NEED HELP

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NEED HELP?

• I welcome telephone calls and e-mails as an
  efficient way to interact with students. My
  telephone number at Pearson-Christensen is
  775-0521.
• You may contact me by e-mail at
  garrypearson_at_yahoo.com. I am also available in
  person from time to time at the law school and my
  office, 24 North 4th Street here in Grand forks.

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WHAT IS OUR EMPHASIS IN THIS COURSE?

• The most important aspects of this course are to
  be found in the limits on the taxation of
  multi-state and international business
  organizations. Hence, the course will largely be
  directed towards chapters 5,6,7 and 8. We will
  cover sales and use taxes in chapter 9 and income
  taxes in chapter 10 as well.

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INTRODUCTION

• State and local taxation primarily involves
  income and sales and use taxes. Property taxes
  are a distant third in importance. We will cover
  these three types of taxes in this course.
• The taxation of multi-state and international
  business and persons is the most interesting and
  most litigated area of the law.
• In North Dakota, title 57, NDCC, is dedicated to
  the subject of taxation.

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IS STATE AND LOCAL TAXATION IMPORTANT?

• Our office constantly has several state and local
  issues pending. Some are in litigation, some in
  audit and everywhere in between. We are often
  consulted on planning for state and local tax
  matters.
• The office of the North Dakota tax commissioner
  performs few audit functions, but Minnesota has
  field offices staffed with tax auditors and an
  aggressive state-wide program.

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A SALES AND USE TAX EXAMPLE

• Our client lived in North Dakota and farmed here
  and in Minnesota. He bought his equipment in
  North Dakota and also farmed with it in
  Minnesota. That state assessed the use tax on
  the full purchase price of the equipment.
• What is the use tax?

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AN EXAMPLE, CONTINUED

• The Minnesota Supreme Court upheld the tax we
  filed a petition for certiorari, which was
  denied.
• We made these observations
• A salesman working in more than one state should
  pay use tax on his car, ? his clothes, his
  razor, shaving cream and toothbrush, that is,
  everything he brings into the state.
• When the Vikings play the Chargers in San Diego
  they should pay use tax on their equipment, pads
  and uniforms that they bought Minnesota.

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ORGANIZATION OF THE COURSE

• Please read Chapter 2 whenever you have time. We
  will not cover it in class. We will also skip
  the uniformity requirements covered in pages 33
  to 88 pp. 34- 89 8th ed.. Later I will lecture
  on Ad Valorum taxes, Chapter 4, but you need not
  read that material. Your first assignment is in
  Chapter 5, pp.189 to 223 pp. 192-227, 9th ed.
  We will usually cover 30 to 40 pages a day.

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ORGANIZATION CONTINUED

• We have most of the materials on power point
  slides that will be accessible through the
  internet. You will be notified when the power
  point slides are uploaded. The address will be
  www.law.und.nodak.edu/class/tax
• There will be a final examination in essay form.
  I tried to write an objective final exam and
  failed utterly. Why? There are far too few
  absolutes in this field.