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Tax Court Judge Rejects Request To Compel Further Discovery

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Tax Court Judge Rejects Request To Compel Further Discovery

Olivia Covington for www.theindianalawyer.com

After previously allowing the deposition of the former commissioner of the Indiana Department of State Revenue, the Indiana Tax Court rejected the University of Phoenix’s requests to compel further discovery, writing that the additional discovery likely would not reveal admissible evidence.

In The University of Phoenix, Inc. v. Indiana Department of State Revenue, 49T10-1411-TA-65, the University of Phoenix filed a tax appeal in November 2014 challenging the Indiana Department of Revenue’s decision to source some of its online tuition revenue using a market-based or customer-based method, rather than an income-producing activity method, for the 2009, 2010 and 2011 tax years.

During discovery, the university served the state department with requests for all documents related to a proposed amendment to Indiana Code 6-3-2-2(f) as contained in the original version of the 2015 House Bill 1349. The department objected to that and other similar requests by the university and admitted at a hearing that it had withheld a document related to HB 1349 because it was not specific to the University of Phoenix.

Then in July 2016, the university sought all documents and communications related to the Tax Competitiveness and Simplification Report of September 2014 and a presentation on the report.  The department also rejected those requests, but did provide some documents in response.

Finally, in October 2016, the university deposed the department’s three 30(B)(6) witnesses, but after two of the witnesses explained that they were only generally aware of the bill, report and presentation, the university questioned the integrity of the discovery process.

The school then filed a motion to compel discovery requests, claiming that the department’s responses to its previous requests impaired its ability to prepare for a court-ordered trial date in March 2017. The department, however, argued that the university’s discovery requests “are not reasonably calculated to lead to the discovery of any evidence admissible at trial.”

Indiana Tax Court Judge Martha Blood Wentworth granted the university’s motion to depose the former department commissioner, Michael Alley, last November.  However, Wentworth noted in a Monday opinion that although she previously held that deposing the former department commission regarding the bill, the report and the presentation were relevant to the case’s discovery, “that relevancy determination was made for the sole purpose of deciding whether to allow the former Commissioner to be deposed.”

Further, Wentworth wrote that after deposing the former commissioner and the department’s witnesses, “the University has uncovered no smoking gun.” Thus, the additional discovery requests for events after the 2009, 2010 and 2011 tax years likely won’t reveal admissible evidence, so “the University’s failure to reveal how information about HB 1349, the Report, and the Presentation could lead to the discovery of evidence admissible at trial brings discovery on those matters to an end,” she said.

However, Wentworth also noted that “zealously defending one’s client in our adversarial system does not include a rope-a-dope attitude toward discovery nor should it come at the expense of true cooperation.” Thus, she ordered the department to provide the previously-withheld documentation regarding HB 1349 to the university within seven days.

Attorney General Curtis Hill Pens Op-Ed Supporting U.S. Supreme Court Nominee

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Indiana Attorney General Curtis Hill has penned an op-ed expressing his enthusiastic support for Judge Neil Gorsuch, who was nominated this month to the U.S. Supreme Court.

The piece was published today by The Hill, a Washington D.C.-based news outlet covering government and politics.

“As Indiana Attorney General, I work daily to ensure our state hits the proper marks established by federal law,”  Hill writes. “The U.S. Constitution stands as a stable and steadfast charter of our liberties, but activist federal judges too often contort its clear precepts based on their own ideological and philosophical whims. . . . In my own role, I welcome collaboration with partners at the federal level — be they in the executive, legislative or judicial branches – who recognize the proper roles of the states and the federal government.”

YESTERYEAR: Peerless Laundry by Pat Sides

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YESTERYEAR: Peerless Laundry by Pat Sides

The photograph was taken shortly after Peerless Laundry’s expanding business relocated from Main Street to a new facility at Eighth and Oak streets in 1914. The tedious chore of cleaning in washtubs at home was giving way to the modern, large-scale technology provided by such professional laundries as Peerless. In 1919, a newspaper reported that more than a hundred “girls” were employed at the laundry; some of them are pictured here on the second floor, which contained the drying, ironing, and finishing rooms. The building, later occupied by the Swanson-Nunn Electric Company, was recently razed.

INDIANA HOUSE DEMOCRATS UNVEIL ROAD FUNDING PLAN PROVIDING $800-900 MILLION IN NEW FUNDING EACH YEAR, BUT NO NEW TAXES OR TOLLS

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Indiana House Democrats today unveiled a comprehensive road plan that would provide from $800-$900 million each year in new funding for state and local infrastructure each year without raising taxes or creating new tolls.

 

“Today, the people of Indiana find they have a choice in determining how we solve the crisis that is facing our state’s infrastructure,” said House Democratic Leader Scott Pelath from Michigan City. “House Republicans have advanced a proposal that increases the taxes you pay at the pump and at your local license branch, and raises the specter of new toll roads across our state. House Democrats believe we can do more — without raising new taxes or providing new tolls on roads — by ensuring that government lives within its means, and making sure that one class of taxpayers is not unfairly burdened with paying the freight for road repairs.”

 

The Democratic proposal contains five components:

 

n  Dedicating each year’s state agency budget reversions toward state and local road funding. Based on past precedent, this would generate around $300 million per year.  (Reversions over the past 10 years have averaged $496 million.)

n  Ensuring that all state sales taxes paid at the pump go toward state and local road funding. This would provide at least $305 million in FY 2018, $299 million in FY 2019, $331 million in FY 2020, and $361 million in FY 2021.

n  Ensuring that all revenue from the special fuels sales tax go to state and local roads. This would provide an additional $25 million in FY 2018, $27 million in FY 2019, $30 million in FY 2020, and $31 million in FY 2021.

n  Allowing the Next Generation Trust Fund to be used for local road loans, a move that would provide around $125 million each year in low interest loans to local communities.

n  Freezing the tax rates charged to corporations and financial institutions, and using the state funds that were to be used to finance future cuts toward state and local roads. This would provide an additional $27 million in FY 2018, $49 million in FY 2019, $77 million in FY 2020, and $105 million in FY 2021.

 

“Rather than shift the burden for infrastructure funding to the backs of people just trying to make ends meet, the Democratic plan uses existing resources,” said State Rep. Dan Forestal (D-Indianapolis), ranking Democrat on the House Roads and Transportation Committee. “I would invite everyone to compare our plan to that offered by the Republicans, which gives a huge tax cut to the connected 1 percent, and the largest tax hike in history to the rest of us. Our proposal also focuses on local roads, which make up 90 percent of such surfaces in our state. Our plan was crafted with hard-working Hoosiers in mind. Our Republican friends would be smart to listen to the voices of their constituents when they say they have been taxed enough.”

 

State Rep. Gregory W. Porter (D-Indianapolis), ranking Democrat on the House Ways and Means Committee, added, “I would note that this proposal injects some honesty into the state budget process by making sure that the Next Generation Trust Fund is used for the purpose for which it was originally intended and applying reversion dollars to the tangible good of infrastructure improvements that can be enjoyed by all, instead of placing those dollars back into a state treasury for the sole purpose of continuing to inflate a surplus that already has been swollen to a bloated size. The House Republican proposal does little more than ask the people of Indiana to fork over their hard-earned dollars and trust those in charge to do the right thing, even when it comes to turning some of our roadways into toll roads.”

 

The legislators noted that the bill also includes a provision that would prohibit “pay to play” campaign contributions from a public works contractor and other interested parties during the length of any roads contract and three years after its completion. The proposal is virtually the only campaign finance reform initiative that has been discussed this session.

 

Other provisions of the proposal call for placing a priority on hiring Hoosier workers for projects built with these road funds, prioritizing maintenance on existing roads first, the use of prevailing wage rates on the projects, and a renewed emphasis on projects being done by businesses owned by women, minorities, and veterans.

 

House Democrats expect to offer their proposal as an amendment to the House Republican roads plan contained in House Bill 1002 when it goes before the Ways and Means Committee later this week. They also said the plan would be offered when the measure reaches the full House for consideration later this session.

Women’s Soccer adds 11 for 2017

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University of Southern Indiana Women’s Soccer and Head Coach Eric Schoenstein have signed 11 players to its 2017 recruiting class.

Choosing USI to continue their soccer and academic careers are midfielder Sunny Lehman (Evansville, Indiana), defender Madelyne Juenger (Columbia, Illinois), forward Taylor McCormick (Rapid City, South Dakota), midfielder Margaret Winter (St. Louis, Missouri), defender Elizabeth Smith (Muncie, Indiana), midfielder Megan Brune (Olathe, Kansas), forward Ashley Hayes (St. Charles, Illinois), goalkeeper Skylar Brant (Plymouth, Michigan), defender Mallorie Stein (Evansville, Indiana), defender Victoria Heinrich (Lawrenceburg, Indiana), and midfielder Chelsea Morris (St. Louis, Missouri).

“We are extremely excited about our 2017 class,” Schoenstein said. “We feel they can come in and make an immediate impact on our program.

Bios of Women’s Soccer Signees

Lehman: A senior midfielder from Mater Dei High School (Evansville, Indiana), she was first in total points and goals scored in the SIAC an second team All-State selection, the Evansville Metro Player of the Year in 2016…two-time first team All-Conference and All-City selection…helped team to state runner-up finishes in ’15 and ’16…played club soccer for Sporting Southern Indiana, winning the state championship in 2013.

Juenger: A senior at Columbia High School (Columbia, Illinois), she was named to the All-Sectional soccer team in 2015 and was named to the Top Senior 20 Illinois Soccer Watch List for the class of 2017…helped team win regional championships in 2014-16…played club soccer for Sporting J.B. Marine and Lou Fusz S.C.

McCormick: A senior at Sevens High School (Rapid City, South Dakota), she was named the 2017 Attacking Player of the Year and earned second team All-State…played club soccer for Black Hills Rapids, winning state championships in 2013 and 2015…also participated in the Olympic Development Program and Midwest Regional League.

Winter: A senior at Nerinx Hall High School (Webster Groves, Missouri), she earned All-Conference honorable mention in 2016…played club soccer for J.B. Marine United winning the 2015 SLYSA League championship, as well as winning the Midwest Regional League championship in 2016 with Lou Fusz S.C.

Smith: A senior at Yorktown High School (Yorktown, Indiana), she was a four-time first team All-Conference selection…earned All-State honors and was named the Star Press Athlete of the Year as a senior…helped team win two sectional championships…played club soccer for Indiana Fire.

Brune: A senior and four-time letter winner at Olathe South High School (Olathe, Kansas), she helped her team to the 2014 Sunflower League championship, and a third-place finish in the Missouri-Kansas tournament…played club soccer for Kansas Rush, helping team win the 2014 state championship, as well as the Copa Cup in 2016.

Hayes: A senior at St. Charles North High School (St. Charles, Illinois), she earned two Academic All-Conference awards…helped team win sectional championship, two regional championships, and two conference championships…led team to championship at National Adidas High School Tournament in 2015…also helped team win Metea Valley Invite Tournament in 2015…played club soccer for Campton United SC and led team to number one ranking in Illinois.

Brant: A senior at Salem High School (Canton, Michigan), she was named All-District and All-Conference as a junior…senior season is this spring…played club soccer for the Michigan Hawks, helping team win the 2016 and 2017 Michigan State Cup, as well as 2015 Midwest Regional League division championship.

Stein: A senior at Reitz High School (Evansville, Indiana), she was a three-time All-City honoree…earned first-team All-Conference and All-Metro honors in 2015…four-time team defensive MVP…helped team win 2016 Hoosier Cup…2016 Wendy’s High School Heisman…played club soccer for Sporting Southern Indiana.

Heinrich: A senior at East Central High School (St. Leon, Indiana), she is a two-time All-Conference selection, including All-District, All-County and first team All-State honors in 2015…played club soccer for Total Futbol Academy.

Morris: A senior and three-time letter winner at Oakville High School (St. Louis, Missouri)…was team captain of club team Lou Fusz S.C. where team was a state semifinalist in 2015.

COUNTY OFFICIALS DISCUSS LEGISLATIVE AGENDA AT STATE CAPITOL

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INDIANAPOLIS – Vanderburgh County Commissioners Bruce Ungethiem and Cheryl Musgrave were among about 300 county officials from around the state who attended the Association of Indiana Counties’ (AIC) 2017 County Legislative Conference last week.

County officials met with their legislators to express their concerns about local government issues at this two-day event sponsored by the AIC. The event was held at the Hyatt Regency Indianapolis in downtown Indianapolis Jan. 31 and Feb. 1. The AIC staff briefed county officials on legislation that would have an impact on local road funding, both at the state and local level. Members were also briefed on bills that would impact property assessment, tax sales, elections, drainage issues, and funding of local criminal incarceration.

Participants received an update from National Association of Counties Executive Director Matt Chase who discussed the new congress and the administration’s policies related to county government. Workshop topics addressed cyber security issues and pre-trial release related to substance abuse measures and sentencing reform.

County officials also heard from Indiana Governor Eric Holcomb, State Auditor Tera Klutz and State Treasurer Kelly Mitchell. Indiana Fiscal Policy Institute President John Ketzenberger also provided an update of the state’s finances.

Indiana State Police Participates  in Tri-State Human Trafficking Initiative 

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Indianapolis – Troopers and Motor Carrier Inspectors with the Commercial Vehicle Enforcement Division (CVED) of the Indiana State Police joined neighboring states to raise awareness about human trafficking during the week of January 23rd through the 27th. The Indiana State Police, Ohio State Highway Patrol and the Michigan State Police take the crime of human trafficking seriously and will continue to educate the public and enforce laws that crack down on traffickers.

The goal of the week-long Tri-State Human Trafficking Initiative was to train and educate those in a position to see human trafficking taking place, such as motor vehicle drivers, public transportation companies, rest area attendants and truck stop employees.  ISP personnel focused on educating commercial motor vehicle (CMV) drivers through presentations at company safety meetings, and speaking with drivers and employee’s at rest stops, truck stops and ISP scale facilities across the state.

These individuals can act as the eyes and ears of Indiana’s highways, and by teaching them the signs of human trafficking and how to report it, they are yet another resource to protect humans from trafficking and exploitation. 

While no recoveries were reported during the weeklong event, the ISP CVED conducted 20 presentations to over 700 people and distributed over 3,280 window decals, wallet cards and brochures during the events and individual contact with CMV drivers. 

“Truckers Against Trafficking is an organization founded by truckers to combat human trafficking across North America. Commercial motor vehicle drivers are in unique position to help law enforcement identify suspected human trafficking as they perform their daily duties across the nation,” said Captain Jon Smithers of the Indiana State Police. “Truck stops and rest parks have historically been utilized by human and sex traffickers and CMV drivers have the opportunity to be the eyes and ears of law enforcement in these locations.”

To report a trafficking tip, call the National Human Trafficking Hotline Resource Center at 888-373-7888 or text BeFree to 233733. The toll free number is available anywhere in the US, 24/7. To learn more about Human Trafficking or request a presentation for your group, business or organization contact the Indiana State Police Commercial Vehicle Enforcement Division at (317) 615-7373. 
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Valentine’s Day Special Discount for Shen Yun Tickets!

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VALENTINE’S DAY SPECIAL OFFER!

Save $3 per ticket now through 10:00pm on February 15!
Use the code: VD2017
Two Shows to pick from on Saturday, February 25 at 7:30pm or Sunday, February 26 at 2:00pm
Purchase tickets online at the buttons below, at 1-800-745-3000 or at our Box Office.
Saturday Feb. 25 at 7:30pm
Sunday, Feb. 26 at 2:00pm
Facebook
Twitter
Shen Yun Website   |  SMG Evansville Website
Old National Events Plaza, 715 Locust Street, Evansville, IN. 47708
812-435-5770 – Box Office ext. 211

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Adopt A Pet

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Wiggles is a 3-month-old female Lionhead/English spot mix rabbit! Her two sisters, Reggie and Jet, are up for adoption too. Take Wiggles to her new indoor-only home for $30, which includes her carrier & spay surgery! Contact the Vanderburgh Humane Society at (812) 426-2563 or adoptions@vhslifesaver.org for details!