Michelle DeLappe

Practice Areas

Michelle helps businesses reduce their state and local tax exposure through effective planning, defending against assessments and pursuing refunds.

Admitted in Washington, Oregon, Idaho, Montana, and Alaska, she handles state and local tax matters in a variety of contexts, including strategic planning, transactions, audits, administrative appeals and litigation. Her experience includes litigating some of the largest property tax disputes in Washington state history. She also helps businesses navigate issues involving nexus, apportionment, sales and use tax, B&O tax, real estate transfer taxes and other excise taxes and fees.

Michelle also represents clients in rate cases and other proceedings before the Washington Utilities and Transportation Commission (UTC). Her experience with administrative law, financial analysis and regulated industries in her state and local tax practice enables her to successfully advocate for clients in UTC proceedings.

A frequent contributor to the discussion on state and local taxes in the Pacific Northwest, Michelle has written for Tax Notes State (a Tax Analysts publication) and co-authors the Washington and Alaska chapters of the ABA Property Tax Deskbook. She regularly presents at events around the country, such as conferences hosted by the Council on State Taxation, Institute for Professionals in Taxation, American Bar Association, Seattle Chapter of the Appraisal Institute and the NYU Institute on State and Local Taxation. Michelle also participates in professional associations in the area of state and local taxes and regularly provides pro bono representation on state and local tax issues to charitable organizations.

Career

Prior to joining Fox Rothschild, Michelle was a partner in the taxation practice at a regional law firm in the Pacific Northwest.

Professional Memberships

American Bar Association: Taxation Section, State and Local Taxes Committee; Retroactive Tax Legislation Task Force; Gross Receipts and Miscellaneous Taxes Subcommittee (Co-Chair); The Tax Lawyer (Managing Editor, State and Local Tax) and CLE Committee Liaison 2018-2021 | Institute for Professionals in Taxation, Certified Member of the Institute (CMI): Board of Governors, 2022-2025; IPT 2022 Annual Conference (Overall Chair); 2021 Property Tax Symposium, Advanced Property Tax Education Committee; IPT 2020 Annual Conference, (Overall Chair); IPT 2019 Annual Conference (Property Tax Program Committee Vice Chair); IPT 2018 Annual Conference (Property Tax Program Committee Chair); ABA/IPT 2017 and 2018 Advanced Property Tax Seminar Committee (IPT Co-Chair); and IPT 2016 Northwest Regional Property Tax Seminar Committee (Chair) | National Association of State Bar Tax Sections, Executive Committee Member | Association of Washington Business Tax & Fiscal Policy Council, Member | Council on State Taxation, Practitioner Partner | Washington State Bar Association, Taxation Section: State and Local Tax Committee (Chair, 2012-2014) and CLE Program Committee (Chair, 2014-2015) | Appraisal Institute, Affiliate Member | Oregon State Bar, Taxation Section, Member

Expert in these Jurisdictions

Bar Admission: Washington, Alaska, Idaho, Montana and Oregon

Work Highlights

Won cancellation of a sales and use tax assessment in Washington Department of Revenue appeal hearing

Successfully eliminated a sales and use tax assessment for an international company that would otherwise have faced ongoing sales and use taxes, a significant burden to its operations in Washington.

Successfully advocated for ratepayers before the Washington Utilities and Transportation Commission

Represented a trade group of ratepayers in rule-making proceedings to establish a new area of rate-making before the UTC and then successfully defended against large tariff increases in the first rate-setting case in this area in Washington State.

Achieved an $80 million reduction in assessed value for a complex manufacturing facility

Successfully advocated for a manufacturer at a local board hearing, resulting in the refund of millions of dollars in over-assessed property taxes.

Obtained a favorable property tax settlement for an Idaho mall

Helped a regional mall resolve property tax appeals in litigation and avoid future disputes, resulting in a substantially reduced valuation.

Secured a large B&O tax refund for international software development company

Worked with a Washington Department of Revenue auditor on correcting the gross receipts apportionment for an international software development company, resulting in a large B&O tax refund to the company and reduced future taxes.

Advised in acquisition of multimillion-dollar business and subsequently defended against potential liability

Advised the purchaser of a multimillion-dollar Washington business with significant intangible value on sales/use tax, real estate excise tax, and property tax considerations for the transaction. After the transaction, successfully defended against $1 million in threatened liability in a Washington Department of Revenue sales/use tax and B&O tax audit.

Obtained significant reduction of B&O tax incentive penalty for all taxpayers

Significantly reduced a B&O tax incentive penalty from nearly $1 million by helping change the law for all taxpayers, with retroactive relief for our pending appeal.

Achieved fair property tax values for large manufacturer in midst of rapid plant expansions

Worked on behalf of a large manufacturer to reach fair property tax values in a very complex situation. Established positive working relationships with state and local taxing authorities at the earliest point in the process and thereby avoided any need for tax appeals. Built on those relationships in each succeeding assessment year as the expansions progressed.

Preserved $1.5 million refund for a large, national REIT despite Department of Revenue’s efforts to reclaim it

Quickly and definitively protected a $1.5 million refund received by large national REIT for overpaid real estate excise tax against the Department of Revenue’s efforts to reclaim the funds.

Attained significant property tax savings for shopping centers before Oregon Tax Court

Litigated and negotiated settlements for significant property tax savings on shopping centers’ appeals before the Oregon Tax Court.

Achieved significant property tax reductions on behalf of a centrally assessed utility

Worked with the Washington Department of Revenue to achieve property tax reductions based on fairer values for a centrally assessed utility.

Reported cases:

- Inter-Cooperative Exchange v. United States Department of Commerce, No. 20-25171 (9th Cir. 2022) (counsel for plaintiff – appellant)

- Western Rivers Conservancy v. Stevens County, — Wash. App. 2d —, 490 P.3d 249, review denied, 497 P.3d 389 (2021) (counsel for respondent)

- City of Snoqualmie v. Constantine, 187 Wash.2d 289, 386 P.3d 279 (2016) (counsel for amicus curiae)

- Tesoro Refining and Marketing Co. v. Department of Revenue, 173 Wash.2d 551, 269 P.3d 1013 (2012) (counsel for amicus curiae)

Education

Industry Sector Expertise

Michelle lobbies the Washington State Legislature and rulemaking agencies on state and local tax issues to promote fair, efficient and effective taxation and due process for taxpayers. She works with members of both political parties to help achieve these good governance objectives.

Highlights of Michelle’s work in this area include the following:

Drafted a 2023 state law guaranteeing taxpayers a choice of venue when pursuing property tax refund lawsuits against counties in Washington. On behalf of several clients and in coordination with the Association of Washington Business, Michelle successfully advocated for state legislation restoring the ability of plaintiffs in tax refund lawsuits filed against counties to choose a venue for their litigation after the Washington Supreme Court ruled in Hardel Mut. Plywood Corp. v. Lewis Cty., 200 Wn.2d 199 (2022), that such a right did not exist. The bill passed with unanimous support from both chambers of the Legislature.

Drafted a 2016 state law that significantly reduced a taxpayer penalty, including retroactively. On behalf of a manufacturer appealing a 100% penalty for inadvertent failure to file an annual report for tax incentives despite having complied with all other requirements, Michelle successfully advocated for state legislation reducing the penalty to 35%, including retroactively for taxpayers with pending appeals.