Court Opinion

ID: 9697723
Source: CourtListenerOpinion
Date Created: 2023-08-25 19:27:40.20174+00
Date Added: 2024-06-11T18:20:34.929153
License: Public Domain

Markell, J.,
delivered the following dissenting opinion.
Oversimplification usually defeats its ends. In this case, in at least two respects, strange results are reached by applying, to a suit at law to collect taxes, statutory provisions relating to administrative appeals from assessments.
1. Art. 81, sec. 154, of the Code provides that “any tax may be collected * * * by action of assumpsit * * In any such action “the certificate of * * * the Comptroller * * * showing the amount of the tax due with all penalties and interest shall be prima facie evidence to entitle the plaintiff to judgment for the amount of such tax, penalty and interest. * * Art. 81, sec. 159. Art. 81, sec. 247, provides that on appeal to the State Tax Commission from an additional assessment by the Comptroller, “the determination by the State Tax Commission shall be prima facie evidence of the amount of tax due.” In the instant case defendant did not appeal under section 247, and plaintiff did not attempt to exercise its administrative powers to collect the alleged taxes, but elected to resort to an action at law. By some combination of sections 159 and 247 the Comptroller’s additional assessments, which are void on their face (because not made “within three years”) and per se rebut any *30prima facie evidence they might otherwise furnish, become conclusive (instead of prima facie) evidence in a suit at law on these void assessments. At the argument plaintiff admitted that its contentions would be equally applicable in a suit on additional “assessments” of income taxes for the year 1925 or 1789 [or 1492?].
2. Art. 81, sec. 162A (Code, 1947 Supp.), Acts of 1943, ch. 123, provides that “Whenever any person * * * shall have paid any special taxes which were erroneously or illegally assessed or collected * * * he may file * * * a written claim for the refund thereof.” Income taxes are “special taxes”. Art. 81, sec. 4. In Wasena Housing Co. v. Levay, 188 Md. 383, 391-392, 52 A. 2d 903, 907, this court, italicizing the words above italicized, noted the contrast between refund of ordinary taxes under section 162 and refund of special taxes under section 162A, saying, “In the one case the error or mistake must relate to the payment, in the other it may relate to the payment or the assessment.” 188 Md. 392, 52 A. 2d 907. In the instant case the Wasena case is cited as pointing out “the procedure which the Legislature has provided for the taxpayer to follow in case he is dissatisfied with the assessment of his property.” In the instant case the difference between sections 162 and 162A is not mentioned, but under the Wasena case “the procedure which the Legislature has provided for the taxpayer to follow in case he is dissatisfied with the assessment of his [income tax]” includes under section 162A a claim for refund and (unlike section 162) does not include a proviso excluding refunds in case of erroneous assessments which might have been challenged by appeal. As the taxes now in dispute have not yet been paid, because the State elected to resort to a suit at law instead of exercising its summary powers of collection, a claim for refund under section 162A could not yet be filed, but can be filed after payment, whether after final judgment herein or before, e.g., before the mandate is transmitted.
I think the judgment should be reversed.