94 So. 3d 144
La. Ct. App.2012Background
- LMC and LMR were assessed for sales and use taxes by the Caldwell Parish collectors under the ULSTC after an audit by Broussard Partners.
- A Notice of Intent to Assess was issued on November 24, 2009, for periods December 2000–June 2007.
- Notice of Assessment was mailed December 24, 2009, with subsequent extensions in 2010 that allegedly changed the due date.
- Plaintiffs filed separate suits on September 24, 2010 seeking payment of taxes, penalties, interest, and fees; defendants raised prescriptions and other exceptions.
- The trial court granted partial summary judgments finding the notices final; LMC and LMR challenged finality and raised prescription defenses.
- The court ultimately reversed the judgments, sustained prescription exceptions, and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the notices of assessment complied with La. R.S. 47:337.51(A). | LMC/LMR contend notices satisfied statutory timing and content requirements. | Plaintiffs argue notices were deficient; strict compliance required. | Not final; notices deficient, material defect. |
| Whether prescription barred the collector's claims for certain tax periods. | Some periods interrupted by notices and agreements; some periods not. | Interruption valid for all relevant periods; claims timely. | Some periods prescribed for LMC (2000–2002) and LMR (2000–2004); others not. |
| Whether the trial court erred by granting summary judgments in a summary proceeding. | Material fact exists as to notice validity, precluding finality. | No material fact; notices deemed final. | Error; summary judgments reversed. |
| Whether the notices’ finality was properly determined given statutory deficiencies. | Deficiencies prevented finality and enforcement. | Finality achieved despite minor defects. | Defect vitiates finality; remand needed. |
Key Cases Cited
- Jefferson Davis Parish School Board ex rel. Sales/Use Dept. v. Louisiana Machinery Rentals, LLC, 74 So.3d 1272 (La. App. 3rd Cir. 2011) (notice and remedies under ULSTC considered by Third Circuit)
- West Baton Rouge Parish Revenue Dept. v. Louisiana Machinery Rentals, LLC, 91 So.3d 1032 (La. App. 1st Cir. 2012) (strict notice requirements evaluated under ULSTC)
- Ascension Parish Sales and Use Tax Authority v. Louisiana Machinery Rentals, Inc., 92 So.3d 404 (La. App. 1st Cir. 2012) (notice compliance and remedies under statute discussed)
- Ascension Parish Sales and Use Tax Authority v. Louisiana Machinery Co., L.L.C., 92 So.3d 410 (La. App. 1st Cir. 2012) (comparing dealer vs. taxpayer notices under ULSTC)
- Etienne v. National Auto. Ins. Co., 759 So.2d 51 (La. 2000) (prescription interruption mechanics (general))