§337.64. Alternative remedy for dealers

A. Any taxpayer who has received a notice of assessment for sales and use taxes from any collector or taxing authority and whose remedy is to make a payment under protest may in lieu thereof comply with the alternative provisions of this Section, rather than making a payment under protest.

B. (1) If the taxpayer files suit in any state court of competent jurisdiction, or a petition with the Board of Tax Appeals, contesting the assessment within the time provided by law and satisfies the alternative remedies provided for in Subsection C of this Section, no collection action shall be taken in connection with the assessment of taxes, interest, and penalties, which are the subject of the taxpayer's suit; however, the collector shall be permitted to file a reconventional demand against the taxpayer in such suit.

(2) Repealed by Acts 2018, No. 143, §2, eff. May 11, 2018.

C.(1)(a) The taxpayer may file with the court or the Board of Tax Appeals a rule to set bond or other security, which shall be set for hearing within thirty days of the filing of the rule to set bond or other security, and shall attach to the petition evidence of the taxpayer's ability to post bond or other security.

(b) The term "other security" as set forth in this Section shall include but not be limited to a pledge, collateral assignment, lien, mortgage, factoring of accounts receivable, or other encumbrance of assets.

(2)(a) The court may either order the posting of commercial bond or other security in an amount determined by the court to be reasonable security for the amount of unpaid taxes, interest, and penalties demanded in the assessment or may order the taxpayer to make a payment under protest pursuant to the provisions of state law and this Chapter in an amount determined by the court to be reasonable security considering the amount of such unpaid taxes, interest, and penalties. The court may order that a portion of the unpaid taxes, interest, and penalties be paid under protest and the balance secured by the posting of a bond or other security as provided in this Section.

(b) The Board of Tax Appeals may order the posting of commercial bond or other security in an amount to be determined by the board to be reasonable security for the amount of unpaid taxes, interest, and penalties demanded in the assessment, or may order the taxpayer to make a payment under protest pursuant to the provisions of state law and this Chapter in an amount determined by the board to be reasonable security considering the amount of such unpaid taxes, interest, and penalties. The board may order that a portion of the unpaid taxes, interest, and penalties be paid under protest and the balance secured by the posting of a bond or other security as provided in this Section.

(3) The posting of such bond or other security or the payment under protest shall be made no later than thirty days after the mailing of the notice of the decision of the court or the Board of Tax Appeals authorizing the posting of bond or other security or requiring that a payment under protest be made.

(4) If the taxpayer timely files the suit or any petition or rule referred to in this Section, no collection action shall be taken in connection with the assessment of taxes, interest, and penalties, which are the subject of the taxpayer's cause of action, unless the taxpayer fails to post bond or other security or make the payment under protest required by the Board of Tax Appeals or court; however, the collector shall be permitted to file a reconventional demand against the taxpayer in the cause of action. A collector may procure an appraisal or conduct discovery concerning the value and validity of security offered prior to the date for filing the collector's response or opposition to a rule set for hearing under this Subsection.

(5) To the extent not inconsistent with this Section, the nature and amount of the bond or security and the procedures for posting bond or providing other security shall be consistent with the provisions for providing security in connection with a suspensive appeal under the Code of Civil Procedure.

(6) The provisions of this Section shall be applicable to either dealers or other taxpayers, and any references in this Section to taxpayers shall also be applicable to dealers.

(7) In lieu of dismissal of the taxpayer's appeal in those instances where a taxpayer assessed pursuant to R.S. 47:337.50(A) has filed a timely appeal to the Board of Tax Appeals for redetermination of the assessment in the manner authorized by R.S. 47:337.51(A)(1) but not authorized under the applicable provisions of R.S. 47:337.51(A)(2), and following a contradictory hearing on a rule requested by any party, the Board of Tax Appeals may order the payment of bond, other security, or full or partial payment under protest, as provided for in this Section.

Acts 2003, No. 73, §1, eff. July 1, 2003; Acts 2009, No. 493, §1, eff. July 10, 2009; Acts 2015, No. 210, §1, eff. June 23, 2015; Acts 2018, No. 143, §1, eff. May 11, 2018.