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In str u ctio n: T his i s a m odel l e tte r. A dap t t o f it y our f a cts a n d c ir c u m sta n ces. D A T E V IA F A C SIM IL E A NDU .S . M AILN A M EC O M P A N YA D D R E S S L I N EC I T Y , S T A T E Z I P C O D E R e: Applic atio n f o r E xem ptio n o f A d V alo re m T ax es D ear : T his le tte r is to u pd ate y ou o n th e s ta tu s o f th e a p plic atio n f o r e x em ptio n f ro m a d v alo re m tax es w hic h o ur f ir m f ile d o n b eh alf o f . T he b otto m lin e is th at th e a p plic atio n is p re se n tly sta ll e d w ith t h e C oun ty B oard o f S uperv is o rs d ue t o a d is p ute a s t o t h e i n te rp re ta tio n o f + C ode A nnota te d ( S upp. ). I a m w ork in g w ith , E xecu tiv e D ir e cto r o f , an d , A dm in is tr a to r fo r th e C ounty B oard o f S uperv is o rs to re so lv e th e c o nflic t a n d hav e t h e a p plic atio n a p pro ved . U nfo rtu nate ly , t h is m ay r e q uir e o bta in in g a n o pin io n l e tte r f ro m t h e A tto rn ey G en era l's o ffic e o r filin g a d ecla ra to ry ju dgm en t a ctio n. A s a re su lt, it m ay ta k e se v era l m onth s t o g et t h e a p p lic atio n a p pro ved , a ssu m in g a n y r u lin g i s i n o ur f a v or. T he d eta ils o f h ow w e a rriv ed a t o ur p re se n t s itu atio n a re a s f o llo w s: A s y ou k now w e f ile d an A pplic atio n fo r E xem pti o n fro m A d V alo re m T ax es p urs u an t to C O DE o n o r a b out . Du plic ate o rig in als o f t h e a p plic atio n a n d o ne c o py w ere f o rw ard ed , A dm in is tr a to r f o r t h e ++ + C ounty B oard o f S uperv is o rs w ith c o pie s to a t a n d w ith . It is th e pra ctic e o f t h e C ounty B oard o f S uperv is o rs t o r e fe r a ll a p plic atio ns f o r t a x e x em ptio ns t o +++, w ho th en m ak es re co m men datio ns to th e B oard o f S uperv is o rs re g ard in g th e g ra n tin g o f th e ap plic atio n a n d th e te rm o f th e e x em ptio n. A s a g en era l r u le , th e B oard o f S uperv is o rs f o llo w th e ex act r e c o m men datio n o f . B ecau se th e c o m mitte e o n ta x e x em ptio n o nly m eets o nce or tw ic e a m onth a n d th e B oard o f S uperv is o rs o nly m eet o n th e f ir s t o f e ach m onth , it w as no t u nusu al th at I h ad h eard n oth in g re g ard in g a p pro val o r d en ia l o f th e a p plic atio n b y th e e n d o f Ja n uary . I n f a ct, a p plic atio n s a re r o utin ely g ra n te d w ith out a n y n otic e t o t h e p artie s.W hen I c h eck ed o n th e s ta tu s o f o ur a p plic atio n to w ard s th e e n d o f , to ld m e th at t h e a p plic atio n h ad n ev er b een r e fe rre d t o . W hen I t o ld h im t h at w e h ad s e n t h im a c o py in th e m ail, h e s ta te d th at h e d id n ot r e ceiv e it. M ore o ver, in dic ate d to m e th at a n A tto rn ey Gen era l's o pin io n h ad b een is su ed in w hic h in te rp re te d th e sta tu te a s to p ro vid e th at th e ex em pti o n ap p lie d only to th at portio n of goods sh ip ped out of sta te , an d th at th e B oard of Su perv is o rs c o uld n ot g ra n t a n e x em ptio n o n a ll o f its in ven to ry . W hen I q uestio ned about th is , h e c o uld n ot d ir e ct m e to a n y s p ecif ic a tto rn ey g en era l o pin io n le tte r o r r u lin g f ro m th e Sta te T ax C om mis sio n. A fte r m y c o nvers a tio n w ith , I s p oke w ith a n d y our o ffic e in dic ate d th at th ere w as a p ro ble m r e g ard in g th e in te rp re ta tio n o f th e s ta tu te a n d th at I w as n ot s u re wh eth er w e w ould b e a b le t o q ualif y f o r t h e e x em ptio n , w heth er w e w ould o nly b e a b le t o e x em pt a po rtio n g oin g o ut o f s ta te , o r w heth er it w ould b e n ec essa ry to litig ate th e m atte r in o rd er to g et a de te rm in atio n o f t h e i s su e. A fte r ta lk in g w ith , I c o ntin ued to a tte m pt to " g et to th e b otto m " o f w hat h ad to ld m e, b ecau se it sim ply d id n ot m ak e se n se . M uch o f w hat w as tr y in g to u se a s a n ex pla n atio n to ju stif y w hy co uld not re ceiv e th e ex em ptio n ap peare d to ap ply to th e ex em pti o n o f a f re e p ort w are h ouse , w hic h i s c o vere d b y C O DE. A lth ough I t r ie d t o e x pla in t o ++ t h at w e w ere n ot a p ply in g u nder t h e f re e p ort s ta tu te s, b ut w ere m ak in g a n a p plic atio n u nder ++ , h e i n sis te d t h at t h e l im ita tio ns w hic h h e s a id t h e A tto rn ey G en era l h ad p ut o n t h e s ta tu te a p plie d . We e v en d is c u sse d in d eta il th e f a ct th at th ere w as n oth in g a n yw here in th e s ta tu te w hic h r e la te d to any p erc en ta g es o r c alc u la ti o ns o f a m ount s h ip ped o ut o f s ta te . f u rth er to ld m e th at th e o nly pers o n t h at h e k new w ho c o uld e x pla in i t t o m e w as , a n a tto rn ey a t t h e f ir m i n .A fte r ta lk in g w ith , I c o nta cte d a t th e S ta te T ax C om mis sio n, P ro perty Tax D iv is io n. H e in dic ate d to m e th at h e k new o f n o S ta te T ax C om mis sio n ru lin g w hic h w ould pre v en t f ro m o bta in in g t h e e x em ptio n s e t f o rth i n . A s h e c o rre ctly n ote d , t h e s ta tu te i s at th e d is c re tio n o f th e B oard o f S uperv is o rs a n d d oes n ot r e q uir e a n y a p pro val f ro m th e S ta te T ax Co m mis sio n. B ecau se o f t h is f a ct, h e d id n ot h av e a l o t o f e x perie n ce w ith , b ut s ta te d t h at h e be lie v ed t h e e x em ptio n s h ou ld b e a v aila b le t o .A fte r ta lk in g w ith , I a ls o ta lk ed w ith , a s ta ff a tto rn ey f o r th e A tto rn ey Gen era l w ho d eals p rim arily w ith ta x e x em ptio n is su es. a n d I d is c u sse d in h ypoth etic al te rm s a s itu atio n lik e th at o f . In p artic u la r, w e d is c u sse d th e fa ct th at th e s ta tu te h ad b een am en ded in to p ro vid e th at th e e x em ptio n a p pli e d to d is tr ib uto rs a n d w hole sa le m erc h an ts . We c o m pare d th e la n guag e o f th e o ld s ta tu te a n d th e n ew s ta tu te a n d a ls o d is c u sse d a c ase d ecid ed un der th e o ld s ta tu te . T hat c ase , , in te rp re te d a n o ld v ers io n o f to a p ply o nly to g oods ma n ufa c tu re d in . In , a N ew Y ork co rp ora tio n so ught an ex em ptio n fo r goods ma n ufa c tu re d o uts id e th e s ta te o f , b ut w are h ouse d in . T he c ity d en ie d th e a p plic atio n an d o n a p peal to th e C ir c u it C ourt o f C ounty , th e C ir c u it C ourt r e v ers e d th e c ity a n d g ra n te d th e ex em ptio n. The case w as th en ap peale d to th e S upre m e C ourt w ho ru le d th at th e ex em pti o n d id n ot a p ply o n th e b asis o f la n guag e in th e o ld s ta tu te an d o f th e Co nstitu tio n. A lth ough w e c an no t g uara n te e o r o pin e th at is a b so lu te ly e n title d to th e e x em ptio n req ueste d u nder , w e b elie v e, th at g iv en th e p re se n t w ord in g o f th e s ta tu te a n d th e a p pare n t in te n t o f th e le g is la tu re , th at th e c ase c an b e d is tin guis h ed a n d th ere is a r e aso nab le b asis f o r gra n tin g th e e x em ptio n a s r e q ueste d . v erb ally a g re ed w ith o ur p ositio n, w ith th e c av eat th at it w as n ot a f o rm al o pin io n a n d s h e w ould b e r e q uir e d t o d o a d ditio nal r e se arc h b efo re r e n derin g a n offic ia l o pin io n . a ls o s ta te d t h at t h ere h av e b een f iv e A G o pin io ns r e g ard in g , t h e l a te st be in g i n 1 991 , a n d n one o f t h e o pin io ns h av e d ealt w ith t h e s ta tu te a s r e v is e d . In a d ditio n, I a ls o ta lk ed w ith to s e e if s h e c o uld s h ed s o m e lig ht o nto th e s itu atio n an d 's th in kin g. A pp are n tly , h as r e lie d o n to s o m e e x te n t in d ete rm in in g w hat ex em pti o ns a re a v aila b le to v ario us e n titie s. It w as ' o pin io n th at in th e p ast, h ad o nly been f o r g oods m an ufa ctu re d i n . H ow ev er, s h e a g re ed t h at w ith t h e c h an ges i n t h e s ta tu te , ++ + m ay b e e n title d t o t h e e x em ptio n. A lth ough I h av e n o p ro of, it is m y s u sp ic io n th at a fte r w e f ile d o ur a p plic atio n, to ld the B oard o f S uperv is o rs th at w e c o uld n ot q ualif y fo r th e e x em ptio n b ecau se o ur g oods a re n ot ma n ufa c tu re d in , a n d n oth in g w as d one w ith r e g ard to th e a p plic atio n. I w as n ev er n otif ie d of a n y p ro ble m , n or d id t e ll m e a b out a n y p urp o rte d a d vers e i n te rp re ta tio n o f t h e s ta tu te u ntil I i n quir e d i n l a te . n ow s a y s t h at h e c an not f in d t h e a p plic atio n a n d i s n ot s u re w heth er it w as e v er f ile d . I k now th at it w as s e n t to h is o ffic e. s u ggeste d m ay be th at a b undle o f o ur ma il g ot l o st, b ut I f in d t h at d if fic u lt t o b elie v e, c o nsid erin g t h at r e ceiv ed h is c o py a n d I k now of n o o n e e ls e c la im in g t o h av e f a ile d t o r e ceiv e a n y c o rre sp onden ce s e n t f ro m o ur o ffic e. R ath er, I be lie v e th at w as c o n fu se d a b out o ur a b ility to r e ceiv e th e e x em ptio n a n d th at h e e ith er to ld the B oard o f S uperv is o rs t o h old o ff o n t a k in g a n y a ctio n o r s im ply i g nore d t h e m atte r. B ase d o n th e c o nvers a tio ns I h av e h ad w ith a ll th e v ario us p artie s, it is m y r e co m men datio n that w e p ro cee d w ith atte m ptin g to o bta in th e ex em ptio n u nder , ev en if th is re q uir e s ob ta in in g a n A tto rn ey G en era l's o pin io n. I d o n ot b elie v e, b ase d o n h is c o nfu sio n r e g ard in g t h e l a w and h is a p pare n t r e lia n ce o n th at w ill c o n ced e th at is e n title d to th e e x em ptio n with out s u ch a n o pin io n f ro m th e A tto rn ey G en era l. O ne a lte rn ativ e w ould b e to f ile a d ecla ra to ry judgm en t a ctio n in th e C ir c u it C ourt o f C ounty f o r d ete rm in atio n a s to th e a v aila b ility o f th e ex em pti o n to . A noth er a lte rn ativ e m ay b e to w ith dra w th e a p plic atio n u nder a n d pro ceed w ith e ffo rts to o bta in a fre e p ort w are h ouse e x em ptio n. A fre e p ort e x em ptio n h as th e ad van ta g e o f n ot b ein g a l im ite d t im e t o t e n ( 1 0) y ears a n d a ls o c u rre n tly e x em pts s c h ool t a x es. T he ob vio us d ow n s id e is th at a f re e p ort lic en se m ust b e o bta in ed f ro m S ta te T ax C om mis sio n and t h e e x em ptio n w ill b e l i m ite d t o t h at p ortio n o f g oods w hic h a re s h ip ped o ut o f s ta te a s o ppose d to a ll i n v en to ry .A t th e p re se n t tim e, I a m c o ntin uin g m y d is c u ssio ns w ith a n d in h opes o f ge ttin g th em to a g re e th at is e n title d to th e e x em ptio n u nder , a lth ough I d o n ot e x pect an y s u ccess w ith out o bta in in g a n o pin io n f ro m t h e A tto rn ey G en era l o r a j u dic ia l d ecis io n. I w ould be m ost a p pre cia tiv e i f y ou w ould g iv e t h is m atte r s o m e c o nsid era tio n a n d i n fo rm m e a s t o h ow ++ w ould lik e to p ro ceed . In th e m ean tim e, if y ou h av e a n y q uestio ns o r w ould lik e to d is c u ss th is fu rth er, p le ase d o n ot h esita te t o c o nta ct m e. S in cere ly , B y: : cc :