Justia Tax Law Opinion Summaries

The issue on appeal to the Supreme Court centered on the question of how non-rental residential properties subject to housing-subsidy covenants should be valued for property-tax purposes. Taxpayers in two cases consolidated for the purposes of this opinion contended that the governing statute mandates an automatic reduction in valuation for properties subject to these covenants or, (what is effectively) equivalent, a mandatory tax exemption on a portion of the property's value. The towns in which these properties are located contended instead that the applicable statute requires that municipal listers give individualized consideration to the effect these covenants may have on the fair market value of a given property when they determine the appropriate assessed value for the allocation of property taxes. The Vermont League of Cities and Towns and the Vermont Assessors and Listers Association joined the towns as amici curiae. The Supreme Court agreed with the towns that the existence of a housing-subsidy covenant was but one of many factors listers and assessors must take under advisement in ascertaining a property's fair market value.  View "Franks v. Town of Essex" on Justia Law

Taxpayers are owners and operators of Travia's Inc., a small bar and grill. The company is organized as a S-corporation. They appealed the Department of Taxes' (DOT) assessment of meals tax and alcoholic beverage tax for the audit years 2006, 2007, and 2008, and corporate income and personal income tax for the audit years 2005, 2006, and 2007.  Following a hearing, the Commissioner of Taxes affirmed the Department's assessments. Taxpayers appealed the Commissioner's determination to the civil division, which affirmed. After its review, the Supreme Court concluded that taxpayers did not meet their burden of demonstrating the assessments were incorrect, and therefore upheld the Commissioner's determination. View "Travia's Inc., and Mellion" on Justia Law

In consolidated cases, the common issue centered on whether Vermont laws allowed the Town of Colchester to consider certain intangible factors in assessing seasonal lakefront camps located on leased land. The Supreme Court held that the Town was not precluded from considering such factors in assessing properties. View "Lesage v. Town of Colchester" on Justia Law

Vanderminden, a Family Limited Partnership, owned a contiguous piece of property in the adjoining towns of Poultney and Wells. The Wells portion was at issue in this case: the state appraiser affirmed the Town's valuation of the property. On appeal, the partnership argued that the appraiser failed to supply a sufficient explanation for its decision to accept the Town's valuation; in assessing the Wells and Poultney properties as a single parcel then valuing the Wells portion as a seasonal dwelling; and for not accepting the partnership's evidence that the Wells portion was assessed above fair market value of the entire parcel. Upon review, the Supreme Court concluded that the valuation of a single property in more than one town includes both the fair market value of the entire parcel, and of the portion in the town involved in the appeal. Because the partnership presented evidence to demonstrate that the Wells portion's valuation exceeded the fair market value of the entire parcel, Wells' appraisal should have been reduced accordingly. Furthermore, the state appraiser should have given its reason for the high valuation. Accordingly, the Court remanded the case for further proceedings. View "Vanderminden, A Family LTD Partnership v. Town of Wells" on Justia Law

Taxpayer World Publications distributes a free weekly newspaper in central Vermont called The World. Once a month, the newspaper includes a coupon book, produced and printed by taxpayer, that features coupons for local businesses. The Commissioner of Taxes concluded that the coupon books are not "component parts" of the newspaper, and therefore the cost of printing the coupon books is "not exempt from sales and use tax." The superior court affirmed. World Publications appealed. Upon review, the Supreme Court affirmed too. View "World Publications, Inc. v. Vermont Department of Taxes" on Justia Law

Plaintiffs, Doctors Eitan and Vered Sobel, owners of a medical office building in Rutland, appealed the superior court's grant of summary judgment for defendant, City of Rutland. Plaintiffs sued the City for damages, claiming the City Tax Assessor (the Assessor) was negligent in providing allegedly inaccurate property tax estimates on the proposed, but not yet built, office. Plaintiffs also sought to enjoin the City from enforcing the tax assessment on the office building ultimately constructed. On appeal, they argued that the court erred in concluding that their negligence claim was barred by municipal immunity and that they failed to establish equitable estoppel against the City. Upon review, the Supreme Court concluded that the City Assessor was immune from suit, and that plaintiffs could no establish estoppel with the facts of this case. Finding no error with the trial court's grant of summary judgment in favor of the City, the Supreme Court affirmed that decision. View "Sobel v. City of Rutland" on Justia Law

Vermont Golf Association challenged the superior court’s dismissal of its appeal from a decision by the Department of Taxes assessing sales and use tax on prior activities. The court based its dismissal on Vermont Golf’s failure to provide security to the Commissioner of Taxes to perfect its appeal to the superior court. Finding no error in the superior court's disposition of this case, the Supreme Court affirmed. View "Vermont Golf Association, Inc. v. Department of Taxes" on Justia Law

Taxpayer Margaret Murray appealed a superior court's order that dismissed her tax abatement appeal. On appeal to the Supreme Court, she argued that the superior court erroneously concluded that she could not appeal the abatement decision because she failed to challenge the valuation of the property in the appraisal process.  Upon review, the Court concluded that Taxpayer's abatement appeal to the superior court was not foreclosed by her failure to appeal the valuation of her property, and reversed and remanded the case for further proceedings. View "Murray v. City of Burlington" on Justia Law

This case concerns public access to income-adjusted property tax records. Appellee Joseph O’Dea sought a copy of the Town of Manchester's state property tax adjustment report, which contains a list of the property tax adjustments of Town taxpayers based in most instances on their income. Appellee requested a copy of the "HS-122" (named for the bill under which the report is required) report for the Town of Manchester from the Town Treasurer. The Town denied Appellee's request, asserting that the HS-122 report is exempt from disclosure under various provisions of 1 V.S.A. 317(c). The Town does provide the total property tax bill of each taxpayer but redacts the information showing the amount paid by the state and the amount paid by the taxpayer. Appellee appealed to Bennington Superior Court which held a hearing on the merits. The court issued an opinion declaring the report to be public information and ordering the Town to produce the report. The Town appealed the superior court's decision. Upon review, the Supreme Court concluded that the report consists of "return information" that is confidential and not subject to disclosure. Therefore, the Court reversed the superior court's decision.

Taxpayer-Petitioner Michael Garbitelli appealed a superior court judgment that affirmed the Town of Brookfield Board of Abatement's denial of his request for a tax abatement. During a townwide reappraisal in 2007, Petitioner refused to allow the listers to inspect his property, other than the foyer and the basement. His property was assessed at $1.6 million. Petitioner then appealed this assessment, and the Supreme Court affirmed, noting that Petitioner had refused entry to the tax assessor and therefore failed to provide an adequate basis to demonstrate that the assessment was erroneous. Taxpayer later allowed entry to the listers for 2009, which resulted in an assessment of $957,000. Taxpayer then moved for a tax abatement for the years 2007 and 2008. The Board denied the request, finding that there was no mistake attributable to the listers since they were denied entry and were forced to use the best information available to them. Although the Supreme Court agreed with Petitioner's interpretation of the abatement statute’s meaning, it reached the same result as the superior court: "[Petitioner] argues principally that the 'extreme disparity' between $1.6 million and $957,000 is an 'obvious mistake' amounting to manifest error." The Court disagreed with that premise and affirmed the superior court.