Arrow Aviation Co., LLC. v. St. Martin Parish Sch. Bd.

by
At issue in this case was a tax exclusion, La. R.S. 47:301(14)(g)(i)(bb), which provided exclusions from state and local sales tax of charges for repairs on certain property that was delivered to customers out of state. At the local tax level, the 2013 version of this tax exclusion was mandatory for tax authorities in East Feliciana Parish and optional for all other parishes, municipalities and school boards. The question presented for the Louisiana Supreme Court's review was, when the legislature enacted a tax exclusion, whether La. Const. art. VI, section 29(D)(1) required the legislature to treat tax authorities in all parishes the same or to make tax authorities in all parishes act the same. The Supreme Court held that the uniformity provision of the constitution, based on its plain and unambiguous meaning, required that a legislative tax exclusion treat tax authorities in all parishes the same. The Court found La. R.S. 47:301(14)(g)(i)(bb), as amended in 2013, to be unconstitutional because tax authorities in all parishes are not required to apply the tax exclusion in the same form, manner, or degree. "However, the portion of this statutory provision-mandating tax authorities in East Feliciana Parish apply the exclusion-is severable from the rest." Therefore, the Court severed this portion, leaving the balance of the statutory provision unchanged. Accordingly, the Court affirmed the district court ruling and remanded this matter to the district court for further proceedings. View "Arrow Aviation Co., LLC. v. St. Martin Parish Sch. Bd." on Justia Law