Baton Rouge appeals court upholds sales tax change for business utilities

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Louisiana’s chemical industry has again lost its challenge of a sales tax change that boosted charges for chemical plants among other businesses.

As The Associated Press reports, a three-judge panel of a Baton Rouge-based state appeals court today upheld a December 2015 lower court ruling against the Louisiana Chemical Association. That ruling dismissed the organization’s lawsuit claiming the temporary suspension of a one-cent sales tax exemption on business utilities didn’t receive the required votes for passage in the state House and was unconstitutional.

It was unclear if the chemical association would pursue further appeals. The organization says it was reviewing today’s decision.

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The tax break suspension was part of a package of tax breaks that lawmakers reduced in 2015 to close budget gaps. Further changes were made to the sales tax break for business utilities last year.

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