Justia Tax Law Opinion Summaries

Petitioners were nonresidents who neither lived nor worked in Maryland but had a source of income in the State. In 2005, the Comptroller of the Treasury issued a notice of assessment against Petitioners' 2004 joint Maryland nonresident income tax returns for failure to pay the Special Nonresident Tax (SNRT). The assessment included the amount owed for the SNRT and interest. Petitioners challenged, on federal and state constitutional grounds, the State's authority to impose the SNRT. The tax court (1) declared the SNRT to be constitutional, and (2) denied Petitioners' request to abate the accrued interest, reasoning that the court lacked the authority to do so. The circuit court affirmed as to the constitutionality of the tax but determined that the tax court could abate the interest assessment. The court of special appeals affirmed. The Court of Appeals affirmed, holding (1) the SNRT does not violate the Commerce Clause, the Equal Protection Clause, or the Privileged and Immunities Clause of the U.S. Constitution; (2) the SNRT does not violate Maryland's equal protection doctrine; and (3) the tax court's power of review extends to the abatement of interest assessments. Remanded to consider whether Petitioners were entitled to the abatement of interest.

The county planning board approved a detailed site plan for a parcel of commercial property in Prince George's County. The county district council elected to review the planning board's approval, after which several individuals, including petitioners Rishi Gosain and Abid Chaudhry, filed with the district council an appeal of the planning board's approval. The district council ultimately affirmed the planning board's decision, and petitioners filed a petition for judicial review of the final decision by the district council in the circuit court. The circuit court entered an order dismissing the petition, finding the petitioners lacked standing to bring the action. The court of special appeals affirmed. The Supreme Court affirmed but for different reasons than the lower courts. At issue was the meaning of the phrase "any person or taxpayer in Prince George's County" under Md. Ann. Code art. 28, 8-106(e), which authorizes appeals of final district council decisions. The Court found the petitioners lacked standing to bring the action because they neither resided or had a property interest in a residence in the county, nor owned or leased real property in the county, nor paid property taxes to the county.