Justia Iowa Supreme Court Opinion Summaries

In 2012, the Iowa City Board of Review reclassified eighteen properties from commercial to residential for property tax purposes because the properties had recently been organized as multiple housing cooperatives. Two Iowa corporations organized the cooperatives under chapter 499A of the Iowa Code. The City of Iowa City appealed, arguing that the Board’s reclassification was improper because two natural persons, not two corporations, must organize multiple housing cooperatives under the Code. The City also argued that the organizers did not properly organize the cooperatives because each cooperative had more apartment units than members and section 499A.11 requires a one-to-one ratio. The district court granted summary judgment in favor of the Board and the intervening housing cooperatives. The Supreme Court affirmed, holding (1) two Iowa corporations may organize a multiple housing cooperative under chapter 499A; and (2) the Code does not require a one-apartment-unit-per-member ownership ratio for a multiple housing cooperative to be properly organized. View "City of Iowa City v. Iowa City Bd. of Review" on Justia Law

Dolphin Residential Cooperative, Inc. owned an apartment complex in Iowa City that consisted of twenty-two buildings comprising four hundred residential units. The Iowa City assessor classified the multiunit apartment buildings as commercial property for tax assessment purposes. Dolphin challenged this classification, arguing that because it was a multiple housing cooperative, organized under chapter 499A of the Iowa Code, the property should have been classified as residential property. The Iowa City Board of Review denied Dolphin’s request to reclassify the property, determining that because Dolphin was not properly organized under chapter 499A, Dolphin failed the organizational test for residential cooperatives adopted by the Supreme Court in Krupp Place 1 Coop, Inc. v. Board of Review. On appeal, the district court granted summary judgment in favor of Dolphin, concluding that Dolphin met the organizational test set forth in Krupp and ordering the Board to reclassify the subject property as residential property for tax assessment purposes. The Supreme Court reversed, holding that Dolphin was not properly established under section 499A.1(1), and therefore, the district court erred when it granted summary judgment to Dolphin and denied summary judgment to the Board. View "Dolphin Residential Coop., Inc. v. Iowa City Bd. of Review" on Justia Law

At issue in this appeal was the constitutionality of the statutory framework under which Iowa taxes the delivery of natural gas at variable tax rates depending on volume and the taxpayer’s geographic location within the state. Plaintiff filed with the Iowa Department of Revenue a claim for a refund of replacement tax Plaintiff paid for certain tax years, asserting that the replacement tax in Iowa Code 437A.5(2) violates the federal Equal Protection Clause, Iowa Const. art. I, 6, and the dormant Commerce Clause because it is based on the natural gas competitive service area in which a taxpayer is located. An administrative law judge denied Plaintiff’s refund claims and rejected the constitutional challenges to the replacement tax. The district court also denied each of Plaintiff’s constitutional challenges. The Supreme Court affirmed, holding (1) a rational basis exists for the variable excise tax imposed on the delivery of natural gas under section 437A.5, and therefore, Plaintiff failed to establish a violation of the Fourteenth Amendment or Iowa Const. art. I, 6; and (2) the natural gas delivery tax framework does not violate the dormant Commerce Clause. View "LSCP, LLLP v. Kay-Decker" on Justia Law

In 2006, Cable One, Inc., which offers cable television and internet access, began offering Voice over Internet Protocol (VoIP) service to its residential customers in Sioux City. In 2008 and 2009, the Iowa Department of Revenue determined that Cable One should be assessed based on the value of its telephone operating property in the state. Cable One appealed, arguing that it was not a telephone company subject to taxation under Iowa Code chapter 433 because VoIP is not the equivalent of telephone service. An administrative law judge (ALJ) in the Iowa Department of Inspections and Appeals entered summary judgment in favor of Cable One, concluding that the company did not fit the “historical context of a ‘telephone company.’” The Iowa State Board of Tax Review agreed with the ALJ that Cable One was not subject to assessment under chapter 433. The district court affirmed. The Supreme Court reversed, holding (1) wiring that was originally installed for cable television purposes but is now also used to provide VoIP service is a “telephone line”; and (2) therefore, Cable One, which operates these lines, is subject to central assessment for property tax purposes as a telephone company. View "Kay-Decker v. Iowa State Bd. of Tax Review" on Justia Law

Russell Phillips, an employee of the Chicago Central & Pacific Railroad, filed a negligence action against the railroad. The jury returned a general verdict in favor of Phillips, and the district court awarded Phillips damages. The railroad paid Phillips the amount of the judgment but withheld a portion of the award to pay taxes allegedly due under the Railroad Retirement Act (RRTA). Phillips refused to execute a satisfaction of judgment, arguing that the railroad should have withheld any amount for tax purposes. Subsequently, the railroad moved for an order of satisfaction and discharge of judgment. The district court sustained the motion. The Supreme Court affirmed, holding (1) an award for time lost is subject to tax withholding under the RRTA; and (2) the railroad fully satisfied the judgment. View "Phillips v. Chicago Cent. & Pac. R.R. Co." on Justia Law

Appellants owned residential real estate in West Des Moines. In 2011, the Dallas County Board of Review established an assessment value of Appellants’ property for tax purposes. In 2012, the Board established a new, greater value for the property. Appellants filed a petition with the Board protesting the assessment. The petition stated that the protest was lodged against the 2011 property valuation. At a hearing before the Board, Appellants stated that they wished to protest the valuations for both 2011 and 2012. The Board denied Appellants’ protest, concluding that it lacked subject matter jurisdiction because the 2011 protest was untimely. The district court affirmed. The Supreme Court reversed, holding (1) Appellants’ petition was sufficient to invoke the jurisdiction of the Board and bring Appellants’ protest within the Board’s authority to review; and (2) the Board had the authority to entertain a request for amendment of Appellants’ petition and relate it back to the original filing. Remanded. View "Allen v. Dallas County Bd. of Review" on Justia Law

Attorney represented MC Holdings, LLC, a landowner in Davis County, and Keo Rental, LLC, a landowner in Van Buren County, both of whom desired to protest the property-tax assessment made by their county assessors. Attorney sent the protests to the respective county boards of review on the deadline for such filings but inadvertently switched the two petitions. Consequently, the Davis County Board of Review received the Van Buren County petition with the Davis County cover letter, and vice versa. The Davis County and Van Buren County boards of review denied the protests as improperly filed, finding Attorney's clients did not file a timely protest. The boards of review denied Attorney's applications for reconsideration. The district court denied summary judgment requested by the boards, finding the cover letters constituted substantial compliance with the statutory requirements for a protest. The Supreme Court affirmed, holding that the Davis County Board had jurisdiction to consider the motion for reconsideration. Remanded. View "MC Holdings, LLC v. Davis County Bd. of Review" on Justia Law

In 2006, the Iowa Department of Revenue assessed the value of Qwest Corporation's Iowa operating property. Qwest protested the assessment by challenging the general assembly's previous decision to tax the personal property of incumbent local exchange carriers (ILECs) but not competitive long distance telephone companies (CLDTCs) or wireless providers operating in Iowa. Specifically, Qwest argued that the tax scheme which taxed ILECs for the value of their personal property but not CLDTCs and wireless providers violated Qwest's equal protection rights. The State Board of Tax Review (Board) concluded that Qwest's constitutional rights were not violated. The district court reversed. The Supreme Court reversed the district court and upheld the Board's assessment on Qwest, holding that imposing a tax on Iowa-based personal property of ILECs but not on that of CLDTCs or wireless service providers did not violate the Iowa Constitution, as the differential tax treatment of these enterprises is rationally related to legitimate state interests in encouraging the development of new competitive telecommunications infrastructure while raising revenue from those providers that historically had a regulated monopoly and continue to enjoy some advantages of that monopoly. View "Qwest Corp. v. State Bd. of Tax Review" on Justia Law

This case required the Supreme Court to decide whether filmmakers receiving tax credits from the State of Iowa under the State's tax credit program could enjoin the State from releasing summaries of their films' final budgets to the public. The district court determined they could. The Supreme Court reversed, holding (1) the budget summaries do not qualify as trade secrets under Iowa Code 22.7(3); (2) the budget summaries cannot be considered "reports to governmental agencies which, if released, would give advantage to competitors and serve no public purpose" under Iowa Code 22.7(6); and (3) the filmmakers failed to meet Iowa Code 22.8's requirements for injunctive relief by demonstrating disclosure would not be in the public interest and would substantially and irreparably injure any person or persons. Remanded. View "Iowa Film Prod. Servs. v. Iowa Dep't of Econ. Dev." on Justia Law

Plaintiffs, landowners, challenged special assessments against their property for public improvements to a residential subdivision made by the city. Plaintiffs argued that the city council's decision to make public improvements within a subdivision rendered the city unable to assess the costs of the improvements to the landowners when a city ordinance provided for the improvements to be made by the subdivider. The district court (1) determined the city failed to enforce a subdivision ordinance requiring the subdivider to pay for street improvements but concluded that Plaintiffs failed to state a claim upon which relief could be granted because a city cannot be sued for its failure to enforce ordinances; and (2) found the assessments were not excessive. The Supreme Court affirmed, holding (1) Plaintiffs failed to state a claim upon which relief could be granted, (2) the city's failure to require the subdivider to personally make all improvements did not invalidate the authority of the city to assess property owners, and (3) the Plaintiffs did not establish the assessments to their property exceeded the special benefits provided by the improvement. View "Nelson v. City of Hampton" on Justia Law