RSS Feed
|
|
|
|
|||||||||||||||||||||||||||||
|
No resolution yet to Boise's tax dispute School employees and some county officials were among the spectators Tuesday at a court hearing in Grove Hill on one of Clarke County's largest industry's appeal of its 2006 tax assessments. Taxes remain unpaid Boise White Paper's county taxes, some $1 million annually, remain unpaid for the second year in a row because of the dispute. Clarke County schools are the largest beneficiary of the taxes with the county also receiving revenues, hence the interest from the agencies. Both the schools and the county say operations have been severely crippled because the tax dollars are in limbo. Circuit Judge Thomas Baxter heard lawyers for Boise and the Clarke County Board of Equalization argue over the legitimacy of the board and whether or not Boise filed its appeal within the time allowed by law in a hearing that lasted almost a full day at the courthouse in Grove Hill. Boise had contested its tax assessments on the Jackson paper mill to the equalization board, an appointed board that hears tax issues and complaints with the right to adjust or "equalize" taxes. The mill sold a few years ago and Boise contends that assessments should be based on values established by the sale. The board heard Boise's case on Sept. 25 2006 and ruled on Oct. 13 against the manufacturer, leaving the assessments as set by county appraisers. Boise appealed the board's decision, as allowed by law, to circuit court. The case was initially set on Judge Stuart DuBose's docket but he recused himself early last year, citing a conflict because his mother is a county commissioner and the county receives a portion of Boise's tax dollars. Different arguments The two sides offered different arguments to Judge Baxter Tuesday. Boise's wants to proceed with discovery investigations that would include deposition of witnesses but its attorneys say they have been rebuffed by the board's attorney, Gaines McCorquodale. McCorquodale contends the entire procedure is moot because Boise's lawyers did not file an appeal to circuit court within the time frame allowed by law. Instead of filing within the prescribed 30 days, they filed an appeal on the 32nd day. He termed their request a "smokescreen" and a "fishing trip" and said, "If they didn't file on time, this court doesn't have the jurisdiction to allow them to go on a fishing trip." Boise attorney Hardie Kimbrough, a local retired circuit judge, detailed how the board is composed of three county residents. The school board, county commission and municipalities each submit three nominees and the state revenue commissioner picks three to serve on the board. The three hear complaints and appeals of tax appraisals and can reaffirm the appraisals or set lower ones if a taxpayer can show reason why they should be lowered. The intent was for "local people to make local decisions on local issues" and to ensure there will not be "taxation without representation," said Kimbrough. He cited state law that board members must be residents of the county and not be county, state or federal employees or officials. At the Sept. 25 meeting where the Boise appeal was considered, Joe Merida was the only legitimate board member, Kimbrough charged. Harold Thomas and Marcus Bailey, employees of the State Department of Revenue in Montgomery, were appointed by someone to fill the two vacant seats on the board. Board said illegal Their inclusion was illegal, Kimbrough reasoned. "The proceedings should have been stopped and continued." He suggested that Boise isn't the only one with grounds to challenge the board's decision. Thirty-nine appeals were heard during the 2006 session and over 20 were denied appraisal reductions. McCorquodale countered that Boise's rejection of the board was to mask the fact that it did not file an appeal to circuit court on time. "If they want to file a new lawsuit challenging the assessments they need to go down the hall and file it," he charged. He said two of Boise's top officials, including George Perala, manager for Boise's U.S. properties and sales taxes, were at the board of equalization where the members were identified and they did not protest at that time. He contended that although Boise is a "sophisticated and knowledgeable taxpayer…they still missed the filing deadline." Judge Baxter appeared ready to adjourn the session but McCorquodale asked that he listen to arguments for dismissal first and Baxter agreed to after a short lunch break. Dates debated After the break, McCorquodale explained that the Boise case was heard on Sept. 25 but no action was taken. The board came back on Oct. 13 and decided not to change the tax rates and then adjourned. The adjournment date is critical because law says that any appeals must be filed within 30 days of adjournment. McCorquodale contended that then-Revenue Commissioner Jay Duke had communications with George Perala regarding the board's decision and Perala asked Duke to send him a letter stating the decision. Law does not require notification but Duke did so as a courtesy, McCorquodale said. That letter was dated Oct. 16. Boise lawyers contend that Perala had no communication with Duke and thought Oct. 16 was the date of action on the case given the wording of the letter. Both sides referenced a case in which the Alabama Supreme Court set aside the filing deadline because of "misconduct or misrepresentation" by tax officials in stating the correct date. McCorquodale stood by Jay Duke, now circuit clerk, and current Revenue Commissioner Chris Beverly and asked if anyone thought they deliberately misrepresented the facts. He charged that Boise officials and attorneys knew the law regarding the filing date but now were seeking to blame someone for their mistake. Kimbrough observed that Gaines McCorquodale and his brother Mac (who sat with his brother but made few comments during the hearing) had a "fine reputation for seeking relief for individuals" and suggested that the motion to dismiss should be denied and depositions allowed so the facts could be determined. That prompted a closing comment from Mac McCorquodale. "When he [Kimbrough] sat on the bench if I missed a deadline he would and did rule against me. He himself would not allow a case to be filed after the statute expired and he knows it." During a break, Wendell Allen, an attorney for Boise, said Bosie is ready to pay a fair tax and wants to resolve the matter but has been stymied and rebuffed at every turn by Gaines McCorquodale who had refused to allow the county to cooperate on items of discovery. Allen added that Marcus Bailey, the state employee who served on the board of equalization had also helped set the appraisals on the Boise property. That was not brought out during the hearing.
Judge Baxter told the lawyers he would consider their motions and rule on them as soon as possible.
|
for larger version       |
|||||||||||||||||||||||||||||
