Justia Tax Law Opinion Summaries

Appellants Ismael Chavez and Dolores Mercado (collectively Chavez) appealed the district court's granting their petition for judicial review, claiming that their original complaint should not have been converted into a petition for judicial review. Canyon County cross-appealed the district court's decision that the flat fee included on the County's notice of pending issue of tax deed was in violation of I.C. 63-1005(4)(d) requiring an itemized statement. In 2009, Chavez filed a class action complaint seeking a declaratory judgment and damages. Chavez alleged that Canyon County had violated a requirement in Idaho Code section 63-1005(4)(d) for an itemized statement of all costs and fees in its notice prior to an issuance of treasurer's tax deeds on two parcels of land they owned. In its Notice of Pending Issue of Tax Deed on the two parcels, the County charged a $500 flat fee for administration costs. In 2010, upon a motion for summary judgment, the district court denied the motion and found Chavez had failed to follow the proper procedures. The court allowed Chavez fourteen days to file the required Petition for Judicial Review. In its review, the Supreme Court held that the district court improperly converted Chavez's declaratory action into a petition for judicial review and was without jurisdiction to rule on the petition for judicial review. Furthermore, the Court declared the notices of pending issue of tax deed to be deficient and void and the corresponding fee was found as moot.

The City of Lewiston (City) enacted "Ordinance No. 4512" that created a stormwater utility and fee for the operation and maintenance of the its stormwater system. Five government entities (Entities) subject to the stormwater fee brought suit seeking a declaratory judgment that the fee was an unconstitutional tax requiring authorization by the Legislature. The Entities thereafter filed a motion for summary judgment. The City filed its cross-motion for summary judgment asserting that the stormwater fee was authorized pursuant to the City’s police powers, the Revenue Bond Act, the Local Improvement District Code, and various other provisions of the Idaho Code. Relying primarily on "Brewster v. City of Pocatello," (768 P.2d 765 (1988)), and finding no legislative authorization for the stormwater fee, the district court granted summary judgment in favor of the Entities, holding that the stormwater fee was an unconstitutional tax. The City filed an appeal of the district court's decision. Because the Supreme Court concluded that stormwater fee was an unauthorized tax, it held that the district court did not err in granting summary judgment in favor of the Entities.