Michael McClain, Plaintiffs and Appellants v. Sav-On Drugs, Defendants and Respondents. And…

Summary

The court held that consumers may not compel retailers to seek sales-tax refunds when the taxability of the purchases has not already been resolved by a legal determination. Because the statutory scheme assigns refund claims to retailers and provides administrative and other avenues for resolving taxability disputes, the court rejected the consumers’ due-process and takings challenges. The court also held that the consumers’ contract theory could not circumvent that scheme. Justice Kruger concurred, agreeing with the result but viewing the absence of comparable equitable circumstances and the statutory structure, rather than exhaustion of alternative procedures, as the central reasons for denying relief.