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 La. Rev. Stat. 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 La. Rev. Stat. 47:337.35. An assessment shall not be considered an “arbitrary assessment” if the taxpayer does not provide records as required by La. Rev. Stat. 47:337.29 and/or La. Rev. Stat. 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 La. Const. Art. VII, § 16 .

            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.