Louisiana Sales Tax Challenge Properly Booted From Federal Court

An online seller’s constitutional challenge to Louisiana’s sales tax system can’t be heard in federal court, the US Court of Appeals for the Fifth Circuit affirmed.

The federal Tax Injunction Act divests the court of jurisdiction because Arizona-based Halstead Bead Inc.'s suit seeks to restrain the collection of state taxes when Louisiana law provides an adequate remedy in state court, the appeals court ruled in an unsigned, unpublished opinion.

Halstead is “simply wrong” when it asserts that state tribunals will hear only claims for refunds, the court said.

State law allows the Board of Tax Appeals and state court challenges ...