Justia Tax Law Opinion Summaries

Articles Posted in Oklahoma Supreme Court
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Plaintiffs-appellants Michael Cathey and Vonderosa Properties, LLC (collectively "Vonderosa") filed suit seeking declaratory relief against Defendant-Appellee Board of County Commissioners for McCurtain County (Board) and moved for a temporary injunction to restrain and enjoin the Board from enforcing and collecting a lodging tax increase passed at a special election held in McCurtain County on November 8, 2022, in conjunction with the general election. The district court denied Vonderosa's request for a temporary injunction and Vonderosa appealed, seeking emergency relief from the Oklahoma Supreme Court. On March 28, 2023, the Supreme Court entered an Order temporarily enjoining enforcement of the 2% increase to the lodging tax until the special election was fully and finally litigated. The Court expressed no opinion concerning the validity of the special election in its emergency Order. While Appellee's petition for rehearing was still pending before the Supreme Court and before the mandate issued, the district court granted Appellee-Intervenor's Motion for Summary Judgment and held the special election was valid. The Supreme Court held that under the facts of this specific case the district court was without jurisdiction to enter summary judgment for Appellee while the appeal was pending before the Supreme Court and before mandate had issued. The District Court's Order of June 20, 2023 was void for lack of jurisdiction and the Order was vacated. The case was remanded to the district court with instructions. View "Cathey v. McCurtain County Bd. of County Comm'rs" on Justia Law

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Respondent Oklahoma State Board of Equalization, assessed an ad valorem tax concerning on the property of Complainant Terral Telephone Company. The Company protested the assessment, and the Board moved to dismiss the protest, alleging the protest was non-compliant and untimely. The Court of Tax Review agreed and ruled that the protest did not comply with the statutes and rules necessary to invoke its jurisdiction. The Company appealed the ruling to the Oklahoma Supreme Court, which after review, affirmed the Court of Tax Review. View "Terral Telephone Co. v. Oklahoma St. Bd. of Equalization" on Justia Law

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The Oklahoma Supreme Court retained this case to resolve a question of first impression on whether Production Tax Credits (PTCs) used to finance the building of a wind farm were "property" which could be used to determine the fair cash value of the wind farm for ad valorem taxation purposes. To this, the Court held PTCs were intangible personal property, and were not subject to ad valorem taxation pursuant to the Okla. Const. art. 10, §6 A. Because the trial court's findings regarding valuation were not otherwise against the weight of the evidence, the Supreme Court affirmed the trial court. View "Kingfisher Wind, LLC v. Wehmuller" on Justia Law

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Corporate taxpayer Raytheon Company's 2012 income tax return was due on March 15, 2013. Raytheon filed its return on September 27, 2013, after securing an authorized extension of the deadline. Raytheon later discovered that the return overstated the company's annual income based upon the inadvertent inclusion of Arizona property sales. The company filed an amended 2012 return on September 27, 2016, claiming a refund of $321,444.00. The Oklahoma Tax Commission denied the refund claim, reasoning taxpayer submitted its demand more than three years after paying the taxes. An administrative law judge found the claimed refund was time barred under 68 O.S.2011, section 2373, and the Commissioners affirmed this finding. The company appealed, and after review the Oklahoma Supreme Court reversed, finding the taxpayer timely brought the claim for refund, having paid taxes to the Oklahoma Tax Commission upon filing its amended original return with a proper extension. View "In the matter of the Income Tax Protest of Raytheon Company" on Justia Law

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Property owners (taxpayers) appealed ad valorem tax assessments made during 2012-2015 to the Tulsa County District Court after their appeals to the Tulsa County Board of Equalization were denied. Taxpayers were successful in the District Court appeal by showing one parcel of property was exempt and a second parcel partially exempt from ad valorem taxation. The District Court determined the amounts of the tax refund and stated the Tulsa County Treasurer "pay the Petitioners interest on such amounts as allowed by law." The Tulsa County Assessor appealed, but the Court of Civil Appeals affirmed the District Court's judgment. The Oklahoma Supreme Court held the general postjudgment statute, 12 O.S. section 727.1, did not apply to taxpayers' ad valorem tax protest appeal, and the procedure for interest on taxpayers' protested tax payments was provided by the ad valorem statute, 68 O.S. section 2884. View "In the Matter of the Assessments for Tax Year 2012" on Justia Law

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Plaintiff-appellee Warehouse Market subleased a commercial building from defendant Pinnacle Management, Inc. The building was on federally restricted Indian land. Subsequently, defendant-appellant, Oklahoma Tax Commission (OTC) and the Muscogee (Creek) Nation Office of Tax Commission (Tribe) both sought to collect sales tax from Warehouse Market. Warehouse Market filed an interpleader action in an attempt to have the court determine which entity to pay. However, the trial court dismissed the Tribe because it had no jurisdiction over it because of the Tribe's sovereign immunity. The trial court then determined that the OTC could not be entitled to the sales tax unless and until the dispute between the OTC and the Tribe was resolved in another forum or tribunal. The Oklahoma Supreme Court held that because the substance of Warehouse Market's action/request for relief was a tax protest, exhaustion of administrative remedies was a jurisdictional prerequisite to seeking relief in the trial court. View "Warehouse Market v. Oklahoma ex rel. Ok. Tax Comm." on Justia Law

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Video Gaming Technologies, Inc. (VGT), appeals from the district court's grant of Tulsa County Assessor's motion to dismiss for lack of subject matter jurisdiction. VGT brought a claim for relief from assessment of ad valorem taxes. The Tulsa County Assessor moved to dismiss for lack of subject matter jurisdiction as VGT had not paid the past-due taxes pursuant to 68 O.S.2011 section 2884. The district court granted the motion to dismiss. The Oklahoma Supreme Court determined the underlying question to this case was whether title 68, section 2884 applied to appeals from the Board of Tax Roll Corrections pursuant to title 68, section 2871. The Court concluded title 68, section 2884 did not apply to appeals pursuant to title 68, section 2871: "Timely payment of taxes is not a jurisdictional prerequisite for appeals from orders of the Board of Tax Roll Corrections. The district court erred in finding it did not have jurisdiction." Therefore, the Court reversed the order of dismissal and remanded for further proceedings. View "Video Gaming Technologies v. Tulsa County Bd. of Tax Roll Corrections" on Justia Law

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Video Gaming Technologies, Inc. ("VGT") contended the district court improperly granted summary judgment to the Rogers County Board of Tax Roll Collections ("Board"), the Rogers County Treasurer, and the Rogers County Assessor. VGT is a non-Indian Tennessee corporation authorized to do business in Oklahoma. VGT owns and leases electronic gaming equipment to Cherokee Nation Entertainment, LLC (CNE), a business entity of Nation. Nation was a federally-recognized Indian tribe headquartered in Tahlequah, Oklahoma. CNE owned and operated ten gaming facilities on behalf of Nation. The questions presented to the Oklahoma Supreme Court was whether the district court properly denied VGT's motion for summary judgment and properly granted County's counter-motion for summary judgment. VGT argued that taxation of its gaming equipment was preempted by the Indian Gaming Regulatory Act (IGRA) because the property was located on tribal trust land under a lease to Nation for use in its gaming operations. The County argued that ad valorem taxation was justified to ensure integrity and uniform application of tax law. Due to the comprehensive nature of IGRA's regulations on gaming, the federal policies which would be threatened, and County's failure to justify the tax other than as a generalized interest in raising revenue, the Oklahoma Supreme Court found that ad valorem taxation of gaming equipment here was preempted, and reversed the order of summary judgment, and remanded for the district court to enter an appropriate order of summary judgment for VGT. View "Video Gaming Technologies v. Rogers County Bd. of Tax Roll Corrections" on Justia Law

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Petitioner Edward Shadid challenged Oklahoma City Ordinance No. 26,255 (Ordinance)1 which was passed by the City Council of Oklahoma City and signed by the Mayor on September 24, 2019. The Ordinance amended Article II of Chapter 52 of the Oklahoma City Municipal Code, 2010, by creating a new Section 52-23.7. This amendment created a temporary term (8 year) excise tax of 1% to begin April 1, 2020, if approved by a majority vote of qualified, registered voters of Oklahoma City. A special election was set for this purpose on December 10, 2019. Petitioner contends the Ordinance violates the single subject rule found in art. 5, sec. 57, Okla. Const. The Oklahoma Supreme Court assumed original jurisdiction to respond to Petitioner's challenge, and concluded the proposed ordinance did not violate the single subject rule found in the Oklahoma Constitution or the single subject rule found in state statute and City of Oklahoma City's charter. Relief was thus denied. View "Shadid v. City of Oklahoma City" on Justia Law

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CompSource Mutual Insurance Company and the Oklahoma Association of Electric Self Insurers requested rebates from the Oklahoma Tax Commission based upon previously paid Multiple Injury Trust Fund assessments. The requests were denied as an Executive Order by the Governor stated the authority for the rebates had been repealed by implication and directed no rebates be funded. The parties seeking rebates filed a protest with the Oklahoma Tax Commission. The protests were consolidated and an administrative law judge concluded the Protestants were entitled to the rebates. The Tax Commission, with two Commissioners voting, denied both protests and directed the administrative law judge to issue findings, conclusions and recommendations consistent with the denial. The protestants appealed to the Oklahoma Supreme Court in separate appeals. Protestants filed motions to retain which were granted and their appeals were made companion appeals by prior order of the Court. The Supreme Court consolidated the cases for a single opinion, holding no repeal by implication occurred, the statute at issue was not expressly repealed by the Legislature, no due process violation occurred when the requests for rebates were denied, protestants were not entitled to payment of interest on their rebates, and the cases were remanded to the Tax Commission for processing the protestants' requests for rebates. View "CompSource Mutual Ins. Co. v. Oklahoma ex rel. Okla. Tax Comm." on Justia Law