Justia Tax Law Opinion Summaries

Louisiana Machinery Company, L.L.C. and Louisiana Machinery Rentals, L.L.C., Louisiana's exclusive Caterpillar franchise dealers, sold, leased, and/or repaired Caterpillar equipment and machinery in parishes throughout the state. Following an audit, the taxing authorities from numerous parishes began tax collection proceedings against the companies, alleging they incorrectly failed to charge and collect sales and use taxes from their customers on their taxable sales, leases, and/or repairs for certain tax periods, and that the companies were liable for these taxes, penalties, and interest under the provisions of the Uniform Local Sales Tax Code (ULSTC). The tax collector for Catahoula Parish obtained partial summary judgments at district court, declaring that the tax assessments it issued to the companies were final, and the executory judgments issued by the court and could not be challenged. The companies appealed to the Third Circuit, which reversed the grants of partial summary judgment based on deficiency of the notices of assessment and the lack of sufficient evidence to support the judgments. The tax collector applied for supervisory review to the State Supreme Court. Upon review, the Supreme Court found the court of appeal properly reversed the district court's grants of partial summary judgment, and remanded the cases back to the district court for further proceedings. View "Catahoula Parish Sch. Bd. v. Louisiana Machinery Rentals, LLC" on Justia Law

In 2002, Respondent purchased an airplane from an estate. In 2010, the Director of Revenue determined that Respondent should have paid use taxes because he had not paid sales tax on the purchase and because he stored the airplane in Missouri. The Administrative Hearing Commission determined that Respondent did not owe use tax because the Director did not prove that Respondent purchased the airplane out of state. The Supreme Court reversed, holding that the Commission erred in determining that Respondent did not owe the use tax assessed by the Director because the Commissioner's conclusion that the use tax applies only to goods that are purchased outside the state and then used or stored within the state was incorrect. View "Featherston v. Dir. of Revenue" on Justia Law

The issue before the Supreme Court in this case concerned the district court’s holding that Ashton Urban Renewal Agency (AURA) had standing to challenge a property tax exemption granted to Ashton Memorial, Inc., a corporation with real and personal property located within AURA’s revenue allocation area. Specifically, the issue was whether AURA was a “person aggrieved” under I.C. 63-511, and therefore, could appeal the grant of the exemption to the Idaho Board of Tax Appeals (BTA). The Supreme Concluded that AURA was an "person aggrieved" under the statute, therefore it affirmed the district court's decision. View "Ashton Urban Renewal v. Ashton Memorial" on Justia Law

Plaintiff was the owner of fourteen "recreational park trailers" that were used as cabins for lodging in a campground Plaintiff operated. Pennington County assessed the cabins as real property for ad valorem taxation purposes. The County Board of Equalization affirmed the assessment. On appeal, the circuit court reversed and granted summary judgment to Plaintiff, concluding that the cabins were not taxable under S.D. Codified Laws 10-4-2. The County appealed. The Supreme Court reversed, holding that, when considered together, the facts of this case established that Plaintiff's cabins were "improvements to land" within the meaning of section 10-4-2(2). View "Rushmore Shadows, LLC v. Pennington County Bd. of Equalization" on Justia Law

In late 2008, Cost Management Services Inc. (CMS) reviewed its years of tax payments made to the City of Lakewood. In examining the relevant regulations, CMS decided that it did not in fact owe the tax that it had been paying. In November 2008, it stopped paying the tax and it submitted a claim to Lakewood for a refund of taxes it had previously paid from 2004 to September 2008. Lakewood did not respond to the request for a refund of the 2004-2008 tax payments. But six months later, in May 2009, it issued a notice and order to CMS demanding payment of past due taxes for a different time period-October 2008 to May 2009. CMS did not respond to the notice and order from Lakewood. Instead, CMS sued Lakewood in superior court on its refund claim, asserting a state common law claim of money had and received. The trial court held a bench trial and found in favor of CMS, ruling that CMS did not owe the taxes it had paid to Lakewood. In addition (in a separate action), the trial court granted CMS 's petition for a writ of mandamus ordering Lakewood to respond to the refund claim. The Court of Appeals affirmed, reasoning that since Lakewood had never actually responded to the refund claim, CMS had no further administrative steps available to it on the refund claim, and thus exhaustion was not required. The appellate court also ruled that the trial court had properly issued the writ of mandamus. Lakewood sought review of the Court of Appeals' decisions on the exhaustion and the mandamus issues. After careful consideration, the Supreme Court affirmed the Court of Appeals as to the exhaustion issue, but reversed the Court of Appeals as to the mandamus issue. View "Cost Mgmt. Servs. v. City of Lakewood" on Justia Law

Several government entities (the class representatives) and all others similarly situated brought a class-action complaint against several online travel companies (OTCs) who marketed hotel rooms in Arkansas and elsewhere via the internet, asserting that the OTCs had failed to collect, or collected and failed to remit, the full amount of gross-receipts taxes imposed by the government entities on hotel accommodations. The circuit court granted the class representatives' motion to certify and certified two classes. The Supreme Court affirmed the circuit court's order granting class certification, holding that the circuit court did not abuse its discretion in (1) certifying the classes where the class representatives and putative class members had no adequate administrative remedies available to exhaust before filing suit; and (2) finding that the predominance requirement for class actions was satisfied. View "Hotels.com LP v. Pine Bluff Advertising & Promotion Comm'n" on Justia Law

The issue before the Supreme Court in this case centered on the constitutionality of the Local Option Sales Tax Act ("LOST"), OCGA 48-8-80 et seq., or a provision of it. This case represented the fourth time the matter has come before the Court. The parties to this appeal, and those that have filed amicus curiae briefs, have shown that problems have arisen when the governing entities cannot agree to changes in the distribution formula for purposes of renewing certificates pursuant to the Act. Appellant Turner County and appellees, who are the qualified municipalities within the special taxing district involved in this dispute, reached an impasse in their negotiations for renewing the LOST certificate that authorizes them to collect and distribute tax, which certificate was required to be filed no later than December 30, 2012. Pursuant to the 2010 amendment to the statute, appellee municipalities timely filed a petition with the Turner County Superior Court seeking resolution of the dispute. Turner County filed a motion to dismiss the petition in which it raised various constitutional challenges to the 2010 amendment and its process for submitting the distribution dispute for judicial resolution. The trial court denied Turner County's motion to dismiss and sustained the constitutionality of the 2010 amendment. The court also entered a final order adopting the final and best offer of the municipalities and finding that the municipalities' offer more closely comported with the requirements of the statute and the intent and criteria set forth in the Act. The Supreme Court granted Turner County's application for discretionary appeal to challenge the constitutionality of the 2010 amendment. Upon careful consideration of Turner County's claims of error, the Supreme Court found one dispositive issue: whether the procedure for judicial resolution set forth in OCGA 48-8-89 (d) (4) violated the separation of powers doctrine of the Georgia Constitution of 1983, Art. I, Sec. II, Par. III. The Court concluded this procedure did violate the separation of powers doctrine, and declared that portion of the statute to be void. View "Turner County v. City of Ashburn" on Justia Law

Respondents, the county board of county commissioners and county treasurer, attempted to provide refunds to property owners who paid excessive property taxes due to improper appraisals. To cover the cost of the refunds, Respondents withheld amounts from property tax distributions made to various county taxing units that had previously benefited from the excessive property taxes. Appellant, one of the taxing units from which distribution amounts were withheld, petitioned for a writ of mandamus compelling Respondents to cease withholding portions of the distributions. The district court denied relief. The Supreme Court affirmed the district court's order denying extraordinary relief, holding that Respondents were within their authority to withhold distributions, and because the manner in which they withheld distributions was discretionary, the political question doctrine precluded judicial review. View "N. Lake Tahoe Fire Prot. Dist. v. Washoe County Bd. of County Comm'rs" on Justia Law

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

At issue in this case was Ind. Code 6-1.1-24-3(b), which provides that a mortgagee annually request by certified mail a copy of notice that a parcel of real property is eligible for sale under the tax sale statutes. Here a bank, which held a mortgage on certain property, failed to submit a form affirmatively requesting from the county auditor to mail notice of a pending sale of the real property. Therefore, the bank was not notified that its mortgaged property was tax delinquent until after the property had been sold and the buyer requested a tax deed. The buyer filed a petition to direct the county auditor to issue a tax deed for the property, and the bank filed a response challenging the tax sale notice statutes as unconstitutional under the Fourteenth Amendment. The trial court issued an order holding that the statute was unconstitutional and denying the buyer's petition. The court of appeals affirmed. The Supreme Court reversed, holding that section 6-1.1-24-3(b) was constitutional under the due process clause of the Fourteenth Amendment. Remanded. View "M & M Inv. Group, LLC v. Ahlemeyer Farms, Inc." on Justia Law