Monthly Filing Would Create New Pressure On Businesses

BATON ROUGE — With repeal of the state income tax and the imposition of a new sales tax on professional, business, and personal services, many business owners are shaking their heads at what they see as a massive increase in paperwork.
On Wednesday, one business owner said, “The worst time of the year for me is tax time.  I spend two weeks getting together all my records involving thousands of transactions to give to my accountant to prepare my federal and state income tax returns.  Under Jindal’s plan, I would still have to go through the same drill, but I would also have to file a monthly tax return to the state for this business services tax. I can’t imagine going through the drama 12 times a year.  I worry about the income tax return, because I never want to file something that’s wrong, something that could get me in trouble.  So I pour over the numbers time and again.  Now the thought of doing that every month is like a nightmare to me.  We don’t make enough to hire people to handle the paperwork.  I have to do it myself.  So this would fall in my lap.  Between this and Obamacare, I don’t see myself being in business a year or two from now.”
According to the Louisiana Department of Revenue, under current law, a sales tax return is due on or before the 20th day of the month following the close of the calendar month or quarter reporting period. Interest at 1.25 percent per month and penalty at 5 percent for each 30 days, or portion thereof, of delinquency, not to exceed 25 percent, will be assessed on delinquent returns. Dealers whose state tax liabilities can be shown to average less than $500 per month can ask to be placed on a quarterly filing status.