Opinion ID: 2486296
Heading Depth: 1
Heading Rank: 6

Heading: Postdeprivation Process

Text: ¶ 16. In order for a postdeprivation process to satisfy the Due Process Clause, the State must provide taxpayers with a fair opportunity to challenge the accuracy and legal validity of their tax obligation and a clear and certain remedy for any erroneous or unlawful tax collection. McKesson, 496 U.S. at 38, 110 S.Ct. 2238 (citing Atchison, T. & S.F. Ry. Co. v. O'Connor, 223 U.S. 280, 285, 32 S.Ct. 216, 217, 56 L.Ed. 436 (1912)). ¶ 17. Mississippi Code Section 27-77-7 requires the taxpayer to pay the amount in controversy or post a bond for double the amount before seeking judicial review. Miss.Code Ann. § 27-77-7 (Rev.2005). In McKesson, the United States Supreme Court held that a State need not provide predeprivation process for the exaction of taxes. Id. at 37, 110 S.Ct. 2238. [A]llowing taxpayers to litigate their tax liabilities prior to payment might threaten a government's financial security, both by creating unpredictable interim revenue shortfalls against which the State cannot easily prepare, and by making the ultimate collection of validly imposed taxes more difficult. Id. Thus, the requirement to pay the tax before seeking judicial review has been held to provide taxpayers with a fair opportunity to challenge the validity of the tax. ¶ 18. The State may satisfy the obligation of providing a clear and certain remedy through any form of relief, including a refund of the excess taxes. Id. In this case, Akins argues that he paid sales tax and deserves a refund or credit for what he paid over and above what was due as contractor's tax. Section 27-77-7 provides the taxpayer with the process for seeking a refund or credit for an alleged overpayment of tax or for taxes paid in protest. This court has held that a refund is a clear and certain remedy. See H.J. Wilson Co., Inc. v. State Tax Comm'n of State, 737 So.2d 981 (Miss.1998). Accordingly, Akins was provided a postdeprivation process, a fair opportunity to challenge the tax and the ability to receive a refund if successful. Akins was afforded due process.