Louisiana: U.S. District Court Dismisses Remote Seller’s Sales Tax Complaint for Lack of Jurisdiction

The U.S. District Court for the Eastern District of Louisiana May 23 found it lacked jurisdiction under the Tax Injunction Act (TIA) over a constitutional challenge to Louisiana’s sales and use tax regime as applied to remote sellers. Taxpayer was an Arizona corporation selling jewelry-making supplies into Louisiana. Taxpayer argued that Louisiana’s parish-by-parish and intra-parish tax requirements violated the Commerce Clause and Due Process Clause as burdensome and lacking a reasonable relationship to the value gained from them. Taxpayer stated that it intentionally halted its sales into Louisiana before it met the economic nexus thresholds. Taxpayer sought a declaratory judgment ...