Reagan National Advertising of Austin, Inc. D/B/A Reagan National Advertising v. City of Austin, Texas And Marc A. Ott, Being Sued in His Official Capacity
03-15-00370-CV
Tex. App.Sep 24, 2015Background
- Reagan challenged Austin's billboard registration fee as unconstitutional tax vs regulatory fee.
- 2008 Ordinance shifted from landowner registration every two years to annual billboard-owner registrations with $200 per sign per year.
- City staff later concluded cost of service was $190 per sign per year; prior analyses were criticized as flawed.
- Federal Action (2010) dismissed for lack of jurisdiction under Tax Injunction Act, finding fee was a tax.
- State court trial in 2014 held the fee was a valid fee, but Reagan obtained appellate review on res judicata, limitations, and refund issues.
- City acknowledged pre-litigation the $200 fee was about $60 too high and later analyses included nonauthorized activities.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Res judicata applicability | Yeakel's federal findings should bind state court | Federal ruling not binding on state court | No; court should honor federal findings or apply res judicata to the extent appropriate |
| Fee vs tax characterization | Fee exceeds costs; is unconstitutional tax | Fee is regulatory and reasonably related to costs | Fee not a tax; upheld as regulatory fee under law |
| Limitations under §16.064 | Timeliness preserved; tied to federal judgment finality | Strict 60-day rule applies | Claims timely; not time-barred under §16.064 |
| Refund/attorneys’ fees entitlement | Entitled to refund of excess payments and fees | No such award warranted | Remand for consideration of refunds; attorneys’ fees denied or reduced per record |
Key Cases Cited
- City of Houston v. Harris County Outdoor Advertising Assoc., 879 S.W.2d 322 (Tex. App.—Hous. Dist. 1994) (regulatory vs occupancy tax; reasonableness review of fees)
- Barr v. Resolution Trust Corp., 837 S.W.2d 627 (Tex. 1992) (stability of court decisions; res judicata considerations)
- Citizens Ins. v. Daccach, 217 S.W.3d 430 (Tex. 2007) (res judicata and claim preclusion standards)
- Quick v. City of Austin, 7 S.W.3d 109 (Tex. 2004) (standard of review for municipal fee challenges)