Montana Department of Revenue v. Dray

Allan K. Dray petitioned the District Court for the First Judicial District in Lewis & Clark County for judicial review of an order of the State Tax Appeal Board which affirmed the Department of Revenue’s (DOR) assessment of taxes, penalties, and interest against Dray. The District Court granted the petition for judicial review and reversed the decision of the State Tax Appeal Board. The DOR appeals the order of the District Court. We affirm the District Court.

The following issue is presented on appeal:

According to Montana’s tax code, ¡may a nonresident taxpayer deduct alimony payments from…