Mississippi Department of Revenue v. Mississippi Power Company

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The Mississippi Department of Revenue (MDOR) audited Mississippi Power Company and assessed use taxes attributed to Mississippi Power’s purchase and installation of low-NOx burners. After unsuccessfully pursuing administrative remedies, Mississippi Power appealed to the chancery court. The chancery court reversed and granted summary judgment in favor of Mississippi Power. The MDOR appealed, arguing: (1) the chancery court lacked jurisdiction over Mississippi Power’s amended petition for appeal and review; and (2) (assuming the chancery court had appellate jurisdiction over Mississippi Power’s appeal) the court erred in finding the definition of “pollution control equipment” in Mississippi Code Section 27-65-101(1)(w)) was unambiguous, and failed to afford deference to the MDOR’s interpretation of “pollution control equipment” in Mississippi Administrative Code 35.IV.7.03(302). The Supreme Court found: (1) the chancery court had jurisdiction over the appeal; and (2) the chancellor correctly concluded that Mississippi Administrative Code 35.IV.7.03(302) was an invalid regulation. The chancellor further was correct that the low-NOx burners qualified for the tax exemption under the plain language of Section 27-65-101(1)(w) and the evidence produced by Mississippi Power. Therefore, the chancellor correctly ordered that the MDOR refund Mississippi Power the use taxes assessed on the low-NOx burners, plus penalties and interest. View "Mississippi Department of Revenue v. Mississippi Power Company" on Justia Law