Justia Tax Law Opinion Summaries

The underlying litigation in this case involved the Legislature's enactment of "Special Acts" for nine county boards of education requiring them to divert a portion of their regular levy receipts in support of their local libraries. The Kanawha County Board of Education (BOE) originally brought suit in circuit court, alleging that one such Act's requirement that the BOE contribute to the funding of the Kanawha County Public Library violated equal protection. The Supreme Court agreed and found the statute unconstitutional. In response, the Legislature amended the statute. The County BOE then filed the instant action, arguing that the statute as amended violated equal protection. The circuit court invalidated as unconstitutional the Special Act to the extent it required the BOE to divert a portion of its regular levy receipts in support of the Library or transfer the funding obligation to its excess levy, and enjoined the Library and the West Virginia BOE from enforcing the Special Act as it pertained to the County BOE's library funding obligation. The Supreme Court affirmed, holding that the Act, to the extent it obligated the County BOE to divert a portion of its regular or excess levy receipts to the Library, was unconstitutional and unenforceable. View "Kanawha County Pub. Library Bd. v. Bd. of Educ. of County of Kanawha" on Justia Law

After Ian Burch's motor home was stopped by a highway patrol trooper, the trooper found drugs, drug paraphernalia, and $15,000 in cash in the vehicle. The State filed criminal charges against Burch. The district court found the trooper had unlawfully extended the scope and length of the stop and suppressed the evidence found in the vehicle. The charges against Burch were later dismissed. The Kansas Department of Revenue (KDOR) subsequently issued a tax assessment notice indicating Burch owed $17,761 in taxes and penalties on the drugs found in his motor home. The Court of Tax Appeals (COTA) granted summary judgment to KDOR on its assessment of taxes and civil penalties against Burch under the Kansas Drug Tax Act. The Supreme Court reversed, holding that COTA erred in granting summary judgment to KDOR because it failed to consider and apply the exclusionary rule to the drugs upon which the taxes were assessed. Remanded to COTA for consideration of the exclusionary rule. View "In re Tax Appeal of Burch" on Justia Law

In 2010, voters in the Fayetteville School District approved a 2.75 new-debt-service mills that would be a continuing debt service tax until the retirement of proposed bonds to be issued for the purpose of erecting and maintaining new and existing school facilities. The surplus revenues produced by debt service millage would be used for other school purposes. In 2011, certificates issued by the Washington County tax collector resulted in 1.45 mills of that 2.75-mill ad valorem increase being applied to the retirement of redevelopment-district bonds issued in 2005. The School District sought declaratory judgment and injunctive relief. The circuit court found that the assessor's certification was incorrect and that the tax collector improperly applied the 1.45 mills. The Supreme Court affirmed, holding (1) the present cause of action was not barred by res judicata; (2) Ark. Code Ann. 14-168-301(18)(B)(i) did not impair the bond-purchase contract and financing of the redevelopment bonds; and (3) the 2.75 expressly pledged the new millage to a bond in accordance with section 14-168-301(18)(B)(i). View "City of Fayetteville v. Fayetteville Sch. Dist. No. 1" on Justia Law

Appellant Fredrick Williams appealed the superior court's decision affirming the Ketchikan Gateway Borough's ruling that a house was not exempt from Ketchikan Gateway Borough taxation. In 2002 Williams received a grant to rebuild his house from the Bureau of Indian Affairs Housing Improvement Program. Because Williams has owned the home for ten years, the repayment amount annually decreased by ten percent of the original amount, resulting in no repayment for a transfer occurring 20 years or more after Williams received the grant. Williams executed a deed of trust securing the federal government's right to repayment under the grant. Williams claimed that under the grant and the deed of trust, "[t]he federal government own[ed] . . . the $115,000 it took to build the home," and that Williams was therefore exempt from paying property taxes on it. On appeal, the superior court rejected this argument, upholding the Ketchikan Gateway Borough's view that the deed of trust securing the grant did not divest Williams of the ownership interest in his real property. The Supreme Court agreed with the superior court's conclusion and affirmed and adopted its decision. View "Williams v. Ketchikan Gateway Borough" on Justia Law

At issue in this case was the 2007 tax-year valuation of six properties owned by Appellant. Appellant filed six valuation complaints regarding the properties. The county board of revision (BOR) retained the auditor's valuation for five parcels and ordered a reduction for one. On appeal, the board of tax appeals (BTA) concluded (1) in the case of the one parcel, the complaint's failure to state an actual dollar amount of value reduction was a jurisdictional defect, and thus the case was remanded to the BOR for dismissal; and (2) with respect to the other five parcels, the evidence offered by Appellant was insufficient to find a value different from that determined by the BOR. The Supreme Court affirmed, holding (1) the BTA properly ordered dismissal of Appellant's appeal of the case of the one parcel; and (2) the BTA acted reasonably and lawfully in adopting the BOR's valuation with respect to the other parcels. View "Shinkle v. Ashtabula County Bd. of Revision" on Justia Law

Cincinnati Community Kollel, an educational institution for purposes of Ohio Rev. Code 4709.121(A)(2), sought exemptions for three residential apartment buildings based on the claim that the properties were being used in furtherance of its educational purposes. The statute provides that real property belonging to an educational institution is exempt from taxation if it is made available under the direction of the institution for use in furtherance of or incidental to its educational purposes and not with a view to profit. The tax commissioner denied the exemptions, and the board of tax appeals (BTA) affirmed. The Supreme Court reversed, holding that the BTA applied the wrong legal standard and failed to cite reliable and probative evidence to support its decision. Remanded to the BTA to review the evidence submitted in this case and determine whether the subject property was used in furtherance of the kollel's educational purposes. View "Cincinnati Cmty. Kollel v. Levin" on Justia Law

Petitioner Signal Aviation Services, Inc. appealed a superior court order which granted a motion to dismiss filed by the City of Lebanon. The City entered into a twenty year lease with HL Leasing for certain municipal airport lands. HL Leasing assigned its rights to Sierra Nevada Helicopters, which then assigned the rights to its affiliate, Signal. In the lease, the City agreed it would not allow any other provider of commercial aeronautical services to operate at the airport under terms more favorable than those set forth in the lease. In 2006, the City increased the assessed value of Signal's leased land. Signal claimed that the city assessed its land disproportionately as compared to other entities operating and leasing land at the airport. Signal was unsuccessful in seeking an abatement of its 2006 and 2007 taxes. The New Hampshire Board of Tax and Land Appeals (BTLA) dismissed Signal's appeals, holding that Signal failed to present any evidence of the market value of its property. Signal did not appeal the BTLA's decision nor did it contest the City's 2008 and 2009 assessments. Signal then filed suit in superior court to challenge all of the assessments. The trial court concluded that though Signal's petition was styled as a breach of contract, but that it was actually a request for tax abatement and outside the court's jurisdiction. The trial court then dismissed Signal's petition for failing to state a claim upon which relief could be granted. Upon review, the Supreme Court upheld the trial court's decision insofar as it related to Signal's allegations of "disproportionate taxation." However, to the extent that Signal's breach of contract claim sought relief from "unequal treatment," specifically with respect to the amount of taxable land the City attributed to Signal and to other airport tenants with which the City contracts, Signal could pursue this claim without complying with the tax abatement statutory process. View "Signal Aviation Services, Inc. v. City of Lebanon" on Justia Law

This dispute about the payment of a penalty imposed on them by the IRS arose out of Plaintiffs' underlying joint personal income tax liability for the tax year 1994. After the IRS audited Plaintiffs for that year, the tax court imposed a penalty on Plaintiffs for failing to timely file a return. Plaintiffs completed payment of their agreed 1994 tax liability under a payment plan. Plaintiffs subsequently filed an administrative claims for refused of the 1994 failure-to-pay penalty and the interest they paid on that penalty. The IRS denied the claim. Plaintiffs filed suit in the district court, and the court granted summary judgment in favor of the government. Plaintiffs appealed, arguing there was at least a dispute of material fact as to whether (1) the IRS was equitably estopped from assessing this fee, (2) they had reasonable cause not to pay the relevant taxes with the time provided by statute, and (3) the IRS had ever provided them with proper notice and demand for payment. The First Circuit Court of Appeals affirmed, holding that Plaintiffs failed to raise a genuine issue of material fact as to any of their claims. View "Shafmaster v. United States" on Justia Law

This appeal stemmed from plaintiffs' suit against the government after the government alleged that plaintiffs failed to file adequate tax returns. The court understood plaintiffs' pro se appeal to contend that the government had waived the limitations defense by failing to raise it in its first dispositive motion. The court expressed no opinion on the government's jurisdictional argument and concluded instead that the government had not forfeited its limitations defense. The court also found plaintiffs' argument that the statute of limitations should have been tolled was without merit. Accordingly, the court affirmed the district court's dismissal of plaintiffs' complaint in its entirety. View "Kim, et al v. United States, et al" on Justia Law

This appeal concerned a grand jury investigation and the issuance of subpoenas duces tecum to a target and his wife, which required the production of records concerning their foreign financial accounts. The government conducted an investigation of, among other things, the Target and his wife's failure to disclose tax returns on foreign accounts and failure to file certain government forms for these alleged accounts. The Target and his wife refused to comply with the subpoenas by producing their records, asserting their Fifth Amendment privilege against self-incrimination. The court joined its sister circuits and concluded that the subpoenaed records fell within the Required Records Exception and affirmed the district court's grant of the government's motion to compel. View "In re: Grand Jury Proceedings, No. 4-10" on Justia Law