Justia Government & Administrative Law Opinion Summaries

In an appeal of a Board of Tax Appeals (BOTA) summary decision granting a compensating use tax refund to BHCMC, L.L.C., doing business as Boot Hill Casino & Resort, the Kansas Supreme Court addressed whether such a tax could be imposed on Boot Hill for electronic gaming machines it did not (and, under the law and its management agreement with Kansas Lottery, could not) own. Boot Hill challenged its payment of $801,588.95 in compensating use tax for the years 2009 through 2011. The amount assessed was based on the sale price for electronic gaming machines (EGMs) that Boot Hill purchased out of state for use at the casino it manages in Dodge City. The Court held that Boot Hill did not exercise a right or power incident to ownership of personal property in order to be subject to a compensating use tax for that property. Because Boot Hill has not exercised such a power or right, the Supreme Court affirmed BOTA's refund and the Court of Appeals panel decision that upheld it. View "In re Tax Appeal of BHCMC video" on Justia Law

A taxpayer that conducts business in multiple states must apportion its business revenue among the states in which it does business. Texas Tax Code section 171.106 provides for such apportionment under a single-factor formula, which compares the taxpayer’s gross receipts derived from its Texas business to its gross receipts everywhere. Section 141.001, however, adopts the Multistate Tax Compact, which sets out a three-factor formula for apportioning“business income” for an“income tax” and provides that a taxpayer subject to a state income tax may elect to apportion its income “in the manner provided by the laws of such state” or may elect to apportion using the Compact’s three-factor formula. The appeals court affirmed the trial court’s summary judgment, holding that apportionment of the Texas franchise tax is exclusively the province of chapter 171. The Supreme Court of Texas affirmed. Section 171.106 provides the exclusive formula for apportioning the franchise tax and, by its terms, precludes the taxpayer from using the Compact’s three-factor formula.The Compact is severable and contains no unmistakable language waiving the state’s exercise of the sovereign tax power. Nothing in the Compact expressly prohibits the states from adopting an exclusive apportionment method that overrides the Compact’s formula. View "Graphic Packaging Corp. v. Hegar" on Justia Law

The Supreme Court reversed the decision of the Board of Tax Appeals (BTA) dismissing NASCAR Holdings, Inc.’s notice of appeal solely because it was filed by an attorney who was not licensed to practice law in Ohio.The Department of Taxation issued an assessment against NASCAR for $549,520. The Tax Commissioner affirmed the assessment. NASCAR filed a notice of appeal to the BTA. The notice was signed by a Florida-based attorney who was not licensed to practice law in Ohio. The BTA dismissed the appeal, finding that the attorney had engaged in the unauthorized practice of law when he prepared and filed the notice of appeal on NASCAR’s behalf and that this rendered the notice of appeal void ab initio, thereby depriving the Board of jurisdiction over NASCAR’s appeal. The Supreme Court reversed, holding that the BTA erred in not applying Jemo Associates, Inc. v. Lindley, 415 N.E.2d 292 (Ohio 1980), to the facts of this case. View "NASCAR Holdings, Inc. v. Testa" on Justia Law

The Supreme Court affirmed the circuit court’s judgment affirming a certificate of assessment issued by the Department of Revenue requiring Valley Power Systems, Inc. to pay alternate contractor’s excise tax, use tax, interest, and a penalty.Valley Power contracted with Black Hills Power, Inc. (BHP) to install new exhaust manifolds on five mobile power units that were used by a utility company to provide supplemental power at one of its power plants, but Valley Power did not pay any tax with respect to the transaction. Instead BHP paid use tax on the transaction. After an audit of both companies, the Department refunded BHP’s use tax and issued a certificate of assessment requiring Valley Power to pay $54,404. An administrative hearing examiner and the circuit court affirmed the assessment. The Supreme Court affirmed, holding that the Department did not err in concluding that Valley Power was required to pay excise and use tax. View "Valley Power Systems v. S.D. Department of Revenue" on Justia Law

The Board of Supervisors of Tunica County, Mississippi (the Board), ordered an ad valorem tax levy for fiscal year 2014-15 and increased the millage rate from the previous year. After entering the order, the Board advertised a public hearing of the proposed ad valorem tax levy in the Tunica Times. The hearing took place and various taxpayers appeared to voice objections and concerns. Aggrieved by the actions of the Board, one taxpayer, HWCC-Tunica, LLC (HWCC), which owned and operates Hollywood Casino-Tunica, filed a bill of exceptions with the Circuit Court of Tunica County and paid the taxes under protest. The trial court, finding that the failure of the Board to comply with statutory notice and public hearing requirements rendered the tax levy unlawful, ordered a refund. Finding no reversible error in that decision, the Mississippi Supreme Court affirmed. View "Tunica County Board of Supervisors v. HWCC-Tunica, LLC" on Justia Law

The United States charged Hall with unlawful gambling and money laundering and obtained a preliminary criminal forfeiture order for 18 parcels in Knox County. The County determined that Hall owed substantial delinquent real property taxes, giving it a first lien under Tennessee law. Under 21 U.S.C. 853(n)(2), a party asserting an interest in property that is subject to criminal forfeiture may seek a hearing on his alleged interest within 30 days. Knox County filed an untimely claim. The court amended the preliminary forfeiture order to cover three more Knox County properties. Knox County filed a timely second claim and requested an interlocutory sale and delay of forfeiture. The United States stated that accrued taxes and interest would be paid, regardless of whether the taxing authority filed a claim, but argued that Knox County would have no legal interest in accruing taxes once title passes, citing the Supremacy Clause, and objected to delaying a final forfeiture order. The Sixth Circuit vacated the forfeiture order. Knox County has a legal interest in the property (tax lien), so the district court erred in dismissing its claim for lack of standing but it is not necessarily entitled to a hearing. The court may ascertain the scope of Knox County’s interest on summary judgment but must account for that interest before entering a final forfeiture order. The court did not abuse its discretion in denying Knox County’s motion for an interlocutory sale. View "United States v. Hall" on Justia Law

Here, the Supreme Court reaffirmed the longstanding principle that direct production involves a process that includes those steps essential and integral to transforming tangible personal property into a distinct marketable good.The Supreme Court reversed the judgment of the Tax Court affirming the decision of the Department of State Revenue partially denying refund claims submitted by Petitioner for sales tax paid on blast freezing equipment and the electricity used in operating that equipment. Petitioner petitioned the Supreme Court for review, arguing that it qualified for exemptions under the relevant statutes because it engages in “direct production” when it blast freezes another company’s food product and that it engages in its own production process in producing the new, distinct marketable goods. In reversing, the Supreme Court held (1) Petitioner’s blast freezing process constitutes direct production because it represents the crucial final step in creating a distinct marketable good; and (2) the relevant statutes and regulations do not impose a requirement that Petitioner’s blast-freezing procedure be its own, separate production process. View "Merchandise Warehouse Co. v. Indiana Department of State Revenue" on Justia Law

Petitioner Marin Metropolitan District (the “District”) was a special district created as a vehicle to finance the infrastructure of a proposed residential community. In late 2007, the organizers of the District held an election and approved the creation of the District. At the same time, pursuant to Colorado’s Taxpayer Bill of Rights (“TABOR”), the organizers voted to approve the issuance of bonds and to impose property taxes to pay the bonds on landowners within the District. A group of condominium owners subsequently learned that their properties had been included in the District under what they believed to be suspicious circumstances and that they had been assessed property taxes to pay the bonds. Acting through their homeowners’ association, respondent Landmark Towers Association, Inc., (“Landmark”) the owners brought two lawsuits: one to invalidate the creation of the District and the other (this case) to invalidate the approval of the bonds and taxes and to recover taxes that they had paid to the District, among other things. The district court ultimately ordered a partial refund of the taxes paid by the condominium owners and enjoined the District from assessing future taxes on the owners in order to pay its obligations under the bonds. Both sides appealed, and the court of appeals concluded, in pertinent part, that Landmark’s challenge to the bond and tax election was timely and that the election violated TABOR and applicable statutes. At issue before the Colorado Supreme Court was whether Landmark’s challenge to the bond and tax election was timely and the election was validly conducted. The Supreme Court reversed, finding Section 1-11-213(4), C.R.S. (2017), required a party seeking to contest an election like that present here to file a written statement of intent to contest the election within ten days after the official survey of returns has been filed with the designated election official. Without that statement, no could had jurisdiction over the contest. Landmark’s challenge to the bond and tax election at issue was time barred, and thus, the Court reversed the judgment below and remanded for further proceedings. View "UMB Bank, N.A. v. Landmark Towers Association, Inc." on Justia Law

Taxpayer TransCanada Hydro appealed a superior court decision that valued flow easements that taxpayer owned over land in the Town of Newbury at $1,532,211 for property tax purposes. Taxpayer owned and operated the Wilder Dam on the Connecticut River in Hartford, Vermont, downstream from Newbury, and the flow easements gave taxpayer the right to flood land abutting the river in Newbury. Taxpayer argued the valuation was unsupported by the admissible evidence and the court’s reasoning. Finding no reversible error in the superior court’s valuation, the Vermont Supreme Court affirmed. View "TransCanada Hydro Northeast, Inc. v. Town of Newbury" on Justia Law

In February 2015, the city of Spokane (City) enacted an ordinance that granted a local property tax exemption to senior citizens and disabled veterans. Relying on a letter by the Washington Department of Revenue (DOR), the Spokane County assessor and treasurer (collectively County) refused to implement the ordinance, believing it to violate the Washington Constitution, Article VII, Sections 1, 9 and 10. The issue this case presented for the Washington Supreme Court in this case was whether the City's ordinance indeed violated the Washington Constitution's uniform property tax requirement. The trial court ruled that the ordinance was constitutional and issued a writ requiring the County to apply it. DOR filed a motion to intervene, and both DOR and the County appealed the trial court's ruling. On appeal, the Court of Appeals reversed and held that the City's ordinance was unconstitutional. Agreeing with the Court of Appeals, the Supreme Court affirmed. View "City of Spokane v. Horton" on Justia Law