Mallard Bay Drilling, Inc. v. Kennedy

For all the above reasons, we find that Act 40 is inapplicable to the instant suit which was pending prior to the Acts effective date. Furthermore, we find that under the provisions of La. R.S. 47:305.1(B)as they existed prior to the effective date of Act 40, Mallard is not the owner or operator of a "vessel." Accordingly, it is not entitled to the exemption provided by La. R.S. 47:305.1(B). Furthermore, we find that the provisions of La. R.S. 47:305(E)do not prohibit the imposition of the sales tax on diesel fuel sold, delivered, and consumed in Louisiana. Finally, we conclude that the imposition of the tax does not violate the Commerce Clause. Mallards request for a refund of the sales taxes at issue was properly denied by the DOR and the Board. The court of appeals judgment to the contrary is erroneous. Consequently, the judgment of the court of appeal affirming the judgment of the district court is reversed.