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Bill

SB 112

TAX/TAXATION: Authorizes a deduction as compensation for certain dealers and remote sellers that collect and remit sales and use taxes. (7/1/25) (EN DECREASE LF RV See Note)

2025 Regular Session Introduced by Franklin Foil and 2 co-sponsors

Louisiana authorizes tax deductions for businesses that collect and remit sales taxes, compensating them for administrative costs while reducing state tax revenue.

Signed by the Governor. Becomes Act No. 327.
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WeVote Research Nonpartisan
Bill Summary · SB 112

Legislative bill overview

SB 112 authorizes Louisiana to provide a tax deduction to dealers and remote sellers who collect and remit sales and use taxes on behalf of the state. This deduction compensates these businesses for the administrative burden and costs associated with tax collection activities.

Why is this important

Sales tax collection infrastructure depends on thousands of businesses acting as unpaid tax administrators. This deduction recognizes that compliance costs—systems, training, reconciliation, and potential audit liability—represent a real expense to retailers. The measure could improve voluntary compliance and reduce business resistance to collection obligations.

Potential points of contention

  • Revenue impact: The bill is marked as decreasing revenue ("DECREASE LF RV"), meaning the state foregoes tax dollars to provide these deductions, shifting costs from individual retailers to all taxpayers
  • Fairness questions: Small local retailers may receive disproportionate benefit compared to large chain stores with economies of scale in tax compliance
  • Eligibility ambiguity: The bill's specificity about which "dealers and remote sellers" qualify and how the deduction is calculated is unclear from available summary information

Compiled from official sources — confirm details with the bill’s official record.

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