Coastal Drilling Company v. Dufrene

At issue before the Louisiana Supreme Court was whether the materials, machinery, and equipment that became part of an inland marine drilling barge during its reconstruction following a fire were exempt from sales and use tax. La. R.S. 47:305.1(A) exempted these materials when vessels were “built in Louisiana.” The Louisiana Department of Revenue promulgated LAC 61:I:4403(A) and (B)(2) to clarify that certain reconstruction projects fell within the scope of the statutory exemption. The lower courts found the regulation exceeded the scope of the statute and declared it unconstitutional. The Supreme Court granted review to determine the constitutionality of LAC 61:I:4403(A) and (B)(2), and to review its application to the facts at issue. After this review, the Court found the regulation constitutional and applicable to the facts in this case. Accordingly, the Court reversed the court of appeal’s judgment and rendered judgment in favor of the taxpayer. View "Coastal Drilling Company v. Dufrene" on Justia Law