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Resident seeks back-tax extension

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A Ridgewood South homeowner is seeking legislative action months after residents received a letter from Leander Mayor John Cowman warning them of the back taxes for which they would soon be billed.

Pete Whitton, Ridgewood South tax committee chair, identified the group's goals early on - tax relief by means of legal or political action and accountability. Whitton believes the city has finalized its search for accountability and he is disappointed with the results, which do not pinpoint where the error in annexation occurred, causing more than 200 residents in the subdivision to be left off the city tax roll for up to four years.

Because state law prohibits even the Legislature forgiving taxes delinquent for less than 10 years, Whitton said he began drafting language on the Texas property code that would amend state statute and give residents an extension longer than what they already have to repay the taxes.

“This is not a slam dunk, this is a possibility,” Whitton said. “I pursued it, along with the help of an attorney, to see if we could do a legislative change, which would extend the time forward, without penalty and interest, to equal the time that the back taxes were charged.”

In its current form, the Texas Tax Code states that not receiving a tax bill does not affect the validity of the taxes due; however, the code allows residents 18 months (until Jan. 31, 2008) to repay the taxes without penalty or interest.

Whitton's rewritten form of the statute suggests giving residents the same amount of time to pay the taxes as it took to incur the taxes.

“I told (Whitton) that I would support that and even testify on their behalf,” said Deborah Hunt, Williamson County tax collector/assessor. “It was left off three years and I think they should have three years to pay it back.”

Hunt said the county suggested a similar piece of legislation two sessions ago when it was discovered that a community in Georgetown had been left off the tax roll for eight years. The residents, though fewer than are involved in the Ridgewood South incident, had to pay five years of back taxes due to an appraisal district error.

Hunt said Whitton's proposal legislation would have given the affected Georgetown residents five years to repay the taxes; however the Legislature approved for those residents the 18-month time limit that is now in place. Hunt said she is unaware of any opposition to the proposed legislation or why it did not pass.

“I'm thinking from a taxpayer's point of view. Fair is fair,” Hunt said. “There should be the same amount of time to pay it that it was left off.”

Whitton said the only “hiccup” he may run into is passing the law as ex post facto, which would allow it to be applied retroactively, something that is not typically done in law-making. Whitton said he is working with his attorney to ensure Ridgewood South would be included in the amended statute if it is passed.

Hunt proposed that it may be possible for Ridgewood South residents to be included in a new law because their taxes are not due until after the law passes, if it is approved during the upcoming Texas legislative session, which begins in January 2007.

“I think it would be good legislation to have on the books to help anybody because it will happen again,” Hunt said.

Whitton said he contacted Sen. Steve Ogden's staff about addressing the issue in the next session and he plans to get in touch with Rep. Dan Gattis. Ogden said he told Whitton to send the information and he would decide if a bill needs to be drafted to fix the problem. Until he looks further into the specifics of the issue, Ogden said he cannot comment on how it will be handled. Ogden said he vaguely remembers the piece of legislation Hunt said was similar to this case but he had no comment on why it did not pass.

Leander City Manager Biff Johnson said he sees no reason why the city would oppose the legislation unless it sought to excuse residents from paying the taxes altogether.

“It would be something the council would have to look at as to whether they would take a stance on it,” Johnson said. “I can't imagine they would oppose it.”

Johnson said his only concern is that the Ridgewood South residents will continue to seek relief or an extension and they may find none, leaving them in a bind for paying the taxes on the original January 2008 deadline.

“I would recommend they go ahead and prepare to pay it and then if they can, get legislation to get more time,” Johnson said.

E-mail ashley@hillcountrynews.com

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