Catahoula Parish School Board v. Louisiana Machinery Rentals, LLC
124 So. 3d 1065
La.2013Background
- Louisiana Machinery Co., L.L.C. and Louisiana Machinery Rentals, L.L.C. (the Companies), Caterpillar dealers, were audited and the Catahoula Parish School Board (Collector) issued assessment notices alleging unpaid local sales/use taxes, penalties, and interest for 2000–2007.
- Collector sent multiple notices (initial, first revised, second revised) under the ULSTC (La. R.S. 47:337.48–.51); Companies submitted records but did not file formal protests within the timeframes stated in the notices.
- Collector filed summary proceedings (rules for payment) asserting the assessments had become final and were executory judgments, seeking collection, injunctions (cease business), liens, penalties, interest, and fees.
- District court granted partial summary judgments declaring the second revised assessments final and precluding Companies from challenging them; the Third Circuit reversed, finding the notices deficient and genuine issues of material fact existed.
- Louisiana Supreme Court granted review to resolve a circuit split and affirmed the Third Circuit: the notices failed to comply with La. R.S. 47:337.51(A) (did not inform of 60-day right to request a hearing), assessments were not final, and Collector failed to carry its evidentiary burden in summary judgment proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether notices complied with La. R.S. 47:337.51(A) | Notices complied because Companies are "dealers" and Section B (30-day protest) applies; multiple notices together satisfied requirements | Notices were deficient because Section A mandates advising every taxpayer of a 60-day right to request a hearing; Section B does not replace Section A | Notices were deficient: Section A applies to all taxpayers (including dealers); failure to state 60-day hearing right rendered assessments nonfinal |
| Whether nonfinal assessments bar Companies from presenting defenses in summary proceedings | Because Companies failed to timely plead notice-invalidity defense under La. R.S. 47:337.61(2), they should be precluded | Validity of assessment notice is an essential element of Collector’s claim of finality, not a late defense; Companies timely litigated newly raised ULSTC-based allegations | Validity of notices was an element of Collector’s claim; Companies’ challenges were timely as to the supplemental petitions |
| Whether Collector was entitled to partial summary judgment based on affidavits under La. R.S. 47:337.61(4) | Affidavits of Collector’s representative established prima facie case that assessments were final and supported summary judgment | Affidavits were not made on personal knowledge per La. C.C.P. art. 967 and could not establish the tax liability; genuine disputes of material fact exist | Collector’s affidavits did not meet personal‑knowledge requirements and did not prove tax amounts; summary judgments reversed |
| Whether district court erred in barring Companies from pursuing defenses once it declared assessments final | Once assessments are final, Companies cannot contest them and district court properly barred defenses | Because assessments were not final, Companies must be allowed to present defenses in further proceedings | District court erred: assessments were not final, so Companies may present defenses; matter remanded for further proceedings |
Key Cases Cited
- Property Ins. Ass’n of La. v. Theriot, 31 So.3d 1012 (La. 2010) (summary judgment standard and appellate review principles)
- Greemon v. City of Bossier City, 65 So.3d 1263 (La. 2011) (statutory interpretation guidance)
- Broussard v. Hilcorp Energy Co., 24 So.3d 813 (La. 2009) (summary judgment and affidavit standards)
- Red Stick Studio Dev., L.L.C. v. State ex rel. Dept. of Econ. Dev., 56 So.3d 181 (La. 2011) (statutory interpretation and legislative intent)
- Collector of Revenue v. Frost, 127 So.2d 151 (La. 1961) (definition of final assessment and enforcement authority)