Justia Government & Administrative Law Opinion Summaries

Taxpayer Walter Woodland appealed the Oregon Department of Revenue’s assessment of $116 in interest for unpaid estimated taxes in 2019. During the pendency of that appeal, the department invalidated the assessment and agreed that taxpayer did not owe that interest. The Regular Division of the Oregon Tax Court accordingly dismissed taxpayer’s appeal as moot. The Oregon Supreme Court affirmed. View "Woodland v. Dept. of Rev." on Justia Law

The Supreme Court denied a writ of mandamus sought by the Board of Education of the Ottawa Hills Local School District ordering the Lucas County Board of Elections to place a tax levy on the November 7, 2023 general election ballot, holding that the Board of Elections did not abuse its discretion or act in disregard of applicable legal provisions when it refused to place the levy on the ballot.On August 28, 2023, the Board of Education brought this original action seeking a writ of mandamus ordering the Board of Elections to certify the levy at issue and place it on the November 2023 general election ballot. The Supreme Court denied the writ, holding (1) the Board of Education failed to certify an accurate resolution to proceed to the Board of Elections "not later than four p.m. of the ninetieth day before the day of the election," as required by Ohio Rev. Code 35.01.02(F); and (2) the Board of Education's error was not a technical violation that did not affect the public interest. View "State ex rel. Ottawa Hills Local School District Bd. of Education v. Lucas County Bd. of Elections" on Justia Law

The Supreme Court reversed the order of the district court in this tax appeal, holding that the district court erred by concluding that Mont. Code Ann. 15-30-2119, the NOL statute, operates as a dollar-for-dollar offset provision that indirectly taxes out-of-state income.At issue was the decision of the Department of Revenue to deny nonresident taxpayers Franklin and Janet Tiegs a carryover net operating loss (NOL) deduction on their 2014 and 2015 Montana income tax returns. The Montana Tax Appeal Board upheld the Department's decision, but the district court reversed, concluding that Mont. Code Ann. 15-30-2119 was unconstitutional because it authorized taxation of non-Montana income. The Supreme Court reversed, holding that the district court (1) erred by holding that the general use of out-of-state income within the Montana income tax framework violated Mont. Code Ann. 15-30-2102 and federal constitutional principles; and (2) erred by concluding that section 15-30-2119 constitutes impermissible taxation of income outside of Montana's jurisdictional reach. View "Tiegs v. State, Dep't of Revenue" on Justia Law

The Supreme Court reversed the judgment of the court of appeals affirming the order of the trial court dismissing Duncan House Charitable Corporation's application for a charitable organization exemption, holding that the court of appeals erred in concluding that Duncan's failure to timely apply for later exemption precluded it from receiving that exemption even if it ultimately qualified for an earlier exemption.For the 2017 tax year, Duncan applied for a charitable tax exemption covering its fifty percent ownership interest in a Houston historic home. The appraisal district denied the exemption, and the review board denied Duncan's ensuing protest. Duncan filed for judicial review. Thereafter, although Duncan House never applied for the charitable exemption for the 2018 tax year, it protested the district's 2018 appraisal on the grounds that the district court to apply the charitable exemption. The review board denied the protest. Duncan then amended its trial court petition to challenge the denial of the 2018 exemption. The trial court dismissed the 2018 claim for want of jurisdiction, and the court of appeals affirmed. The Supreme Court reversed, holding that the court of appeals erred in holding that Duncan's failure to timely apply for the 2018 exemption precluded it from receiving that exemption even if it ultimately qualified for the 2017 exemption. View "Duncan House Charitable Corp. v. Harris County Appraisal District" on Justia Law

The Supreme Court affirmed the decision of the Board of Equalization upholding the final determinations of the Department of Revenue (DOR) increasing the taxable value of Jonah Energy LLC's natural gas liquids (NGL) production for 2014 through 2016, holding that Jonah was not entitled to relief on its allegations of error.On appeal, Jonah argued that the Board misinterpreted the NGL purchase agreement between Jonah and the purchaser of its NGL, Enterprise Products Operating LLC, by refusing to account for deficiency fees Jonah paid to Enterprise in determining the NGL's taxable value. The Supreme Court affirmed, holding (1) the Board did not misinterpret the NGL purchase agreement at issue; and (2) the Board did not err by failing to take the facts and circumstances surrounding execution of the purchase agreement into account when interpreting it because there was no basis for losing outside the four corners of the purchase agreement to determine its meaning. View "Jonah Energy LLC v. Wyo. Dep't of Revenue" on Justia Law

Plaintiff-taxpayer formed a nonprofit with tax-exempt status that facilitated the donation of timeshares by timeshare owners. Taxpayer also formed Resort Closings, a for-profit service that handled the real estate closings for timeshares donated to DFC. Donors paid a donation fee to DFC and shouldered the timeshare transfer fees. Taxpayer, his sister, and other associates appraised the value of the unwanted timeshares.Under 26 U.S.C. Sec. 6700, imposed a penalty on taxpayer for his involvement in the organization or sale of tax shelters that made false statements or involved exaggerate valuation. The panel upheld the district court’s determination on summary judgment that taxpayer was liable for the appraisals of the associates because, as a matter of law, taxpayer knew or had reason to know the associates were disqualified as appraisers under the Treasury regulations, and taxpayer forfeited his argument on appeal that he was unaware the appraisals would be imputed to the non-profit he formed. . View "JAMES TARPEY V. USA" on Justia Law

The Affordable Care Act obligates large employers to provide their full-time employees with health insurance coverage meeting certain requirements. If an employer fails to provide coverage or provides noncomplying coverage, it is liable for an exaction under 26 U.S.C. Section 4980H. In 2019, the Internal Revenue Service sent two letters proposing exactions under Section 4980H to appellant Optimal Wireless, a wireless communications company. Optimal then filed an action against the IRS and the Department of Health and Human Services, claiming that the agencies had failed to satisfy certain procedural requirements before imposing the proposed exactions. Optimal sought a declaratory judgment and an injunction barring the IRS from collecting any money without complying with those procedures. The district court dismissed Optimal’s suit for lack of jurisdiction.   The DC Circuit affirmed. The court explained that the Anti-Injunction Act provides that, with certain exceptions, “no suit for the purpose of restraining the assessment or collection of any tax shall be maintained in any court by any person, whether or not such person is the person against whom such tax was assessed.” The court explained that because Congress repeatedly called the Section 4980H exaction a tax, Optimal’s suit is barred by the Anti-Injunction Act. The court further wrote that Congress’s use of the phrase “assessable payment” does not conflict with—or otherwise detract from the import of—its choice to label the Section 4980H exaction a “tax” in multiple provisions. The terms are not mutually exclusive. View "Optimal Wireless LLC v. IRS" on Justia Law

School districts may levy “qualified special taxes,” Government Code section 50079, with the approval of two-thirds of district voters. A qualified special tax must “apply uniformly to all taxpayers or all real property within the school district” (with some statutory exemptions) and not be “imposed on a particular class of property or taxpayers.” Measure A, approved in 2020 by voters in the Alameda Unified School District, authorizes a tax on improved parcels at “the rate of $0.265 per building square foot not to exceed $7,999 per parcel.” In Traiman’s action challenging Measure A, the trial court ruled that the tax was not applied uniformly and invalidated the tax. The court awarded Traiman $374,960 in attorney fees (Code of Civil Procedure section 1021.5).The court of appeal reversed. Measure A tax applies uniformly within the meaning of section 50079 because every nonexempt taxpayer and every improved parcel in the District is taxed using the same formula. Neither the language of the statute, case law, legislative history, nor public policy indicates that a school district cannot base a qualified special tax on building square footage with a maximum tax per parcel. View "Traiman v. Alameda Unified School District" on Justia Law

Vectren Infrastructure Services Corporation, the successor in interest to Minnesota Limited, Inc. (ML), sued the Department of Treasury (the Department) in the Michigan Court of Claims, alleging that the Department had improperly assessed a tax deficiency against ML after auditing ML’s Michigan Business Tax returns for 2010 and part of 2011. Following an audit, the Department determined that ML had improperly included its gain from a sale of its assets in the sales-factor denominator, resulting in an overstatement of its total sales and the reduction of its Michigan tax liability. The auditor excluded ML’s sale of assets from the sales factor and included it in ML’s preapportioned tax base, which increased ML’s sales factor from 14.9860% to 69.9761% and consequently increased its tax liability. ML asked the Department for an alternative apportionment for the period in 2011 before the sale, January 1, 2011 to March 31, 2011 (the short year), but the Department denied ML’s request and determined that ML had not overcome the presumption that the statutory apportionment fairly represented ML’s business activity in Michigan for the short year. The Court of Appeals ultimately held the Court of Claims had correctly analyzed the relevant statutes and applied the apportionment formula; however, the Court of Appeals concluded that Vectren was entitled to an alternative apportionment because applying the formula extended Michigan’s taxing powers beyond their acceptable scope, and ordered the parties to work together to determine an alternative method of apportionment. The Michigan Supreme Court held: (1) the income from the asset sale was properly attributable under the MBTA; and (2) the MBTA formula, as applied, did not impermissibly tax income outside the scope of Michigan’s taxing powers. The Court reversed the Court of Appeals and remanded this case to the Court of Claims for further proceedings. View "Vectren Infrastructure Services Corp v. Department Of Treasury" on Justia Law

Show Me State Premium Homes wants its purchase of a foreclosed property to be free and clear of all other interests, including those belonging to the United States. Getting what it wants would require a “judicial sale.” After removing the case the United States filed a motion to dismiss. Its position was that there could be no foreclosure without a judicial sale. The district court agreed, declined to exercise supplemental jurisdiction over what remained, and remanded to state court.   The Eighth Circuit affirmed the judgment of the district court but modified the dismissal of the ejectment and damages claims to be without prejudice. The court explained that a buyer’s interest is only “inchoate” before it gets a valid deed, not after. And here, title vested once the bond company “exercised its right to have the legal title transferred.” No “judicial sale” ever took place, and it is too late to hold one now, meaning that the interests held by the United States have never been foreclosed. View "Show Me State Premium Homes, LLC v. George McDonnell" on Justia Law