Justia Government & Administrative Law Opinion Summaries

Several organizations and individuals petitioned to prevent the Idaho State Tax Commission from implementing a newly enacted parental choice tax credit. This tax credit, established in 2025, provides refundable credits to parents, guardians, and foster parents for certain private educational expenses, including private school tuition and related services, for dependent students not enrolled in public schools. The law caps total annual credits and includes prioritization based on income and previous participation. The petitioners, including advocacy groups, a school district, and parents, argued that the statute creates a separate, non-public education system funded by public resources, allegedly violating the Idaho Constitution’s mandate for a single, general, uniform, and thorough system of public schools. They also claimed the statute failed the “public purpose doctrine,” asserting it primarily benefits private rather than public interests.Before the Idaho Supreme Court, the petitioners sought a writ of prohibition, which would prevent the Tax Commission from carrying out the law. The respondents, including the State and the Idaho Legislature, contested the petitioners’ standing and the merits of the constitutional claims. The Supreme Court determined that the petitioners lacked traditional standing but, given the urgency and importance of the constitutional question and the absence of another suitable challenger, relaxed standing requirements to address the merits.The Supreme Court of Idaho denied the petition. It held that Article IX, section 1 of the Idaho Constitution does not restrict the legislature from enacting educational measures beyond the required public school system, so long as the public system remains intact and constitutionally sufficient. The Court also found that the tax credit serves a legitimate public purpose—supporting parental choice in education—even if private entities benefit. The petition was dismissed, and the Tax Commission was awarded attorney fees and costs. View "Committee to Protect and Preserve v. State" on Justia Law

Disney Platform Distribution, BAMTech, and Hulu, subsidiaries of the Walt Disney Company, provide video streaming services to subscribers in the City of Santa Barbara. In 2022, the City’s Tax Administrator notified these companies that they had failed to collect and remit video users’ taxes under Ordinance 5471 for the period January 1, 2018, through December 31, 2020, resulting in substantial assessments. The companies appealed to the City Administrator, and a retired Associate Justice served as hearing officer, ultimately upholding the Tax Administrator’s decision.Following the administrative appeal, the companies sought judicial review by filing a petition for a writ of administrative mandate in the Superior Court of Santa Barbara County. The trial court denied their petition, finding that the Ordinance does apply to video streaming services and rejecting arguments that the Ordinance violated the Internet Tax Freedom Act, the First Amendment, and Article XIII C of the California Constitution. The trial court also found there was no violation of Public Utilities Code section 799’s notice requirements, as the City’s actions did not constitute a change in the tax base or adoption of a new tax.On appeal, the California Court of Appeal, Second Appellate District, Division Six, affirmed the trial court’s judgment. The court held that the Ordinance applies to video streaming services, interpreting the term “channel” in its ordinary, non-technical sense and finding that the voters intended technological neutrality. The court further held that the Ordinance does not violate the Internet Tax Freedom Act because video streaming subscriptions and DVD sales/rentals are not “similar” under the Act. Additionally, the court concluded the tax is not a content-based regulation of speech under the First Amendment, and that delayed enforcement did not constitute a tax increase requiring additional voter approval or notice under the California Constitution or Public Utilities Code section 799. View "Disney Platform Distribution v. City of Santa Barbara" on Justia Law

This case concerns the State Water Resources Control Board's intervention in the Tulare Lake groundwater subbasin pursuant to California’s Sustainable Groundwater Management Act (the Act). After local agencies in the subbasin submitted a groundwater sustainability plan that the Department of Water Resources twice determined to be inadequate, the State Board designated the basin as probationary in April 2024. This designation triggered state-imposed monitoring, reporting, and fee obligations on certain groundwater extractors. In response, the Kings County Farm Bureau and others filed a petition for writ of mandate and complaint, asserting that the State Board exceeded its authority and challenging the validity of the designation and associated fees on several grounds.The Superior Court of Kings County addressed both a demurrer filed by the State Board and a request from the Farm Bureau for a preliminary injunction. The trial court dismissed the equal protection claim with leave to amend, but overruled the demurrer as to claims that (1) the State Board used improper “underground regulations” not adopted under the Administrative Procedure Act (APA), (2) the imposed extraction fee constituted an unlawful tax, and (3) general declaratory relief was appropriate. The trial court also granted a preliminary injunction, temporarily halting the State Board’s enforcement activities.The California Court of Appeal, Fifth Appellate District, reviewed the trial court’s order overruling the demurrer. The appellate court held that all actions by the State Board taken under sections 10735.2 and 10735.8 of the Act—including the designation of a probationary basin—are exempt from the APA unless the State Board voluntarily opts to adopt regulations using APA procedures. Therefore, the claim for improper “underground regulations” could not proceed. The court also held that a challenge to the extraction fee as an unlawful tax was barred by the constitutional “pay first” rule, as no exception applied. Lastly, the court determined that declaratory relief was unavailable because the Legislature provided for review of State Board actions exclusively by writ of mandate. The appellate court ordered the trial court to grant the demurrer without leave to amend as to these three claims. View "State Water Resources Control Bd. v. Superior Court" on Justia Law

A nonprofit religious organization based in Queens purchased a 73-acre parcel in the Town of Callicoon, Sullivan County, in 2018. Although the organization originally intended to use the property as a retreat center, testimony established that its actual use involved farming vegetables on about one cleared acre for charitable distribution to low-income residents in Queens. Occasional overnight stays involved religious activities, but there was no evidence of regular organized religious services or use as a retreat center. The Town Supervisor, who lived nearby and farmed part of the property without a formal agreement, confirmed the farming use but did not observe overnight retreats.After the Town Assessor denied a religious use tax exemption for the property for the 2021 tax year, the organization filed a grievance complaint, which was denied by the Town’s Board of Assessment Review. The organization then initiated an RPTL article 7 proceeding in Supreme Court, challenging the denial. A similar process occurred for the 2022 tax year, and both proceedings were joined. Supreme Court held a nonjury trial, found all witnesses credible, credited the organization’s testimony about actual use, and granted the petitions for both tax years, concluding the property was exempt. The Appellate Division affirmed this decision, with one Justice dissenting.The New York Court of Appeals reviewed the case. It held that the lower courts applied the correct legal standards: the burden to prove entitlement to exemption rests with the party seeking it, while the burden to prove a zoning violation rests with the municipality. The Court of Appeals found record support for Supreme Court’s factual findings and concluded that the Town failed to prove a zoning violation sufficient to defeat the exemption for both years. The order of the Appellate Division was affirmed, with costs. View "Matter of First United Methodist Church in Flushing v Assessor, Town of Callicoon" on Justia Law

A corporation owned by a federally recognized Indian tribe, along with several tribal officials, was alleged by the State of California to have violated state cigarette tax laws and regulations. The corporation manufactured and distributed cigarettes in California, including to non-tribal consumers, without collecting or remitting required state excise taxes or payments under the Master Settlement Agreement. California claimed that the corporation and its officials distributed contraband cigarettes not listed on the state’s approved directory and failed to comply with shipping, recordkeeping, and tax collection requirements under the federal Prevent All Cigarette Trafficking Act (PACT Act). Despite warnings and being placed on a federal non-compliance list, the corporation continued its operations.The United States District Court for the Eastern District of California considered the defendants’ motion to dismiss. The court found that the corporation, as an arm of the tribe, was shielded by tribal sovereign immunity and dismissed claims against it. However, the court allowed claims for injunctive relief against the individual tribal officials in their official capacities to proceed, holding that the Ex parte Young doctrine permitted such relief under the PACT Act. The court also denied the officials’ claims of qualified immunity for personal capacity claims, reasoning that qualified immunity did not apply to enforcement actions brought by a state under a federal statute.On interlocutory appeal, the United States Court of Appeals for the Ninth Circuit affirmed the district court’s rulings. The Ninth Circuit held that the PACT Act does not preclude Ex parte Young actions for prospective injunctive relief against tribal officials, as the Act does not limit who may be sued or the types of relief available, nor does it contain a sufficiently detailed remedial scheme to displace Ex parte Young. The court also held that qualified immunity does not shield tribal officials from California’s claims for civil penalties and money damages under the PACT Act. View "STATE OF CALIFORNIA V. DEL ROSA" on Justia Law

The dispute centers on groundwater management in the Tulare Lake groundwater subbasin, a high-priority basin under California’s Sustainable Groundwater Management Act (the Act). Local groundwater agencies developed and submitted a sustainability plan for the subbasin, but the Department of Water Resources twice found the plan inadequate. Following these determinations, the State Water Resources Control Board designated the Tulare subbasin as probationary, triggering state intervention and new monitoring, reporting, and fee requirements. In response, Kings County Farm Bureau and other parties filed a writ of mandate and complaint, challenging the State Board’s authority and actions, including the probationary designation and associated fees.The Superior Court of Kings County reviewed the Farm Bureau’s claims. It granted a preliminary injunction halting the State Board’s implementation of the probationary designation and denied in part the State Board’s demurrer to the complaint. Specifically, the trial court dismissed the equal protection claim with leave to amend but allowed the Farm Bureau to proceed on claims alleging improper underground regulations, unconstitutional fees, and general declaratory relief. The State Board then sought appellate review of the trial court’s order overruling its demurrer.The California Court of Appeal, Fifth Appellate District, reviewed the trial court’s decision de novo. It held that the Act exempts the State Board’s actions under the relevant statutory sections from the Administrative Procedures Act, precluding claims based on alleged underground regulations. The court further found that challenges to the extraction fees as unlawful taxes are barred by the “pay first” rule, requiring payment before judicial review. Finally, the court determined that declaratory relief is unavailable where the Legislature has provided a writ of mandate as the exclusive remedy. The appellate court issued a writ of mandate directing the trial court to vacate its order overruling the demurrer and to grant the demurrer without leave to amend as to the sixth, seventh, and ninth causes of action. View "State Water Resources Control Bd. v. Super. Ct." on Justia Law

The case concerns a challenge to the validity of Measure C, a citizens’ initiative placed on the ballot by the City of San Diego for the March 2020 election. Measure C proposed an increase in the city’s transient occupancy tax, with revenues earmarked for homelessness programs, street repairs, and convention center improvements. The measure also authorized the City to issue bonds repaid from the new tax revenues. Measure C received 65.24 percent of the vote, and the city council subsequently passed resolutions declaring the measure approved and authorizing the issuance of related bonds.After the election, Alliance San Diego and other plaintiffs filed actions challenging the City’s resolution declaring Measure C had passed, arguing it was invalid. The City responded with a validation complaint seeking judicial confirmation of the validity of Measure C and the related bond resolutions. California Taxpayers Action Network (CTAN) and other opponents answered, contending that Measure C required a two-thirds vote and was not a bona fide citizens’ initiative. The Superior Court of San Diego County initially granted a motion for judgment on the pleadings, finding that a two-thirds vote was required, and entered judgment against the City. On appeal, the California Court of Appeal, Fourth Appellate District, Division One, reversed and remanded for further proceedings to determine whether Measure C was a bona fide citizens’ initiative.On remand, the trial court conducted a bench trial and rejected CTAN’s arguments, finding that it had subject matter jurisdiction, the case was ripe, the special fund doctrine exempted the bonds from the two-thirds vote requirement, and Measure C was a bona fide citizens’ initiative requiring only a simple majority vote. The California Court of Appeal affirmed the trial court’s judgment, holding that Measure C and the related bond resolutions were valid, and that the trial court properly excluded certain hearsay evidence. View "Alliance San Diego v. California Taxpayers Action Network" on Justia Law

Two police officers employed by a city were injured in separate incidents while on duty. After their injuries, both received payments from the city under section 1(b) of the Illinois Public Employee Disability Act, which provides that eligible employees unable to work due to a duty-related injury must continue to be paid “on the same basis” as before the injury, without deductions from sick leave, compensatory time, or vacation. The city continued to pay their salaries as before, including withholding federal and state income taxes, Social Security, and Medicare taxes. The officers filed suit, alleging that the city violated the Disability Act by withholding employment taxes and, for one officer, by deducting accrued leave time.The Circuit Court of Tazewell County granted summary judgment for the officers, finding that section 1(b) prohibited the withholding of employment taxes and required payment of “gross pay.” The court also found the city had improperly deducted leave time and held that the ten-year statute of limitations for breach of contract applied, awarding damages and fees to the plaintiffs. On appeal, the Illinois Appellate Court, Fourth District, reversed, holding that section 1(b) does not prohibit withholding employment taxes, and that the five-year statute of limitations applied. The appellate court also found a genuine issue of fact regarding whether leave time was improperly deducted and remanded for further proceedings.The Supreme Court of Illinois reviewed the case and affirmed the appellate court’s judgment. The court held that section 1(b) of the Disability Act does not prohibit a public employer from withholding employment taxes from payments made to an injured employee under that provision. The court reasoned that the statute’s language requires payment “on the same basis” as before the injury, which includes continued tax withholding, and expressly prohibits only certain deductions, not taxes. The case was remanded for further proceedings on the leave time deduction claim. View "Bitner v. City of Pekin" on Justia Law

An electric utility company operating both within and outside Oregon was subject to central assessment for property tax purposes. For the 2020-21 tax year, the company and the Oregon Department of Revenue disagreed on the company’s overall value and the portion attributable to Oregon. The dispute centered on the methods used to determine real market value, specifically whether certain deductions and valuation models used by the company’s appraiser were consistent with the Department’s adopted standards. The Department relied on an administrative rule that incorporated the Western States Association of Tax Administrators (WSATA) Handbook, which prescribes valuation methods for centrally assessed properties.The Oregon Tax Court heard the case and considered expert testimony from both parties. The Department argued that the WSATA Handbook, as adopted by administrative rule, was binding and should control the valuation methods used. The company contended that the Tax Court, conducting a de novo review, was not bound by the Handbook. The Tax Court agreed with the company, holding that it was not required to defer to the Department’s rule and could determine real market value using other methods if it found them more accurate. The court ultimately adopted some of the company’s valuation approaches and set a value lower than the Department’s assessment.The Supreme Court of the State of Oregon reviewed the case on appeal. It held that, absent a finding that the Department’s rule is invalid on its face or as applied, the rule has the force of law and must be given legal effect by the Tax Court. The Supreme Court found that the Tax Court erred by not treating the Department’s rule as binding unless its application would conflict with constitutional or statutory definitions of real market value. The Supreme Court reversed the Tax Court’s judgment and remanded the case for further proceedings under the correct legal standard. View "PacifiCorp v. Dept. of Rev." on Justia Law

Starbuzz International, Inc. and Starbuzz Tobacco, Inc. distributed shisha, a product containing less than 50 percent tobacco, in California between October 2012 and September 2015. During this period, they paid over $2.8 million in excise taxes under the state’s Tobacco Products Tax Law, which imposed taxes on “tobacco products” as defined by statute. Starbuzz later filed refund claims, arguing their shisha did not meet the statutory definition and was not taxable. The Office of Tax Appeals (OTA) agreed, finding the definition ambiguous and resolving it in Starbuzz’s favor, granting full refunds. After a rehearing, a second OTA panel reaffirmed this decision.Following these administrative victories, Starbuzz requested payment of the refunds from the California Department of Tax and Fee Administration. The Department, however, declined to issue the refunds immediately, citing a statutory requirement to review whether Starbuzz had collected the excise tax from its customers and, if so, whether those amounts had been returned to them. Starbuzz filed a petition for writ of mandate in the Superior Court of Sacramento County, arguing the Department had a ministerial duty to pay the refunds and was barred by res judicata from conducting further review. The trial court rejected Starbuzz’s arguments and denied the petition, entering judgment for the Department.The California Court of Appeal, Third Appellate District, reviewed the case and affirmed the trial court’s judgment. The court held that the Department’s obligation to review for excess tax reimbursement under section 30361.5 was distinct from the refund claim adjudicated by the OTA. The court found that res judicata did not apply because the primary right at issue in the OTA proceedings (freedom from improper taxation) was different from the right asserted in the current action (immediate refund without review for excess reimbursement). Thus, the Department could require a review before issuing refunds. View "Starbuzz International v. Department of Tax and Fee Administration" on Justia Law