Justia Government & Administrative Law Opinion Summaries

The Alaska Department of Revenue audited a non-resident corporation doing business in Alaska. The Department issued a deficiency assessment based in part on an Alaska tax statute requiring an income tax return to include certain foreign corporations affiliated with the taxpaying corporation. The taxpayer exhausted its administrative remedies and then appealed to the superior court, arguing that the tax statute the Department applied was facially unconstitutional because: (1) it violated the dormant Commerce Clause by discriminating against foreign commerce based on countries’ corporate income tax rates; (2) it violated the Due Process Clause by being arbitrary and irrational; and (3) it violated the Due Process Clause by failing to provide notice of what affiliates a tax return must include, and therefore is void for vagueness. The superior court rejected the first two arguments but ruled in the taxpayer’s favor on the third argument. The Department appealed, claiming the superior court erred by concluding that the statute was void for vagueness in violation of the Due Process Clause. The taxpayer cross-appealed, asserting that the court erred by concluding that the statute did not violate the Commerce Clause and was not arbitrary. After review, the Alaska Supreme Court reversed the superior court’s decision that the statute was facially unconstitutional on due process grounds, and affirmed the court’s decision that it otherwise was facially constitutional. View "Alaska Dept. of Revenue v. Nabors International Finance, Inc. et al." on Justia Law

The Supreme Court affirmed the district court's judgment affirming the Nebraska Department of Revenue's denial of Gelco Fleet Trust's claim for a refund on sales tax it allegedly overpaid on the purchase price of a new vehicle, holding that there were no errors on the record.Gelco submitted a claim for refund of sales tax, which the Department denied. On appeal, the district court affirmed the Department's decision, determining that the Department properly included the disputed amount in the sales price and calculation of sales tax. The Supreme Court affirmed holding that the district court's determination conformed to the law, was supported by competent evidence, and was neither arbitrary capricious, nor unreasonable. View "Gelco Fleet Trust v. Neb. Dep't of Revenue" on Justia Law

To dispute a property tax assessment under Detroit ordinances and Michigan state law, taxpayers “make complaint on or before February 15th" before the Board of Assessors. Any person who has complained to the Board of Assessors may appeal to the Board of Review. For the Michigan Tax Tribunal to have jurisdiction over an assessment dispute, “the assessment must be protested before the board of review.” On February 14, 2017, Detroit mailed tax assessment notices to Detroit homeowners, including an “EXTENDED ASSESSORS REVIEW SCHEDULE” that would conclude on February 18, just four days later. At a City Council meeting on February 14, the city announced: “The Assessors Review process will end this year February the 28th.” News outlets reported the extension and that Detroit had waived the requirement of appearance before the Board of Assessors so residents could appeal directly to the Board of Review. Detroit did not distribute individualized mailings to so inform homeowners.Plaintiffs filed a class action, alleging violations of their due process rights; asserting that Michigan’s State Tax Commission assumed control of Detroit’s flawed property tax assessment process from 2014-2017 so that its officials were equally responsible for the violations; and claiming that Wayne County is “complicit” and has been unjustly enriched. The district court dismissed for lack of subject matter jurisdiction, citing the Tax Injunction Act and the principle of comity. The Sixth Circuit reversed, finding that a state remedy is uncertain. View "Howard v. City of Detroit" on Justia Law

The Mobile County Board of Equalization ("the Board") petitioned the Alabama Supreme Court for a writ of mandamus directing the Mobile Circuit Court ("the trial court") to dismiss, for lack of subject-matter jurisdiction, an appeal filed by Atwood Drilling, Inc. ("Atwood"), challenging the Board's final assessment of ad valorem property taxes. This case concerns a dispute between Atwood and the Board as to the assessed value of personal property owned by Atwood ("the property"). Atwood timely filed a notice of appeal to the trial court, challenging the assessment as too high. the Board moved to dismiss Atwood's appeal, alleging: (1) taxes on the property had become delinquent because they had not been paid by January 1, 2021; and (2) by failing to pay the disputed amount before January 1, 2021, Atwood had not satisfied a jurisdictional requirement in § 40-3-25 -- specifically, the requirement that, when appealing a tax assessment, a taxpayer who has not executed a supersedeas bond must pay the assessed taxes before they become delinquent. In support of the motion to dismiss, the Board attached a receipt from the office of the Mobile County Revenue Commissioner ("the Commissioner") indicating that Atwood had not paid the assessed taxes as of January 19, 2021. Atwood alleged that it had sent the Commissioner via certified mail on December 10, 2020, and suggested that delivery had been likely delayed because of service disruptions related to the COVID-19 pandemic. The Board argued that the "mailbox rule" in § 40-1-45 did not extend to undelivered tax payments. At some point following the Board's filing of the motion to dismiss, Atwood paid the tax bill, including penalties and interest, with a second check. After holding several hearings on the matter, the trial court, without stating the findings on which its decision was based, entered an order denying the Board's motion to dismiss on September 10, 2021. Because the appeal was not perfected, the Alabama Supreme Court determined the trial court lacked subject matter jurisdiction, and should have granted the Board's motion to dismiss. The petition was thus granted and the writ issued. View "Ex parte Mobile County Board of Equalization." on Justia Law

The Supreme Court reversed the judgment of the Board of Tax Appeals (BOTA) concluding that Johnson County's valuations for the 2016 and 2017 tax years involving eleven Walmart and Sam's Club "big box" stores in the County were too high because they improperly relied on unadjusted sales and rental income data from other properties subject to build-to-suit leases, holding that In re Prieb Properties, LLC 275 P.3d 56 (2012), is overruled.The BOTA in this case did its duty to follow Prieb, a 2012 decision that crafted a rule of law to exclude appraisal opinions founded on unadjusted build-to-suit lease data to support valuations used in the process of ad valorem taxation. The court of appeals affirmed. The Supreme Court remanded the case, holding (1) Prieb's rationale invades BOTA's longstanding province as the fact-finder in the statutory process for appraising real property at its fair market value for ad valorem tax purposes; and (2) by following Prieb, BOTA improperly imposed an exclusionary rule on the County's evidence rather than simply considering its weight and credibility. View "In re Equalization Appeal of Walmart Stores, Inc." on Justia Law

In 2003, the Alabama Legislature and the citizens of Greene County voted to allow nonprofit organizations in that county to operate bingo games for fundraising purposes. Greenetrack, Inc. ("Greenetrack"), which was not a nonprofit organization, almost immediately began offering live and electronic bingo games at its gambling facility. From 2004 to 2008, Greenetrack reaped vast profits under the guise that its whole casino-style bingo operation was constantly being leased and operated by a revolving slate of local nonprofit organizations, whose nominal role earned them a tiny fraction of the bingo proceeds. Eventually, the Alabama Department of Revenue ("the Department") audited Greenetrack, found that its bingo activities were illegal, and concluded that it owed over $76 million in unpaid taxes and interest. Following a decade of litigation, the Alabama Tax Tribunal voided the assessed taxes on the threshold ground that Greenetrack's bingo business (regardless of its legality) was tax-immune under a statute governing Greenetrack's status as a licensed operator of dog races. The Department appealed, and the Alabama Supreme Court reversed, rejecting the statutory analysis offered by the Tax Tribunal and circuit court. Judgment was rendered in favor of the Department. View "Alabama Department of Revenue v. Greenetrack, Inc." on Justia Law

In 2017, Appellant Shoshone County assessed properties owned by Respondents S&W OPS, LLC; POWDER, LLC; H2O, LLC; GOLF, LLC; APARTMENT, LLC; F&B, LLC; and VILLAGE MANAGEMENT, LLC (collectively “Taxpayers”). Taxpayers disputed the valuation and sought review by the Board of Equalization, and subsequently the Board of Tax Appeals (“BTA”). The BTA reduced the assessed value, and the County appealed to the district court. After a four-day bench trial, the district court upheld the BTA decision, determining that the County’s appraisal evidence was more credible than Taxpayers’ evidence; however, the district court ultimately held the County had not satisfied its burden of showing how the BTA decision was erroneous by a preponderance of the evidence. The County appealed to the Idaho Supreme Court, arguing that the district court applied the wrong standard of review by requiring the County to prove “how or why” the BTA decision was erroneous instead of simply concluding that the market value of the property was different than what was found by the BTA. After review, the Supreme Court agreed with the County’s position. The district court’s decision was reversed, the judgment was vacated, and the case was remanded with instructions for the district court to consider whether the BTA’s decision on valuation was erroneous given the evidence submitted during the de novo trial. If that decision on valuation was erroneous, the district court, as the fact-finder, had to set the valuation. View "Shoshone County v. S&W OPS, LLC" on Justia Law

In 2016, Nucor Steel Louisiana, LLC submitted a tax refund claim to St. James Parish School Board and the St. James Parish Tax Agency (collectively the “Collector”). The claim alleged an overpayment of sales and use tax paid pursuant to a full contract price that was rebated. In 2018, the Collector issued a written denial of Nucor’s refund claim. Following the redetermination hearing, the Collector sent Nucor another letter denying the refund claim. Then, on May 24, 2018, just over two years after the Collector received the refund claim, Nucor appealed the denial to the Board of Tax Appeal (“BTA”). The Collector responded by filing peremptory exceptions of prescription, peremption, and res judicata, asserting that Nucor failed to timely appeal under La. R.S. 47:337.81(A)(2). The BTA granted the Collector’s exceptions, finding Paragraph (A)(2) provides “two alternative prescriptive periods for a taxpayer to appeal refund denial.” Because the Collector failed to render a decision within one year of Nucor’s refund claim being filed, Nucor had 180 days, or until July 26, 2017, to appeal. Thus, the BTA found Nucor’s May 24, 2018 appeal untimely. Nucor appealed. The court of appeal reversed, finding that Nucor’s appeal within 90 days of that decision was timely. The court of appeal also found the Collector’s statement to Nucor that it had “ninety (90) calendar days” to appeal amounted to a representation that Nucor relied upon to its detriment. Using the standard set forth in Suire v. Lafayette City-Parish Consolidated Government, 04-1459 (La. 4/12/05), 907 So.2d 37, which only required a reasonable reliance on a representation, the court found the Collector estopped from arguing prescription. The Louisiana Supreme Court granted the Collector’s writ application to determine the proper interpretation of the appeal periods in La. R.S. 47:337.81 and to determine the proper standard for evaluating the estoppel and detrimental reliance claims. The Supreme Court reversed the court of appeal and reinstated the trial court’s ruling on the exceptions. View "Nucor Steel Lousiana, LLC v. St. James Parish School Board et al." on Justia Law

In the November 2020 election, Colorado voters approved Proposition 118, which established the Paid Family and Medical Leave Insurance Act (“the Act”). This case concerned whether the Division of Family and Medical Leave Insurance's (“the Division”) collection of premiums under the Act violated section (8)(a) of the Taxpayer’s Bill of Rights (“TABOR”), specifically, whether the premium was an unconstitutional “added tax or surcharge” on income that was not “taxed at one rate.” And, if so, the Colorado Supreme Court was asked whether the Act’s funding mechanism was severable from the rest of the Act. The Supreme Court concluded the premium collected by the Division did not implicate section (8)(a) because the relevant provision of that section concerned changes to “income tax law.” The Act, a family and medical leave law, was not an income tax law or a change to such a law. Moreover, the premium collected pursuant to the Act was a fee used to fund specific services, rather than a tax or comparable surcharge collected to defray general government expenses. View "Chronos Builders v. Dept. of Labor" on Justia Law

Comerica, Inc. sought to redeem certain tax credits over the Michigan Department of Treasury’s objection. The credits were earned under the Single Business Tax Act by a Comerica affiliate. That subsidiary assigned the credits to another subsidiary, a Michigan bank. Later, Comerica created a third subsidiary, a Texas bank, and merged the Michigan bank into the Texas bank. Comerica then claimed the tax credits, on behalf of the Texas bank, in its Michigan tax filings. The Department of Treasury disallowed the tax credits, concluding that the Texas bank did not receive the Michigan bank’s credits through the merger because the Michigan bank lacked the legal authority to transfer the credits. The Michigan Supreme Court held that the tax credits could lawfully pass to the Texas bank. View "Comerica Inc. v. Department Of Treasury" on Justia Law