Articles Posted in Tax Law

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Appellant, a coal producer that reports the taxable value of its coal to the Department of Revenue using the proportionate profits valuation method, challenged two of the Departments determinations, arguing (1) the Department improperly applied Wyoming law when it set the point of valuation for its coal for production years 2009 through 2011; and (2) the Department improperly categorized certain government-imposed and environmental expenses in the tax valuation formula. The Board of Equalization upheld the Board’s determinations. The Supreme Court affirmed, holding (1) the Board correctly upheld the Department’s decision on the point of valuation; and (2) the Board’s decision on the categorization of the environmental and government-imposed expenses was not final, and the issue was not ripe for judicial review. View "Wyodak Resources Development Corp. v. Wyoming Department of Revenue" on Justia Law

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In 2012, the Fremont County Assessor assessed the commercial land and improvements of Mountain Vista Retirement Residence at $1,327,908 and its personal property at $8,246. The Fremont County Board of Equalization, the State Board of Equalization, and the district court upheld the valuation. Mountain Vista appealed, arguing that it should be exempt from property tax because it is a charitable or benevolent association that uses its property for primarily non-commercial purposes. The Supreme Court affirmed, holding that Mountain Vista is neither a charitable or benevolent association and that its property is primarily used for commercial purposes. View "Mountain Vista Ret. Residence v. Fremont County Assessor" on Justia Law

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The Wyoming Department of Revenue (Department) directed Appellants, on-line travel companies (OTCs), to collect and remit taxes on the total amounts they collected from customers booking hotel rooms in Wyoming. The State Board of Equalization (SBOE) upheld the order. The Supreme Court affirmed, holding (1) the SBOE did not err in finding that the full amount paid by a customer to the OTCs for a reservation of a hotel room in Wyoming was taxable to the Department; (2) the Department’s imposition of sales tax on the full amount collected by the OTCs did not violate the Dormant Commerce Clause, the Equal Protection Clause, or the Due Process Clause of the United States Constitution as applied to the OTCs; and (3) the imposition of the sales tax did not violate the federal Internet Tax Freedom Act.View "Travelocity.com LP v. Wyo. Dep’t of Revenue" on Justia Law

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This case concerned Merit Energy Company's 2006 natural gas severance and ad valorem tax liability for wells located in several counties. Merit was a take-in-kind interest owner, which is a party who elects to take a portion of the mineral produced rather than receive monetary remuneration for its share of the production. The State Board of Equalization (SBOE) determined that Merit failed to timely appeal several final Wyoming Department of Revenue (DOR) decisions regarding the amount of taxable gas it had received and dismissed Merit's appeal. The district court affirmed. The Supreme Court affirmed, holding (1) the district court did not err in affirming the SBOE's dismissal as untimely; and (2) even if the Court permitted Merit to appeal the notice of valuation change sent by the DOR, the doctrine of collateral estoppel precluded Merit from doing so. View "Merit Energy Co. v. Dep't of Revenue" on Justia Law

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In 2006, Teton County voters approved a Teton County Housing Authority (TCHA) sponsored ballot initiative enabling a specific purpose excise tax (SPET) to raise $5 million for TCHA's affordable housing program. In 2007, TCHA purchased a five-acre property on Cheney Lane. Later that year, Plaintiffs, residents of the Cheney Lane neighborhood, initiated a declaratory judgment action against TCHA, alleging violations of SPET limitations, breach of investment duties, and violations of Wyoming statutory limits on public financing. Two weeks after the district court heard arguments on the motion to dismiss, the Village Road Coalition (VRC), a nonprofit corporation consisting of residents of a neighborhood near the Cheney Lane property, filed a motion to intervene. The district court denied the motion. The court subsequently granted TCHA's motion to dismiss the complaint for lack of standing. The Supreme Court affirmed, holding (1) because VRC's interests and relief sought were duplicative of those presented by Plaintiffs, the district court did not err in denying the motion to intervene; and (2) the district court properly dismissed TCHA's action for lack of standing, as Plaintiffs failed to allege a tangible interest that had been harmed by the acquisition of the property. View "Village Road Coal. v. Teton County Hous. Auth." on Justia Law

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John and Minerva Sutherland entered into a mining lease granting Meridian Granite Company the right to conduct mining operations on the Sutherlands' property. A dispute developed between the Sutherlands and Meridian regarding the Sutherlands' obligation to pay taxes relating to the mineral production. The dispute led to litigation. The district court granted Meridian's motion for summary judgment, ruling that the Sutherlands were obligated to pay the disputed taxes. The Supreme Court affirmed, holding that the district court did not err in allowing Meridian to deduct ad valorem and severance taxes from payments to the Sutherlands when such tax payments were not required by the State, as the Sutherlands and Meridian agreed in the mining lease that the Sutherlands would pay the taxes. View "Sutherland v. Meridian Granite Co." on Justia Law

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This case arose from a decision rendered by the State Board of Equalization (Board) concerning the valuation point for tax purposes of the natural gas production from the LaBarge Field. The Supreme Court remanded the issue to the Board of whether the meters located at the LaBarge Field well sites were "custody transfer meters" as defined by Wyo. Stat. Ann. 39-14-203(b)(iv) or volume meters for Exxon's share of gas production. The Board held (1) the meters were not custody transfer meters for Exxon's share of gas production, and (2) the same meters were custody transfer meters for the gas produced by two other working interest owners, petroleum companies, who were not parties to the action. The Supreme Court (1) affirmed the Board's determination that the meters were not custody transfer meters for Exxon's gas where the Board's determination harmonized with precedent established in Amoco Prod. Co. v. Dep't of Revenue; but (2) reversed the Board's determination that the meters were custody transfer meters for the petroleum companies' gas because the Board did not have the authority to determine the valuation point for "non-party" persons or entities that do not appeal their tax assessments. View "Exxon Mobil Corp. v. Wyo. Dep't of Revenue" on Justia Law

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After an audit, the Department of Revenue (DOR) determined that Qwest was not entitled to a refund of sales tax. The tax was incorrectly collected from Qwest's customers and remitted to the state because Qwest did not provide data showing the actual amount of tax collected and remitted by month and by country. Qwest subsequently produced to the DOR the actual sales tax information. The State Board of Equalization (SBOE) supplemented the record with the actual data and reversed the DOR's decision. The district court affirmed. At issue on appeal was whether the SBOE erred by considering the newly produced evidence. The Supreme Court (1)affirmed the SBOE's decision that Qwest was entitled to a refund, but concluded the SBOE erred by considering Qwest's evidence, which was not produced to the DOR during the audit; and (2) remanded so the refund amount could be calculated using an estimate procedure and information available during the audit. View "Wyo. Dep't of Revenue v. Qwest Corp." on Justia Law

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Maverick Motorsports Group, LLC ("Maverick") challenged a decision of the State Board of Equalization ("SBOE") that certain sales by Maverick were subject to Wyoming sales tax. At issue was whether sales of recreational vehicles were taxable in Wyoming because possession was transferred in Wyoming. Also at issue was whether enforcement and collection of Wyoming sales taxes violated the Commerce Clause. The court affirmed the actions of the SBOE and held that the purchase of the various recreational vehicles at issue constituted a taxable event where buyers took possession of the vehicles in Wyoming and that collection of sales taxes on these vehicles met constitutional requirements and did not violate the Commerce Clause.