Louisiana Wins Dismissal of Suit Opposing Sales Tax System (2)

An online seller’s constitutional challenge to Louisiana’s sales tax system can’t be heard in federal court, the US District Court for the Eastern District of Louisiana has ruled.

Arizona-based Halstead Bead Inc. alleged that Louisiana’s “arbitrary and fragmented” sales tax system places unconstitutional burdens on interstate commerce. Three parish-level tax administrators, backed by the state Revenue Department, had accused Halstead of wasting the court’s time with a list of falsehoods and “hypothetical burdens.”

Judge Jane Triche Milazzo sided with the state Monday, finding the Tax Injunction Act divests the court of jurisdiction over the case because it seeks ...