Internet Preemptions Affect tax base...

The Center for Budget and Policy Priorities has produced two reports that look at Internet tax issues currently before Congress.

The first report, "A Five-year Extension of the Internet Tax Moratorium Would Further Erode the Tax Base of States and Localities," addresses the issue of the length of the moratorium extension. The paper argues that if the remote sales tax collection issue is not addressed in legislation extending ITFA, an extension any longer than two years is likely to accelerate the erosion of the state and local sales tax base that is occurring because of the de facto sales-tax-exempt status of Internet purchases.

The second report, "Should New Limits on State Corporate Profits Taxes Be a Quid Pro Quo for the States’ Ability to Tax Internet Sales?" addresses the business income tax nexus issue. The paper argues a "substantial physical presence" nexus threshold could eviscerate a $30 billion annual revenue source. The reports are available at http://www.cbpp.org .

The National Retail Federation has created an Internet site to educate consumers and lawmakers on "fair and equitable sales tax collection."

The web site is designed to provide information about best practices for simplifying and modernizing systems and to allow citizens to read about proposed laws and voice their opinions to elected officials. The web site is http://www.salestaxfairness.com 

(Federation of Tax Administrators Tax Express 9/10.01)

In the wake of Louisiana reporting record breaking numbers, the Iowa Department of Finance and Revenue recently reported that increased audits, rather than an amnesty program is a better way to collect delinquent taxes.

According to a recent news release, the Department’s Director indicated that the state has not had an amnesty program since 1986, and that most individuals and businesses not paying will be picked up through an aggressive enforcement program.

 

Sales tax holiday...

Although we don’t know the current position of this bill, our friend Jerry McWherter has informed us that there is an active bill in Congress to provide a Federal reimbursement to the States for a limited tax holiday during a period beginning the week after thanksgiving and extending to the first week of December. Program would exclude items of food, tobacco products, and alcoholic beverages.

While I’m certainly not one to kick a gifted horse, that is a very short period of time to create much of a stimulus.

Seems like just last month, I was involved in planning the organizational meeting for 2001. Now it’s almost time for the annual conference. Probably by the time you read this the annual will be history. What a year! LATA has suffered the slings and arrows of the legislature and again our organization has proved that we are no easy push over, as shown by our tenacity in opposing House Bill 1391 by Representative William B. Daniel. There is however, no rest for the weary and we must always be on alert for harmful legislation. Now more than ever since local taxation is open season with each and every session. Thanks again to those dedicated members of our Legislative Rules and Regulations Committee for their hard work and commitment to this organization. Even as this article is penned, this same committee is busy reviewing the Elevated Boat case and its long reaching, detrimental effects on our ability to collect penalty and interest from taxpayers. More on this at the annual conference.

My sincere gratitude to each and every committee that has functioned this year, you guys/gals have made a difference with your unselfish acceptance of the responsibility that comes with being on one of the many committees that exists within this organization. Without you, this organization would not experience the success that is uniquely ours, nor would the jurisdictions that we represent share in this success. I am especially proud of the establishment of the Business and Industry Committee which has met at two of our quarterly conferences and will convene again at the annual as well as participate in what promises to be a very informative Business and Industry Roundtable Discussion on Thursday, December 6. "Thank you" committee chairs and co-chairs as well as to each and every member of those committees for making a difference.

I owe a big debt of gratitude to my fellow officers that have served with me during this last year. Carl Meche, I thank you again for a tremendous effort in putting together a top shelf agenda for the annual. J.C. Blank has operated above and beyond the call of duty in bringing together the quarterly conference programs, the success of these quarterlies are a direct reflection of your knowledge and effort. Tom O’Neal has been my coach and mentor throughout the year, without you I certainly would have been lost. Thanks also for having the check book when I had bills that needed your attention. There is none better at Secretary/Treasurer duties in my book.

To each of the quarterly conference host, I can’t say enough about the responsibilities that you assumed when you agreed to be a host. Ron Carter, Jerry Moore, thanks for Monroe; Barry Dufrene, Thaddeus Marcell and Mike Elffert, thanks for Morgan City and the return of the rain, and finally to Mike Curtis, Donna Drude, Ramona Umbach and Jennie Wilson, thanks for Hammond. We are fortunate to have had these members step forward and agree to be our hosts for this year. Next year we will be hosted by St. Tammany Parish Sheriff’s Office in Covington, Concordia Parish in Natchez and Calcasieu Parish in Lake Charles.

Thanks for the honor and privilege of serving as your president. This is a memory that I will take with me forever.

Remember, "Business, Industry, Administrators...Together We Can".

God Bless you until we meet again.

......Steve Thomas

----------------- LATA --------------------------

As promised at the 3^rd Quarterly Conference in Hammond, here is everything that you need to prepare to be entertained as well as educated regarding issues and topics facing us as tax administrators for the various jurisdictions that we represent as well as taxpayers that represent business and industry.

A lot of hard work has gone into this years annual conference planning and my hat is off to our 1^st Vice President, Carl Meche for a job well done. As you can see by reviewing the tentative agenda, we plan to intermix education with some well deserved entertainment.

The 35^th Annual LATA Conference will be held on December 5-7, 2001, at the Baton Rouge Marriott. I think that your conference team has attempted to address your needs during your stay here in Baton Rouge. For the golfers, there will be a golf "shamble", on Wednesday, at Briarwood Golf Course. Later that evening, after committee meetings, we will provide a reception (casual dress) with dancing to Will "The Thrill" Rogers until midnight. On Thursday after attending a full schedule of presentations we will dinner followed by an evening of dancing with music provided by the Fabulous Boogie Kings (forma attire optional, business dress requested). The conference will close on Friday with the traditional Conference Luncheon. I hope that everyone will enjoy themselves during their stay here in Baton Rouge.

Please note the late registration date and the increase fee. It is also imperative that you complete the bottom portion of the registration form indicating the social events that you will be attending. For your review is a tentative agenda and also for the tax administrators is a Certificate of Governmental Exemption which will apply to both the sales tax as well as the hotel motel tax. Sorry business and industry members.

As usual I welcome any assistance in the form of contributions or donation for this conference from any member. Contributions may include any of the following; Golf Prizes, Door Prizes, Bingo Prizes, any other donations.

I am definitely looking forward to seeing everyone in December. If I can be of any assistance, please contact me at @ 225-389-3084 or 225-389-3069 ext 730.

God Bless America!

Steve Thomas, President

Louisiana Association of Tax Administrators

Wednesday, December 5, 2001

	7:30 a.m.	Golf Shamble
	1:00 p.m.	Registration/Hospitality
	2:00 - 5:30 p.m.	Committee Meetings (open to all except Bus/Ind Comm)
	6:30 p.m.	Reception/Seafood buffet
	8:00 p.m.	Dance (DJ) (adults only please)

Thursday, December 6, 2001

	8:30 a.m.	Registration Board of Directors Meeting (membership welcome) Auditors Chat Room (topic lounges/bars) Business & Industry Meeting (closed to governmental mbrs)
	10:30 a.m.	Break
	10:45 a.m.	Business & Industry Roundtable (open to all members)
	12:00 noon	Lunch (general membership on their own) Board of Directors Lunch Hospitality
	1:15 p.m.	First General Session - call to order
	1:30 p.m.	Current Events/Future Impact......Bruce Oreck           Bingo for visiting spouses
	2:30 p.m.	Break
	2:45 p.m.	LA Technological Park ...............Douglas Lee
	3:30 p.m.	Sales Tax Software......................Michael Bartram
	4:00 p.m.	LATA Business Meeting/Election of Officers/Board Mbrs Hospitality
	6:30 p.m.	Dinner (formal attire optional..business casual requested)
	8:00 p.m.	Dance with the Boogie Kings (adults only please)

Friday, December 7, 2001

	8:00 a.m.	Registration
	8:45 a.m.	Second General Session - call to order
	9:00 a.m.	Current tax issues.........................Warren Townsend
	9:45 a.m.	Legislative Update........................Susan Gordon
	10:00 a.m.	Break
	10:15 a.m.	Recent Tax Litigation...................Bob Rainer
	11:00 a.m.	Current events .............................King Woolf
	11:30 a.m.	Continued education presentations
	12 Noon	Conference Luncheon/Closing Remarks

 

Conference Registration NAME _________________________________________ TITLE ________________________ ADDRESS ______________________________________ PHONE _______________________ REPRESENTING _______________________________________________________________ Fees: Before November 30 - $150, after $160 (Includes spouses and/or personal guest) Forward to: Annual Conference, 15513 Waywood Ave, Baton Rouge, LA 70816

----------------------- LATA -------------------------

Board of Ethics opinion...

Thanks to our friends in Calcasieu Parish for drawing our attention to the recently issued opinion of the Board of Ethics. The ruling is being issued on the matter of outside services and activities that are prohibited.

Ruling #2001-550 - Sales and use tax auditor for a parish school board may not perform private accounting services for persons in that parish. Residents and businesses of the parish are subject to audit by the auditor concerning tangible personal property purchased in or for use in the parish.

Therefore, he is prohibited from providing compensated services to those persons while he is employed as a sales and use tax auditor. (Section 1111C(2)(d))

 

Through emergency rule the Department has promulgated the following...

The Department of Revenue, Policy Services Division, is exercising the emergency provisions of the Administrative Procedure Act, RS 49:953 (B), to establish procedures for the administration of the manufactured and mobile home settlement fund.

This emergency rule is necessary to allow the Department of Revenue to carry out the requirements of Act 1212 of the 2001 Regular Legislative Session, which was enacted to resolve certain suits against the state related to the state sales and use taxes assessed on the purchase of certain manufactured and mobile homes. A delay in adopting rules would adversely impact the financial welfare of potential claimants, since the Act only allows 180 days from the effective date of the legislation to file a claim. This emergency rule is necessary to prevent financial peril to the welfare of potential claimants.

This Declaration of Emergency is effective September 1, 2001, and shall remain in effect for the maximum period allowed under the Administrative Procedure Act.

Chapter 43 (Title 61) Sales and Use Tax -

4313..Administration of claims Against the

Manufactured and Mobile Home Settlement Fund as Required by Act 1212 of the 2001 Regular Legislative Session.

A. Payments of Avants Judgment...

1. The Secretary of Revenue will direct the Office of Motor Vehicles to issue a payment for the judgment rendered on February 5, 2001, in the matter of Shirley M. Avants and Jim W. Miley v John Neely Kennedy, Secretary, Department of Revenue and Taxation, State of Louisiana; and Elmer Litchfield, Sheriff of East Baton Rouge Parish, # 434,575 (19^th Judicial District Court) in the amount of $5,167,194 plus interest from the date of the judgment. This payment will be made out of the funds currently held in escrow by the Office of Motor Vehicles pursuant to the October 22, 1999 order in the Avants law suit.

2. Those individuals specifically listed as plaintiffs in Shirley M. Avants law suit referenced in 4313.A.1 are not eligible to file a claim against the state regarding the Manufactured and Mobile Home Settlement Fund described in 4313.B.

Because of a space factor, this is only a small portion of this declaration..it is important and will impact collections of every local jurisdiction..although Bob Rainer is sure to cover it at the annual conference you should down load it and review in detail... http://www.rev.state.la.us .

--------------------- LATA -------------------------

Elevating Boats v St. Bernard Parish...

Again due to a space element, we will not cover the entire case, as an administrator, however, you should...we will, however, cover the opinion, conclusion and the decree.

OPINION (by Chief Justice Calogero)

The two petitions for refund of taxes paid under protest at issue in this case arise out of a Rule for Taxes and an assessment by Sheriff Jack A. Stephens, on behalf of St. Bernard Parish, on December 30, 1994 and June 13, 1995 against Elevating Boats, Inc. for unpaid sales and use taxes from January 1, 1984 to August 31, 1994, unpaid occupational license taxes for the same period of time, interest and penalties. The trial court, finding that Elevating Boats had intentionally defrauded the people of St. Bernard Parish of tax revenue for that time period, ruled in favor of the Parish and found that Elevating Boats owed the Parish a total of $1,459,586.50 in taxes, interest, and attorney fees. The court further denied Elevating Boats’ request for a credit for taxes paid to Plaquemines Parish for certain years of this time period. A divided court of appeal reversed the district court in part, affirmed in part, and remanded for further proceedings, reasoning that a portion of the sales and use taxes was prescribed, a lower amount of occupational license tax was owed, and that an inter-parish credit was due Elevating Boats. We granted the writ application of the Sheriff of St. Bernard Parish to examine the court of appeal’s reversal of the district court judgment, to address the significant issues of law and fact raised in this case, and to provide guidance to the lower courts in the interpretation and application of LA R.S. 33:2718.4.

CONCLUSION

For over a decade, on a monthly basis, Elevating Boats fraudulently misrepresented to the Parish of St. Bernard that it had no sales or use tax transactions within the Parish. For the reasons expressed in this opinion, the St. Bernard Parish Sheriff’s claims for taxes owed by Elevating Boats for the years 1984 through 1994 were not prescribed. We have further reinstated the district court’s conclusion that Elevating Boats operated chiefly as a retailer within the Parish and its occupational license tax is that which is applicable to retailers, not wholesalers. However, we find that the occupational license taxes for the years prior to 1991 are prescribed. We also find that Elevating Boats has failed to follow the procedures necessary to avail itself of an inter-parish credit for sales and use taxes paid to Plaquemines Parish that were part of what should have been paid to St. Bernard Parish. Finally, we find that Elevating Boats is legally responsible for no more than a 15% annual interest penalty on the unpaid taxes. Thus, we reverse the court of appeal judgment and reinstate the district court judgment in part finding that Elevating Boats owed St. Bernard Parish past due sales and use taxes, a portion of the occupational license taxes at issue, and 15% annual interest penalty on the past due obligations. We remand to the district court for a determination of the precise amount of sales and use taxes, occupational license taxes, and interest penalties owed by Elevating Boats consistent with this opinion. We further order the district court to enter a judgment in favor of Elevating Boats and against St. Bernard Parish for the difference between the $1,956,805 paid under protest and the actual amount of tax and interest penalties owed as will be determined by the district court consistent with this opinion.  Although the majority of Elevating Boats’ claims have been denied, it is entitled to a portion of the money paid to the Sheriff under protest. Consequently, the district court should allocate half of the costs of the proceedings against each of the parties in accord with LA RS 13:5112(A).

DECREE

For the foregoing reasons, we reverse the court of appeal’s judgement and reinstate the district court’s judgment that the sales and use tax obligation of Elevating Boats, Inc. to St. Bernard Parish, including an annual interest penalty, is not prescribed. We further reverse the court of appeal’s judgment and reinstate the district court’s judgment that Elevating Boats is a retailer for occupational license tax purposes; however, we find that the occupational license taxes prior to 1991 are prescribed. Finally, we find that an inter-parish credit is not due Elevating Boats, Inc. This matter is remanded to the district court with instructions to enter a judgment in favor of Elevating Boats, Inc. against the Parish of St. Bernard for the difference between the $1,956,805 paid under protest and the past due taxes owed including 15% annual interest penalty. Finally, the district court should allocate the costs of these proceedings equally between the parties. 

(LA Sup Ct 00-C-3518, 9/5/1)

Court of appeal judgment reversed; District court judgment reinstated in part; Case remanded to the district court

--------------------- LATA -------------------------

During a recent address to the Legislature, Dan Richey, head of the Governor’s Program on Abstinence: "We’re trying to demonstrate renewed virginity." Responding Representative Peppi Bruneau:

"There is no way you can renew virginity...I don’t care if it’s a national term or an international term, once it’s gone, it’s gone."

--------------------- LATA -------------------------

State’s amnesty program...

The state’s latest tax amnesty program appears to be a giant success. State officials have indicated that the program has netted close to the $5 million mark.

With approximately 4500 claims having been processed the state claims to have collected nearly three times the record $1.6 million collected during a similar program in 1998.

The Legislature authorized the amnesty program to run from September 1 to October 30. In the 1998 program the state collected the $1.6 million from 5,127 taxpayers. The 1997 program was not as successful collecting $279,00 from only 77 taxpayers. The 1985 program netted the state $1.2 million from 382 taxpayers.

 

--------------------- LATA -------------------------

Computer classes...

The Computer Technology Committee has scheduled several computer related classes for its governmental members on January 15, 16 & 17, 2002.

The classes will be conducted at the Jefferson Davis Parish School Board Tech Center in Jennings. The classes will be taught from version 2000.

Deadline for registration is December 31, 2001. After that deadline, a $10 late registration fee will be assessed. The established fee for a 3 hour class is $30, a 6 hour class is $50. Make checks payable to the LATA, c/o J.C. Blank, Jr., Jefferson Davis Parish School Board, P.O. Box 1161, Jennings, LA 70546 (phone 337-824-2744).

--------------------- LATA -------------------------

According to RIA, the Internet Tax Freedom Act of 1998, imposing a 3 year moratorium on Internet access taxes, has expired without extension.

--------------------- LATA -------------------------

MEMBERSHIP INVITATION AND APPLICATION Name _________________________________________ Title ___________________________ Department/Division ____________________________________________________________ Representative of __________________________ Mailing Address _______________________ City ____________________________ State __________________ Zip ___________________ Phone _____________________ Fax ____________________ E-Mail _____________________ Annual Dues: $80.00 Payable to : Louisiana Association of Tax Administrators P.O. Box 398 Vidalia, LA 71373 Attn: Tom O’Neal, Secretary/Treasurer

COMPUTER TECHNOLOGY CLASSES Name __________________________________________ Title _________________________ Representing __________________________________________________________________ Mailing Address __________________________ City _________________ Zip _____________ Telephone: ______________________________ E-Mail _______________________________ January 15 Class Title Word 6 Hours 9 am - 4 pm Fee $50 January 16 Class Title Excel 3 Hours 9 am - 12 pm Fee $30 January 16 Class Title Access 3 Hours 1 pm - 4 pm Fee $30 January 17 Class Title Pow-point 6 Hours  9 pm - 4 pm Fee $50 Indicate class desired and forward payment to:           J.C. Blank, Jr., Jefferson Davis School Board, P.O. Box 1161, Jennings, LA 70546

35 ANNUAL CONFERENCE GOLF TOURNAMENT Name ______________________________ Representing ________________ H/cap _________ Fee $45 - Forward (with Conf Reg) to: Steve Thomas, 15513 Waywood Ave., B.R 70816