Kean Miller

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On May 22, 2007 the Department of Revenue issued a long-awaited Revenue Ruling detailing its position regarding the case of Word of Life Christian Center v. West, 936 So.2d 1226, 2004-1484 (La. Sup. Ct. 4/17/06). In Word of Life, the Supreme Court determined that two airplanes which were purchased out of state for use in interstate commerce were nevertheless subject to Louisiana use tax as they had become part of the mass of property of the state. The impact of this decision, however, is not limited to airplanes. Many companies purchase various items outside the territorial limits of Louisiana and thereafter import them into the state for use interstate commerce operations.
Continue Reading Getting the “Word” Out – The Department of Revenue Issues Revenue Ruling 07-002 in response to Word of Life Christian Center v. West, 936 So.2d 1226, 2004-1484 (La. Sup. Ct. 4/17/06)

In International Paper, Inc. vs. Cynthia Bridges, 42, 023 (La. App. 2nd Cir. 4/4/07), 2007 WL 983965 (not designated for publication), the Louisiana Court of Appeal, Second Circuit, reinterpreted the “further processing” provision of the Louisiana sales tax law. Under the further processing provision, tangible personal property purchased for further processing into tangible personal property for sale at retail is not subject to Louisiana sales/use tax. La. R.S. 47:301(10)(c)(i)(aa). Historically, Louisiana law had applied a three part test to the identification of a nontaxable further processing material: (1) The further processing material must be a benefit to the end product; (2) The further processing material must be a recognizable and identifiable component of the end product, and (3) A purpose for purchasing the further processing material must have been for processing into the end product.
Continue Reading Sales Tax Exclusion For Further Processing Materials Under Attack

The Louisiana Medicaid program recently issued a notice for all providers stating that Louisiana Medicaid is in the process of developing a contingency plan for national provider identifier (“NPI”) implementation. The notice stated that the Department of Health and Hospitals (“DHH”) and Unisys will not be implementing the NPI only system changes on May 23, 2007. Providers submitting Louisiana Medicaid claims shall continue using their 7-digit provider numbers on all paper and electronic claims until DHH gives a future notice to use NPIs. Louisiana Medicaid providers must still register their individual NPIs with Louisiana Medicaid and continue their efforts towards the use of NPIs on all claims.
Continue Reading Louisiana Medicaid Delays Implementation of National Provider Identifier Only System

Most commercial leases for multi-tenant properties contain clauses which regulate the tenants’ use of the leased premises. Many tenants will require a landlord to grant the tenant the exclusive right to operate a certain business or sell a certain product to avoid competing with other tenants. These provisions are appropriately referred to as exclusive use clauses. For the landlord to satisfy its obligations under an exclusive use clause of one lease, the landlord is required to incorporate provisions in its other leases prohibiting the other tenants from using the leased premises for the restricted purpose. These clauses are commonly referred to as prohibited use clauses.
Continue Reading COMMERCIAL LEASES: EXCLUSIVE AND PROHIBITED USE CLAUSES

It is not uncommon for 501(c)(3) non-profit organizations, large and small, to have money making opportunities during their existence. For instance, a larger non-profit organization may have a talented IT department that creates software to benefit the organization, but which can later be marketed to other organizations. In addition, a non-profit organization may receive a bequest of income producing property. Since 501(c)(3) non-profit organizations must be created and operated exclusively for charitable purposes, and not to generate profits, should these organizations ignore these opportunities and miss out on the income that could benefit their just causes, or can they take action? The short answer is that action can be taken but with caution.Continue Reading NON-PROFIT ORGANIZATIONS SHOULD PROCEED WITH CAUTION WHEN ENGAGING IN MONEY MAKING OPERATIONS

The Centers for Medicare and Medicaid Services (CMS) on March 23, 2007 filed a continuation notice in the federal register, which officially delayed the deadline for publication of the Phase III final rule interpreting the federal physician self-referral prohibition commonly known as the Stark Law until March 26, 2008. For the healthcare industry, and specifically physicians, this means that it may be several months before CMS addresses certain provisions that were included in the “interim final rule with comment period” issued by CMS on March 26, 2004 (referred to as the “Phase II rule”).
Continue Reading CMS Delays Stark Law Phase III Final Regulations

Many companies in Louisiana may be aware of the beneficial tax exclusion authorized in La. R.S. 47:301 and LAC 61:I.4302 for pollution reduction projects. What they may not be aware of, however, is the broader scope of Louisiana’s program than most other states. Unlike other states, Louisiana’s exclusion applies to both pollution control devices and pollution control systems. Thus, the Louisiana legislature intended to apply the program to more than simply “end of the pipe” control technology. This more expansive scope may make certain projects in Louisiana more attractive for multi-state companies competing for the same project dollars.
Continue Reading Untapped Benefits of Louisiana’s Pollution Tax Exclusion

Much of the time of a construction lawyer is spent assisting clients in finding solutions to the many problems that befall the typical construction project. These problems range from simple contract preparation and negotiation to the more fact-intensive work of constructive defect litigation, surety claims, liens, and payment issues. Each construction project, no matter how…

by Ben R. Miller, Jr.

The Internal Revenue Service has released a draft of guidelines for good governance of nonprofit organizations. A discussion draft of the guidelines highlights a mission statement, code of ethics, whistle blower protections, conflicts of interest, due diligence, transparency, audits and compensation practices. A copy of the draft can be found on the…