76 So. 3d 521
La. Ct. App.2011Background
- Parish assessors challenge ad valorem tax treatment of plaintiffs’ public service pipelines, tracing back to ANR Pipeline Co. v. Louisiana Tax Com’n (Dec 2000).
- Plaintiffs ANR, Tennessee Gas Pipeline, and Southern Natural Gas claim public service property is valued at 25% of FMV, while other pipeline properties are taxed at 15%, creating constitutional and equal protection challenges.
- ANR VI (2005) affirmed a declaratory judgment condemning the Commission’s tax scheme and remanded for reassessment and refunds; extended deadlines for refunds.
- Commission ordered reassessment of plaintiffs’ public service pipelines using a 15% methodology for valuation, with refunds to follow, leading to further litigation on the refund process.
- In 2009 the Commission ruled on obsolescence and throughput, reducing values for obsolescence according to guidelines; plaintiffs then filed for judicial review, and parish assessors filed cross-claims/reconventional demands.
- Judge Kelley dismissed the assessors’ cross-claims, ruling no right of action under 47:1998; assessors appealed, triggering analysis of proper statutory framework for review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 47:1998 provides a right of action to assessors to review the Commission ruling. | Assessors rely on 47:1998 to challenge the Commission’s ruling. | Remedy lies under 47:1856; 1998 does not apply to public service property reviews. | Assessors have no right of action under 47:1998; review must proceed under 1856. |
| Whether the assessors’ cross-claims/reconventional demands are proper as interventions. | Cross-appeals are interventions under 47:1903.3; labeling as reconventional demands is harmless. | Cross-claims were improperly labeled as reconventional demands and should be dismissed. | Cross-claims are interventions under 47:1903.3; judgment reversed and remanded for proper intervention proceedings. |
| What framework governs the remedy-phase review of public service property assessments (1856 vs 1998) and the appropriate forum for review. | Remedy phase should be under 1998 as to methodology; status as interstate distributor does not affect review. | Remedy phase remains under 1856; public service property reviews fall within 1856 proceedings. | Remedy-phase review of public service property belongs to 1856; Gisclair II/Gisclair I guidance applied; review within ongoing 1856 litigation. |
Key Cases Cited
- Gisclair v. Louisiana Tax Com’n, 2010-0563 (La.), 44 So.3d 272 (La. 2010) (public service property reviews governed by 1856; assessors cannot use 1998 to challenge public service assessments)
- Gisclair v. Louisiana Tax Com’n, 2009-0007 (La.), 16 So.3d 1182 (La. 2009) (Gisclair I; public service property reviews distinct from local assessments; Commission has original jurisdiction over public service challenges)
- ANR Pipeline Co. v. Louisiana Tax Com’n, 2005-1142 (La. App. 1 Cir. 9/7/05), 923 So.2d 81 (La. App. 1 Cir. 2005) (affirmed declaratory judgment and remanded for reassessment/refund process; discussed refund deadlines)
- ANR Pipeline Co. v. Louisiana Tax Com’n, 2008-1148 (La. App. 1 Cir. 10/17/08), 997 So.2d 92 (La. App. 1 Cir. 2008) (ANR VII; clarified remedy sequence and remanded for completion of reassessment/refund process)
- ANR Pipeline Co. v. Louisiana Tax Com’n, 2007-2282 (La. App. 1 Cir. 10/17/08), 997 So.2d 105 (La. App. 1 Cir. 2008) (ANR VIII; addressed interim orders and procedure during remand)