Houston v. Idaho State Tax Commission

McDEVITT, Chief Justice.

INTRODUCTION

Taxpayers Dr. William Houston and Betty Houston (the Houstons) appeal from a district court decision affirming a Board of Tax Appeals ruling that, within the meaning of the federal tax code, their Sun Valley condominium was a “residence” and not a rented “dwelling” subject to more favorable tax treatment.

BACKGROUND AND PRIOR PROCEEDINGS

The Idaho Tax Commission audited the Houstons’ income tax returns for 1986, 1987, and 1988. The Tax Commission issued a Notice Of Deficiency Determination proposing additional taxes, penalty and interest totaling $4,804.…