E-mail Story
Print Friendly
Send E-mail
Reprint story
Thursday, March 18, 2010
Agency: Leave Tax Lightning To the Courts
By Dan McKay
Journal Staff Writer
The state agency that oversees county assessors is staying out of the latest fight over "tax lightning" — at least for now.
Instead, the head of the state Taxation and Revenue Department says the question is better left to the courts, especially because litigation is involved.
"This is a significant legal issue," Secretary Rick Homans said in a Journal interview. "We're all hoping (the Court of Appeals) will hear the case sooner than later, because there is a sense of urgency to getting this resolved."
Homans also outlined his thoughts in a letter to Bernalillo County, where the County Commission chairman and the assessor have clashed over how to handle tax lightning. Chairman Art De La Cruz had asked the state to weigh in on whether Assessor Karen Montoya has authority to roll back property values to help the victims of tax lightning.
The debate is particularly complicated because two state District Court judges have ruled that tax lightning is unconstitutional, but the law is still on the books. Montoya contends she has authority to roll back values to reflect the two court rulings, while De La Cruz says she must comply with the law regardless.
A higher court hasn't weighed in.
Homans acknowledged that his department can issue orders or suspend assessors who refuse to follow state law. But he said that's a lengthy process to "be exercised only in blatant and willful cases of noncompliance."
In this case, given the debate over the constitutionality of the property tax law, it's best to let judges handle it, Homans said. His office has granted Montoya extra time, until May 1, to prepare notices of property value this year.
The County Commission initially refused to pay for mailing out the notices, but later acknowledged that it had no authority to hold them up.
The values can be adjusted, Homans said, if the courts weigh in before actual tax bills go out this fall.
He noted that some government agencies might lose revenue because of Montoya's decision, and some property owners would see increased taxes to help compensate for those who get rollbacks. But they can seek a court order on their own, Homans said.
"Any of these persons and entities may feel compelled to take legal action to enjoin the Bernalillo County Assessor from unilaterally rolling back valuations in what may be a violation of state law," Homans' letter said.
Tax lightning is a term used to describe the abrupt jump in property taxes the year after a home is sold. A 2001 state law limits increases in property value to 3 percent for most homeowners.
The cap doesn't apply when a home changes ownership. That means neighbors in comparable homes often pay wildly disparate property taxes, based on when they bought their homes.
Journal politics writer Sean Olson contributed to this report.
You also can send comments via our comment form
|
|
