Business of Politics

Chemical association still mulling appeal

by Jeremy Alford, LaPolitics

It may be a few more weeks until the Louisiana Chemical Association decides whether it will appeal a decision from a district court judge paving the way for its members to pay more than $100 million in higher taxes.

Judge Michael Caldwell ruled last week that the state House obtained enough votes to pass a temporary suspension of the one penny sales tax exemption on business utilities, despite the LCA’s legal arguments.

Rob Landry, a spokesman for the chemical association, said a decisions to appeal or not could come after the first of the year.

“We’re going to take our time with it and meet with as many people as possible to discuss this,” he said in an interview Monday morning.

LCA challenged the constitutionality of HCR 8 by Rep. Jack Montoucet, D-Crowley, which was passed during this year’s regular session. It argued that tax measures must pass both chambers by a two-thirds vote, but Caldwell sided with the Legislature in ruling that a 53-vote majority was enough for passage.

The decision was also a victory for Gov.-elect John Bel Edwards, who should be able to use the money to craft his first budget proposal — unless the chemical association decides to move forward with its appeal and taxes continue to be paid under protest.