Council of Governments hears financial, tax reports

Monday night at the Forest Restaurant in Franklin saw the St. Mary Parish Council of Governments hold their quarterly meeting and social.
The welcome address was delivered by Franklin Mayor Eugene Foulcard, and Council of Governments Treasurer and Berwick Councilman James Richard provided an informative look into the parish’s sales and use tax analyses for the third quarter of 2019.
Richard pointed out that the 4.3 percent sales tax analysis showed a total collection of $8,944,320 for the third quarter parish-wide, adding that the collections for 2019 showed a one percent increase over the previous year’s third quarter collections total.
He pointed to the quarterly distinctions between collections totals without audits for 2018 and 2019, and their similarities, as proof that the revenues have stayed consistent from quarter-to-quarter, year-to-year, in what he called, “staying flat.”
In reference to the parish’s hotel occupancy tax, Richard said the decline from last quarter from just above $40,000 to around $36,000 this quarter is reflective of less visitors to the parish in that quarter.
And in his occupational license tax report, Richard again described only a slight variance between the third quarter collections for 2018 and 2019, that variance being positive.
He then pivoted to a broader, state-wide view of taxes.
“There are different things that are in place, which help with uniformity,” Richard said. “A couple of years ago, the Louisiana Uniform Local Sales Tax Board was formed to promote uniformity in administration of local sales and use taxes.
“I happened to be appointed to that state board by the Police Jury Association, and I’m happy to do that.”
He explained that the LULSTB is working on developing a multi-parish voluntary disclosure agreement for large companies that do business with 63 of the 64 parishes in the state.
This agreement, he said, will streamline the process of doing business throughout the state, rather than asking large business corporations to deal with each of the 63 parishes directly.
He added, “The Legislature gave us the power to write policy, to write rules and regulations…”
In addition to being on the LULSTB, Richard was appointed to the Louisiana Sales and Use Tax Commission for Remote Sellers.
He described a plan which was in place at the time of his appointment through which remote sellers sent an 8.45 percent tax to the state, which in turn sent the parishes 4 percent based on their population numbers, which would hurt St. Mary Parish due to its rural nature.
“So, this commission (LSUTCRS) is charged to serve as the single entity in Louisiana to collect taxes from remote sellers,” he continued. “And when that act (Act 274 empowering the LSUTCRS) goes into effect in July of 2020, companies will be able to file a return, but they will have to collect our share of the tax.”
He further explained that once the commission is empowered, it will hold the same collection authority as the Louisiana Department of Revenue.
Finally, Richard touched on two cases that have gone to, and are still before the Louisiana Supreme Court, concerning sales taxes.
The first is the case of Plaquemines Parish Council and St. James Parish School Board vs. State of Louisiana Office of Motor Vehicles and LULSTB.
This case, Richard described, is that in which the PPC and SJPSB claim LULSTB’s enabling statute, which funds the board by a percentage of sales taxes on local vehicles, as unconstitutional because it dedicates local taxes to a purpose other than that decided by local voters.
LULSTB’s claim is that since the board’s services and activities are “clearly and unquestionably related” to administration and collection of local sales tax, the funding mechanism is constitutional.
The case was argued on Oct. 22, and Richard said LULSTB expects a ruling soon.
The second case Richard mentioned is one in which “Louisiana’s 24th Judicial District ruled in March of 2018 that Walmart.com owed Jefferson Parish just under $140,000 in uncollected taxes, plus interest and legal fees.
“The Louisiana Fifth Circuit Court of Appeal in December 2018 upheld the trial court’s determination that Walmart.com fit the legal definition of a ‘dealer’ and therefore was responsible for sales tax obligations arising from sales by third-party retailers through its online marketplace.
“Walmart.com argues the lower courts erred, noting in its brief to the state supreme court that under its marketplace retailer agreement, third-party sellers are responsible for remitting sales taxes to the proper authorities. Operating the marketplace doesn’t make the company the dealer for third-party sales, the company said.”
Richard said the LSC heard both cases on the same day, and that the its ruling in favor of the defendant in the first case, and for the plaintiff in the second case would allow, respectively, LULSTB to continue moving forward, and an influx of revenue for the state from taxes from marketplace “dealers.”
In new business, SMPCOG heard from Chez Hope regarding a review of Domestic Violence Awareness Month, and Cajun Coast Visitors and Convention Bureau concerning Real ID (a set of security standards and protocols from the US Department of Homeland Security).