Opinion ID: 1114341
Heading Depth: 1
Heading Rank: 1

Heading: order amending decision on denial of rehearing

Text: PER CURIAM [] This court granted BP Oil Company's application for rehearing primarily to reconsider that part of the decision on original hearing which held that the legislative suspension of certain exemptions from state sales and use taxes also applied to suspend a proportionate amount of the exemptions from local sales taxes. [1] On rehearing, we first consider BP's request for clarification of our judgment relating to the valuation of coke-on-catalyst. We clarify our judgment to decree that the valuation method used by the Parish was invalid, and we expressly direct the district court on remand to value the coke-on-catalyst in accordance with La.Rev.Stat. 47:301-318. The principal issue before this court on rehearing is the effect on local use tax exemptions of the Legislature's suspension of a portion of various state sales and use tax exemptions. During the pertinent tax assessment periods, the Legislature suspended a portion of the energy sources tax exemptions provided by La.Rev.Stat. 47:305D. [2] The trial court held that La. Const. art. VI, § 29(D) [3] requires that all state sales and use tax exemptions apply equally to local governmental subdivisions, to school boards, and to the state. The trial judge supported his ruling by tracing the history of Section 29(D), concluding that the constitutional provision unambiguously mandates that legislative exemptions must apply uniformly to all areas, except where sales tax revenues had been relied upon to secure bonds. The judge further explained that logic dictates that the repeal of an exemption must also be applied uniformly. Reasoning that the suspension of an exemption has the same effect as repealing the exemption during the relevant period, the judge concluded that suspensions of exemptions must also be equally applied to local governments, school boards, and the state. On original hearing before this court, BP contended that the legislative suspensions of exemptions applied only to state taxes and not to the Parish's use taxes, while the Parish argued that the legislative suspensions of the exemptions were applicable to both state and local taxes. This court amended the trial court's ruling, concluding that the constitutional requirement of uniformity mandated that a proportionate part of the rate of local sales and use tax exemptions was suspended when the Legislature suspended part of the exemptions from state sales and use taxes. [4] BP's application for rehearing, and the numerous amicus briefs in support of rehearing, argued that the constitution does not mandate application of the legislative suspensions to local tax exemptions and that any uniformity requirement means uniformity within each particular type of taxing authority, or alternatively that this court's original decision requiring proportionate application of the suspensions should be applied prospectively only if upheld on rehearing. Although La. Const. art. VI, § 29(D) grants the Legislature the discretion to exempt or exclude goods, property and services from sales and use taxes, there appears to be some requirement of uniformity in enacting the exemptions or exclusions. We have concluded, however, that we need not decide in this case the meaning or the scope of any uniformity requirement for exemptions or exclusions in Section 29(D), because the present case involves only the suspension of a law enacted by the Legislature. La. Const. art. III, § 20 governs and limits the right of the Legislature to suspend a law by providing: Only the legislature may suspend a law, and then only by the same vote and, except for gubernatorial veto and time limitations for introduction, according to the same procedures and formalities required for enactment of that law. After the effective date of this constitution, every resolution suspending a law shall fix the period of suspension, which shall not extend beyond the sixtieth day after final adjournment of the next regular session. The legislative suspensions in the present case, which were done under the limited authority of Article III, § 20 for the constitutionally limited period of one year, were clearly intended to apply to state sales and use taxes only. Inasmuch as there is no requirement of uniformity in Article III, § 20, we conclude that the legislative suspensions at issue in the present case validly suspended only the exemptions from state sales and use taxes. Moreover, the legislative suspensions did not violate any uniformity requirements of La. Const. art. VI, § 29(D), because the Legislature was not enacting exemptions or exclusions, and any uniformity requirements of Section 29(D) were not applicable. Accordingly, we amend our judgment on original hearing (1) to hold that the valuation method used by the Plaquemines Parish Government was invalid and to direct the trial court on remand to value the coke-on-catalyst in accordance with La.Rev.Stat. 47:306-318, and (2) to reverse that portion of the judgment of the trial court which decreed that the legislative suspension of exemptions from state sales and use taxes applied equally to exemptions from local taxes. The case is remanded for further proceedings consistent with our opinions on original hearing and on rehearing.