Alabama—Sales & Use Tax: Appeal Dismissed for Lack for Jurisdiction
AL: The Alabama Department of Revenue appeal against a Circuit Court judgment was dismissed for lack of jurisdiction because the judgment was not final. In that matter, the department found that the taxpayer, a furniture store operator, paid no sales or use tax on its furniture sales and shipping fees collected on shipments to various counties in Alabama. The taxpayer claimed he had successfully collected and discharged. The district court ruled in favor of the taxpayer on all matters except the issue of taxes owed on delivery charges and ordered the department to reassess the taxes and return to the taxpayer any excess funds it had. Upon review, the Court of Civil Appeals found that the Circuit Court’s judgment refused to return to the Department the amount of delivery fee taxes withheld by the Department, or the amount of taxes unduly paid by the Department.
Upon review, the Court of Civil Appeals ruled that the circuit court’s judgment had failed to award the amount of taxes that the department was required to withhold and the amount of unduly paid taxes that the department was required to repay to the taxpayer. Generally, a final judgment should state the amount of the award and not simply state that a party is entitled to recovery. Accordingly, the department’s complaint of lack of jurisdiction was dismissed.
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