Which disputed delinquent tax items could be excluded when deciding whether a lottery retailer or vendor qualified for Louisiana tax clearance?

Plain-English summary

A disputed delinquent item was excluded from lottery tax clearance only when it was already under one of two properly filed statutory appeals.

Those routes were a Board of Tax Appeals petition under La. R.S. 47:1431 or a payment-under-protest refund suit under La. R.S. 47:1576. Administrative review and other review methods did not qualify.

Clearance requirement

The ruling addressed lottery retailer licenses and renewals, and lottery vendor contracts entered into or renewed on or after July 1, 2001. Applicants had to be current in filing applicable returns and paying Louisiana taxes, interest, and penalties, except for items under formal appeal.

Board of Tax Appeals route

A properly filed Board of Tax Appeals petition kept the item under appeal until the Board's decision or judgment became final under La. R.S. 47:1438. The ruling also noted judicial review of an adverse Board decision.

Payment-under-protest route

A taxpayer could pay the disputed tax under protest and file a refund suit in a court with jurisdiction, subject to the restrictions quoted from La. R.S. 47:1561. That item remained under appeal until the district-court judgment became final.

Filing had to occur before clearance

The retailer's or vendor's appeal had to be properly filed when tax clearance was requested. Merely having time left to appeal did not exclude the delinquency.

Common questions

Q: Did an internal administrative review count as a formal appeal?

A: No.

Q: Was a planned but not yet filed appeal enough?

A: No, even if the filing period had not expired.

Q: Did a formal appeal excuse all other filing and payment problems?

A: No. The ruling excluded the appealed item; the retailer or vendor still had to be current on other applicable returns, taxes, interest, and penalties.

Q: When did a qualifying appeal stop protecting the item?

A: When the relevant Board or court decision became final under the rules described in the ruling.

Citations and references

• La. R.S. 47:9050(B)(2) — lottery retailer license tax clearance
• La. R.S. 47:9060(D)(2) — lottery vendor contract tax clearance
• La. R.S. 47:1431 and 47:1438 — Board of Tax Appeals route and finality
• La. R.S. 47:1561 and 47:1576 — payment-under-protest route and restrictions
• La. R.S. 47:1565, 47:1566, and 47:1625 — petition periods referenced in the ruling
• La. Const. art. VII, § 3
• Loe v. McNamara, 501 So. 2d 298 (La. App. 1st Cir. 1987), writ denied, 503 So. 2d 480 (La. 1987)
• LAC 61:III.101.C — Revenue Ruling authority and reliance statement

Source

• Landing page: Louisiana Department of Revenue Policies
• Original PDF: LA Revenue Ruling 02-016

Original ruling text

Revenue Ruling
No. 02 – 016
October 10, 2002
Administrative
All Taxes, Interest, and Penalties
Tax Clearance Required for Lottery Retailer’s License and
Lottery Vendor Contract; Exception Provided for Items under Formal Appeal
The purpose of this Revenue Ruling is to discuss the interpretation of the statutory language
“under formal appeal pursuant to applicable statutes” that is expressed in Acts 2001, No. 716,
which amends La. R.S. 47:9050(B)(2) and enacts La. R.S. 47:9060(D)(2) to expand the lottery
tax clearance program to require tax clearances for lottery retailers’ licenses and lottery vendor
contracts. The Act is effective for all lottery retailers’ licenses applied for or renewed as well as
vendor contracts entered into or renewed on or after July 1, 2001. This Ruling will clarify when
the Department will exclude delinquent items as being “under formal appeal pursuant to
applicable statutes” in the case of a lottery retailer or vendor applying for a tax clearance.
Louisiana Revised Statute 47:9050(B)(2) provides that an applicant for a lottery retailer’s license
“must be current in filing all applicable tax returns and in payment of all taxes, interest, and
penalties owed to the state of Louisiana, excluding items under formal appeal pursuant to
applicable statutes, before a license is issued and before each renewal.”
Louisiana Revised Statute 47:9060(D)(2) provides that “[a] contract shall not be entered into
with any vendor who has not first obtained a signed tax clearance from the secretary of the
Department of Revenue indicating that the vendor is current in filing all applicable tax returns
and in payment of all taxes, interest and penalties owed to the state of Louisiana, excluding items
under formal appeal pursuant to applicable statutes.”
Therefore, in accordance with the provisions of La. R.S. 47:9050(B)(2) and R.S. 47:9060(D)(2),
the Department will exclude delinquent items that are “under formal appeal pursuant to
applicable statutes” when determining whether a tax clearance may be issued to a lottery retailer
or lottery vendor. To be excluded, however, a delinquent item must be under appeal pursuant to
one of the following two methods of appeal that the legislature has authorized taxpayers to use.
In part, La. R.S. 47:1431 states that a taxpayer “aggrieved” by an assessment made by the
secretary (or any action of the secretary) may appeal to the Board of Tax Appeals (BTA) for a
redetermination of the assessment, by filing a petition with the BTA within the respective
periods set forth in La. R.S. 47:1565, 47:1566 and 47:1625. An adverse decision of the BTA may
be reviewed by the district court and an adverse decision of the district court may be appealed to
the appellate courts. Therefore, items appealed to the BTA in accordance with the provisions of
La. R.S. 47:1431 are under appeal until the date on which a decision or judgment of the BTA
A Revenue Ruling is written to provide guidance to the public and to Department of Revenue employees. It is
issued under Section 61:III.101(C) of the Louisiana Administrative Code to apply principles of law to a
specific set of facts. A Revenue Ruling does not have the force and effect of law and is not binding on the
public. It is a statement of the department's position and is binding on the department until superseded or
modified by a subsequent change in statute, regulation, declaratory ruling, or court decision.

Revenue Ruling No. 02 - 016
Page 2 of 2
becomes final as provided by La. R.S. 47:1438. Loe v. McNamara, 501 So.2d 298 (La.App. 1st
Cir. 1987), writ denied, 503 So.2d 480 (La. 1987), La. R.S. 47:1431-38, 47:1565-66, and
47:1625; La. Const. of 1974, Art. VII., § 3.
In accordance with La. R.S. 47:1576, a taxpayer may also appeal an assessment made by the
secretary, or the enforcement of any provision of the tax laws in relation thereto, by paying the
disputed tax under protest and filing a suit for refund in any state court having jurisdiction of the
parties and subject matter. A taxpayer is entitled to appeal under La. R.S. 47:1576 in every case
“except (a) after he has filed a petition with the BTA for a redetermination of the assessment, or
(b) the assessment has become final, or (c) a suit involving the same tax obligation is pending
against the taxpayer…” La. R.S. 47:1561. Items appealed under the provisions of La. R.S.
47:1576 are under appeal until the date the judgment of the district court becomes final.
Thus, for the purpose of this Revenue Ruling, an item that is under appeal in accordance with the
provisions of La. R.S. 47:1431 or 47:1576 is an item “under appeal pursuant to applicable
statutes.” An item that is being reviewed under any other method, including administrative
review, is not an item “under appeal pursuant to applicable statutes.” Accordingly, in the case
of a lottery retailer or lottery vendor seeking to obtain a tax clearance, the Department will
exclude only delinquent items that are under appeal in accordance with the provisions of La. R.S.
47:1431 or R.S. 47:1576 when determining whether the retailer or vendor is current in filing all
applicable tax returns and in payment of all taxes, interest, and penalties owed to the state of
Louisiana. Further, the appeal of the retailer or vendor must be properly filed at the time the tax
clearance is requested, even if the time for filing an appeal has not expired.
Please call the Policy Services Division at (225) 219-2780 if you have any questions concerning
this Revenue Ruling.
Cynthia Bridges
Secretary
By:

Annie L. Gunn
Attorney
Policy Services Division