On November 10, 2016, the Austin Court of Appeals affirmed the trial court’s dismissal of the City of Austin’s lawsuit challenging the Texas “equal and uniform” statute. The City of Austin claimed that Travis Central Appraisal District under-appraised the market value of commercial and vacant land by approximately 40%. It further claimed that the Texas equal and uniform law violated the Texas Constitution by allegedly allowing for tax assessments at below market value. On behalf of several property owners, the Popp Hutcheson firm and others asked the trial court to dismiss the City’s lawsuit on jurisdictional grounds. The trial court agreed and dismissed the case, which the City subsequently appealed.
In a 20-page opinion, the Austin Court of Appeals explained that the City lacked standing to bring its constitutional challenge because it is not charged with implementing the statute. The statute concerns the appraisal process, which is separate than the tax collection function of the City. “The City may bring its concerns over tax policy to the attention of the Legislature, but it has no standing to pursue such a debate in this Court,” the opinion states. The Court also affirmed the dismissal of the City’s request to reappraise property. By not presenting evidence on its under-appraisal claim to the appraisal review board, the City failed to comply with the required administrative procedure before filing suit.
The ruling provides further protection of the Texas equal and uniform statute from those taxing units eager to invalidate it. The City has given no indication of whether it will appeal the decision to the Supreme Court of Texas. The Popp Hutcheson team stands ready to continue its defense of this important legislation.