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Tax Court lets owners’ appeal go forward in alleged ‘puppy mill’ case

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The former owners of an alleged puppy mill in Harrison County may pursue their claim that because the state overreached in using jeopardy tax warrants to seize their animals and property, they are entitled to a refund of the value of the taken property.

The Tax Court on Thursday denied a state motion to dismiss the appeal in Virginia Garwood v. Indiana Dept. of State Revenue, 82T10-1208-TA-46. The state argued the court lacked jurisdiction because a related suit was pending in a Harrison County trial court.

Long-running litigation voided the tax warrants used in 2009 by Indiana Attorney General Greg Zoeller to demand more than $142,000 in sales taxes the state claimed were owed by Virginia and Kristin Garwood, who the state accused of running a puppy mill. The Garwoods pleaded guilty in May 2010 to Class D felony charges of failing to pay sales taxes.

Zoeller had described the use of jeopardy tax warrants in the case as an “Al Capone” approach to taking down what was described as a puppy mill on a dairy farm. Police, state agents and dozens of animal rescue workers raided the farm in 2009.

The state served jeopardy assessments on the Garwoods and demanded they pay $142,368 immediately or their personal property would be seized. When they couldn’t pay, 244 dogs and puppies were seized. The animals, some of which tested positive for disease, were sold by the state to the Humane Society for a total $300.  

After the Tax Court voided the use of the warrants, the Garwoods formally requested a refund of the value of the seized animals, cash and other property, claiming they were owed a refund of $122,684.50. The state disputed the claim, and the Garwoods brought the current suit the state unsuccessfully moved to dismiss.

“Based on the totality of ... jurisdictional facts, the Court finds that Garwood’s case ‘arises under Indiana’s tax laws’: she filed a refund claim with the Department ... and now seeks to have the validity of her claim resolved by this Court," Senior Judge Thomas Fisher wrote.

The state argued that Garwood sought to recover money that wasn't paid and that the claim is for compensatory damages rather than a refund of sales taxes. "The Court, however, is not persuaded by either of these arguments," Fisher wrote, denying the motion and lifting a stay imposed in August.


 

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  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

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