Case Name: SOUTHWEST GAMING SERVICES OF LOUISIANA, Plaintiff-Appellee, v. CADDO-SHREVEPORT SALES AND USE TAX COMMISSION, Defendants-Appellants; REPUBLIC CORPORATE SERVICES, INC., Plaintiff-Appellee, v. CADDO-SHREVEPORT SALES AND USE TAX COMMISSION, Defendants-Appellants
Court: Louisiana Court of Appeal
Jurisdiction: Louisiana
Decision Date: 1995-09-27
Citations: 661 So. 2d 662
Docket Number: Nos. 27,335-CA, 27,336-CA
Parties: SOUTHWEST GAMING SERVICES OF LOUISIANA, Plaintiff-Appellee, v. CADDO-SHREVEPORT SALES AND USE TAX COMMISSION, Defendants-Appellants. REPUBLIC CORPORATE SERVICES, INC., Plaintiff-Appellee, v. CADDO-SHREVEPORT SALES AND USE TAX COMMISSION, Defendants-Appellants.
Judges: Before NORRIS and BROWN, JJ., and PRICE, J. Pro Tem.
Reporter: Southern Reporter, Second Series
Volume: 661
Pages: 662–664

Head Matter:
SOUTHWEST GAMING SERVICES OF LOUISIANA, Plaintiff-Appellee, v. CADDO-SHREVEPORT SALES AND USE TAX COMMISSION, Defendants-Appellants. REPUBLIC CORPORATE SERVICES, INC., Plaintiff-Appellee, v. CADDO-SHREVEPORT SALES AND USE TAX COMMISSION, Defendants-Appellants.
Nos. 27,335-CA, 27,336-CA.
Court of Appeal of Louisiana, Second Circuit.
Sept. 27, 1995.
Richard Barham, Shreveport, for Appellant, Caddo-Shreveport Sales & Use Tax Commission.
Michael H. Wainwright, Shreveport, for Appellee, Southwest Gaming Services of America.
John R. D’Anna, Shreveport, for Appellee, Republic Corporate Services Inc.
Before NORRIS and BROWN, JJ., and PRICE, J. Pro Tem.

Opinion:
| iBROWN, Judge.
These cases, consolidated in the trial court, challenged the right of local government to tax the sale of video draw poker machines. The court below held that plaintiffs were exempt from parish and city sales taxes. The Caddo-Shreveport Sales & Use Tax Commission appeals.
Southwest Gaming Service of LA ("Southwest") is a licensed operator of video poker machines. On March 15, 1994, Southwest was notified that it owed $12,071.92 in delinquent taxes, penalties, and interest stemming from their purchase of video gaming devices to be placed in various locations. Republic Corporate Services, Inc. ("Republic") is a video poker machine distributor. On June 14, 1994, Republic was notified that it owed taxes, penalties and interest in the amount of $76,983.01 related to their sale of video gaming devices. These assessments were paid under protest.
LSA-R.S. 33:4862.14 reads as follows: Video draw poker devices or similar devices licensed and permitted pursuant to this Part are exempt from taxes, fees, and licensing restrictions imposed by any governmental entity, except that a local governing authority may levy an occupational license tax on the operation of video draw poker devices within its jurisdiction in an amount not to exceed fifty dollars per device.
The obvious legislative purpose behind LSA-R.S. 33:4862.1 et seq was to provide a comprehensive framework for the regulation of the video poker industry, vesting regulatory powers exclusively in the video gaming division of the state police. The clear import of LSA-R.S. 33:4862.14 is the prevention of defacto regulation of the video poker industry by local municipalities through the assessment of taxes and fees for the privilege of operation.
A sales or use tax, equally applicable to non-gaming merchandise, is not imposed on the machines themselves, but rather, on an event incident to their introduction into commerce or their initial use. A one-time sales and use tax does frnot allow a municipality to exercise control over an industry otherwise regulated by the state. We find no usurpation of the state police's regulatory authority in the assessment of a one-time sales and use tax by a local municipality. Accordingly, we reverse the trial court's ruling ordering a refund of the sales taxes, penalties, and interest submitted by Southwest and Republic. Costs are assigned to plaintiffs.
REVERSED.
NORRIS, J., concurs in the result with written reasons.