Justia Tax Law Opinion Summaries

The case revolves around Equinor Energy LP's appeal against the North Dakota State Tax Commissioner's denial of sales tax refunds. Equinor, an oil and gas producer, had purchased and paid North Dakota sales tax on oilfield equipment, including separators, for several facilities. The company applied for a refund, arguing that the equipment was installed into a system used to compress, process, gather, collect, or refine gas, thus qualifying for a tax refund. The Tax Commissioner approved a portion of the claim but denied the remaining refund claim related to the purchase of separators.The Tax Commissioner issued an administrative complaint requesting denial of the remaining requested refund amount. The Commissioner argued that initial separators used during production do not qualify for the exemption, which applies only to equipment installed downstream of the wellsite transfer meter, i.e., off the wellsite. An administrative law judge (ALJ) upheld the denial of the refund claim, and the Commissioner adopted the ALJ’s findings of fact and conclusions of law. Equinor appealed to the district court, which reversed the Commissioner’s order. However, on remand, the ALJ again recommended the denial of Equinor’s refund. The district court affirmed the final order of the Commissioner, leading to this appeal.The Supreme Court of North Dakota affirmed the district court's judgment. The court concluded that the Commissioner's interpretation was in accordance with the language of the relevant statute. The court found that the separators merely isolated the three component parts of the well stream and did not gather or compress gas. Therefore, they did not qualify for the tax exemption. The court also noted that the legislature's intent in using the phrases “recovered from,” “a system to compress gas,” or “a system to gather gas” was clear, and it was unnecessary to apply “the rule of last resort” and construe the ambiguity in favor of the taxpayer. View "Equinor Energy v. State" on Justia Law

In this case, the Supreme Court of the State of North Dakota dealt with a dispute between divorced parents, Nickolette Keller and Michael Keller, over tax exemptions for their children. The divorce judgement had allocated the right to claim the oldest child to Michael Keller and the younger child to Nickolette Keller. In 2023, Michael Keller attempted to claim his eldest child on his taxes, but received a letter from the child, facilitated by Nickolette Keller, stating the child would be filing his own taxes. Consequently, Michael Keller filed a motion for contempt against Nickolette Keller.The district court found Nickolette Keller in contempt for willful and inexcusable intent to violate the court order and awarded Michael Keller attorney’s fees up to when Nickolette Keller provided the necessary tax form. The Supreme Court of the State of North Dakota affirmed the district court's decision, holding that Nickolette Keller's refusal to comply with the divorce judgement and her facilitation of the child's letter constituted contempt.Michael Keller cross-appealed, arguing the district court erred in not awarding him the full amount of attorney’s fees. The Supreme Court denied his claim, holding that the district court did not abuse its discretion in not awarding Michael Keller attorney’s fees incurred after Nickolette Keller provided him the IRS form. Michael Keller also unsuccessfully requested attorney’s fees on appeal, which the Supreme Court denied due to inadequate briefing and argument. View "Keller v. Keller" on Justia Law

David Sholy appealed a district court order dismissing his appeal from the Cass County Commission’s (“Commission”) decision to deny his applications for abatement or refund of taxes. Sholy argued the court misapplied the law in ordering him to file a certificate of record. The Commission argued Sholy failed to timely file his notice of appeal with the court. The North Dakota Supreme Court concluded the district court’s reasoning for dismissing Sholy’s appeal was incorrect but that dismissal was nonetheless appropriate because the court lacked jurisdiction over Sholy’s untimely appeal. The Court therefore affirmed the order dismissing Sholy’s appeal. View "Sholy v. Cass Cty. Comm'm" on Justia Law

Hudye Group LP (“Hudye”) appealed a district court judgment affirming the Ward County Board of Commissioners’ decision to deny Hudye’s applications for abatement or refund of taxes as untimely. Hudye filed applications for abatement or refund of taxes relating to 85 acres of property that had been divided into 92 parcels which were located in Ward County, North Dakota. Hudye argued the failure to consider abatement requests received by the City Assessor’s Office on the first business day following the November first deadline resulted in an unjust outcome. Finding no reversible error, the North Dakota Supreme Court affirmed. View "Hudye Group v. Ward Cty. Bd. of Commissioners" on Justia Law

RFM-TREI Jefferson Apartments, LLC; RFM-TREI Lincoln Apartments, LLC; Dickinson Homestay, LLC; and Lodgepros Dickinson, LLC (together “the Taxpayers”) appealed district court judgments affirming the Stark County Board of Commissioners’ (“the Board”) denials of their applications for tax abatements or refunds. The Taxpayers collectively owned two apartment complexes and two hotels located in the City of Dickinson. The Taxpayers filed applications for abatement or refund of their 2016 property taxes. The Taxpayers’ opinions of value for each property differed from the City’s valuations by a range of roughly $1.8 million to $20.3 million. After holding a hearing, the City recommended the Board deny each application. The Board indeed denied the abatement applications in four separate written decisions. Using the same language in each, the Board concluded the assessor’s valuations were not “in error, invalid, inequitable, unjust, or arrived at in an arbitrary, capricious, or unreasonable manner.” The decisions also explained the Board did not believe the Taxpayers provided “sufficient enough information relating to the subject properties, or the local market for competing properties, to lead us to the same value conclusions requested by the applicant.” The district court affirmed each denial in separate, written orders and judgments. After review, the North Dakota Supreme Court concluded the Board acted arbitrarily and unreasonably in adopting assessments exceeding the true and full value of the property. The Court reversed the district court judgments and the Board’s decisions denying the Taxpayers’ abatement applications. The matters were remanded for a new hearing to determine the “true and full value” of the properties and reconsideration of the abatement applications. View "RFM-TREI Jefferson Apartments v. Stark County Board of Comm'rs" on Justia Law

C & K Consulting, LLC, Stonebridge Villas LLC, Stonebridge Villas II LLC, Stonebridge Development Company LLC, and Townhomes at Stonebridge LLC (collectively, “C&K Consulting”) appealed a district court’s dismissal of their cases against the Ward County North Dakota Board of Commissioners (“Ward County”) and the court’s denial of their motion for post-judgment relief. Several cases consolidated for review were appeals of Ward County’s decisions on C&K Consulting’s applications for tax abatement and refunds. C&K Consulting argued the court erred when it dismissed the cases as a sanction for missing a briefing deadline. Because the court did not conduct the required sanctions analysis, the North Dakota Supreme Court reversed the court’s dismissal judgment and its order denying C&K Consulting’s motion for post-judgment relief and remanded for further proceedings. View "C & K Consulting v. Ward County Board of Commissioners" on Justia Law

In May 2016 Walsh County, North Dakota notified Jann Thompson she failed to pay her 2013 property taxes. The notice stated the County would foreclose on the property unless Thompson paid the taxes by October 1, 2016. Thompson previously attempted to pay the taxes with promissory notes and other instruments; however, they were not accepted by the County. On October 6, 2016, the County recorded a tax deed for the property due to Thompson's failure to pay the 2013 taxes. The County informed Thompson she had the right to repurchase the property before the tax sale by paying all outstanding taxes and costs against the property. On November 2, 2016, Thompson paid the 2013, 2014 and 2015 taxes and redeemed the property. Before paying the outstanding property taxes, Daniel and Jann Thompson sued Defendants the County auditor, the State Attorney, and the County Board of Commissioners, claiming the State had no authority to tax their property, and county officials improperly refused payment by not accepting the Thompsons' promissory notes. The Thompsons also alleged fraud, inverse condemnation and slander of title. The Thompsons subsequently filed a number of other documents and motions relating to their complaint. Defendants denied the Thompsons' allegations, and requested dismissal of the complaint and denial of the additional civil filings and motions. The district court granted summary judgment in favor of Defendants, dismissing the claims. Finding the trial court did not err by dismissing the Thompsons’ claims, the North Dakota Supreme Court affirmed. View "Thompson v. Molde" on Justia Law

In August 2016, the Commissioner of the Minnesota Department of Revenue issued an order assessing personal liability against David Knapp, a North Dakota resident, for $65,843.80 in unpaid Minnesota sales and use taxes relating to his interest in a business in Bemidji, Minnesota. In December 2016, the Commissioner issued a third-party levy on securities held by broker Edward Jones for Knapp by sending a notice to Edward Jones at its Missouri office. The third-party levy said Edward Jones had to sell Knapp's securities under Minn. Stat. Ann. 270C.7101(7) and send the Minnesota Department of Revenue payment up to the amount due. The levy instructed Edward Jones not to send money that was exempt or protected from the levy and cautioned that state law allowed the Commissioner to assess debt to businesses, officers, or other individuals responsible for honoring the levy, including assessing the total amount due plus a twenty-five percent penalty. Knapp petitioned the district court to dissolve the levy and for a writ of prohibition against the Commissioner and Edward Jones to prohibit them from taking any further action to levy on his account. Knapp alleged that the Commissioner had no jurisdiction in North Dakota to levy on his North Dakota property and that his property was exempt from the levy. The district court issued a preliminary writ of prohibition to stay the levy pending the filing of an answer showing cause under N.D.C.C. 32-34-05, but later concluded Knapp failed to establish he was entitled to relief. The North Dakota Supreme Court concluded the district court did not abuse its discretion in denying Knapp's petition for a writ of prohibition, and affirmed the judgment and the order. View "Knapp v. Commissioner of Minnesota Department of Revenue" on Justia Law

S&B Dickinson Apartments I, LLC, and Dickinson Properties, LLC, appealed a judgment affirming the Stark County North Dakota Board of Commissioners' denial of their requests for an abatement of property taxes for the year 2016. The North Dakota Supreme Court concluded the district court did not have jurisdiction and the appeals should have been dismissed because the statutory requirements for perfecting an appeal were not followed. The Court therefore reversed and remanded for entry of judgment dismissing the appeals. View "S&B Dickinson Apartments I, LLC v. Stark County Board of Commissioners" on Justia Law

Plains Marketing, LP and Van Hook Crude Terminal, LLC, appealed an order affirming a Mountrail County Board of County Commissioners' decision to deny their application for an abatement of 2013 real estate taxes for three parcels of land in Mountrail County. They argued the North Dakota Supreme Court should reverse the County Board's denial of their application for an abatement because the County Board incorrectly applied the omitted property provisions in N.D.C.C. ch. 57-14. After review of the Commissioners' decision, the Supreme Court agreed and reversed the order. View "Plains Marketing, LP v. Mountrail Cty. Bd. of Cty. Comm'rs" on Justia Law