Louisiana will offer a tax amnesty from November 16, 2015 to December 15, 2015. Taxpayers that agree to pay delinquent taxes will receive a waiver of 33% of penalties and 17% of interest. The 2015 program applies to taxes due prior to January 1, 2015, for which the Louisiana Department of Revenue has issued an
Louisiana Court Rejects Imposition Of Franchise Tax Based On Ownership Of Partnership Interest
The Louisiana Court of Appeal reversed and remanded Bridges v. Polychim USA, Inc., No. 581,759, a case in which the trial court held that an out-of-state corporation was subject to the franchise tax by virtue of its indirect ownership interest in a general partnership doing business in Louisiana. Bridges v. Polychim USA, Inc.…
Louisiana Court Gives Taxpayer the Edge: Trade-In Credits Reduce Sales Tax Base
By Suzanne Palms and Open Weaver Banks
The Louisiana Court of Appeal held that GameStop, a video game retailer, correctly applied trade-in credits to reduce the sales price of new items in determining local sales tax due. GameStop accepted used games from its customers in exchange for a trade-in amount on a stored value card…
Louisiana Court Holds Video-on-Demand and Pay-Per-View Are Not Tangible Personal Property
Today the Louisiana Fifth Circuit Court of Appeal held that a cable television provider’s video-on-demand (VOD) and pay-per-view (PPV) programming services are not tangible personal property and therefore not subject to sales tax. Newell Normand, Sheriff and Ex-Officio Tax Collector for the Parish of Jefferson v. Cox Communications Louisiana, LLC, Case No. 14-CA-563 (La.
Louisiana Court Holds Video-on-Demand is not Subject to Sales Tax
Yesterday the Louisiana 24th Judicial District Court held that a cable service provider’s video-on-demand and pay-per-view video programming are not tangible personal property subject to sales tax. Jefferson Parish had alleged that the programming could be seen and heard and thus fell within the definition of tangible personal property. Following a trial, the court found…
Louisiana Supreme Court: Department of Revenue Cannot Ignore SMLLC’s Separate Existence
By Zachary Atkins and Pilar Mata
The Louisiana Supreme Court rejected the Louisiana Department of Revenue’s attempt to look through a foreign single member limited liability company (SMLLC) and assess its owner for unpaid sales tax. The owner, a resident of Louisiana, formed the SMLLC under the laws of Montana and caused it to purchase…
No Louisiana Nexus Over Out-of-State Corporate Partners
The Louisiana Supreme Court declined to review the Court of Appeal’s holding that an out-of-state corporation’s passive ownership of an interest in a limited partnership is not a sufficient basis, by itself, to subject the foreign limited partner to Louisiana franchise tax. UTELCOM, Inc. v. Bridges, No. 2010-0654, 77 So.3d 39 (La. App. 1st Cir. Sept. 12, 2011), reh’g denied (Nov. 1, 2011), writ denied, No. 2011-C-2632 (La. Mar. 2, 2012). The court’s decision to not accept the case should prompt the Department of Revenue to reverse course on its current position.
In UTELCOM, the Department issued franchise tax assessments against two out-of-state corporations whose only connection with Louisiana was their ownership interests in a limited partnership engaged in the long-distance telecommunications business in Louisiana. The primary basis for the Department’s position was a regulation that provided that owning property in Louisiana through a partnership is sufficient to create franchise tax nexus. The trial court upheld the assessments based on the Department’s regulation.…
Continue Reading No Louisiana Nexus Over Out-of-State Corporate Partners
A Pinch of SALT: Demystifying Accountant-Client Privileges in State Tax Litigation
Understanding states’ various approaches to accountant-client privileges can make the difference in protecting communications from disclosure in litigation. In this edition of A Pinch of SALT, Sutherland SALT’s Pilar Mata and Melissa Smith examine the scope and breadth of accountant-client privileges that have been adopted by some states.
Waiving the Baton: Louisiana Court of Appeal Rules No Nexus for Passive Limited Partner
The Louisiana Court of Appeal recently ruled that a corporation’s passive ownership interest in a limited partnership doing business in Louisiana is not sufficient to create Louisiana corporate franchise tax nexus. Utelcom, Inc. v. Bridges, Dkt. No. 535,407 (Division “D”, Ct. App., First Dist., Sept. 12, 2011). The court held that because capital contributed to…
Details, Details, Details: It’s All About the Procedures
In the tax world, we are frequently reminded that procedure is important. The Alabama Supreme Court drove this point home in its decision dismissing a $1 million local use tax assessment because the final assessment was signature stamped rather than being signed by hand. City of Huntsville v. Colsa Corp., No. 1091797, 2011…