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State District Judge Rules for Legislature in LCA HCR 8 Lawsuit —LCA Considering Next Steps

A state district court judge in Baton Rouge ruled in favor of the state legislature Monday in a legal challenge brought by the Louisiana Chemical Association.

The LCA argued that House Concurrent Resolution No. 8, which suspended the exemption of one percent of the state sales tax on business utilities and natural gas, was un-constitutional because it passed with less than 70 votes in the House of Representatives.  

Judge Michael Caldwell held that the resolution needed only a majority vote because it suspended a tax exemption and did not repeal it.

The tax took effect July 1, 2015 and is estimated to raise over $100 million through August 5, 2016, when the exemption will be automatically re-instated unless there is further legislative action.

“LCA will now review the judge’s opinion in detail and evaluate our options before deciding whether to appeal,” said Rob Landry, the association’s manager of communications.


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