LMR JUNE 2021

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vision of the working group is that the administrative feesthat currently go to the Remote Sellers Commission for theircollection of internet sales taxes (from both the state and locals)will continue and will become the funding mechanism for theCommission. On average, the Remote Sellers Commissionhas collected $30 million in internet taxes per month, andthey collect a 1% fee. If that funding source is confirmed viastatutory enactment, the new Commission would have anannual operating budget of $3.6 million.We have referenced above both the Louisiana Uniform LocalSales Tax Board (LULST) and the Louisiana Sales and Use TaxCommission for Remote Sellers (RSC), two existing boardsthat are successfully performing their respective functionswithin our current sales tax system. So, what happens to themif this constitutional amendment passes and the legislatureenacts the statutory component by 2/3 vote? Both boardswill be rolled-up into this new Commission. One yearfollowing the first meeting of the Commission, both boardsshall be abolished, and all of their powers, duties, functions,and responsibilities shall be assumed by the Commission,along with their outstanding work products. A few examplesof existing tools and programs that will be inherited by theCommission include the technology that feeds the existingParish E-file site (which has collected nearly $25 billion insales taxes via its online portal to-date); the taxpayer matrixdeveloped by locals for the RSC; the voluntary disclosureagreement protocols developed by the LULST, which hasbrought in an additional $13 million in unreported taxrevenue to local government coffers in just a few months; andthe newest innovation of the LULST, the tax rate lookup tool,which provides exact rates and exemptions by address (eitherthrough individual or bulk inquiries).Pros and ConsThough Parish E-file currently enables taxpayers to file andremit sales taxes online for the state and all 64 parishes, itdoes not enable a single payment for all taxes due. Thisproposed constitutional amendment gives the Commissionthe standing to accept one single payment, which technologywill break out on the back end to send to the proper collectors.The proposed Commission would also give the appearancethat Louisiana has simplified its sales tax system, which mightbe attractive to some businesses seeking to locate here. Doesit actually simplify the system? No. Proponents also assertthat HB 199 would make Louisiana “Wayfair-compliant.” Whileit may be said that the Commission would make us slightlymore compliant, it falls short of creating the system envisionedby the U.S. Supreme Court in South Dakota v. Wayfair, Inc.The Commission would represent an historic and foundationalchange in sales tax collection, and some question, “Whatwill be gained by this sea change?” There are currently over200 tax exemptions and exclusions scattered in our law andconstitution: some are mandatory for local governments,some optional; some only apply to the state, some only tolocal governments. Louisiana has the most convoluted salestax systems in the country (and our exemptions cost localgovernments over $1.3 billion in lost tax revenue per year).HB 199 will not simplify our system. The Tax Foundation,who vocally supports HB 199, even admitted under oath thatcentralizing sales tax collection will not improve our nationalscore/ranking whatsoever.Similarly, HB 199 does not achieve Wayfair compliance. Infinding South Dakota’s tax scheme to be constitutional,SCOTUS relied heavily on the fact that the state had adoptedthe Streamlined Sales and Use Tax Agreement (or SSUTA). Oneof the core demands of the SSUTA is that the state must haveuniform state and local tax bases, along with simplified rates.Louisiana has not adopted the SSUTA because our complexsystem of exemptions and exclusions makes that impossible.Without a statutory framework to accompany HB 199, manyquestion how it will all work and whether the Commissionwould lay the groundwork for a direction in auditing that isundesirable for locals.But now, it’s up to you. Whether you ultimately support oroppose what HB 199 proposes, we encourage you to speak toyour local collectors and to your local businesses, to learn asmuch as you can about this unprecedented legislation, and tovote on October 9, 2021.LMA 2021 District MeetingsLMA is headed to a district meeting near you! For the first time since2019, our officers and staff will be on the road in June for districtmeetings.These annual meetings allow the LMA membership to re-elect orelect their representatives, in the form of District Vice Presidents, whowill sit on the LMA Executive Board for the upcoming year. Thesemeetings also serve as an opportunity to network with legislators andstate dignitaries, as they are also invited to attend.Visit the LMA website at www.lma.org > Events to view the fullschedule or to find the meeting in your district.Page 6LMR | JUNE 2021
Inside the LMALetter of IntentBY MAYOR MICHAEL CHAUFFE, VILLAGE OF GROSSE TETEI am writing to state my intent ofrunning for the position of Presidentof Louisiana Municipal AssociationBoard and share my qualificationsfor the office.In 1988, I was elected as Aldermanfor the Village of Grosse Tete. I served four consecutiveterms (16 years) jn that capacity. In 2004 I was elected asMayor for the Village of Grosse Tete, and I am currentlyserving in my fourth consecutive term as Mayor. In additionto my dedication to the Village of Grosse Tete, I amcurrently serving my second term as a Board Member forLAMP, second term as District H Vice President, and mythird term on the LMA Executive Committee. I have alsoserved a 1 year term as LMA Vice President at Large. Ihave also served 1 year as 2nd Vice President.Throughout my involvement with Local Government, Ihave consistently attended business meetings, roundtablediscussions and events at both the local and Statelevel. I also attend and encourage my department headsto attend the Annual LMA Convention each year. I haveenjoyed serving as 1st and 2nd Vice President and hopethat I can continue my service to the LMA as its President.As President, I will continue to help advance thework of the organization to grow its membership, andexpand educational opportunities for elected officialswithin local government.Please know that I am deeply committed to the work theLouisiana Municipal Association does to provide essentialservices for local municipalities within Louisiana, alongwith the mission of educating and spreading awareness ofthe work the LMA does to help municipalities.It would be an honor to be elected as the Louisiana MunicipalAssociation’s Board President. I greatly appreciateyour consideration and welcome members to contactme if you have any questions or concerns.Sincerely,Michael ChauffeMayorLetter of IntentBY MAYOR JENNIFER VIDRINE CITY OF VILLE PLATTEIt has been a true honor to serveas the 2nd Vice-President of theLMA’s Board of Directors duringthe past two years. We have perseveredand learned so much abouteach other throughout this unprecedentedpandemic. Personally, I have come to realize theextraordinary value of the LMA to my city and our greatState of Louisiana. Therefore, I proudly announce mycandidacy for the office of 1st Vice-President of the LMA.With a strong sense of dedication, passion and love forthe LMA, I reiterate my commitment to work diligentlywith my fellow officers and each Member to move theLMA forward and be a strong and unwavering voice forall size municipalities – villages, towns and cities.In addition to serving in my third term as mayor of mybeloved Ville Platte, my many years in various leadershiproles on different LMA and LMA-affiliated boardshave prepared me for this important position. If elected,you can expect my years of experience and extensivenetwork of federal, state and local relationships to helplead and promote the LMA. As I have said before, I feelthat I have walked in each of your shoes—and heels—andtaken on the greatest challenges our constituents expectof us. To avoid being complacent, I am especially lookingforward to listening and learning about your unique issuesand needs during the upcoming LMA District meetings.I hope you’ll agree, that WE ARE ALWAYS BETTERWORKING TOGETHER!The office of 1st Vice-President is more than an office tome; it is a solemn responsibility to you. So I am prayerfullyand humbly asking my fellow elected officials for yourvaluable vote and support. I welcome the opportunityto talk with you about my candidacy, so please call meanytime, (337) 831-0831 (cell).Lord willing, we will see each other at the LMA’s 84thAnnual Convention scheduled for July 29 – 31 in BatonRouge.Sincerely,Jennifer Vidrine, MPA, ABDMayorLMR | JUNE 2021 Page 7
Page 1 and 2: LOUISIANAMUNICIPAL REVIEWPublished
Page 3 and 4: Inside the LMADirector’s Viewpoin
Page 5: Inside the LMALegal BriefsA VOTER
Page 9 and 10: Inside the LMALetter of IntentBY MA
Page 11 and 12: Featurethat we are going through, a
Page 13 and 14: City of Walker Movesinto New City H
Page 15 and 16: LAMSA Conference RecapBY MARLAINE P
Page 17 and 18: Attorney General’s OpinionsBY JEF
Page 19 and 20: Partner InsightTake a StaycationBY
Page 21 and 22: Partner InsightALWAYS ONFOR YOU.JOH
Page 23 and 24: Partner InsightTreasury NotesRememb

LMR JUNE 2021

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