Gelco Fleet Trust v. Neb. Dep't of Revenue

• Decision Date: 22 July 2022
• Docket Number: S-21-616.
• Citation: 312 Neb. 49,978 N.W.2d 12
• Parties: GELCO FLEET TRUST, a Delaware statutory trust, appellant, v. NEBRASKA DEPARTMENT OF REVENUE and Tony Fulton, Nebraska State Tax Commissioner, appellees.
• Court: Nebraska Supreme Court

312 Neb. 49
978 N.W.2d 12

GELCO FLEET TRUST, a Delaware statutory trust, appellant,
v.
NEBRASKA DEPARTMENT OF REVENUE and Tony Fulton, Nebraska State Tax Commissioner, appellees.

No. S-21-616.

Supreme Court of Nebraska.

Filed July 22, 2022

Jennifer D. Tricker, of Baird Holm, L.L.P., Omaha, Michael Bowen, of Ackerman, L.L.P., and Raye C. Elliott, of Ackerman, L.L.P., pro hac vice, for appellant.

Douglas J. Peterson, Attorney General, and L. Jay Bartel, for appellees.

Heavican, C.J., Cassel, Stacy, Funke, Papik, and Freudenberg, JJ.

Cassel, J.

INTRODUCTION

After Gelco Fleet Trust (Gelco) paid sales tax on the purchase price of a new vehicle, it filed a claim for a refund. Gelco alleged that it overpaid sales tax because the amount due should have been reduced by a credit for the value of a vehicle that Gelco claimed to have "traded in" some 6 weeks earlier. The Nebraska Department of Revenue (Department) denied the claim, and the district court affirmed. After reviewing

978 N.W.2d 15

the court's order for errors appearing on the record, we find none. Accordingly, we affirm the court's judgment.

BACKGROUND

FACTS

Gelco is a Delaware statutory trust that transacts business in Nebraska. It purchases motor vehicles and then leases them to customers in Nebraska. As a lessor, Gelco elected to pay sales tax based on the cost of each vehicle to be registered in Nebraska that it purchased.¹

312 Neb. 51

In August 2019, Gelco disposed of a 2015 Chevrolet Equinox. A Nebraska certificate of title for the Equinox identified Gelco as seller and CTC of Virginia (CTC) as purchaser. On the other hand, a request that title be mailed to an Omaha auto auction identified the auction as the purchaser of the Equinox sold by Gelco. A "Vehicle History Report" for the Equinox showed that it was sold at an "Auto Auction" on August 29. According to information from the Nebraska Department of Motor Vehicles, "Dillons Auto" purchased the Equinox from CTC on August 29.

In October 2019, Gelco purchased from CTC a 2020 GMC Terrain. Gelco leased the Terrain to a Nebraska customer and paid sales tax of $1,573.79 on the full purchase price. The bill of sale from CTC to Gelco reflected an amount of $27,514.34 for the Terrain; an amount of $13,635.05 for the Equinox, which was identified as "Trade-In Vehicles"; a total net taxable amount of $13,879.29; and a tax amount due of $971.55. The "Nebraska Sales/Use Tax and Tire Fee Statement" (Form 6) for the purchase of the Terrain indicated that a vehicle had been traded in. Sections on the form for information regarding the trade-in vehicle were blank with the exception of the vehicle identification number, which number did not match that of the Equinox.

CLAIM AND DEPARTMENT'S DECISION

In September 2020, Gelco submitted a claim for refund of sales tax to the Department. Gelco requested a credit to its sales/use tax account of $749.93. It stated that the $1,573.79 in sales tax assessed on the Terrain should have been reduced by a credit of $749.93 for the Equinox, which had been "traded in to the selling dealer at the time of sale."

After initially crediting Gelco's account with the amount of the claim, the Department later notified Gelco that the claim had been paid in error. The denial letter explained that the trade-in vehicle must be taken in trade by the seller in the same transaction as the purchase of a vehicle. The Department

312 Neb. 52

reasoned that "[a] motor vehicle sold at auction is not taken in trade by CTC ... in the same transaction as the purchase of a motor vehicle."

The record from the Department is quite limited...