§337.86. Credit for taxes paid

A.(1) A credit against the sales and use tax imposed by any taxing authority of the state shall be granted to a taxpayer who paid monies, whether or not paid in error, absent bad faith, based upon a similar tax, levy, or assessment upon the same tangible personal property in a taxing jurisdiction of this state or another state. The credit granted herein shall be applicable only when a similar taxing authority is seeking to impose and collect a similar tax, levy, or assessment from a taxpayer upon the same tangible personal property for which the taxpayer has paid a similar tax, levy, or assessment to a similar taxing authority.

(2) A taxing authority shall give credit against the use taxes due on the importation of a vehicle for taxes paid in another state where the vehicle was previously purchased and titled, regardless of the authority's similarity to jurisdictions in the other state to which the sales or use taxes were paid. With respect to vehicles, the credit shall be calculated by multiplying the rate of the sales or use tax paid in the other state by the cost price that is subject to the authority's use tax at the time of the importation of the vehicle. The credits provided by this Section and R.S. 47:303 shall be applied together against the state and local taxes due on the use of a motor vehicle, automobile, motorcycle, truck, truck-tractor, trailer, semitrailer, motor bus, house trailer, or any other vehicle subject to the vehicle registration license tax, so that the applicant for title or registration in Louisiana of a vehicle that the applicant previously purchased and titled in another state is allowed credit against the state and local use taxes imposed in Louisiana for the full rate of sales or use tax paid in the other state.

B.(1) The credit provided herein for monies paid to a taxing authority of another state shall be granted only in the case where such authority of another state to which monies have been paid grants a similar credit.

(2) The credits granted by this provision shall not exceed the amount of money paid to the taxing authority of this state or another state.

C.(1) The proof of payment to a taxing authority shall be made in accordance with the rules adopted by the secretary of the Department of Revenue under R.S. 47:303(A). Except as provided in Paragraph (2) of this Subsection, in no event shall the credit be greater than the tax imposed by the taxing authority upon the particular tangible personal property that is subject of the sales and use tax.

(2) The credit granted for taxes in any taxing jurisdiction of a parish in which no local sales and use tax is levied and imposed shall be the amount of taxes that would have been collected by the taxing authority at the tax rate imputed to that taxing authority. The imputed tax rate shall be the lowest tax levied and imposed by a similar taxing authority in this state as determined by the Department of Revenue.

D. For purposes of this Section, "taxpayer" shall mean the final consumer who has paid the applicable local tax directly to the collector or the vendor or seller who has collected the tax from the final consumer and remitted the tax to the taxing authority. In no instance shall a vendor or seller be denied a credit for taxes paid in error to a political subdivision.

E.(1) Notwithstanding any other law to the contrary, no person shall be taxed with respect to a particular event more than once, provided that the person collecting and remitting taxes can produce to the collector documentary evidence to show a good faith effort to recover taxes paid to the incorrect taxing authority. Such documentary evidence shall consist of the following:

(a) A formal request for refund by certified mail which includes all evidence supporting such claim to the taxing authority paid in error.

(b) A second request for refund by certified mail if no response was received within sixty days of the first refund request.

(c) Either the response approving or denying the first or second refund request, whichever may be applicable, or an affidavit from the person stating that no response was received within sixty days of the second refund request.

(d) Notwithstanding any provision of law to the contrary, any taxpayer who receives an assessment and who has complied with any applicable provisions of Subparagraphs (a) through (c) of this Paragraph, may within thirty calendar days of the date of notice, take any action specified in R.S. 47:337.51(A)(1).

(2)(a) The collector shall not impose penalties or interest on taxes erroneously paid or remitted to another taxing authority unless the erroneous payment or remittance was the result of gross negligence or due to intentional conduct of bad faith on the part of the dealer that collected and remitted the taxes or on the part of the taxpayer that paid the taxes. In instances where a legitimate disagreement exists as to which taxing authority is owed, the involved taxing authorities shall resolve the dispute among themselves through any legal means provided by law, including the filing of a rule or petition against the other taxing authority in the manner provided for in R.S. 47:337.101.

(b) For the purposes of this Section, a "similar taxing authority" means a political subdivision having and performing the same governmental functions as the political subdivision seeking to impose the sales or use tax.

(3) Optional concursus proceeding.

(a) When a taxpayer or dealer has received a formal notice of assessment from two or more Louisiana local collectors having a competing or conflicting claim to sales or use tax on a transaction, the taxpayer or dealer is hereby authorized to file a concursus proceeding before the Local Tax Division of the Louisiana Board of Tax Appeals, hereinafter referred to as "board". If a concursus is filed, the taxpayer or dealer, as applicable, shall pay the amount of sales tax collected or, if no tax was collected, the amount of tax due at the highest applicable rate, together with penalty and interest, into the Escrow Account for the Registry of the Board of Tax Appeals. The proceeding shall name as defendants all parishes that are parties to the dispute. The filing of a concursus proceeding in compliance with the provisions of this Paragraph shall prevent collection of assessment from the taxpayer or dealer. No additional interest or penalties shall accrue against the taxpayer on the amount of payment made pursuant to this Paragraph following the date of such payment. The board's judgment may order the tax payment held in escrow to be disbursed to the proper parish under the law and ordinances applicable to the case, and may also order the payment of any refund due to the taxpayer or dealer.

(b) Any refund ordered by the board to a dealer who collected the tax shall further stipulate that the dealer promptly issue refunds to their customers as necessary, and that the dealer shall not benefit from any excess tax collected as a result of filing the concursus proceeding.

(c) A suspensive appeal from any decision or judgment of the board rendered pursuant to this Paragraph shall be filed with the court of appeal of the parish of the local collector against whom the appeal is taken. However, if there are multiple appellees from different circuits, the appeal shall be filed with the court of appeal for the parish where the taxpayer is domiciled, or if the taxpayer is not domiciled in Louisiana, then with the Louisiana Court of Appeal, First Circuit.

(d) No provision of this Paragraph shall require any taxpayer or dealer to file a concursus proceeding as authorized by this Paragraph, and no penalty shall be levied solely on the failure to use this optional procedure.

(e) All parties shall be responsible for their respective costs including but not limited to travel expenses, filing fees, and attorney fees.

Acts 2003, No. 73, §1, eff. July 1, 2003; Acts 2005, No. 394, §1, eff. July 1, 2005; Acts 2014, No. 640, §2, eff. June 12, 2014; Acts 2015, No. 210, §1, eff. June 23, 2015; Acts 2017, No. 274, §2, eff. June 16, 2017.

NOTE: See Acts 2015, No. 210, §4, re: retroactivity of certain provisions.