Ned B. Morris III v. Houston Independent School District
388 S.W.3d 310
Tex.2012Background
- Taxpayers owned 10.34 acres, of which 9.38 were owned by them; 0.96 acres were not owned.
- Taxing authorities sued for twenty years of unpaid taxes on the 10.34 acres and placed a lien on the property.
- Taxpayers asserted lack of ownership as an affirmative defense under Tax Code §42.09(b)(1) since the suit sought personal liability.
- Taxpayers paid taxes under protest on the full 10.34 acres to stop penalties and prevent foreclosure, though only 9.38 acres were owned.
- Taxing authorities non-suited the claims after payment; the court realigned Taxpayers as plaintiffs in the suit.
- Court of Appeals had reversed the trial court on jurisdictional grounds, adopting the non-ownership defense as extinguished upon realignment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether non-ownership defense remains after non-suit and realignment | Morris III asserts non-ownership remains a defense post-realignment | Taxing authorities argue non-ownership is extinguished after non-suit and realignment | Taxpayers did not lose entitlement; defense survives post-realignment |
Key Cases Cited
- City of Pharr v. Boarder to Boarder Trucking Serv., Inc., 76 S.W.3d 803 (Tex. App.—Corpus Christi 2002, pet. denied) (recognizes taxpayer defense to avoid tax liability under 42.09(b)(1))
- Bullock v. Statistical Tabulating Corp., 549 S.W.2d 166 (Tex. 1977) (strict construction against taxing authorities, liberality toward taxpayer)
- Wilson Commc’ns, Inc. v. Calvert, 450 S.W.2d 842 (Tex. 1970) (tax statutes construed in taxpayers’ favor)