Can a Louisiana city open a public license tag agency inside the city court building?

Plain-English summary

Chief Judge Sheva M. Sims of Shreveport City Court asked the Louisiana AG whether a public license tag agency could be located inside the Shreveport City Court building. The AG said yes.

Louisiana law lets the Commissioner of Motor Vehicles set up a network of "public license tag agents" who collect vehicle registration license taxes on the state's behalf. By statute, that network can include municipal and parish governing authorities, new motor vehicle dealers and their licensed agents, authorized auto title companies, and a few other categories. The City of Shreveport, acting through its governing authority, falls squarely within the list of eligible entities.

The AG noted that "governing authority" here means the political subdivision's executive or administrative body, like the city council, not the judicial branch. So the City Court itself cannot operate the tag agency. But the city government can apply to operate one, and once approved by the Louisiana Office of Motor Vehicles (OMV), it can locate the operation inside the courthouse building.

The AG pointed to Baton Rouge as a real-world example: a tag agency already operates inside the Baton Rouge City Court building, showing that a courthouse can serve as an approved tag-agency location.

Because the arrangement involves the city government delivering services from a court building that may be controlled by a separate budget unit, the AG noted that a cooperative endeavor agreement under La. Const. art. VII, § 14(C) "may be appropriate." That constitutional provision lets state and local entities pool resources for a public purpose, including sharing public facilities for government services.

What this means for you

For a city council considering a tag agency in a courthouse. Two approvals matter. First, the city's governing authority (mayor and council, or the equivalent body under the city's charter or home-rule charter) must vote to apply to OMV to become a public tag agent. Second, OMV must approve the agency under the rules in La. Admin Code tit. 55, § 1601 et seq., which set out the operational, bonding, and recordkeeping standards a tag agent must meet.

For a city court considering hosting a tag agency. The court itself cannot be the tag agent. The opinion is clear that "governing authority" refers to the political subdivision's executive or administrative body, not its judicial branch. But the court can host the agency, contribute the physical space, and coordinate with the city's executive branch. Expect to negotiate building access, security, hours, and cost-sharing in a written agreement.

For a parish or city outside Shreveport considering the same thing. The reasoning generalizes. Any Louisiana municipality or parish that is a "governing authority" under La. R.S. 47:532.1 can apply to OMV. Locating the agency inside another public facility (like a courthouse, city hall annex, or library) is also workable as long as the host facility's controlling authority agrees in writing.

For drafting the cooperative endeavor agreement. La. Const. art. VII, § 14(C) requires that the arrangement serve a public purpose. The agreement should document who provides the space, who pays utilities and custodial costs, how revenue is allocated (if any), and how the parties will exit if either side wants to wind the arrangement down. A short recital connecting the agreement to the public purpose of accessible vehicle services helps if the arrangement is later challenged.

For OMV staff reviewing the application. The AG opinion confirms that operating from a courthouse is not, by itself, disqualifying. The standard review for bonding, recordkeeping, training, and physical facility adequacy still applies under La. Admin Code tit. 55, § 1601 et seq.

Common questions

Q: Can the city court itself run the tag agency to generate revenue for court operations?
A: No. The AG opinion limits "governing authority" to the political subdivision's executive or administrative branch (the city government), not the judicial branch. The court can host the agency in its building, but the city government has to be the tag agent of record with OMV.

Q: Does the city need permission from the state to use its own city hall for a tag agency?
A: It needs OMV approval to be a tag agent, which includes review of the proposed facility. The location doesn't need separate legislative authorization beyond that.

Q: What does a "public tag agent" actually do?
A: A public tag agent collects vehicle registration license taxes on OMV's behalf. The agent processes the paperwork, takes payment, issues the registration, and remits proceeds to OMV under the rules. It's the front-counter service most drivers picture when they say "the DMV."

Q: Who is barred from collecting these registration taxes?
A: Under La. R.S. 47:532.1(A)(1), no person, natural or juridical, may collect these registration license taxes unless they are in one of the categories the statute lists: public tag agents, auto title companies, financial institutions, licensed new or used car dealers, recreational product dealers, digital transaction providers, state departments and offices, and similar authorized entities.

Q: Do you need a cooperative endeavor agreement, or is it optional?
A: The opinion says one "may be appropriate depending on the structure of the arrangement." If the building's controlling authority is a separate budget unit from the city government, a written agreement is the cleaner approach because it documents the public purpose and the cost allocation. Courts also routinely look for a written cooperative endeavor agreement when reviewing intergovernmental arrangements.

Background and statutory framework

La. R.S. 47:532.1 lets the Commissioner of Motor Vehicles establish a system of public license tag agents to collect vehicle registration license taxes authorized by Chapter 4 of Title 47 (the motor vehicle license tax chapter). The statute lists eligible categories: municipal and parish governing authorities, new motor vehicle dealers and their licensed agents (under La. R.S. 32:1254), and authorized auto title companies (under La. R.S. 32:735 et seq.).

The implementing regulations live in La. Admin Code tit. 55, § 1601 et seq. Section 1603 lists eligible tag-agent categories and tracks the statute. The Commissioner promulgated these rules under the authority of La. R.S. 47:532.1(A)(2)(a).

La. Const. art. VII, § 14 generally prohibits the donation, loan, or pledge of public credit. Subsection (C) carves out an exception for cooperative endeavors between state and local governments and public entities, as long as the endeavor serves a public purpose. That subsection is the standard hook for intergovernmental space-sharing arrangements.

Liz Murrill is the Attorney General of Louisiana. T.J. Savoie was the Assistant Attorney General who signed Opinion 25-0035.

Citations and references

Statutes:
- La. R.S. 47:532.1 (public license tag agent system)
- La. R.S. 47:532.1(A)(1) (eligible categories)
- La. R.S. 47:532.1(A)(2)(a) (rulemaking authority)
- La. R.S. 32:1254 (licensed agents of motor vehicle dealers)
- La. R.S. 32:735 et seq. (authorized auto title companies)

Constitutional provisions:
- La. Const. art. VII, § 14(C) (cooperative endeavors for public purpose)

Regulations:
- La. Admin Code tit. 55, § 1601 et seq. (public tag agency rules)
- La. Admin Code tit. 55, § 1603 (eligible entities)

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/25-0035

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain, the linked PDF is authoritative.

STATE OF LOUISIANA
DEPARTMENT OF JUSTICE
OFFICE OF THE ATTORNEY GENERAL
P.O. Box 94005
BATON ROUGE, 70804-9005

LIZ MURRILL
ATTORNEY GENERAL

June 17, 2025

OPINION 25-0035

Chief Judge Sheva M. Sims
Shreveport City Court
1244 Texas Ave.
Shreveport, LA 71101

70-MOTOR VEHICLES — Control & Regulation
La. R.S. 47:532.1

The governing authority for the City of Shreveport may apply to serve as a public tag agent and operate the agency within the Shreveport City Court building, subject to the approval of the Office of Motor Vehicles and any agreements necessary to support the arrangement.

Dear Chief Judge Sims:

You have asked for an opinion concerning the creation of a Public License Tag Agency at the Shreveport City Court.

Question: May a Public License Tag Agency be located at the Shreveport City Court?

Conclusion: The governing authority for the City of Shreveport may apply to serve as a public tag agent and operate the agency within the Shreveport City Court building, subject to the approval of the Office of Motor Vehicles and any agreements necessary to support the arrangement.

The ability to create tag agencies is established by La. R.S. 47:532.1(A)(1), which states,

The commissioner may establish a system of public license tag agents to collect the registration license taxes authorized by this Chapter. The system shall consist of municipal and parish governing authorities or new motor vehicle dealers or their agents licensed pursuant to the provisions of R.S. 32:1254 and authorized auto title companies pursuant to the provisions of R.S. 32:735 et seq. No persons, natural or juridical, except public license tag agents, auto title companies, financial institutions, licensed new or used car dealers, recreational product dealers, digital transaction providers, state departments, offices, or entities and those included in the system established pursuant to this Section shall collect registration license taxes authorized by this Chapter.

(Emphasis added). This statute establishes that municipal and parish governing authorities are among the entities that may serve as public license tag agents. Louisiana Revised Statute 47:532.1(A)(2)(a) provides for the promulgation of rules and regulations regarding the implementation and governing of a system of "public tag agencies." Those rules and regulations can be found at La. Admin Code tit. 55, § 1601 et seq. Louisiana Administrative Code title 55, § 1603 also provides that a public tag agent may be a "municipal or parish governing authority," among other eligible entities. The term

OPINION 25-0035
Chief Judge Sheva M. Sims
Page 2

"governing authority" in this context refers to a political subdivision's executive or administrative body, such as a city or parish government, not its judicial branch.

Because it is a municipality, the City of Shreveport, acting through its governing authority, may apply to become a public tag agent and, if approved by the Office of Motor Vehicles, may operate as a public tag agent within the Shreveport City Court building. As you note in your opinion request, a public tag agency currently operates within the Baton Rouge City Court building, demonstrating that a courthouse may serve as an approved location for such services. A cooperative endeavor agreement between the City of Shreveport and the Office of Motor Vehicles may be appropriate depending on the structure of the arrangement. Such an agreement may be made pursuant to La. Const. art. VII, § 14(C), which authorizes the state and its political subdivisions to engage in cooperative endeavors for a public purpose, including the shared use of public facilities to provide government services.

Considering the foregoing, it is the opinion of this office that the governing authority for the City of Shreveport may apply to serve as a public tag agent and operate the agency within the Shreveport City Court building, subject to Office of Motor Vehicles approval and any agreements necessary to support the arrangement.

We trust this adequately responds to your request. However, if our office can be of further assistance, please do not hesitate to contact us.

With best regards,

LIZ MURRILL
ATTORNEY GENERAL

BY:
T.J. Savoie
Assistant Attorney General

LM: TJS