Louisiana Supreme Court: Sending part of car tax to new board unconstitutional

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RICHMOND, CALIFORNIA – MAY 17: Brand new Subaru cars sit in a lot at Auto Warehousing Company near the Port of Richmond on May 17, 2019 in Richmond, California. U.S. President Donald Trump says he will hold off on applying new tariffs on cars and auto parts for up to six months as negotiations on trade deals continue with Japan and the European Union. (Photo by Justin Sullivan/Getty Images)

Louisiana’s Supreme Court says a state law that diverts a small percentage of motor vehicle sales taxes to a state board is unconstitutional.

At issue in Wednesday’s ruling is a 2017 law establishing the Uniform Local Sales Tax Board.

The panel was established to provide guidance to local sales tax officials on tax collection issues.

It was to be funded with 0.2% of local sale taxes on motor vehicles.

But the high court upheld a district court ruling that the state cannot divert a portion of locally approved motor vehicle taxes to the board.

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