The Texas Court of Appeals held that crude oil stored in tank farms in San Patricio County solely for export to foreign buyers was constitutionally immune from county ad valorem taxation under the Import-Export Clause of the U.S. Constitution. The court concluded the oil constituted property in the stream of export overseas and therefore could
ad valorem
Alabama introduces legislation to exempt cryptocurrency from property tax
By Jonathan Feldman, Jeremy Gove & Alla Raykin on
Posted in Digital Economy
An Alabama legislator has re-introduced a bill that would expressly exempt “virtual currency” from ad valorem tax. Alabama broadly imposes its ad valorem tax on all property, unless expressly exempt. Under current law, several other forms of currency are enumerated as exempt, such as “money on deposit in any bank or banking institution and all…
Texas Supreme Court Upholds Local Ad Valorem Tax on Stored Gas
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By Jessie Eisenmenger and Jonathan Feldman
The Texas Supreme Court held that a non-discriminatory tax on stored gas held for future resale does not violate the Commerce Clause of the US Constitution. Harris County imposed an ad valorem tax on natural gas stored in the county on January 1 of the tax year. Applying the…
Power to the People: Mississippi Supreme Court Upholds Right to Jury Trial in Tax Assessment Appeals
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By Jessica Eisenmenger and Tim Gustafson
The Supreme Court of Mississippi held that a county had the right to a jury trial in an appeal of the county’s ad valorem tax assessment. In reaching its decision, the court relied on centuries-old customs, practices and decisions upholding the right to a jury trial in tax assessment…
Will New Roads Lead to Georgia Tax Reform?
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Posted in Policy and Legislation
By Stephen Burroughs and Jonathan Feldman
Georgia’s Transportation Funding Bill may lead to significant tax reform for the state in 2016. In response to a nearly $1 billion transportation budget shortfall, on March 5 the Georgia House of Representatives passed H.B. 170, which would convert Georgia’s sales tax on motor fuel to a 29.2…
Kentucky’s Long-Standing Intangible Property Tax Method Goes Puff
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Posted in Noteworthy Cases
In a case pitting statutory language against a department of revenue’s historical practice, the Kentucky Court of Appeals held that the “franchise” of a public service corporation is a separate asset for ad valorem taxation purposes, and it is subject to state and local property taxation. Dayton Power & Light Co. v. Dep’t of Revenue…
Tennessee PILOT Captured In Property Tax Net
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Posted in Noteworthy Cases
A Tennessee taxpayer got a rude awakening when a state court ruled it was liable for ad valorem tax on its leasehold interest in tax exempt property despite having an agreement with local governments to make a payment in lieu of taxes. Creative Label, Inc. v. Tuck, 2011 Tenn. App. LEXIS 238 (May 11…
Goodwill Hunting for a Property Tax Exemption
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Posted in Noteworthy Cases
The battle over the ad valorem taxation of intangible property rages on in the western states. On June 3, 2011, 15 counties were dealt a heavy blow when the Utah Supreme Court ruled that accounting goodwill is not subject to property tax. T-Mobile USA, Inc. v. Utah State Tax Comm’n, Nos. 20090298, 20090308 (June…
Ouch! Taxpayer Seeks to Pierce Its Own Veil
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Posted in Noteworthy Cases
An otherwise ordinary ad valorem property tax case turned interesting when a taxpayer requested that the Tennessee Court of Appeals “pierce the corporate veil.” Alcoa, Inc. v. Tenn. State Bd. of Equalization, No. E2010-00001-COA-R3-CV (Tenn. Ct. App. Feb. 18, 2011). The case arose out of an ad valorem property tax assessment against Alcoa for…