Calculate the late renewal penalty for a Louisiana contractor license. License fee: $200. License expired 45 days ago. What is the total amount due?
Correct Answer
D) $400
Louisiana imposes a penalty equal to the license fee for late renewal, so the total is $200 (renewal) + $200 (penalty) = $400.
Why This Is the Correct Answer
Louisiana law imposes a late renewal penalty equal to the original license fee. With a $200 license fee, the penalty is also $200. Total due = $200 (renewal fee) + $200 (penalty) = $400. The number of days expired (45 days) does not change the calculation as long as it falls within the late renewal period.
Why the Other Options Are Wrong
Option A: $250
$250 would imply a penalty of only $50, which is 25% of the fee. Louisiana does not use a percentage-based late fee — it uses a 100% (equal to fee) penalty.
Option B: $350
$350 would imply a $150 penalty, which has no basis in Louisiana's penalty structure for license renewal.
Option C: $300
$300 would imply a $100 penalty (50% of the fee). While a 50% penalty sounds plausible, Louisiana's rule is 100% of the fee — the penalty equals the renewal fee in full.
Memory Technique
Louisiana late renewal = 'double the fee.' Pay twice when you're late. $200 fee × 2 = $400 total. Think: Louisiana doubles down on late renewals.
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