Coordinating Council for Independent Living, Inc. v. Palmer, 209 W. Va. 274

Summary

The Supreme Court of Appeals of West Virginia held that the state's health care services provider privilege tax did not apply to homemaker and case management services provided under the Aged/Disabled Home and Community-Based Services Waiver Program. The court construed the ambiguous tax statute in favor of the taxpayers and affirmed an injunction against enforcement. It also held that the Tax Commissioner's attempt to impose the tax through a letter constituted an improperly promulgated agency rule under the Administrative Procedures Act.

Holdings

1. The privilege tax imposed by West Virginia Code § 11-13A-3 does not apply to case management services supplied pursuant to the Aged/Disabled Home and Community-Based Services Waiver Program.
2. The privilege tax imposed by West Virginia Code § 11-13A-3 does not apply to homemaker services provided pursuant to the Aged/Disabled Home and Community-Based Services Waiver Program, absent further legislative clarification.
3. The Commissioner's letter constituted an agency rule because it established a generally applicable policy affecting private rights and interpreted and implemented tax laws. Because it was not promulgated under the Administrative Procedures Act, the attempted tax enforcement was void and ineffective.

Questions Presented

1. Whether the privilege tax imposed by West Virginia Code § 11-13A-3 applies to homemaker and case management services provided pursuant to the Aged/Disabled Home and Community-Based Services Waiver Program.
2. Whether the Tax Commissioner's March 3, 1998, letter announcing a new tax-enforcement policy constituted an agency rule subject to the Administrative Procedures Act's rulemaking requirements.

Disposition

affirmed