When did the state-tax exemption for events and transactions at a parish-owned arena begin after local authorities adopted public-facility tax exemptions?

Plain-English summary

The state exemption applied from adoption of the original local ordinances in 2001 because parish-owned facilities were then the only publicly owned facilities in the jurisdiction.

La. R.S. 39:468 conditioned the state exemption on every local taxing authority first exempting covered events and transactions at all publicly owned facilities within its jurisdiction.

The original ordinances referred only to parish-owned facilities. That wording satisfied the statute on the stated 2001 facts because officials reported there were no other publicly owned facilities. If a state-owned facility had existed, the narrower wording would have failed.

Effect of the 2002 amendments

The parish and municipal governments amended their ordinances in August and September 2002 to cover all publicly owned facilities. Those amendments ensured the state exemption would continue if a state-owned facility later located in the parish.

Statutory scope noted in the ruling

The quoted statute covered events, activities, enterprises, admissions, parking, tours, sales, services, and other transactions at qualifying public facilities. It excluded tangible-property sales at a trade show or other event whose primary purpose was selling those goods.

Common questions

Q: Did the state exemption start only with the 2002 amendments?

A: No. On the stated facts it began with the 2001 ordinances.

Q: Why did “parish-owned” satisfy “all publicly owned” in 2001?

A: Parish officials stated that no other publicly owned facilities existed in the jurisdiction.

Q: What did the amendments accomplish?

A: They protected continued eligibility if another publicly owned facility appeared.

Q: Did the statute cover every event sale without exception?

A: No. The quoted law excluded goods sold at an event primarily held for those sales.

Citations and references

• La. R.S. 39:468 — publicly owned facility exemption and local-exemption condition
• La. R.S. 39:467 — Superdome exemption history discussed in the ruling
• Acts 1985, No. 2
• LAC 61:III.101 — Private Letter Ruling authority and reliance statement

Source

• Landing page: Louisiana Department of Revenue Policies
• Original PDF: LA PLR 03-003

Original ruling text

Private Letter Ruling No. 03-003
Redacted Version
Sales Tax
Taxability of Publicly Owned Facilities
March 17, 2003
This private letter ruling involves the application of Louisiana Revised Statute 39:468 to publicly
owned facilities in a political subdivision. The facts of the case are presented below.
Facts
In 2001, a Louisiana parish adopted an ordinance granting a sales tax exemption for events held
at its parish-owned facilities. Subsequently, each of the political subdivisions in the Parish
adopted similar resolutions. These ordinances were passed to obtain a state tax exemption for the
Parish’s local arena. Louisiana Revised Statute 39:468, exempts publicly owned facilities from
all present and future state taxes when political subdivisions exempt those facilities from any
taxes they impose. Neither the Parish nor its municipal governments levy any other form of
taxation upon these facilities.
When the local authorities contacted the Department of Revenue about the exemption, they were
informed that R.S. 39:468 only applies if the local ordinances exempt all public facilities owned
and operated by or for the state, or any of its agencies, boards, or commissions, or by any
political subdivision from all local taxes. Since several of the ordinances only exempted parishowned facilities, the ordinances may not have met the criteria established in R.S. 39:468 to
obtain the state exemption. Local officials asserted that no comparable state owned or operated
facilitates existed within the Parish before or after adoption of the original ordinances.
Regardless, in 2002 the local governing authorities in the Parish amended their ordinances to
exempt all publicly owned facilities from local sales and use taxes.
Issue
Does the state tax exemption provided under R.S. 39:468 apply to events held at publicly-owned
facilities within the Parish and if so, when did the exemption become effective?
The Law
Louisiana Revised Statute 39:468 provides:
Any event, activity, or enterprise, or the right of admission thereto, conducted in
any publicly-owned facility owned and operated by or for the state, or any of its
agencies, boards, or commissions, or by any political subdivision, or any sale,
service, or the transaction occurring in such facility or on the publicly-owned
property on which the facility is located, including without limitation the sale of
admission tickets to events, activities, or enterprises, wherever sold; parking; and
tours of the facility shall be exempt from all present and future taxes levied by the
state including but not limited to the sales, use, amusement, or any other tax;
provided however, that such exemption shall not apply unless the local taxing
authority first exempts from any tax levied by that authority such events,
activities, enterprises, sales, services, or other transaction occurring within all

Private Letter Ruling No. 03-003
Page 2 of 2

publicly owned facilities within the jurisdiction of said local taxing authority
[emphasis added]. However, this exemption shall not extend to any sale of goods
or other tangible personal property at a trade show or other event at which the sale
of such goods or property is the primary purpose of the show or event.
Analysis
For the parish-owned arena to qualify for the state tax exemptions provided by R.S. 39:468 for
sales, services, or transactions occurring in the facility, all of the local taxing authorities must
grant similar exemptions for all publicly-owned facilities within the Parish.
When Acts 1985, No. 2 was enacted, R.S. 39:467 authorized a state and local tax exemption for
the New Orleans Superdome and R.S. 39:468 authorized similar tax exemptions for other
political subdivisions if the local authorities granted tax exemptions for all publicly-owned
facilities. This requirement was included to prevent local authorities from obtaining a benefit
from the state exemption while denying the benefit of a local exemption.
Revised Statute 39:468 requires local authorities to exempt all publicly owned facilities. The
initial ordinances adopted by the Parish and its municipal taxing authorities in 2001, granted “a
parish sales tax exemption for events held at all parish-owned facilities.” Although R.S. 39:468
requires that local tax authorities grant similar tax exemptions for “all publicly-owned facilities,”
according to Parish officials, there were no other publicly-owned facilities in 2001. Since parishowned facilities were the only publicly owned facilities, the original local ordinances did in fact
exempt all publicly owned facilities. However, if a state-owned public facility had been located
in the Parish, the original local ordinances, which exempted “parish-owned facilities,” would not
have met the requirements of R.S. 39:468 and the state tax exemptions would have been
disallowed. When the Parish and its municipal governments amended their ordinances in 2002 to
provide that the local tax exemptions apply to all “publicly-owned facilities,” they were in
compliance with the requirements of R.S. 39:468 and ensured continuation of the state
exemption in the event that a state-owned public facility located in the Parish.
Conclusion
The state exemption provided by R.S. 39:468 applies to all periods after adoption of the original
local ordinances in 2001. Amendments to the local ordinances in August and September 2002, to
provide that the local tax exemptions apply to all “publicly-owned facilities,” ensured continued
eligibility for the state exemption in the event that another state-owned public facility located in
the Parish.
Questions or comments about this matter should be directed to the Policy Services Division at
(225) 219-2780.
Cynthia Bridges
Secretary
By:

J. A. Cline, Jr., CPA
Tax Research Analyst
Policy Services Division

This correspondence constitutes a private letter ruling (PLR) by the Louisiana Department of Revenue, as provided for by section
61:III.101 of the Louisiana Administrative Code. A PLR provides guidance to a specific taxpayer at the taxpayer's request. It is a
written statement that applies principles of law to a specific set of facts or a particular tax situation. A PLR does not have the force
and effect of law, and is not binding on the person who requested it or on any other taxpayer. This PLR is binding on the department
only as to the taxpayer to whom it is addressed, and only if the facts presented were truthful and complete and the transaction was
carried out as proposed. It continues as authority for the department’s position unless a subsequent declaratory ruling, rule, court
case, or statute supersedes it.