Halstead Bead v. Richards Concerns Sales Tax Complexity and Interpretation of the Tax Injunction Act
BATON ROUGE, La. (Oct. 18, 2022) – The NFIB Small Business Legal Center today filed an amicus brief in the case Halstead Bead v. Richards at the U.S. Court of Appeals for the Fifth Circuit. The case centers on the proper interpretation of the Tax Injunction Act and Louisiana’s sales tax.
“Louisiana’s small businesses have consistently ranked taxes and tax-related issues as a top problem in running their business,” said Dawn McVea, NFIB Louisiana State Director. “Unfortunately, the district court’s interpretation on the Tax Injunction Act leaves small businesses in an uncertain situation and exacerbates the already difficult tax system. We are urging the Court of Appeals to consider small and independent businesses and ultimately reverse the lower court’s decision.”
The brief argues two main points: 1) The district court’s interpretation of the Tax Injunction Act leaves no neutral and viable judicial forum for remote sellers to challenge state sales tax regimes, and 2) Louisiana’s sales tax regime is unduly burdensome to both remote sellers and in-state brick-and-mortar small businesses.
NFIB filed the amicus brief with the Manhattan Institute, Louisiana Association of Business and Industry, and State Chamber of Oklahoma Research Foundation Legal Center.
The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.