Practice Areas & Industries: Baker, Donelson, Bearman, Caldwell & Berkowitz, PC

Practice/Industry Group Overview

Baker Donelson's trial lawyers represent a wide variety of businesses in state and local tax litigation, not only in Tennessee and Mississippi, but throughout the United States. They have served as lead trial counsel in disputes involving ad valorem taxation of railroads, telecommunications and other public utility and industrial property in more than 30 states. They have successfully litigated complex state franchise, income, and sales and use tax disputes, achieving tax savings and equity for businesses large and small.

Representative Matters

• Won a summary judgment for railroad clients in two cases pending in the Federal District Court in Wyoming. The issue in this case was whether Wyoming violated a federal statute that prohibits discriminatory state taxation of railroads. The combined tax exposure for our clients for both of these taxes was approximately $7 million annually.
• Won appellate case for pipeline companies operating in Tennessee, which will save our clients millions of dollars in property taxes in the coming years.
• Obtained successful result after oral argument in the court of appeals involving a tax case for a labor support company. Baker Donelson was brought in as special appellate counsel after the taxpayer was held liable for nearly $3 million dollars in district court. Ultimately, the firm was able to convince two of the three Fifth Circuit judges that the question of reasonableness was a question for the jury and should not have been decided on summary judgment.
• Obtained decision of the Alabama Supreme Court declaring a city licensing ordinance to be unconstitutional as an invalid tax on interstate commerce.
• Represented a coalition of public utilities in obtaining state-wide personal property equalization relief in Tennessee amounting to more than $10 million annually.
• Represented major Class I railroad in valuation case involving more than 400 local jurisdictions in New York. Federal case certified as a defendants' class. Railroad obtained 25 percent reduction in taxes for years at issue, plus settlement encompassing four additional years with tax savings valued at more than $50 million.
• Represented publisher of telephone directory in unitary income dispute involving state income tax treatment of dividends from foreign subsidiary. Dividends of $18 million excluded from taxable income.
• Successfully defended automobile dealership in a class action in which plaintiffs claimed that these dealerships had illegally collected the Tennessee Business Tax in association with vehicle sales.