Articles Posted in Tax Law

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The Supreme Court vacated the order of the district court denying Appellants’ petitions for judicial review challenging a 2007 decision by the Nevada Tax Commission regarding a tax refund request, holding that the district court lacked jurisdiction to consider Appellants’ petitions for judicial review because they were untimely. In 2008, Appellants filed a second de novo action (Case 2) challenging the administrative denials of their refund requests. The district court dismissed the action for lack of subject matter jurisdiction because Appellants failed to file a petition for judicial review. Appellants subsequently filed a petition for judicial review (Case 3). The ALJ affirmed the Commission’s 2007 decision. In 2014, the Commission affirmed the ALJ’s decision. Appellants then filed a second petition for judicial review (Case 4) challenging the Commission’s 2014 decision. The district court consolidated the Case 3 and Case 4 petitions for judicial review and affirmed the Commission’s 2007 and 2014 decisions. The Supreme Court held that the district court lacked jurisdiction to consider Appellants’ Case 3 petition for judicial review and thus lacked the authority to consider the merits of Appellants’ Case 4 petition. View "K-Kel, Inc. v. State, Department of Taxation" on Justia Law

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The Supreme Court vacated the order of the district court denying Appellants’ petitions for judicial review challenging a 2007 decision by the Nevada Tax Commission regarding a tax refund request, holding that the district court lacked jurisdiction to consider Appellants’ petitions for judicial review because they were untimely. In 2008, Appellants filed a second de novo action (Case 2) challenging the administrative denials of their refund requests. The district court dismissed the action for lack of subject matter jurisdiction because Appellants failed to file a petition for judicial review. Appellants subsequently filed a petition for judicial review (Case 3). The ALJ affirmed the Commission’s 2007 decision. In 2014, the Commission affirmed the ALJ’s decision. Appellants then filed a second petition for judicial review (Case 4) challenging the Commission’s 2014 decision. The district court consolidated the Case 3 and Case 4 petitions for judicial review and affirmed the Commission’s 2007 and 2014 decisions. The Supreme Court held that the district court lacked jurisdiction to consider Appellants’ Case 3 petition for judicial review and thus lacked the authority to consider the merits of Appellants’ Case 4 petition. View "K-Kel, Inc. v. State, Department of Taxation" on Justia Law

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Deng defaulted on special assessments on Las Vegas residential real property, which entered delinquency and underwent a duly noticed and authorized sale (NRS Chapter 271). On January 27, 2014, Pawlik purchased the property at the sale and was issued a sales certificate. Under NRS 271.595(1), Deng had a two-year redemption period from that date. On January 7, 2016, Pawlik began attempting to serve Deng with notice of the upcoming expiration of the redemption period and Pawlik's intent to apply for a deed pursuant to NRS 271.595(3). NRS 271.595 creates a clear redemption period of two years and also creates an ambiguous 60-day redemption window after notice that the certificate holder will demand a deed. On March 14, 2016, 47 days after the Dengs' two-year redemption period expired and 67 days after Pawlik began attempting service, Pawlik applied for a deed. The treasurer denied the request. Deng redeemed on April 6, 2016, with full payment to the city. Pawlik sought to quiet title and applied for a writ of mandamus to compel issuance of the deed. The Nevada Supreme Court affirmed dismissal, finding that the 60-day period does not overlap with the two-year period. NRS 271.595 requires that the 60-day notice and additional redemption period begin after the end of the two-year redemption period. Pawlik attempted service on Deng before the end of the two-year redemption period, which provided Deng with less than two years and 60 days of redemption. View "Pawlik v. Deng" on Justia Law

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South California Edison (Edison) was not due a refund of use tax paid to Nevada because it did not demonstrate the existence of substantially similar entities that gained an unfair tax advantage because of the unconstitutional tax, and Edison was not owed a tax credit in an amount equal to the transaction privilege tax (TPT) levied by Arizona because the TPT did not qualify as a sales tax paid by Edison within the meaning of Nev. Admin. Code 372.055. Edison filed a claim with the State Department of Taxation for a refund of the use tax it paid between 1998 and 2000. The Department and Nevada Tax Commission denied the requested refund. Edison then filed an independent action in the district court seeking a refund of the taxes it paid. The district court concluded that, while the negative implications of the dormant Commerce Clause rendered Nev. Rev. Stat. 372.270 (the use tax exemption) unconstitutional, Edison was not entitled to a refund because it did not have favored competitors that benefitted from the discriminatory taxation scheme. The Supreme Court affirmed for the reasons set forth above. View "Southern California Edison v. State Department of Taxation" on Justia Law

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This appeal concerned a dispute between taxpayers from the Incline Village and Crystal Bay areas of Washoe County and Nevada State Board of Equalization concerning the State Board’s failure to equalize property values as required by Nev. Rev. Stat. 361.395 for tax years 2003 through 2005. The district court dismissed the taxpayers’ petition for judicial review of the State Board’s interlocutory administrative order requiring reappraisals of properties around Incline Village and Crystal Bay for the tax years in question. The Supreme Court reversed and instructed the district court to grant, in part, the petition for judicial review and vacated the State Board’s interlocutory administrative order directing reappraisals of the properties, holding (1) this Court has jurisdiction to consider the district court’s dismissal of the petition for judicial review; and (2) the district court erred when it dismissed the petition for judicial review because the State Board exceeded its statutory authority to order reappraisals pursuant to section 361.395. View "Village League To Save Incline Assets, Inc. v. State, Board of Equalization" on Justia Law

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The City of Fernley filed a complaint seeking declaratory and injunctive relief arguing that the Local Government Tax Distribution Account under Nev. Rev. Stat. 360.660 violates the Separation of Powers Doctrine and the prohibition on special or local legislation under Nev. Const. art IV, 20. The district court entered summary judgment in favor of the State. The Supreme Court affirmed, holding that the district court properly found the Local Government Tax Distribution Account to be general legislation because the system is a “general law that applies neutrally to local government entities and is based on classifications that are rationally related to achieving the Legislature’s legitimate government objective of promoting general-purpose governments that have public services.” View "City of Fernley v. State, Dep't of Taxation" on Justia Law

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Appellants filed suit in federal court seeking a declaration that Nevada’s Live Entertainment Tax (NLET) was facially unconstitutional for violating the First Amendment. The federal court dismissed the suit. Appellants then filed a de novo action (Case 1) in a Nevada district court seeking similar remedies to those sought in federal court and asserting an as-applied challenge to NLET. While Case 1 was pending, Appellants filed individual tax refund requests with the Nevada Department of Taxation on the grounds that NLET is facially unconstitutional. The Department denied refunds, and the Nevada Tax Commission affirmed. Appellants then filed a second de novo action (Case 2) challenging the administrative denials of their refund requests and asserting an as-applied challenge to NLET. The district court (1) dismissed Appellants’ as-applied challenge in Case 1; and (2) dismissed the entirety of Case 2 for lack of subject matter jurisdiction because Appellants failed to file a petition for judicial review after the completion of their administrative proceedings. This appeal challenging the district court’s dismissal of Case 2 followed. The Supreme Court affirmed the district court’s dismissal of the case for lack of subject matter jurisdiction, as Nevada law required Appellants to file a petition for judicial review. View "Deja Vu Showgirls of Las Vegas, LLC v. Nev. Dep't of Taxation" on Justia Law

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In 2003, the Nevada Legislature enacted the Live Entertainment Tax (NLET), which imposes an excise tax on business transactions completed at facilities providing live entertainment. Appellants, exotic dancing establishments, filed suit arguing that NLET was unconstitutional on its face and as applied. The district court ultimately (1) dismissed the as-applied challenge for lack of subject matter jurisdiction based on Appellants’ failure to exhaust their administrative remedies; and (2) concluded that NLET did not facially violate the first Amendment. The Supreme Court (1) affirmed the district court’s dismissal of Appellants’ as-applied challenge because Appellants failed to raise their as-applied challenge to NLET before the Nevada Department of Taxation; and (2) concluded that NLET does not violate the First Amendment as related to speech (i.e., dance), and therefore affirmed the district court’s summary judgment as to this issue. View "Deja Vu Showgirls of Las Vegas, LLC v. Nev. Dep't of Taxation" on Justia Law

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In 2007, the Nevada Tax Commission (NTC) promulgated Nev. Admin. Code 361.61038, which set forth an apportionment formula for calculating remainder-parcel property values for purposes of Nev. Rev. Stat. 361.4722. Respondent owned a parcel that was divided from a larger piece of land before the regulation's enactment and was properly characterized as a "remainder parcel" under section 361.4722(6). Appellant, the county assessor, valued the land under the approach he used before section 361.61038 was enacted. Respondent appealed, seeking application of the new regulation's apportionment formula. The NTC upheld the assessor's valuation and declined to apply its new regulation retroactively. The district court reversed the judgment of the NTC and directed it to apply section 361.61038 to Respondent's remainder parcel. The Supreme Court reversed, holding that, in this case, (1) application of the regulation would be impermissibly retroactive; and (2) the methods the assessor used did not violate the Constitution.View "County of Clark v. LB Props., Inc." on Justia Law

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Appellant, a Delaware corporation registered to do business in Nevada, purchased four aircraft to transport its employees and guests to and from its worldwide establishments. Each of the aircraft consistently flew to and from Nevada while in service and were continuously used in interstate commerce. Appellant paid Nevada use tax on each of the aircraft but later requested refunds for the taxes paid, claiming that the aircraft were not purchased for use in Nevada within the meaning of Nev. Rev. Stat. 372. The Nevada Department of Taxation denied the requested refunds. The Nevada Tax Commission and the district court upheld the denial. At issue before the Supreme Court was whether, by purchasing the aircraft out of state and later bringing them to Nevada, Appellant became subject to the use tax imposed by section 372.185. The Supreme Court reversed, holding that the Department erred in its interpretation of chapter 372, and Appellant’s aircraft were not subject to Nevada’s use tax. View "Harrah's Operating Co. v. State Dep't of Taxation" on Justia Law