Recent Developments in Indiana Taxation - I.U. School of Law ...

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1148 INDIANA LAW REVIEW [Vol. 40:1103 year that no obligations are outstanding. 461 9. Non Code Provisions.—Public Law 162-2006, Section 53 (upon passage) provides that the provision to require the add back of intangible expenses does not affect the legitimacy or illegitimacy of deductions claimed by the taxpayer 462 for taxable years beginning before July 1, 2006. It also provides that the DOR may adopt temporary rules to implement the intangible expense add back provisions. 463 Public Law 162-2006, Section 55 (upon passage) provides that the DOR shall adopt temporary rules to implement the provisions of the utility services use tax, and the home energy assistance program sales tax exemption. 464 Public Law 162-2006, Section 22 (upon passage) was added to require the DOR to carry out the provisions of the fireworks bill by issuing written guidelines. 465 Public Law 137-2006, Section 17 (effective January 1, 2006) provides that the entire chapter (I.C. § 6-3.1-30) concerning the headquarters relocation tax credit takes effect on January 1, 2006 instead of January 1, 2007. 466 Senate Bill No. 169, Section 1 (effective July 1, 2006) extends until August 1, 2007, the quality care assessment fee levied on health care facilities. 467 Senate Bill No. 355, Section 22 (effective January 1, 2006) was added to permit an additional deduction in 2006 against adjusted gross income for the payment of delayed property taxes payable in 2005. Delayed property taxes include the 2002, 2003, and 2004 assessment years where the taxpayer was not delinquent in remitting the property tax to the county treasurer when the property tax was paid in 2005. 468 Public Law 111-2006, Section 12 (effective July 1, 2006) provides authority for the DOR to adopt temporary rules to implement a staggered system of renewal for the retail merchant’s certificate. 469 II. INDIANA SUPREME COURT DECISIONS During 2006, the Supreme Court issued six opinions in the area of taxation, and all six decisions related to property tax. 461. 2006 Ind. Legis. Serv. P.L. 120-2006 (S.E.A. 259) § 6 (West). 462. 2006 Ind. Legis. Serv. P.L. 162-2006 (H.E.A. 1001) § 53 (West). 463. Id. 464. Id. § 55. 465. 2006 Ind. Legis. Serv. P.L. 187-2006 (H.E.A. 1099) § 22 (West). 466. 2006 Ind. Legis. Serv. P.L. 137-2006 (H.E.A. 1380) § 17 (West). 467. S.B. 169, 114th Gen. Assem., 2d Reg. Sess. (Ind. 2006), available at www.in.gov/ legislative/bills/2006/SB/SB0169.1.htm. 468. S.B. 355, 114th Gen. Assem., 2d Reg. Sess. (Ind. 2006), available at www.in.gov/ legislative/bills/2006/SB/SB0355.1.htm. 469. 2006 Ind. Legis. Serv. P.L. 111-2006 (S.E.A. 362) § 12 (West).
2007] TAX LAW 1149 A. Wayne County Property Tax Assessment Board of Appeals v. United Ancient Order of Druids—Grove #29 470 In this opinion, the Supreme Court addressed an issue certified to it on 471 interlocutory appeal from a case pending in the Tax Court. The parties below disagreed as to how to calculate the time for filing the agency record in a property tax assessment appeal in accordance with both Tax Court Rule 3(E) and 472 the AOPA. Tax Court Rule 3(E) provides that the petitioner has 30 days after filing a petition for appeal to request a certified copy of the agency record and 30 days after receiving notice that the record was prepared to file with the Tax 473 Court. The relevant AOPA section provides that a taxpayer must file a certified copy of the agency record with the court within 30 days after filing a 474 petition for appeal or within further time allowed by the court. The Supreme Court rejected an argument that the two provisions, when read together, require the taxpayer to both request and file a certified copy of the record within 30 days 475 after filing a petition for appeal. It recognized that the AOPA provision provides that a record is timely filed if it is filed within 30 days or within 476 additional time allowed by the court. The Supreme Court considers Tax Court 477 Rule 3(E) to be a blanket grant of additional time for all tax appeals. To require individual hearings would place a very heavy burden on the Tax Court because extensions would usually be necessary due to the seasonal nature of 478 property tax appeals. The Supreme Court upheld the Tax Court’s order that the time limits under Tax Court Rule 3(E) applied. 479 B. Trinity Homes, LLC. v. Fang 480 The Supreme Court reversed the trial court decision in this small claims 481 contract case. Fang purchased a lot in a subdivision from Trinity Homes on 470. 847 N.E.2d 924 (Ind. 2006). 471. Id. at 925. 472. Id. at 926-27. 473. Id. at 926. 474. Id. at 926-27 (citing IND. CODE § 4-21.5-5-13(a) (2005)). 475. Id. at 927. 476. Id. at 928. 477. Id. 478. Id. 479. Id. The parties also disputed whether or not the petitioner was in compliance with Trial Rule 3(E). The BTR prepared an invoice for the taxpayer’s request for a certified record that referred to preparation of the record as if it had not yet happened. The taxpayer disputes ever receiving this notice. Both the Tax Court and the Supreme Court held that receipt was immaterial because the terms of the invoice were insufficient to notify the taxpayer that the record had actually been prepared. Id. at 928 29. 480. 848 N.E.2d 1065 (Ind. 2006). 481. Id. at 1067, 1069.
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