R2010-047 - 2010-04-12RES�LUTI+�N NO. R2010-47
A RES�LUTION OF TH� CITY GOUNCIL OF THE CITY �F PEARLA,�ND,
TEXAS, WAIVING CERTAIN PEN/�LTIES AND IMTEREST FOR TAX
ACCQUNT NO. Q800-3000-0055 AS REQUIRED BY TEXAS TAX CODE
SECTION 33.011(a)t1).
B� IT R�S�LVED BY THE CI�Y COU�GIL OF THE CITY QF PEARLAND, TEXAS:
Section 'I. That the Ci#y Council f��reby waiv�s the ��nafties and interest
associated with tax account no. 0800-300�-0055 as required by S#ate La+rv.
PASSED, APPROVED and ADOPTED this the 32 day of April, A.D., 2010.
� ��
TO IVi R E I d
MAYOR
ATTEST:
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DARR7N M. COKER
GITY ATTORNEY
orggVir
HOUSTON OFFICE
Li re o vg0 cog_cfr
�s►_li _aL r� L 11on I (P 1300 MAIN STREET
SUITE 300
,R pr: RNEYS AT LAW
HOUSTON, TEXAS 77002
MEMORANDUM
TO: Mayor, Council,Bill Eisen, and Darrin Coker
FROM: Maris A. Blair,Partner
DATE: March 16,2010
RE: Request for Waiver of Penalties&Interest
Account 0800-3000-0055
Upon review of the applicable law and the correspondence received by the City
requesting the waiver of penalties and interest on the above referenced account,.I concur
that request should be granted and the amount of $ 9,219.62 be refunded to HF
Properties,LTD.
Please approve a Resolution stating that Council agrees to waive the penalty and interest.
in the amount of $9,219.62 on Account 0800-3000-005 pursuant to Texas Tax Code
Section 33.011 (a)(1).
Please forward Ro'Vin Garrett and myself a copy of the approved and signed Resolution.
Should you have any further questions or comments regarding this matter,please feel free
to give me a call.
Respectfully,
• Maris A. Blair
Partner
•
• NED S.HOLMES �00�
MANAGING GENERAL PARTNER
�'
HF PROPERTIES,LTD. • : 0 � �
55 WAUGH DRIVE, SUITE 1111 .CVO f
HOUSTON,TEXAS 77007
713.621.1880
March 5,2010
I
The Honorable Toni Reid
Mayor of the City of Pearland
3519 Liberty Drive
Pearland, Texas 77581
RE:TR 10A,ABST 881,D.White,Account No. 08003000055
Dear Tom:
Enclosed you will find the following:
•
1. Request For Waiver of Penalties and Interests.
2. Distribution Deed Dated July 1,1996 transferring ownership from Harry Holmes,Jr.
deceased,to Carolyn R.Holmes.
3. Special Warranty Deed dated July 1, 1996 transferring ownership from Carolyn R.
Holmes to Holmes Family Properties,Ltd.
4. Copy of letter from Linebarger Goggan Blair&Sampson,addressed to •
Harry Holmes II,wrong owner.
5. Printout from Brazoria County website listing Harry Holmes II,wrong owner.
6. Schedule from Brazoria County website showing amounts due. •
7.' Water and Sewer Donation Easement to City of Pearland.
On Monday,March 1,2010 our office received a call from Jerry Trappey,from the office of Harry
Holmes,II. They had received a letter from Linebarger Goggan Blair&Sampson stating that the
subject property was an"Urgent Candidate for Lawsuit"with the owner listed as Harry Holmes,II.
Upon investigation by Jerry Trappey,it was determined that the owner was not Harry Holmes,II and
ownership had incorrectly been changed. The owner,as shown by Harris County Appraisal District,
was Harry Holmes,Jr.,who was deceased and the property had been deeded to Carolyn R.Holmes
and then to Holmes Family Properties,Ltd,on July 1, 1996. When the taxing authority made the
change of ownership they transferred ownership of TR 10A-1 and did not change the ownership of
10A,per the recorded deed.
Unbeknownst to us,the City of Pearland annexed the property in 2000 and started billing taxes at
that time. We had no knowledge of said annexation and continued to pay taxes on both tracts to the
Houston ISD and County of Harris as billed and in a timely manner.
The property was originally a 26.687 acre tract of land of which a portion was deeded for right-of-
waypurposes for the Beltway 8 project. The remaining parcels of land are TR 10A-1, 1.6780 acres
and TR I0A, 3.589 acres. In February 2009 a water and sewer donation was made to the City of
Pearland,which proves that the City of Pearland was aware of the correct owner of said property
since at least 2008.
We paid the following immediately after learning of the delinquencies:
Past Due Taxes $ 12,689.10
Penalty and Interest $ 9,219.62
• Total $21,908.72
We respectfully request that the penalty and interest totaling$9,219.62 be refunded due to the City
of Pearland's failure to change to ownership of the property in a timely manner.
If I can be of any assistance, do not hesitate to contact me at 713.621.1880.
Yo y,
N S. ohnes
cc:The Honorable E. J.King
`Fg :l
TAX CODE . ;;'::_ :•:;VELINQUENCY § 33.011 .I `1
Title<j.. ,tl :.'h, 33 it
both an initial' ' _:. .: :g, Duress 10. Bankruptcy ; s
l an additional; "` In action by taxpayer to recover property Tax lien on property purchased in foreclosure
in was not also allegedly overpaid,threat imposed by Ver- sale did not secure any additional penalties i ; ..=i';
nount of 15%of taxes Ann.Civ.St. art. 7336 (repealed; see,now, which did not accrue prior to filing of owner's -
ies,andintere ' non for imposition of penal- bankruptcy petition, even though bankruptcy ?
t the taxpayer;: this section) providingprotection ended over one
1 Penaltyties and interest for failu a to pay taxes when yearbefore purchas- "'{
he tax befoore:;: due was not sufficient to raise material question er tendered even partial payment of tax; dead-
ame° of fact on issue of implied duress. Johnson line of Texas Tax Code imposing 12% delin-
Independent`,:: quency penalty as of July 1 of tax year for +i
Dist. 2003) 100` i Controls,Inc.v. Carrollton-Farmers Branch In delinquent taxes was mandatory, deadline cc-
;I) S dep dent School Dist. (Civ.App. 1980) 605 q
S.W.2d 688,ref.n.r.e.. Taxation c=2780 tarred while bankruptcy proceedings barred ac-
tt certain realtyA cruel of penalties,and Tax Code did not provide '..':'•',
and the real ' any means whereby court could determine al- �'
.1'.:;, ternate date on which penalties attached. Gal-
:h provisions9. Remittance and acceptance ,.:.is
and 7347(bot}i'. .; Acceptance and cashing of property taxpay- veston Independent School Dist. v. Heartland i' `_-
nterest refereed er's check by taxing units,both of which under- Federal Say.and Loan Ass'n, S.D.Tex.1993, 159
I at rate fe size. .. stood condition that funds were to be applied B.R. 198. Taxation«2733 s,
only to undisputed debt, not disputed penalties, Nonconsensual oversecured creditors are en- ' r'
xes would have; w ";; '•i• •,4
been properle�.. :' ``', costs and/or fees under specified statutes, con- titled to rate of interest dictated by statutes
. stituted "accord and satisfaction" and applica-
0-7278. under which their statutory liens arise,provided
`' •.• `' tion of funds to disputed debts was breach of charge can be reasonablycharacterized as true ''.1i.
II and assessed;:' 'i' `'• g
;:� contract,despite absence of express language of interest rather than as penalty. Galveston Inde- �' r•
.St. arts. 7207,,•'��;: contracting on taxpayer's remittances. City of pendent School Dist. v. Heartland Federal Say.
:d; see, nowia . •l " ' Houston v. First City (App. 1 Dist. 1992) 827 and Loan Ass'n, S.D.Tex.1993, 159 B.R. 198. `
•all years since •!.!. S.W.2d 462, writ denied, rehearingof writ of _ :;'
Interest«31
tenalty or inter— : .e z:error overruled. Accord And Satisfaction c= atg
:e such prop 11(2) Automatic stay rendered ad valorem taxes ' . ;J1
if rendered and penalties imposed by state law during ti
,.Atty.Gen.1947 `:: ::::';i Expenses relating to dispute between taxing apartment building owner's bankruptcy voids- •i; ; :
t units and property taxpayer over amount of ble rather than void, and thus bankruptcy T, r
•
collection costs and attorney fees were not"col- court's failure to invalidate penalties and inter- ,� u
lls Independent.:;:. " ',:' lection costs" under statute providingfor addi- est s:E.::'
precluded taxpayer that purchased the . •,��
City of Wichita + .: tional penalty for collection costs; Legislature apartment building after foreclosure from col- `�
size the'city fo .. ;:. <did not intend for delinquent taxpayer to pay laterally attacking the assessments in state
ices delinquent; 1 . 4''collection costs for cost of collecting costs. City court. Walker's Country Place, Inc. v. Central '
;10%) per cent;.;:_:,Y y-.r4?of Houston v.First City(App. 1 Dist. 1992) 827 Appraisal Dist. of Taylor County (App. 11 Dist. ,; :!.;}
S.W.2d 462, writ denied, rehearing of writ of 1993) 867 S.W.2d 111. Bankruptcy € 2462; . ,4;,
.-`1 "s error overruled. Taxation -3216 Judgment c}829(3) 's,•�•?::r;y
i;4
t o
- - ter"
)ol district taxes - ;.§ .!;... .-::Al
ual of penalties;;: - . 33.011. Waiver of Penalties and Interest '- `j
ses legally due.? ,
irk Independent,; (a) The governing body of a taxing4ui::!. j
unit:
123 S.W.2d 784j• } `
25 S.W.2d 270_:;;,_;1.':•::. a (1) shall waive penalties and may provide for the waiver of interest on a .;;1;;!,..i: 1
delinquent tax if an act or omission of an officer, employee, or agent of the \e�i
c '.•t, .'s
`'': taxing unit or the appraisal district in which the taxing unit participates -=i.:::::i
:!- caused or resulted in the taxpayer's failure to pay the tax before delinquency -t
sled after judg- `▪ .' .k;
and if the tax ispaid not later than the 21st day '' jai
been set aside;;;.;..; after the date the taxpayer •I.P,::.' {
roperly identify;.:::. , ? knows or should know of the delinquency; '` '".
ties and interest ,,; (2) maywaive penalties ' t'1
ssment may be, .., _::., and provide for the waiver of interest on a .,,:. ,
ort Arthur (Ciu;=';_:;<...„,: delinquent tax if: :IRei
:f. n.r.e.. Taxa. :•'. ;° (A) the property for which the tax is owed is acquired by a religious
:: ';4 organization; and ;; `1
; (B) before the first anniversary of the date the religious organization ;;
,paid delinquent:: . acquires the property, the organization pays the tax and qualifies the ;(;:_..
....1,,,..< rirle has._:._.:
New
Business
ItemNo .
6. CONSIDERATION AND POSSIBLE ACTION — DISCUSSION
REGARDING CITY MANAGER'S EVALUATION AND PERFORMANCE
GOALS FOR 2009 - 2010. City Council.