Maverick Motorsports Group, LLC v. Department of Revenue
2011 WY 76
| Wyo. | 2011Background
- Maverick Motorsports Group, LLC operates Wyoming motorcycle/ATV retailers with resident and nonresident customers; audits found Wyoming sales tax due on recreational vehicle sales to out-of-state buyers.
- Invoices sometimes marked “delivered out of state,” but the Department audited and sought Wyoming tax; Maverick argued destination sales should not be taxed.
- Vehicles were transferred by pickup at Maverick, delivery by common carrier, or Maverick-delivery; documents were mailed post-sale for title/registration.
- SBOE found possession transfer occurred in Wyoming for most transactions, making Wyoming sales tax due; some lack of documentation was noted but not appealed.
- Maverick and Department stipulated Maverick need not confirm customers paid use taxes in other states; issue remained whether Wyoming could tax nonresidents and whether it violated the Commerce Clause.
- Wyoming statute definitions and U.C.C. provisions were used to determine when title/possession passed, central to tax liability.
- The district court affirmed the SBOE; Maverick appealed challenging taxability and constitutional compliance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is Wyoming sales tax due where possession passed in Wyoming? | Maverick: possession did not transfer in Wyoming; destination sales should be non-taxable. | Department/SBOE: possession transferred in Wyoming; tax due. | Yes; possession/pass egg in Wyoming; tax due. |
| Does Wyoming collection of the tax violate the Commerce Clause? | Maverick: tax discriminates against interstate commerce and absent credits leads to double taxation. | Wyoming tax is allowable; not discriminatory and internal/external consistency satisfied. | No; tax complies with Commerce Clause. |
Key Cases Cited
- Hercules Powder Co. v. State Bd. of Equalization, 208 P.2d 1096 (Wyo. 1949) (title/possession transfer framework applied to determine taxability)
- Buehner Block Co., Inc. v. Wyo. Dep't of Revenue, 139 P.3d 1150 (Wy. 2006) (Hercules principles applied; title transfer rule governs taxation)
- Union Pacific R.R. Co. v. State, 67 P.3d 1176 (Wyo. 2003) (agency/possession concepts; constructive possession discussed)
- Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (U.S. 1977) (four-prong test for Commerce Clause challenges to state taxes)
- Okla. Tax Comm'n v. Jefferson Lines, Inc., 514 U.S. 175 (U.S. 1995) (apportionment not required for sales tax; internal/external consistency)