State Tax Headlines


Kentucky ~ Sales and Use Tax: Disaster Relief Tax Refund Enacted

Kentucky Gov. Steve Beshear has signed legislation that provides legal owners of buildings damaged or destroyed by recent inclement weather in designated counties a refund of sales and use tax paid on purchases of building materials used to repair or replace these buildings. The legislation pertains to storms that occurred in Kentucky from February 29, 2012, through March 3, 2012, and only to buildings damaged or destroyed in counties declared federal disaster areas due to the storms. For a current list of these qualifying counties, see the Kentucky Department of Revenue’s website at In this context, “building materials” means tangible personal property that becomes a permanent part of a building.

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North Dakota ~ Property Tax: Special Assessment Was Not Arbitrary, Capricious, or Unreasonable

A local North Dakota improvement district’s special assessment that was imposed upon a taxpayer’s property was not proven to be arbitrary, capricious, or unreasonable and was therefore upheld on appeal. The special assessment used to pay for the various physical improvements, and the related, properly included, engineer fees, attorney fees, and interest expenses, was duly authorized, and all of the statutory notice and review requirements were followed.

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Wyoming ~ Property, Severance Taxes: Mining Agreement Required Taxpayers to Pay Taxes on Royalties

Taxpayers that entered into a mining lease that granted a mining company the right to conduct mining operations on the taxpayers’ two separate parcels of property were obligated to pay Wyoming ad valorem property taxes and severance taxes related to the mineral production because the plain language of the mining lease reflected the parties’ intent that the taxpayers pay their share of the taxes on both parcels of property. Throughout the term of the mining lease, the mining company made royalty payments to the taxpayers, but withheld amounts asserted by the mining company to reflect the taxpayers’ share of ad valorem and severance taxes.

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Alabama ~ Sales and Use Tax: Online Travel Companies Not Subject to Lodgings Taxes

The Alabama Supreme Court affirmed a trial court’s order holding that a group of online travel companies (OTCs) were not subject to Alabama state or local lodgings taxes because the OTCs were not engaged in the business of renting or furnishing hotel rooms. Specifically, the Alabama Supreme Court adopted the trial court’s order in its entirety as its opinion.

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Idaho ~ Property Tax: Pre-Tax Repossession and Sale of Property by High-Value Security Interest Holder Addressed

Recently enacted Idaho legislation addresses a taxpayer’s repossession and sale of personal property before the payment of the applicable tax where the taxpayer holds a high-value purchase money security interest. Specifically, if a taxpayer holding a purchase money security interest wants to repossess and sell a specific piece of personal property, and the market value of that personal property exceeds $20,000, then that taxpayer must provide the local tax collector with a request to segregate that specific piece of personal property from the rest of the taxpayer’s taxable personal property.

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