Thomas v. Bridges

This case centered on whether someone could form an out-of-state limited liability company (LLC) for the purpose of avoiding payment of Louisiana sales tax. The Louisiana Department of Revenue assessed a sales tax against plaintiff Robert Thomas, who is a Louisiana resident and admitted he formed a Montana LLC solely to avoid the Louisiana sales tax for the purchase of a recreational vehicle. Although the Board of Tax Appeals affirmed the assessment against Thomas, the District Court reversed the assessment. The Court of Appeal upheld the reversal, finding Thomas’s appeal met the Department’s procedural requirements, and the Department failed to show the veil of the Montana LLC should be pierced and further failed to show Thomas should be held individually liable. The Supreme found this issue involved policy considerations that should be addressed by the Louisiana Legislature rather than resolved by the Court. "Our function is to merely interpret the laws passed by the legislature, not to make laws." View "Thomas v. Bridges " on Justia Law