Articles Posted in North Carolina Supreme Court

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The parties in this case were the City of Lumberton and four companies that ran promotional sweepstakes as part of their business plans. In 2010, the City amended its existing privilege license tax on businesses that utilized electronic machines to conduct sweepstakes. The prior tax for these companies was $12.50 per year. The new law made the minimum tax owed by these businesses $7,500. This change imposed a 59,900% minimum increase per business location. The trial court granted summary judgment in favor of the City, finding the new tax to be constitutional. Addressing the Just and Equitable Tax Clause of the North Carolina Constitution, the court of appeals affirmed, determining that the tax did not amount to a prohibition of the companies' businesses. The Supreme Court reversed, holding that the City's privilege license tax violated the Just and Equitable Tax Clause as a matter of law, as the present tax transgressed the boundaries of permissible taxation. View "IMT, Inc. v. City of Lumberton" on Justia Law

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In 2007, Brunswick County conducted an authorized appraisal of all property in the County. However, in 2008, which was not a statutorily designated year for setting property values for tax purposes, the County reassessed the tax value of real property belonging to Ocean Isle Palms LLC. Ocean Isle disputed the resulting tax values, arguing that the values were unlawful because they were based on an invalid reassessment. The County Board of Equalization and Review declined to change the valuations. On appeal, the Property Tax Commission found the 2008 revaluation was unlawful and granted Ocean Isle's summary judgment motion. The court of appeals reversed. The Supreme Court reversed, holding that the reassessment conducted in the nonreappraisal year 2008 violated the relevant statutes, and the alteration of the taxable value of Ocean Isle's property under the 2008 reassessment was unlawful. View "In re Ocean Isle Palms LLC" on Justia Law