92 So. 3d 404
La. Ct. App.2012Background
- Authority filed a Petition for Rule to Show Cause in a summary sales and use tax proceeding against LMR on Oct. 25, 2010.
- LMR conducted Caterpillar equipment sales, leases, repairs in Ascension Parish but allegedly failed to register for parish sales and use tax.
- BPA conducted a private audit for the Authority, with suspension of prescription via waiver agreements.
- Audit notified deficiencies and initial assessment: $40,305.90 tax, penalty $10,076.63, interest $27,169.26, total $77,551.79.
- After protest periods were not timely acted upon, a December 31, 2009 formal assessment issued for $78,559.43.
- April 30, 2010 revised assessment increased the total to $184,457.37, with similar warnings about time to protest and consequences for inaction; total, with ongoing interest, reached $190,783.98 by Oct. 31, 2010.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether finality of the revised assessment bars defenses. | Authority contends final assessment is enforceable and defenses are barred. | LMR argues defenses may still be raised and factual issues reviewed. | Final assessment precludes defenses in the summary proceeding. |
| Whether the court correctly granted lack of subject matter jurisdiction to hear defenses. | Authority maintains summary proceeding can adjudicate and enforce the assessment. | LMR maintains jurisdictional limits prevent raising defenses at this stage. | Ruling that defenses were barred was affirmed; subject matter jurisdiction issue resolved for final assessment. |
| Whether the judgment for the Authority should be affirmed and remanded for fee determinations. | Authority seeks judgment finality and recovery of audit and attorney fees. | LMR challenges the scope of fees and finality. | Affirmed and remanded for determination of audit and attorney fees. |
Key Cases Cited
- West Baton Rouge Parish Revenue Department v. Louisiana Machinery Rentals, L.L.C. c/w West Baton Rouge Parish Revenue Department v. Louisiana Machinery Company, L.L.C., 91 So.3d 1032 (La. App. 1st Cir. 2012) (finality of the assessment after summary proceeding precludes defenses)
- Jefferson Davis Parish School Bd. Ex rel. Sales/Use Tax Dept. v. Louisiana Machinery Rentals, LLC, 74 So.3d 1272 (La. App. 3 Cir. 2011) (precedent on finality and defenses in summary remedy)