ILNews

Court clarifies where tax disputes belong

Michael W. Hoskins
January 1, 2007
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General jurisdiction courts don't have the authority to consider cases involving tax law or the Department of Local Government Finance, and the Indiana Court of Appeals says it also doesn't have the authority to remand those cases to the Indiana Tax Court.

An appellate panel made its point clear in an opinion on rehearing today in Wayne Township, Marion County, Indiana v. Indiana Department of Local Government Finance, and Martha Womacks, Marion County Auditor, No. 29A05-0611-CV-661. This comes as a clarification and alteration of the court's ruling April 30, which found in favor of the DLGF and Womacks and remanded the case with instructions to transfer back to the Indiana Tax Court.

This appeal stems from Wayne Township suing the state department and the county auditor over the county's attempt to collect a higher share of County Option Income Tax (COIT) from the township, as it's based in part on each unit's maximum permissible property-tax levies. The township challenged that calculation originally in tax court, but it ended up in Hamilton Superior 3 where the judge granted summary judgment in favor of DLGF and Womacks.

In the April decision, the appellate judges questioned whether either the trial or appellate court had subject matter jurisdiction to rule on the merits, noting that there was "no question" this case arose under state tax laws.

However, the DLGF argued that it did not and that the certification to Womacks of the permissible property tax levy wasn't a "final determination" equivalent to exhausting administrative remedies, meaning the trial court and not the tax court had subject matter jurisdiction.

"Whether or not there is a 'final determination' here by the DLGF, this case does not belong in a court of general jurisdiction," the court wrote today. "It might not belong in the Tax Court, either, if there is not a 'final determination.'

Appellate judges go on to write that because the tax court has a greater expertise concerning Indiana tax statutes and could determine differently what is a 'final determination' relating to the courts' jurisdictions, the only recourse is to send this case back to the trial court.

"In other words, the language in our original opinion indicating our belief that there is an appealable, final DLGF determination in this case is dicta, which was not necessary to our holding that the trial court and this court necessarily lacked subject matter jurisdiction," the court wrote. "We reverse the grant of summary judgment in favor of the DLGF and Womacks and remand to the trial court with instructions to dismiss the case."
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  1. So that none are misinformed by my posting wihtout a non de plume here, please allow me to state that I am NOT an Indiana licensed attorney, although I am an Indiana resident approved to practice law and represent clients in Indiana's fed court of Nth Dist and before the 7th circuit. I remain licensed in KS, since 1996, no discipline. This must be clarified since the IN court records will reveal that I did sit for and pass the Indiana bar last February. Yet be not confused by the fact that I was so allowed to be tested .... I am not, to be clear in the service of my duty to be absolutely candid about this, I AM NOT a member of the Indiana bar, and might never be so licensed given my unrepented from errors of thought documented in this opinion, at fn2, which likely supports Mr Smith's initial post in this thread: http://caselaw.findlaw.com/us-7th-circuit/1592921.html

  2. When I served the State of Kansas as Deputy AG over Consumer Protection & Antitrust for four years, supervising 20 special agents and assistant attorneys general (back before the IBLE denied me the right to practice law in Indiana for not having the right stuff and pretty much crushed my legal career) we had a saying around the office: Resist the lure of the ring!!! It was a take off on Tolkiem, the idea that absolute power (I signed investigative subpoenas as a judge would in many other contexts, no need to show probable cause)could corrupt absolutely. We feared that we would overreach constitutional limits if not reminded, over and over, to be mindful to not do so. Our approach in so challenging one another was Madisonian, as the following quotes from the Father of our Constitution reveal: The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to abuse. We are right to take alarm at the first experiment upon our liberties. I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations. Liberty may be endangered by the abuse of liberty, but also by the abuse of power. All men having power ought to be mistrusted. -- James Madison, Federalist Papers and other sources: http://www.constitution.org/jm/jm_quotes.htm RESIST THE LURE OF THE RING ALL YE WITH POLITICAL OR JUDICIAL POWER!

  3. My dear Mr Smith, I respect your opinions and much enjoy your posts here. We do differ on our view of the benefits and viability of the American Experiment in Ordered Liberty. While I do agree that it could be better, and that your points in criticism are well taken, Utopia does indeed mean nowhere. I think Madison, Jefferson, Adams and company got it about as good as it gets in a fallen post-Enlightenment social order. That said, a constitution only protects the citizens if it is followed. We currently have a bevy of public officials and judicial agents who believe that their subjectivism, their personal ideology, their elitist fears and concerns and cause celebs trump the constitutions of our forefathers. This is most troubling. More to follow in the next post on that subject.

  4. Yep I am not Bryan Brown. Bryan you appear to be a bigger believer in the Constitution than I am. Were I still a big believer then I might be using my real name like you. Personally, I am no longer a fan of secularism. I favor the confessional state. In religious mattes, it seems to me that social diversity is chaos and conflict, while uniformity is order and peace.... secularism has been imposed by America on other nations now by force and that has not exactly worked out very well.... I think the American historical experiment with disestablishmentarianism is withering on the vine before our eyes..... Since I do not know if that is OK for an officially licensed lawyer to say, I keep the nom de plume.

  5. I am compelled to announce that I am not posting under any Smith monikers here. That said, the post below does have a certain ring to it that sounds familiar to me: http://www.catholicnewworld.com/cnwonline/2014/0907/cardinal.aspx

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