with another bill that would require online retailers like Amazon to track purchases made by Louisiana residents and report to the state how much in sales taxes they owe. Online retailers would also have to notify customers of their obligation to self-report, which would be accomplished with a simple document that would arrive alongside purchases.

Speaker Pro Tem Walt Leger’s original bill, Act 22, simply requires out-of-state online retailers with contract affiliates in Louisiana to collect and remit sales taxes. Local governments and the state are splitting the collected 8% sales tax. “I think we all knew at the time this wouldn’t solve the problem entirely,” said Leger, noting sales taxes have always been due on such purchases, but there were collection challenges.

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The new system has only been in place for three weeks, but Leger sees an opportunity to expand on it by implementing a nexus model from Colorado that has been upheld by the 10th Circuit Court of Appeal. Like Act 22, Leger’s HB 1121 would only apply to remote retailers that do $50,000 worth of business in Louisiana annually. Unlike Act 22, it doesn’t matter if they have contract affiliates here—so it casts a wide net and would capture the whales like Amazon.

The proposed legislation, which has been assigned to Ways and Means, would require online retailers to submit to the Department of Revenue a list of all customers who have made purchases greater than $250.

It has some bipartisan support, with Rep. Pat Connick, a Republican, deciding not to file a similar measure and throwing support to the bill by Leger, a Democrat.

In Colorado, Amazon recently decided to stop sending the state its list of customers and has begun collecting sales taxes on behalf of the state. Some studies have suggested Louisiana could receive up to $75 million annually if just Amazon, and no other online retailers, do the same here. “It’s hard to even know how much money it would bring in, but this is a step in the right direction,” said Leger.

They Said It: “I’m not for any deal around here if I’m not a part of it.” —Sen. Francis Thompson, R-Delhi

Jeremy Alford publishes LaPolitics Weekly, a newsletter on Louisiana politics, at LaPolitics.com. Follow him on Twitter, or on Facebook. He can be reached at JJA@LaPolitics.com.

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