La. R.S. 47:337.28.1 — Arbitrary assessments prohibited

A. Notwithstanding any provision of this Chapter to the contrary, the collector shall
be prohibited from issuing an arbitrary assessment. For purposes of this Chapter, the term
"arbitrary assessment" shall mean an estimated assessment issued by the local collector
which does not comply with R.S. 47:337.28, 337.48(A), or 337.53. However, no provision
of this Chapter shall prevent the collector from determining correct tax as provided for in
R.S. 47:337.35. An assessment shall not be considered an "arbitrary assessment" if the
taxpayer does not provide records as required by R.S. 47:337.29 and/or R.S. 47:337.36. The
taxpayer shall bear the burden of proving that the assessment was not in compliance with the
law.
B. If the assessment by the collector is determined by a court of competent
jurisdiction or the Board of Tax Appeals to be an arbitrary assessment, the assessment shall
neither interrupt nor suspend prescription, and the dealer shall be reimbursed by the collector
for reasonable costs of litigation. The amount of costs recoverable under this Section shall
not exceed ten percent of the taxes, interest, and penalty that were arbitrarily assessed, which
amount shall be subject to the discretion of the court, or the Board of Tax Appeals, as to
reasonableness.
C. No assessment shall be made under this Chapter for the purpose of depriving a
taxpayer of his constitutional right to a three-year prescriptive period for the assessment of
tax in accordance with Article VII, Section 16 of the Constitution of Louisiana.
Acts 2010, No. 1019, §1, eff. July 8, 2010; Acts 2015, No. 210, §1, eff. June 23,
2015.
NOTE: See Acts 2015, No. 210, §4, re: retroactivity of certain provisions.