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Tag Archives: taxes

Tax questions, property values dog ‘abominable appeal’ (access required)

Divorce cake

One popular vehicle for dodging taxes may come back to haunt couples if they ever get divorced, the North Carolina Court of Appeals has ruled. Charles and Dawn Hill married in 1996 and separated in 2009, leading to a protracted dispute over how to split up their assets. In 2001, they incorporated a company called Speaking Of, Inc. through which Dawn worked as a speech pathologist, and were its only shareholders.

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Online hotel brokers can proceed with tax challenge (access required)

legal taxes

A group of online hotel reservation companies can proceed with their suit against the North Carolina Department of Revenue and Durham County over a hotel occupancy tax the companies believe unfairly and unconstitutionally targeted their business. The case focuses on the state’s sales tax on the rental of hotel rooms, and Durham County’s “room occupancy tax” on hotel rooms within the county. The plaintiffs – Orbitz, Travelocity, Hotwire, and Travelscape – are considered “facilitators” under both of the laws in question.

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Lumberton’s license tax hike ruled unconstitutional (access required)

video poker

Lumberton’s privilege tax on sweepstakes parlors turned out to be too big not to fail. In a ruling on four consolidated cases earlier this month, the Supreme Court decided the City of Lumberton’s privilege license tax on cyber-gaming outlets violated the Just and Equitable Tax Clause of the state constitution. But the court shied away from creating clear guidelines for how cities should avoid trampling the constitution when levying such a tax.

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Taxation – Constitutional – Just & Equitable Tax Clause – Municipal – Licenses & Permits – 59,900 Percent Increase – Internet Sweepstakes Cafes – First Impression (access required)

IMT, Inc. v. City of LumbertonA tax increase of at least 59,900 percent on one type of business – internet sweepstakes cafes – violates the Just and Equitable Tax Clause of N.C. Const. art. V, § 2(1). We reverse summary judgment for the city and remand for further proceedings.

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State loses high-stakes tax case (access required)

Tax stamp

When the taxman cometh he rarely leaves empty-handed. But a former Raleigh businessman and his wife have prevailed against the North Carolina Department of Revenue in one of the state’s largest and most complex cases against a pair of individual taxpayers in recent history.

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