Court Opinion

ID: 9658210
Source: CourtListenerOpinion
Date Created: 2023-08-23 20:51:25.782873+00
Date Added: 2024-06-11T18:13:52.877195
License: Public Domain

VANDE WALLE, Justice,
concurring specially.
I am skeptical that the doctrine of equitable .estoppel should be applied against the State in matters concerning taxation. It appears that “government” has, in the eyes of some people, taken on an animate form to which should be applied the same attributes, good or bad, that are applied to human beings. Government is, of course, the people and when we apply the doctrine of equitable estoppel against the government we are in effect applying it against the people. In large States the impact of the application of such a doctrine under circumstances such as this may be minimal. In a State the size of North Dakota with its small population and small tax base the effects of such a doctrine on the individual are considerably greater. North Dakota does not rely upon property taxes for its revenue [see Article X, Section 1, of the North Dakota Constitution] and therefore the magnitude of the effects is further increased.
*923Perhaps this is only a reflection of my concern with the growing tendency to hold “government” responsible for wrongs committed rather than the individual who actually perpetrated the wrong. Although this may seem justifiable by the result that the aggrieved party is compensated, that compensation often comes from parties who have not contributed to the harm that has been done.
However, I concur in the result reached by the majority opinion. I reluctantly agree that equitable estoppel against our government is not absolutely barred as a matter of law, even in matters concerning taxation, but I believe that it is a doctrine which should not be applied freely against the government. The majority opinion makes this point but proceeds to analyze the application of the doctrine to the State in this instance in what appears to me to be the same manner it would if the State were not involved. I agree that the doctrine may be applied in this instance only because of the “rare and unusual circumstances” and the obvious injustice which would result. See Abbey v. State, 202 N.W.2d 844, 851 (N.D.1972). We-are all aware of the “boom and bust” cycle that involved the drilling industry: the demand for drilling rigs and the subsequent drastic reduction in drilling. The plaintiffs could not pass the taxes through to the consumer by way of their rate schedules. If this injustice were not so apparent, I would not agree that the doctrine of equitable estop-pel should apply. This is apparently the first time equitable estoppel against the State has been authorized in taxation matters by this court, but I do not believe it should be considered a signal that henceforth it will necessarily be commonplace.
I write also to express my concern regarding the interpretation of Section 57-39.2-15, N.D.C.C. It appears to me that the majority opinion concludes that what constitutes a “determination” within the meaning of the statute is a finding of fact to which we will apply Rule 52(a), N.D.R. Civ.P. If, indeed, that is the law, then it would behoove the Tax Commissioner to expressly specify by rule and regulation what constitutes a “determination” within the meaning of the statute. It appears that under current law a comment made by a Tax Department employee in the process of a taxpayer-assistance program could be subject to a finding that it is a “determination” which this court would overrule only if it is “clearly erroneous.” I believe the term “determination” as used in the statute requires a more formal definition.
ERICKSTAD, C.J., and GIERKE, J., concur.