Louisiana High Court declines to review ruling that foreign limited partner lacked nexus

March 2012


On March 2, 2012, the Louisiana Supreme Court declined to review an appeals court decision that held the passive ownership of an interest in a limited partnership that conducts business in Louisiana, by itself, was not sufficient to subject the foreign corporate limited partner to Louisiana franchise tax. In addition, the appeals court invalidated the Louisiana Department of Revenue's regulation interpreting the franchise tax imposition statute. [UTELCOM. Inc. and UCOM, Inc. v. Department of Revenue, writ denied, La. Sup. Ct., No. 2011-C-2632, 3/2/12; La. Ct. of App., Dkt. No. 535, 407, Division "D", 9/12/11]

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