Louisiana – Judgment Denying Sales Tax Exemption Reversed

SALT Report 2252 – The Louisiana Supreme Court reversed and vacated a Louisiana Court of Appeal’s ruling that denied a Taxpayer’s use of a sales tax exemption for purchases of limestone and sand that were used to create electricity and steam using Circulating Fluidized Boiler technologies.

The lower courts had previously ruled that because the Taxpayers evidence established that the limestone and sand were purchased to generate electricity and not purchased as materials that would be further processed into property for sale they did not meet the requirements set forth in the exemption.

However, on March 8, 2013, the Supreme Court denied and vacated the Department of Revenue’s motion for summary judgment and remanded the case to a trial court for further proceedings because, “genuine issues of material fact exist.”

The Court of Appeals’ ruling was previously discussed in SALT Report 1899.

For Further Information

Louisiana Supreme Court – Case Number 2013-C-0171