F. Miller & Sons, Inc. and Lake Charles Harbor & Terminal District v. Calcasieu Parish School Board, Rufus Fruge, Jr., as Director of Calcasieu Parish Sales & Use Tax Department, et al.

Summary

The Louisiana Supreme Court held that F. Miller & Sons, Inc. acted as the purchasing agent of the tax-exempt Lake Charles Harbor & Terminal District when acquiring materials for a public construction project. Accordingly, the purchases were exempt from local sales and use taxes under La. R.S. 47:301(8)(c), and Miller was not liable for the taxes assessed by the Calcasieu Parish School Board. The court affirmed the court of appeal's judgment.

Holdings

1. The Port and Miller entered into a valid agency or mandate agreement through the contract's supplementary condition SC 6.15, which expressly authorized Miller to purchase materials and supplies on the Port's behalf.
2. Miller was not liable for local sales and use taxes on qualifying materials purchased as the Port's agent because the Port is a tax-exempt political subdivision under La. R.S. 47:301(8)(c).

Questions Presented

1. Whether the Port validly appointed Miller as its agent for purchasing materials and equipment used in the public construction project.
2. Whether purchases made by Miller as the Port's agent qualified for the governmental sales and use tax exemption under La. R.S. 47:301(8)(c).

Disposition

affirmed