Beer Industry League of Louisiana and Wine and Spirits Foundation of Louisiana, Inc. v. City of New Orleans and Norman S. Foster, in His Official Capacity as Chief Financial Officer and Director of Finance for the City of New Orleans

Summary

The Supreme Court of Louisiana considered whether New Orleans could impose a gallonage tax on dealers handling beverages with high alcoholic content as an occupational license tax authorized by La. Const. art. VI, § 28. The court held that the challenged portion of the ordinance was neither unconstitutional nor unlawful, reversed the trial court’s grant of partial summary judgment for the plaintiffs, and remanded for further proceedings.

Holdings

1. The state gallonage tax is an occupational license tax imposed on dealers for the privilege of handling high-alcohol-content beverages.
2. New Orleans may impose a corresponding occupational license tax on dealers handling high-alcohol-content beverages under Louisiana Constitution article VI, section 28, provided the municipal tax does not exceed the tax imposed by the state.
3. The trial court erred by declaring Section 10-501 unlawful, unconstitutional, and unenforceable; the partial summary judgment must be reversed and the matter remanded.

Questions Presented

1. Whether the state gallonage tax on dealers handling high-alcohol-content beverages is an occupational license tax within the meaning of Louisiana Constitution article VI, section 28.
2. Whether New Orleans may impose a corresponding gallonage tax on dealers handling high-alcohol-content beverages when the municipal tax does not exceed the state tax.
3. Whether the trial court properly granted partial summary judgment declaring Section 10-501 unlawful and unconstitutional.

Disposition

reversed_and_remanded