Paul Dumond v. Department of Revenue

BEFORE THE STATE TAX APPEAL BOARD
OF THE STATE OF MONTANA
------------------------------------------------------------
PAUL DUMOND, )
) DOCKET NO.: SPT-2001-3
Appellant, )
)
-vs- ) FACTUAL BACKGROUND,
) CONCLUSIONS OF LAW,
THE DEPARTMENT OF REVENUE ) ORDER and OPPORTUNITY
OF THE STATE OF MONTANA, ) FOR JUDICIAL REVIEW
)
Respondent. )
------------------------------------------------------------
The above-entitled appeal was heard on February 8, 2002,
in the City of Hamilton, in accordance with an order of the
State Tax Appeal Board of the State of Montana (the Board).
The notice of the hearing was duly given as required by law.
Paul Dumond (the Taxpayer) presented testimony in support
of his appeal. The Department of Revenue (DOR), represented by
Jim Fairbanks, Regional Lead, Debbie Reesman, Unit Manager and
Dennis Vick, Customer Assistance, presented testimony in
opposition to the appeal. In addition to testimony, exhibits
were received in evidence. Mr. Dumond is the appellant in this
proceeding and, therefore, has the burden of proof. Based on
the evidence, this Board finds as follows:

2
STATEMENT OF THE ISSUES
The issue before the Board is whether the Taxpayer timely
filed his applications for property tax assistance for 2001
within the meaning of Section 15-6-191, MCA and ¶ 42.19.401
ARM.
FACTUAL BACKGROUND
1. Due, proper and sufficient notice was given of this
matter, the hearing hereon, and of the time and place of the
hearing. All parties were afforded the opportunity to present
evidence, oral and documentary.
2. The Taxpayer signed and dated two applications titled
“Application For Property Tax Assistance Program” on January
20, 2001.
3. The applications are stamped “Received” on January 20,
2001.
4. By letter dated June 15, 2001 the DOR denied the
Taxpayer’s request stating, “Income information not provided
timely”.
5. The Taxpayer appealed that decision by filing with the
county clerk and recorder a property tax appeal form which was
received on August 14, 2001 and forwarded to the Board on
September 18, 2001.

3
TAXPAYER'S CONTENTIONS
The Taxpayer contends that, based on past practices of DOR
personnel and with the advice and approval of DOR personnel, he
timely filed his applications for property tax assistance and
supplied requisite financial information also in a timely
manner. In support of his contentions, the Taxpayer offered
the following testimony and evidence.
The Taxpayer filed two applications for property tax
assistance on January 20, 2001 because his one piece of
property actually is located in two school districts. The
requisite financial information was not included because his
tax return, including Schedule C, was not completed at that
date. He testified that this was the procedure he followed in
the past two years and his requests for assistance had been
approved. He supplied financial information from Schedule C
when it was available on or prior to April 15 of those years.
A sticky note on an application stated “Need Income”. On both
applications was a note or writing stating that a copy of
Schedule C would be sent after it was completed. The Taxpayer
stated similar notes were included on applications filed for
the past two years and he had been told to include the
financial information when he received it from his accountant.
The Taxpayer called DOR personnel and told them because of
travel plans he would have to file for a tax extension in 2001

4
and would file his tax return and financial information when he
returned. He testified that he was told by the DOR that that
was okay but the information was needed by October 15 before
his tax bill would go out. While the Taxpayer was gone,
apparently a letter was sent to him dated May 2, 2001 by the
DOR stating the requisite financial information had to be
received within 10 days or the application for assistance would
be denied. On June 15, 2001 the DOR sent a letter to the
Taxpayer denying his request for tax assistance because “Income
information not provided timely.” No information about the
Taxpayer’s appeal rights was included as part of or with this
letter. The Taxpayer testified that he saw this letter around
July 20, 2001 after he had returned. Subsequently, the
Schedule C was completed and faxed to the DOR by the Taxpayer’s
accountant. After a later conversation with the DOR the
Taxpayer was informed of his appeal rights and given an appeal
form. This appeal form was filed with the clerk and recorder’s
office on August 14, 2001 and forwarded to the Board on
September 18, 2001.
DOR'S CONTENTIONS
The DOR contends the Taxpayer did not file applications
for property tax assistance with requisite financial
information in a timely manner and that it properly denied the

5
applications. In support of its contentions,the DOR offered
the following testimony and evidence.
Pursuant to Section 15-6-191 MCA and ¶ 42.19.401 ARM, the
applications had to be received by March 15, 2001. However,
“understanding that many people don’t file income taxes until a
month later, we over the years, have allowed some people some
time.” Further DOR testified “We’ve had to come up with a
procedure that’s more definitive so that you know exactly when
the last date is but we can’t extend on into August or
September into the fall because that detracts from the tax
base.” The Taxpayer is one of two people who received the May
2, 2001 letter from DOR who was denied property tax assistance
because it asserted the financial information was not timely
submitted.
BOARD'S DISCUSSION
The Taxpayer’s appeal to the Board was timely under the
provisions of Section 15-2-302 MCA. The Taxpayer apparently
did not receive the DOR’s June 15 letter, which was its final
decision, until after he returned from his travels on July 20,
2001. This letter did not inform him of his right to appeal to
this Board and he did not know of that right until subsequently
advised by the DOR when it sent him the appeal form. That form
was sent by the Taxpayer to the clerk and recorder’s office and
received by it August 14, 2001. The clerk and recorder’s

6
office did not forward the appeal form to the Board until the
Board received it on September 18, 2001. The Board’s
conclusion on this issue is that the Taxpayer’s appeal was
timely filed with the Board. For the remainder of the Board’s
discussion of this appeal, see Cynthia E. Taylor vs. Department
of Revenue of the State of Montana, Docket No.: SPT-2001-2
dated the 12th day of March, 2002, (Taylor) a copy of which is
attached hereto as Attachment A and incorporated herein by
reference. In Taylor the Board decided the issue present in
this appeal. Both of these appeals were heard the same day and
the DOR was represented by the same personnel in both. As
discussed here and in Taylor the Taxpayer timely filed his
applications for property tax assistance for 2001 within the
meaning of Section 15-6-19, MCA and ¶ 42.19.401 ARM.
CONCLUSIONS OF LAW
1. The Board has jurisdiction over this matter in accordance
with Section 15-2-302, MCA.
2. The Board shall give an administrative rule full effect
unless the Board finds a rule arbitrary, capricious or
otherwise unlawful. Section 15-2-301(4), MCA.
3. The appeal of the Taxpayer is hereby granted and the
decision of the DOR is reversed.
//
//

7
ORDER
IT IS THEREFORE ORDERED by the State Tax Appeal Board of
the State of Montana that the Taxpayer’s Application For
Property Tax Assistance for 2001 shall be approved.
DATED this 14th day of March, 2002.
BY ORDER OF THE
STATE TAX APPEAL BOARD
( S E A L )
_______________________________________
GREGORY A. THORNQUIST, Chairman
________________________________
JEREANN NELSON, Member
MICHAEL J. MULRONEY, Member
NOTICE: You are entitled to judicial review of this Order in
accordance with Section 15-2-303(2), MCA. Judicial review may
be obtained by filing a petition in district court within 60
days following the service of this Order.

8
CERTIFICATE OF SERVICE
The undersigned hereby certifies that on this 14th day of
March, 2002, the foregoing Order of the Board was served on the
parties hereto by depositing a copy thereof in the U.S. Mails,
postage prepaid, addressed to the parties as follows:
Paul Dumond
4279 Illinois Bench Rd.
Stevensville, MT 59870
Office of Legal Affairs
Department of Revenue
Mitchell Building
Helena, MT 59620
Jim Fairbanks
Regional Lead
Department of Revenue
2681 Palmer, Suite I
Missoula, MT 59808
______________________________
DONNA EUBANK
Paralegal