Articles Posted in Tax Law

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This case concerned the taxable status of Schulmaier Hall, a building owned by the Vermont College of Fine Arts (VCFA), two-thirds of which VCFA rented to agencies of the State of Vermont (State) during the 2013 and 2014 tax years. The City Assessor of the City of Montpelier (City) found the property nonexempt for those tax years. In response, VCFA brought a motion for declaratory judgment in the trial court, and both parties moved for summary judgment. Granting summary judgment for the City, the court found: (1) that VCFA had failed to exhaust its administrative remedies before moving for declaratory judgment but also (2) that the property was not exempt on the merits. Finding no reversible error in the trial court's judgment, the Supreme Court affirmed. View "Vermont College of Fine Arts v. City of Montpelier" on Justia Law

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C&S Wholesale Grocers, Inc., a wholesale grocery distributor, disputed sales tax assessed by the Vermont Department of Taxes on the purchase of reusable fiberglass freezer tubs used in the transport of perishable items, as well as the Department’s refusal to refund sales tax paid on diesel fuel used to power refrigeration systems mounted on taxpayer’s tractor trailers. C&S also contended the penalty assessed by the Commissioner of the Department of Taxes, arguing that it is unreasonable. Finding no reversible error, the Supreme Court affirmed the Department of Taxes. View "C & S Wholesale Grocers, Inc. v. Dept. of Taxes" on Justia Law

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This appeal centered on a timber harvest by landowner Plum Creek Maine Timberlands, LLC in forestland enrolled in the current-use, tax-incentive program. The Vermont Department of Forests, Parks and Recreation (FPR) issued an adverse inspection report, concluding that Plum Creek violated its forest-management plan and failed to comply with minimum acceptable standards during the harvest. Consequently, the Department of Taxes removed the land from the current-use program and levied a tax assessment. Plum Creek appealed, and the superior court reversed those administrative decisions. FPR then appealed, arguing that the superior court failed to give appropriate deference to FPR’s determination of the proper methodology for measuring compliance with the forest-management plan. After review, the Supreme Court reversed the court’s decision, reinstating the adverse-inspection report as upheld by the FPR Commissioner. The case was remanded back to the superior court to consider the questions raised in Plum Creek’s appeal of the PVR Director’s decision removing land from the UVA program and leveling a tax assessment. View "Plum Creek Maine Timberlands, LLC v. Vermont Dept. of Forests, Parks & Rec." on Justia Law

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Taxpayer TransCanada Hydro Northeast, Inc. appealed a superior court order setting the value of its Bellows Falls hydroelectric facility at $130,000,000, with $108,495,400 taxable by the Town of Rockingham TransCanada argued that the superior court erred when it relied on testimony of the Town’s expert witness. After review, the Supreme Court corrected the trial court’s valuation to read $127,412,212, and affirmed. View "TransCanada Hydro Northeast Inc. v. Town of Rockingham" on Justia Law

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Taxpayer C&S Wholesale Grocers, Inc. disputed sales tax assessed by the Vermont Department of Taxes on the purchase of reusable fiberglass freezer tubs used in the transport of perishable items, as well as the Department’s refusal to refund sales tax paid on diesel fuel used to power refrigeration systems mounted on taxpayer’s tractor trailers. Taxpayer also contested the penalty assessed by the Commissioner of the Department of Taxes, arguing that it was unreasonable. Finding no reversible error, the Supreme Court affirmed the Department of Taxes. View "C & S Wholesale Grocers, Inc. v. Dept. of Taxes" on Justia Law

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Plaintiffs Citibank (South Dakota), N.A. (lender) and Sears, Roebuck and Co. (retailer) appealed a superior court decision affirming the determination of the Vermont Department of Taxes (Department) that the parties, who had partnered to operate a private label credit card program through retailers’ stores, were not entitled to sales tax refunds related to bad debts. The Department denied lender’s refund requests because it was not a registered vendor under Vermont law that remitted the sales tax it sought to recover, and denied retailer’s deductions because it did not incur the bad debt at issue. On appeal, plaintiffs argued that because they acted in combination to facilitate the sales giving rise to the bad debts, they were not barred from obtaining relief. Finding no reversible error, the Vermont Supreme Court affirmed. View "Citibank (South Dakota), N.A. v. Dept. of Taxes" on Justia Law

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This case arose out of a struggle Vermont towns have had with taxing parcels of land that lie in more than one tax district. Taxpayer owned three units in a condominium community that was in both the Town of Sudbury and its neighbor, Hubbardton. Taxpayer objected to Sudbury’s tax assessment of the portion within its boundaries, arguing that the trial court erred in upholding: (1) the state law through which Sudbury made its tax assessment; (2) Sudbury’s valuation of the portion within its boundaries; and (3) Sudbury’s method of apportioning the tax burden among the owners of the condominium community. Finding no error to any of these issues, the Supreme Court affirmed. View "Adams v. Town of Sudbury" on Justia Law

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Taxpayer owned real property in the Town of Fair Haven. In 2014, the town listers assessed the value of the parcel at $585,800. Taxpayer appealed to the Board of Civil Authority (BCA). Taxpayer would not allow the BCA members to inspect the main house, however, and the BCA therefore considered the appeal withdrawn. At the hearing, taxpayer argued that that the BCA erred in considering his appeal withdrawn. He stated that he had appealed only a portion of the listers’ valuation to the BCA (the value of the improvements concerning two rental properties and not the main house on a separate lot) and therefore he was not obligated to allow the BCA to inspect the main house. The town responded that because the properties were contiguous and in common ownership, by statute, all of the property was treated as one parcel for purposes of assessment and the grand list. In a written order, the hearing officer concluded that the BCA had correctly dismissed taxpayer’s appeal, and that there was no avenue for further appeal to the hearing officer. Taxpayer acting pro se, appealed the Town's assessment of his property for the 2014 grand list. Finding no reversible error, the Supreme Court affirmed. View "Rasmussen v. Town of Fair Haven" on Justia Law

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The issue this case presented for the Vermont Supreme Court's review centered on whether Mount Mansfield Company, Inc. (MMC) had unitary operations with AIG Insurance Management Services, Inc. (AIG) such that AIG was required to include MMC as part of the AIG unitary group on its Vermont corporate income tax return. It also raised the question of whether, and under what circumstances, an amended tax return restarted the statute of limitations period for collecting a deficiency. The trial court reversed the decision of the Commissioner of the Department of Taxes that there were unitary operations, and concluded that MMC was a discrete business enterprise distinct from AIG’s insurance and financial business. The Department appealed, arguing that the evidence supported the Commissioner’s decision. Finding no reversible error, the Supreme Court affirmed the trial court. View "AIG Insurance Management Services, Inc. v. Vermont Department of Taxes" on Justia Law

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This appeal arose out of a decision by the Town of Middlebury Development Review Board (DRB) to approve appellee Jolley Associates, LLC's application for a Planned Unit Development (PUD) to add a car wash to an existing gas station and convenience store within the Town limits. Appellant MDY Taxes, Inc. operated an H&R Block tax franchise in property rented in a shopping center adjacent to the Jolley lot. Appellant Village Car Wash, Inc. operated a car wash located approximately one-quarter of a mile from the Jolley lot. Appellants did not participate in the DRB proceeding, but sought to challenge the approval of the PUD through an appeal to the Environmental Division of the Superior Court. The environmental court dismissed the appeal for lack of jurisdiction. The court concluded that appellants did not have standing, to appeal the DRB decision because they had not participated in the proceedings before the DRB as required by statute, and because they did not meet any of the exceptions to that statutory requirement. On appeal, appellants argued that a procedural defect prevented them from appearing before the DRB, and that it would be manifestly unjust if they are not afforded party status to appeal. Finding no reversible error, the Supreme Court affirmed. View "In re Appeal of MDY Taxes, Inc., & Village Car Wash, Inc." on Justia Law