ILNews

Tax Court rules in brewery's favor

Back to TopCommentsE-mailPrintBookmark and Share

Ruling on an issue that previously has come before the Indiana Tax Court, Senior Judge Thomas Fisher has upheld that sales to Indiana customers who hired common carriers to pick up alcohol at an Ohio facility shouldn’t have been included in the sales factor of Miller Brewing Co.’s adjusted gross income tax and supplemental net income tax.

Miller appealed the Indiana Department of State Revenue’s denial of its claims for a refund of Indiana adjusted gross income tax and supplemental net income tax paid for the 1997-1999 tax years. In 2005, the Tax Court ordered the department to refund the AGIT paid by Miller for the 1994-1996 tax years.

At issue is whether for purposes of calculating its AGIT liability, Miller’s sales to Indiana customers are allocated to Indiana if those customers hired common carriers (carrier-pickup sales) to get their merchandise at Miller’s Ohio facility.

Miller didn’t allocate the income it got from the carrier-pickup sales to Indiana when calculating its AGIT liabilities. It paid the proposed assessments after the state revenue department audited its returns and decided Miller should have paid tax on that sales income. Miller filed for a refund, which the department denied.

In Miller Brewing Company v. Indiana Dept. of State Revenue, No. 49T10-0607-TA-69, Judge Fisher looked to Indiana Code 6-3-2-2(e)(1), which says “[s]ales of tangible personal property are in this state if[ ] the property is delivered or shipped to a purchaser, other than the United States government, within this state, regardless of the f.o.b. point or other conditions of the sale[.]” The department argued that the plain language of the statute mandates the application of the “destination rule,” which says that the income from sales should be apportioned to the purchaser’s state regardless of where the sale actually happens.

Miller, on the other hand, said the statute could be construed in two different ways, and argued that the department’s own regulation interpreting how the Legislature intended the statute to apply – 45 I.A.C. 3.1-1-53(7) – should control. It says “[s]ales are not ‘in this state’ if the purchaser picks up the goods at an out-of-state location and brings them back into Indiana in his own conveyance.”

Judge Fisher found the department’s interpretation of I.C. 6-3-2-2(e)(1) to be more persuasive than Uniform Division of Income for Tax Purposes Act, Indiana’s membership in the Multistate Tax Commission in 2007 after a 30-year absence, or how other states construe their statutory language, arguments the revenue department had advanced.

“In determining its Indiana AGIT liability for the years at issue, Miller did nothing more than follow Indiana law: pursuant to Indiana Code § 6-3-2-2(e)(1) and 45 I.A.C. 3.1-1-53(7), its carrier-pickup sales were not Indiana sales and therefore not allocable to Indiana,” he wrote, granting summary judgment for Miller and against the revenue department.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Should be beat this rap, I would not recommend lion hunting in Zimbabwe to celebrate.

  2. No second amendment, pro life, pro traditional marriage, reagan or trump tshirts will be sold either. And you cannot draw Mohammed even in your own notebook. And you must wear a helmet at all times while at the fair. And no lawyer jokes can be told except in the designated protest area. And next year no crucifixes, since they are uber offensive to all but Catholics. Have a nice bland day here in the Lego movie. Remember ... Everything is awesome comrades.

  3. Thank you for this post . I just bought a LG External DVD It came with Cyber pwr 2 go . It would not play on Lenovo Idea pad w/8.1 . Your recommended free VLC worked great .

  4. All these sites putting up all the crap they do making Brent Look like A Monster like he's not a good person . First off th fight actually started not because of Brent but because of one of his friends then when the fight popped off his friend ran like a coward which left Brent to fend for himself .It IS NOT a crime to defend yourself 3 of them and 1 of him . just so happened he was a better fighter. I'm Brent s wife so I know him personally and up close . He's a very caring kind loving man . He's not abusive in any way . He is a loving father and really shouldn't be where he is not for self defense . Now because of one of his stupid friends trying to show off and turning out to be nothing but a coward and leaving Brent to be jumped by 3 men not only is Brent suffering but Me his wife , his kids abd step kidshis mom and brother his family is left to live without him abd suffering in more ways then one . that man was and still is my smile ....he's the one real thing I've ever had in my life .....f@#@ You Lafayette court system . Learn to do your jobs right he maybe should have gotten that year for misdemeanor battery but that s it . not one person can stand to me and tell me if u we're in a fight facing 3 men and u just by yourself u wouldn't fight back that you wouldn't do everything u could to walk away to ur family ur kids That's what Brent is guilty of trying to defend himself against 3 men he wanted to go home tohisfamily worse then they did he just happened to be a better fighter and he got the best of th others . what would you do ? Stand there lay there and be stomped and beaten or would u give it everything u got and fight back ? I'd of done the same only I'm so smallid of probably shot or stabbed or picked up something to use as a weapon . if it was me or them I'd do everything I could to make sure I was going to live that I would make it hone to see my kids and husband . I Love You Brent Anthony Forever & Always .....Soul 1 baby

  5. Good points, although this man did have a dog in the legal fight as that it was his mother on trial ... and he a dependent. As for parking spaces, handicap spots for pregnant women sure makes sense to me ... er, I mean pregnant men or women. (Please, I meant to include pregnant men the first time, not Room 101 again, please not Room 101 again. I love BB)

ADVERTISEMENT