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Standby Fees Deemed Constitutional
Glen McMillan owns 40 acres (16 ha) of undeveloped land in Harris County, Texas. Beginning in 1993, the county utility district imposed an annual standby fee on undeveloped property for the availability of potable water, sanitary sewer, or drainage facilities and services. McMillan's property was excused from the fees from 1993 to 1995 because of a negotiated settlement between him and the district. However, in 1995, the district applied to the state conservation commission for authority to impose standby fees on McMillan's property in 1996, 1997, and 1998. McMillan protested the district's application. After a hearing, an administrative law judge recommended that the district receive the requested authority. The commission agreed and issued the order. McMillan then appealed to the trial court but lost. On appeal, McMillan argued that the standby fees were an unconstitutional tax. He said the current assessment of about $80,000 per year was grossly disproportionate to the fair market value of the property and should be declared unconstitutional. The court said that standby fees are not levied on all property within a political unit; they are imposed only on property that can avail itself of benefits conferred by improvements to the unit. “A charge of this nature,” the court said, “has been held to be a local assessment and not an ad valorem tax.” Thus, the court said that the constitutional limitations on taxation were not applicable. The trial court decision was affirmed.
Standby Fees Deemed Constitutional
Glen McMillan owns 40 acres (16 ha) of undeveloped land in Harris County, Texas. Beginning in 1993, the county utility district imposed an annual standby fee on undeveloped property for the availability of potable water, sanitary sewer, or drainage facilities and services. McMillan's property was excused from the fees from 1993 to 1995 because of a negotiated settlement between him and the district. However, in 1995, the district applied to the state conservation commission for authority to impose standby fees on McMillan's property in 1996, 1997, and 1998. McMillan protested the district's application. After a hearing, an administrative law judge recommended that the district receive the requested authority. The commission agreed and issued the order. McMillan then appealed to the trial court but lost. On appeal, McMillan argued that the standby fees were an unconstitutional tax. He said the current assessment of about $80,000 per year was grossly disproportionate to the fair market value of the property and should be declared unconstitutional. The court said that standby fees are not levied on all property within a political unit; they are imposed only on property that can avail itself of benefits conferred by improvements to the unit. “A charge of this nature,” the court said, “has been held to be a local assessment and not an ad valorem tax.” Thus, the court said that the constitutional limitations on taxation were not applicable. The trial court decision was affirmed.
Standby Fees Deemed Constitutional
1999-08-01
1 pages
Article (Journal)
Electronic Resource
English
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