Would Louisiana's AG reconsider sales tax exemptions for purchases by public works contractors acting as port agents?

Plain-English summary

Three Louisiana port authorities asked whether contractors designated as their agents owed state and local sales taxes on materials purchased for public works. The AG observed that the issue had already produced four opinions and was the subject of pending litigation against the revenue department. Following its policy against opining on issues in litigation, the office declined to answer the five new questions. It affirmed Opinions 96-309, 97-182, 98-284, and 98-356 without restating their full analysis.

Currency note

This opinion was issued in 2000. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Did this opinion decide the ports' five sales tax questions?
No. The AG declined to respond because the issue was in pending litigation.

Did the AG withdraw its earlier contractor-agent opinions?
No. The opinion expressly affirmed four earlier opinions on the exemption issue.

Does this text explain every condition for the exemption?
No. It describes the earlier opinions' subject but does not reproduce their full reasoning or resolve the pending lawsuit.

Background and statutory framework

The request concerned purchases for public works by contractors designated as public entities' agents. The AG identified a pending suit involving the Department of Revenue, then applied the office's policy against issuing opinions on litigated issues.

Citations and references

• Attorney General Opinions 96-309, 97-182, 98-284, and 98-356: earlier opinions expressly affirmed here.
• Act 1029 of 1991 and Act 1288 of 1999: legislation identified in the opinion's background.

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/00-0137

Original opinion text

OPINION NUMBER 00-137

Mr. Charles G. Tutt, General Counsel
Caddo-Bossier Parishes Port Commission
900 Pierremont Road, Suite 206
Shreveport, LA 71106

Mr. Joseph Accardo, Executive Director
Port of South Louisiana
P.O. Box 909
LaPlace, LA 70069-0909

Mr. Michael K. Dees, General Counsel
Lake Charles Harbor & Terminal District
P.O. Box 3753
Lake Charles, LA 70602

Gentlemen:

Each of you has requested an opinion of this office on five identical issues regarding the liability of your port commissions (or your contractors) for state and local sales taxes on purchases of materials and supplies which are to be incorporated into a public work, when such purchases are made by the public work contractor who has been designated as an agent of your public body.

As you are aware, this office has issued four opinions which address the issues raised in your current requests. The legislature has also responded to the issues which you raise by adopting at least two acts, Act 1029 of 1991 and Act 1288 of 1999 which sought to make clear the exemption of public entities from sales taxes. Our opinions and the Acts of the Legislature apparently have not satisfied Department of Revenue sales tax collectors as they continue to reject claims of exemption made by duly designated agents of public entities such as your ports.

Page 2

Mr. Charles G. Tutt
Mr. Joseph Accardo
Mr. Michael K. Dees
OPINION NUMBER 00-137
Page -2-

This conflict with the Department of Revenue has resulted in the filing of Gravity Drainage District No. 4, Ward 3 of Calcasieu Parish and F. Miller & Sons vs. the Secretary of the Department of Revenue, #468,364 on the docket of the 19th Judicial District Court.

It has long been the policy of this office not to issue opinions on issues which are the subject of pending litigation and, therefore, we will resist the temptation to respond to your requests, other than to affirm Opinion Numbers 96-309, 97-182, 98-284 and 98-356 previously issued.

Sincerely,

RICHARD P. IEYOUB
Attorney General

By:_______
GLENN R. DUCOTE
Assistant Attorney General
Chief, Public Finance & Contracts Section

Page 3

OPINION NUMBER 00-137
90 -- A -- 1 PUBLIC FUNDS & CONTRACTS
119 TAXATION -- EXEMPTIONS
160 SALES TAX

Affirms Opinion Numbers 96-309, 97-182, 98-284 & 98-
356 related to sales tax exemption on purchases of
materials and supplies to be incorporated into a public work when made by the public work contractor who is also designated as the agent of the public entity for such purchases.

Mr. Charles G. Tutt, General Counsel
Caddo-Bossier Parishes Port Commission
900 Pierremont Road, Suite 206
Shreveport, LA 71106

Mr. Joseph Accardo, Executive Director
Port of South Louisiana
P.O. Box 909
LaPlace, LA 70069-0909

Mr. Michael K. Dees, General Counsel
Lake Charles Harbor & Terminal District
P.O. Box 3753
Lake Charles, LA 70602

DATE RECEIVED: 3/30/00
DATE RELEASED: May 2, 2000

GLENN R. DUCOTE, ASSISTANT ATTORNEY
GENERAL