Catahoula Parish Sch. Bd. v. Louisiana Machinery Rentals, LLC

Louisiana Machinery Company, L.L.C. and Louisiana Machinery Rentals, L.L.C., Louisiana's exclusive Caterpillar franchise dealers, sold, leased, and/or repaired Caterpillar equipment and machinery in parishes throughout the state. Following an audit, the taxing authorities from numerous parishes began tax collection proceedings against the companies, alleging they incorrectly failed to charge and collect sales and use taxes from their customers on their taxable sales, leases, and/or repairs for certain tax periods, and that the companies were liable for these taxes, penalties, and interest under the provisions of the Uniform Local Sales Tax Code (ULSTC). The tax collector for Catahoula Parish obtained partial summary judgments at district court, declaring that the tax assessments it issued to the companies were final, and the executory judgments issued by the court and could not be challenged. The companies appealed to the Third Circuit, which reversed the grants of partial summary judgment based on deficiency of the notices of assessment and the lack of sufficient evidence to support the judgments. The tax collector applied for supervisory review to the State Supreme Court. Upon review, the Supreme Court found the court of appeal properly reversed the district court's grants of partial summary judgment, and remanded the cases back to the district court for further proceedings. View "Catahoula Parish Sch. Bd. v. Louisiana Machinery Rentals, LLC" on Justia Law