Indiana Department of Revenue v. Miller Brewing Co.
2012 Ind. LEXIS 598
| Ind. | 2012Background
- Miller Brewing Co. challenges Indiana corporate income tax on sales to Indiana customers for 1997–1999.
- The dispute centers on whether carrier-pickup sales qualify as Indiana sales for allocation purposes.
- Indiana Code § 6-3-2-2(e) deems a sale in Indiana if the property is delivered or shipped to an Indiana purchaser, regardless of other sale terms.
- The Department initially denied refunds for carrier-pickup sales; Miller previously won refunds for customer pick-up sales in Miller I.
- Tax Court later held Miller’s carrier-pickup sales were not Indiana sales, granting Miller relief in Miller II, a ruling affirmed by the Supreme Court.
- The Court held Example 7 is not a rule with the force of law and affirmed de novo review for proposed assessments and denied refunds.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §6-3-2-2(e) is ambiguous on Indiana sales. | Miller argues ambiguity. | Department contends the statute is unambiguous. | Statute unambiguous; Example 7 not controlling. |
| Whether Example 7 has the force of law. | Example 7 clarifies the rule and supports Miller. | Examples are illustrative, not binding rules. | Example 7 does not have the force of law. |
| What standard of review applies to proposed assessments/denied refunds. | (Miller) de novo review should apply? | De novo review governs such appeals. | Court applies de novo review; affirms Miller II. (summary) |
Key Cases Cited
- Miller Brewing Co. v. Ind. Dep’t of Revenue (Miller I), 831 N.E.2d 859 (Ind. Tax Ct.2005) (carve-out for pick-up sales; statewide allocation context)
- Miller Brewing Co. v. Ind. Dep’t of Revenue (Miller II), 955 N.E.2d 865 (Ind. Tax Ct.2011) (carrier pickup sales not Indiana sales; de novo review acknowledged)
- Bethlehem Steel Corp., 639 N.E.2d 264 (Ind.1994) (tax law review; deference framework guidance)
- State Bd. of Tax Comm’rs v. Jewell Grain Co., Inc., 556 N.E.2d 920 (Ind.1990) (proper standard of review context in tax cases)
- Sloan v. State, 947 N.E.2d 917 (Ind.2011) (statutory interpretation; rules of construction)