Archer Daniels Midland Co. v. Parish School Bd.; Tulane Fleeting, Inc. v. Parish School Bd.

Summary

The Louisiana Supreme Court considered whether tugboats operating wholly within Louisiana waters qualified for a parish sales-tax exemption applicable to owners or operators of vessels operating exclusively in foreign or interstate coastwise commerce. The court held that eligibility depends on the movement of the vessels, not the cargo, and that vessels must leave Louisiana waters to qualify. The court overruled Cooper Stevedoring Co., Inc., reversed the lower courts, and remanded the case.

Holdings

1. The relevant inquiry focuses on the movement of the taxpayer's ships or vessels, not the movement of the cargo. To qualify for the exemption, the ships or vessels must leave Louisiana waters.
2. The taxpayers were not entitled to the sales tax exemption because their tugboats operated wholly within Louisiana waters.
3. Summary judgment for the taxpayers was improper because, under the court's interpretation of the exemption, the taxpayers were not entitled to judgment as a matter of law.

Questions Presented

1. Whether tugboats that operate wholly within Louisiana waters but facilitate the movement of cargo in interstate or foreign commerce are vessels operating exclusively in foreign or interstate coastwise commerce under La. Rev. Stat. § 47:305.1(B).
2. Whether the taxpayers were entitled to the parish sales tax exemption for fuel used to operate their tugboats.
3. Whether summary judgment for the taxpayers was proper.

Disposition

reversed_and_remanded