Miller Brewing Co. v. Indiana Department of Revenue
2011 Ind. Tax LEXIS 9
| Ind. T.C. | 2011Background
- Miller Brewing Company sells malt beverages to Indiana customers; sales occur with purchaser placing orders in Milwaukee, Miller preparing products in Ohio, and Indiana customers hiring carriers to pick up at Miller's Ohio facility.
- Possession and title pass to Indiana customers at the Ohio brewery; delivery is by carrier pickup, not domestic Indiana delivery.
- Miller filed Indiana corporate income tax returns but did not allocate income from carrier-pickup sales to Indiana; Department later assessed otherwise after audit and Miller paid, then sought refund.
- Department issued a Letter of Findings denying Miller's refund claim after administrative hearing; Miller appealed to the Tax Court.
- Key legal question: whether carrier-pickup sales should be allocated to Indiana under Indiana's apportionment rules, specifically I.C. 6-3-2-2(e)(1) and related regulations.
- Court must determine whether the statute supports the destination rule, or whether the Department's regulation provides the controlling interpretation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Do carrier-pickup sales count as Indiana sales under I.C. 6-3-2-2(e)(1)? | Miller contends the statute is ambiguous and its regulation controls; carrier-pickup sales are not Indiana sales because delivery occurs outside Indiana and purchaser’s mode of transport is by common carrier. | Department says the statute tracks UDITPA and adopts the destination rule; regulatory interpretation requires attribution to Indiana when goods are shipped to Indiana buyers, regardless of purchaser's location or pickup. | Carrier-pickup sales are not Indiana sales; Miller grants summary judgment. |
Key Cases Cited
- Miller Brewing Co. v. Ind. Dep't of State Revenue, 903 N.E.2d 64 (Ind. 2009) (court defers to Department regulation for interpretation of statute)
- Miller Brewing Co. v. Ind. Dep't of State Revenue, 831 N.E.2d 859 (Ind. Tax Ct. 2005) (carrier-pickup sales not Indiana sales under regulation emphasis)
- May Dep't Stores Co. v. Ind. Dep't of State Revenue, 749 N.E.2d 651 (Ind. Tax Ct. 2001) (discusses UDITPA framework and uniformity considerations)
- Johnson Cnty. Farm Bureau Co-op. Ass'n v. Ind. Dep't of State Revenue, 568 N.E.2d 578 (Ind. Tax Ct.1991) (regulation interpretation carries force of law when consistent with statute)