LA HB404

Prohibits refunds and interest on overpayments resulting from tax shelters, tax shams, tax evasion schemes, or transactions failing the economic substance doctrine as determined by a court

Delays interest accrual on sales tax overpayments for Direct Payment (DP) number holders until 180 days after the return due date, filing date, or payment date

Establishes sales tax sourcing rules for drop shipment sales (sourced to location of title/possession transfer) and abstracts of title (sourced to principal place of business in Louisiana)

Removes the debit card option for individual income tax refunds, limiting refund methods to check or direct deposit for paper filers

Aligns state income tax treatment of capital construction funds under federal maritime law (46 U.S.C. App. 1177 and 26 U.S.C. 7518) with federal tax treatment, effective January 1, 2026