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Louisiana’s Supreme Court said Tuesday that several interstate gas pipeline companies have failed to prove a state tax law unconstitutional, a decision a lawyer for state tax assessors said eventually could free about $70 million in taxes the companies paid under protest.

The companies challenged state law that subjects them to taxes on property assessed at 25 percent of its market value at the same time that some companies that transport gas only within state lines are taxed based on a 15 percent assessment.

Defendants in the case were the Louisiana Tax Commission and sheriff’s and tax assessors around the state.

The court ruled Tuesday that the plaintiffs failed to prove the tax law violates the U.S. Constitution, reversing a 2009 appellate court ruling.

Brian Eddington, a lawyer for the state’s assessors, said issues in the case are involved in several lawsuits filed by pipeline companies in various parishes during more than a decade of litigation. The companies paid taxes based on the disputed assessments under protest, meaning local taxing bodies could not use the money while the legal disputes dragged on.

Eddington said the Tuesday ruling doesn’t automatically free all of that money but was a crucial step in wrapping up pending litigation and eventually freeing about $70 million in disputed tax revenue for use by the various local taxing bodies. “I can finally see the light at the end of the tunnel with this ruling,” he said.

The state Tax Commission was examining the ruling late Tuesday. Messages seeking comment were left with the Louisiana Sheriff’s Association, the Louisiana Mid-Continent Oil and Gas Association and two plaintiffs in the case, Transcontinental Gas Pipeline Corp. and Florida Gas Transmission Co.

According to the ruling, the 25 percent assessment applies to interstate pipeline companies and intrastate pipeline companies that sell natural gas to local distributing systems for resale — companies regulated either by the Federal Energy Regulatory Commission or the Louisiana Public Service Commission. Intrastate companies that do not sell gas to distribution systems for resale are not regulated by the PSC and are therefore assessed at 15 percent, the opinion said.

Pipeline companies argued in court filings that the state taxing practice “imposes an impermissible burden on interstate commerce by imposing a greater tax burden on interstate natural gas pipeline companies than it does upon intrastate natural gas pipeline companies.”

But the court, in a 6-1 decision, said the companies “failed to carry their burden of proof that the tax scheme discriminates against or burdens interstate commerce.”

Judge Bernette Johnson was the dissenter, saying the disparate assessment percentage applied to some in-state pipeline companies results in higher taxes for interstate pipeline companies.

The dispute is more than 20 years old.

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Louisiana Gov. Bobby Jindal approved $4.9 million in tax breaks for ports, sportsmen and other groups for this year, though that figure will balloon to an estimated $30.3 million in 2010 when additional tax breaks take effect.

In all, Jindal on Thursday signed nine tax-break bills, most of which don’t take effect until July 1, 2010: tax help for the movie, video game and music recording industries, companies doing research and development, and other businesses.

From this year to 2014, companies will have access to $190.5 million in new tax reduction programs, according to projections by the Legislative Fiscal Office.

“By signing these bills, we’re ensuring that we not only have the ability to remain economically competitive, but that we can continue to move our state forward by making Louisiana the greatest place in the world to find a great paying job and raise a family,” Jindal is quoted as saying in a news release.

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