Cajundome liquor sales to proceed
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LAFAYETTE — The Cajundome won’t be going dry, after all.
A dispute over $1.4 million in overdue sales taxes had threatened to halt beer and liquor sales at the Cajundome.
But the Lafayette Parish School Board and Cajundome officials worked out a deal Friday, letting the school system’s tax director sign a clearance that the Cajundome needed to renew its liquor permit Saturday, board president Carl LaCombe said.
Friday was the deadline.
LaCombe said Friday that details of the agreement will be revealed next week, when court documents are filed as part of sales tax litigation.
The Cajundome did not collect sales tax on concessions, tickets and other items it sold between 2004 and June 2008, contending that the arena was covered under a law exempting governmental entities from paying sales taxes.
Courts ruled that the Cajundome must collect the 8 percent tax and send the money to the state, School Board and Lafayette Consolidated Government.
The Cajundome has collected the taxes and placed the money in an escrow account since June 2008, but owes $1.4 million in taxes it should have collected earlier. Director Greg Davis said the arena cannot pay because of a deficit.
The state owns the dome through ULL but does not pay for its operation. Most of its operating funds are generated by rentals, food service sales, ads and box office receipts.
A 1988 intergovernmental agreement that expires in 2012 requires Lafayette Consolidated Government to contribute up to $500,000 a year towards the Cajundome’s operation.
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