Tax Tribunal Update

After many stops and starts, final FY 2014 funding for the Tax Tribunal is contained in HB 214, which is the State general services appropriation bill. As we indicated earlier in the week, the funding is for approximately ¾’s of the fiscal year, and anticipates that the Tax Tribunal will not open its doors until January 1, 2014. Judges may be appointed sooner for the purpose of establishing the Tribunal’s offices. Delayed implementation was due both to State budget constraints and the fact that to-date no judges have been appointed by the Governor, although we continue to hear that he will make his appointments “in the next few days.” Repeated requests to the Governor’s Office to announce his appointments while the General Assembly is still in session have been refused. Appointees are subject to Senate confirmation, and now with adjournment likely, confirmation hearings will be deferred until fall veto session or later.

Although funding for the Tribunal is contained in HB 214, the budget implementation bill or “BIMP” bill, SB 1329-as amended, contains the actual language which delays the opening of the Tribunal until January 1, 2014. We were able to attach Amendment #4 (over Department of Revenue objections), which will allow any taxpayer that files a protest with the Department of Revenue after June 1, 2013, to elect to move their case to the Tax Tribunal. The election to move to the Tax Tribunal must take place after January 1, 2014, but no later than February 1, 2014. While we are disappointed with the delay in the Tax Tribunal opening, we have been assured that full funding will be provided in future years. Funding is essential, but so is the appointment of the Chief Judge and additional Administrative Law Judges. Let’s hope the Governor follows through with his promise to name the judges “in the next few days.”