Ceccarelli v. Levin
127 Ohio St. 3d 231
Ohio2010Background
- RPMS filed motor-fuel-tax reports for April, May, June, and August 2000 late; unpaid taxes totaled $396,565.16, later $665,797 with interest and penalties.
- Ceccarelli was president and 100% owner of RPMS and Restructure, Inc., the entity owning RPMS, establishing liability as a responsible party under R.C. 5735.35(A).
- The tax commissioner issued Ceccarelli’s assessment as a responsible party on February 24, 2005, more than four years after the reports were filed.
- BTA upheld the commissioner's assessment against Ceccarelli, adopting the view that the four-year limitation did not apply to responsible-party assessments.
- Ceccarelli argued that the four-year limit in R.C. 5735.12(A) applies to assessments against employees or officers who are responsible parties.
- Ohio Supreme Court held that assessments against responsible parties must follow the four-year limitation; the four-year period applies through incorporation in the applicable 'manner' of assessment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does R.C. 5735.12(A) four-year limit apply to responsible-party assessments? | Ceccarelli: four-year limit applies to responsible parties as incorporated by R.C. 5735.35(A)(2). | Commissioner: limit does not apply to responsible-party assessments. | Yes; four-year limit applies to responsible-party assessments. |
| Is the four-year limitation incorporated into the 'manner provided' for assessments to responsible parties? | Ceccarelli: time limit is part of the mandated procedure for assessments against responsible parties. | Commissioner: 'manner' does not include timing; limit not incorporated. | Yes; timing is part of the 'manner' and enforced against Ceccarelli. |
Key Cases Cited
- Bowshier v. Limbach, 52 Ohio St.3d 140 (1990) (sales-tax four-year limit not apply to responsible parties)
- State v. Consilio, 114 Ohio St.3d 295 (2007) (de novo review of statutory construction in tax context)
- Church of God in N. Ohio v. Levin, 124 Ohio St.3d 36 (2009) (statutory interpretation to give effect to enacted language)