Preview:

ATTORNEYS FOR PETITIONER: STEPHEN H. PAUL JON B. LARAMORE BRENT A. AUBERRY BAKER & DANIELS LLP Indianapolis, IN

ATTORNEYS FOR RESPONDENT: GREGORY F. ZOELLER ATTORNEY GENERAL OF INDIANA ANDREW W. SWAIN CHIEF COUNSEL, TAX SECTION JESSICA E. REAGAN TIMOTHY A. SCHULTZ DEPUTY ATTORNEYS GENERAL Indianapolis, IN

CLERK _____________________________________________________________________
of the supreme court, court of appeals and tax court

IN THE INDIANA TAX COURT
) ) ) ) ) ) ) ) ) )

FILED
Aug 18 2011, 2:59 pm

MILLER BREWING COMPANY, Petitioner, v. INDIANA DEPARTMENT OF STATE REVENUE, Respondent.

Cause No. 49T10-0607-TA-69

ORDER ON PARTIES MOTIONS FOR SUMMARY JUDGMENT FOR PUBLICATION August 18, 2011 FISHER, Senior Judge Miller Brewing Company (Miller) appeals the Indiana Department of State Revenues (Department) denial of its claims for refund of Indiana adjusted gross income tax and supplemental net income tax (collectively, AGIT) paid for the 1997, 1998, and

1999 tax years (the years at issue).1 The case presents one issue for the Court to decide: whether, for purposes of calculating its Indiana AGIT liability, Millers sales to Indiana customers are allocated to Indiana if those customers hired common carriers to pick up their merchandise at Millers Ohio facility. FACTS AND PROCEDURAL HISTORY Miller, headquartered in Milwaukee, Wisconsin, manufactures and sells malt beverage products throughout the country. During the years at issue, Miller sold its products to customers located in Indiana. In those sales transactions: 1) the Indiana customers submitted purchase orders to Millers Milwaukee headquarters; 2) Miller produced the products and prepared them for pick up at its Trenton, Ohio brewery; and 3) the Indiana customers arranged for and hired third-party common carriers to pick up the products at the brewery (hereinafter, "carrier-pickup sales"). Possession of and title to the products transferred to the Indiana customers at the brewery. Miller prepared and filed Indiana corporate income tax returns for each of the years at issue. In calculating its Indiana AGIT liabilities, Miller did not allocate the income it received from the carrier-pickup sales to Indiana. After completing an audit of Millers tax returns, however, the Department issued proposed assessments against Miller on the basis that it should have allocated the carrier-pickup sales income to

During the years at issue, a taxpayers Indiana supplemental net income tax liability was contingent upon its adjusted gross income tax liability computations; consequently, the Courts reference to adjusted gross income tax in this order (i.e., AGIT) is also considered a reference to the supplemental net income tax. See IND. CODE

Download Miller Brewing Company v. Indiana Dept. of State Revenue.pdf

Indiana Law