State Dept. of Revenue v. American Motorists' Ins. Co., No. 2-1278A432

Docket NºNo. 2-1278A432
Citation182 Ind.App. 645, 396 N.E.2d 907
Case DateOctober 31, 1979

Page 907

396 N.E.2d 907
182 Ind.App. 645
STATE of Indiana, DEPARTMENT OF REVENUE, Appellant-Defendant,
v.
AMERICAN MOTORISTS' INSURANCE COMPANY, Appellee-Plaintiff.
No. 2-1278A432.
Court of Appeals of Indiana, Fourth District.
Oct. 31, 1979.

[182 Ind.App. 646] Theodore L. Sendak, Atty. Gen., Wally T. Gray, Deputy Atty. Gen., Indianapolis, for appellant-defendant.

Robert W. Mysliwiec and John R. Obenchain, South Bend, for appellee-plaintiff.

MILLER, Presiding Judge.

Defendant-Appellant State of Indiana, Department of Revenue (State) appeals from a summary judgment awarding American Motorists' Insurance Company (American Motorists') one thousand five hundred thirty-five dollars and eighty-nine cents ($1,535.89) and costs. This amount represented interest on a refund to American Motorists' of motor fuel use tax. We affirm the monetary award. However, we remand to allow American Motorists' to recover its costs but without assessing these costs against the State.

Essentially all the facts pertinent to this complaint were either stipulated to by the parties or were included in the court's findings of fact. Robert Carrano (Carrano) d/b/a Springville Truck Stop was a special fuel dealer and was legally obligated to pay

Page 908

the motor fuel use tax. On November 19, 1974, an auditor for the Motor Fuel Use Tax Division completed a final audit of Carrano's account for the period of September 1, 1972 through January 31, 1973. As a result of the audit, the State determined Carrano owed a tax deficiency of $9,463.52 for the period in question. When the State was unable to collect the deficiency from Carrano, it notified American Motorists', surety upon Carrano's Motor Fuel Use Tax bond, of the deficiency and demanded it make good on the bond. After protracted correspondence between the State and American Motorists' "upon the nature and format of the claim," American Motorists' paid the $9,463.52 tax deficiency on September 9, 1975. The State did not assess American Motorists' any penalties or interest.

On approximately May 5, 1977, American Motorists' notified the State it believed the final audit of Carrano was incorrect. The State conducted a revised final audit which was completed on August 18, 1977. As a result, the State found Carrano's tax deficiency for the period in question to be $581.94. The State supplied American Motorists' with a copy of the revised audit and claim vouchers to enable American Motorists' to claim the overpayment of $8,881.58 ($9,463.52 less $581.94). On November 4, [182 Ind.App. 647] 1977, after receiving American Motorists' claim for the refund, the State refunded the overpayment.

On July 11, 1977 before either the revised audit was completed or the refund was paid, American Motorists' filed this action demanding said refund together with eight per cent interest from September 5, 1975, the date it paid the tax. Upon American Motorists' motion for summary judgment, the trial court granted it the requested interest of eight per cent (the overpayment having already been refunded) from September 5, 1975 to November 4, 1977 plus costs.

The State raises the following issues for review:

1. Did the trial court err in determining American Motorists' was entitled to interest on the overpayment of tax?

2. Did the trial court err in determining such interest was due from the date of payment to the State to date of refund, that is, from September 5, 1975 to November 4, 1977?

3. Did the trial court err in determining eight percent was the appropriate rate of interest?

4. Did the trial court err in deciding American Motorists' could recover costs from the State?

Was American Motorists' entitled to interest?

The State correctly contends there is no specific statutory provision concerning payment of interest on refund of motor fuel use taxes. 1 [182 Ind.App. 648] Further, it correctly states there is a split of authority in other jurisdictions as to whether a taxpayer is entitled to such interest in the...

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12 practice notes
  • Reynolds Metals Co. v. Indiana Dept. of State Revenue, Gross Income Tax Division, No. 1-779A201
    • United States
    • Indiana Court of Appeals of Indiana
    • March 16, 1982
    ...Inc., (1979) Ind.App., 386 N.E.2d 963; State Department of Revenue v. American Motorists' Insurance Company, (1979) Ind.App., 396 N.E.2d 907. A stipulation must be fairly and liberally construed and should be interpreted in light of the whole record. City of Cannelton v. Lewis, (1952) 123 I......
  • General Motors Corp. v. Indiana Dept. of State Revenue, No. 49T05-8912-TA-00064
    • United States
    • Indiana Tax Court of Indiana
    • September 11, 1991
    ...Co. v. State (1924), 194 Ind. 657, 665, 144 N.E. 420, 422. In State Department of Revenue v. American Motorists' Insurance Co. (1979), 182 Ind.App. 645, 396 N.E.2d 907, the Department did not pay interest on the refund of motor fuel use taxes it erroneously assessed and collected, arguing t......
  • State v. Mileff, No. 50A04-8707-CV-211
    • United States
    • Indiana Court of Appeals of Indiana
    • March 22, 1988
    ...Underwriters, Inc. (1981), Ind.App., 429 N.E.2d 306; State, Department of Revenue v. American Motorists' Insurance Company (1979), 182 Ind.App. 645, 396 N.E.2d 907; State Board of Tax Commissioners v. Warner Press, Inc. (1970), 254 Ind. 183, 258 N.E.2d 621; State v. City of Terre Haute (196......
  • Northern Indiana Public Service Co. v. Citizens Action Coalition of Indiana, Inc., No. 93S02-8810-EX-902
    • United States
    • Indiana Supreme Court of Indiana
    • December 13, 1989
    ...of statutory authority granting a right to receive such interest. See also Department of Revenue v. American Motorists' Ins. Co. (1979), 182 Ind.App. 645, 396 N.E.2d 907. Nothing in I.C. 8-1-3-6 remotely suggests that a consumer would be fully compensated for the use of his money without hi......
  • Request a trial to view additional results
12 cases
  • Reynolds Metals Co. v. Indiana Dept. of State Revenue, Gross Income Tax Division, No. 1-779A201
    • United States
    • Indiana Court of Appeals of Indiana
    • March 16, 1982
    ...Inc., (1979) Ind.App., 386 N.E.2d 963; State Department of Revenue v. American Motorists' Insurance Company, (1979) Ind.App., 396 N.E.2d 907. A stipulation must be fairly and liberally construed and should be interpreted in light of the whole record. City of Cannelton v. Lewis, (1952) 123 I......
  • General Motors Corp. v. Indiana Dept. of State Revenue, No. 49T05-8912-TA-00064
    • United States
    • Indiana Tax Court of Indiana
    • September 11, 1991
    ...Co. v. State (1924), 194 Ind. 657, 665, 144 N.E. 420, 422. In State Department of Revenue v. American Motorists' Insurance Co. (1979), 182 Ind.App. 645, 396 N.E.2d 907, the Department did not pay interest on the refund of motor fuel use taxes it erroneously assessed and collected, arguing t......
  • State v. Mileff, No. 50A04-8707-CV-211
    • United States
    • Indiana Court of Appeals of Indiana
    • March 22, 1988
    ...Underwriters, Inc. (1981), Ind.App., 429 N.E.2d 306; State, Department of Revenue v. American Motorists' Insurance Company (1979), 182 Ind.App. 645, 396 N.E.2d 907; State Board of Tax Commissioners v. Warner Press, Inc. (1970), 254 Ind. 183, 258 N.E.2d 621; State v. City of Terre Haute (196......
  • Northern Indiana Public Service Co. v. Citizens Action Coalition of Indiana, Inc., No. 93S02-8810-EX-902
    • United States
    • Indiana Supreme Court of Indiana
    • December 13, 1989
    ...of statutory authority granting a right to receive such interest. See also Department of Revenue v. American Motorists' Ins. Co. (1979), 182 Ind.App. 645, 396 N.E.2d 907. Nothing in I.C. 8-1-3-6 remotely suggests that a consumer would be fully compensated for the use of his money without hi......
  • Request a trial to view additional results

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