State, Dep't of Taxation v. Chrysler Group LLCAnnotate this Case
Chrysler Group, LLC, a motor vehicle manufacturer, reimbursed two buyers of defective vehicles the full purchase price, including sales tax, pursuant to Nevada's lemon law. Thereafter, Chrysler sought refunds of the sales taxes that the vehicles' retailers had collected and remitted when they originally sold the vehicles to the buyers. The Department of Taxation had previously refunded lemon law sales tax reimbursements to manufacturers but denied Chrysler's refund requests because the state attorney general's office advised the Department that there was no statutory authority for such refunds. The district court concluded that Chrysler was entitled to a refund. The Supreme Court reversed, holding that Nevada law did not allow for such a refund and the Department was not required to adhere to its prior erroneous interpretation of the law.