Galveston Central Appraisal District v. TRQ Captain's Landing
423 S.W.3d 374
Tex.2014Background
- CHDO exemption under Texas Tax Code § 11.182(b) for property owned by a CHDO—ownership can be via equitable title.
- Foundation forms and controls LLC, which controls LP, which owns Captain’s Landing Apartments; LLC and LP are not CHDOs.
- LLC applied for exemption the day it acquired equitable title to the LP property; the District denied the exemption as the LLC did not own the property in a legal sense.
- Protests were denied by the Appraisal Review Board; summary judgment denied in trial court.
- Court of appeals held equitable ownership suffices and application timely; Supreme Court granted review, abated for bankruptcy, then reinstated.
- Supreme Court held equitable ownership satisfies ownership requirement and a timely application under § 11.436(a) when within 30 days of acquiring equitable title.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is equitable title sufficient for CHDO exemption under § 11.182(b)? | Foundation contends equitable ownership qualifies. | District maintains title must be legal ownership by CHDO. | Equitable ownership suffices. |
| Was the exemption application timely? | Application timely under § 11.436(a) within 30 days of acquiring equitable title. | Timing pegged to LP’s earlier acquisition; not timely. | Application timely. |
Key Cases Cited
- AHF-Arbors at Huntsville I, LLC v. Walker County Appraisal Dist., 212 S.W.3d 726 (Tex.App.-Hou ston [1st Dist.] 2006) (equitable ownership supports CHDO exemption)
- 410 S.W.3d 831 (Tex. 2012), 410 S.W.3d 831 (Tex. 2012) (supreme court affirming equitable ownership approach and timing rule)