APPRAISAL DISTRICT ATTEMPTING TO RETROACTIVELY REMOVE FREEPORT EXEMPTIONS USING 25.25(c)(1)
Taxing entities are always on the lookout for new funding sources, and a North Texas appraisal district has found one: using 25.25(c)(1) to retroactively remove freeport exemptions granted in the five previous years. There has been plenty of litigation regarding clerical errors, but I do not believe it necessary to resort to courts' opinions because this action clearly falls outside the remedies allowed in the tax code. Section 1.04(18) says that a mistake in judgment in the making of a determination cannot be included in the definition of clerical error, and the granting of an exemption is clearly a judgment call. If an appraisal district is ultimately successful in this attempt to remove exemptions, it could result in enormous retroactive tax liabilities.
As always, please feel free to contact me to discuss this or any other property tax issue.
Joshua Estes
