HomeMy WebLinkAboutR81-463 CITY OF PLAINVIEW
RESOLUTION NO. R81-463
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLAINVIEW, TEXAS APPROVING AND AUTHORIZING THE CITY ATTORNEY
TO SIGN AN AGREEMENT WITH HALE COUNTY STATE BANK,
CITY NATIONAL BANK, FIRST NATIONAL BANK, HALECO
BANCSHARES, INC., PLAINVIEW BANCSHARES, INC., AND
FIRST NATIONAL BANCSHARES, INC. FOR THE PAYMENT OF
THEIR TAXES.
WHEREAS, Hale County State Bank, City National Bank, First National
Bank, Haleco BancShares, Inc., Plainview BancShares, Inc., and First
National BancShares,~ Inc., have filed a Petition for Declaratory Judgment
contending that the capital stock of banks in the State of Texas is not
subject to ad valorem taxation or in the alternative, that if such stock
is subject to ad valorem taxation a bank is entitled to deduct the market
value of the United States obligations owned by such bank as of January 1 of
each tax year in calculating the value of capital stock of such banks for
ad valorem tax purposes; and
WHEREAS, the City of Plainview contends that it has the right and
power under the laws of the State of Texas and the United States to tax
the capital stocks of banks located in the City of Plainview, Hale County,
Texas and that the market value of the United States obligations owned by
a bank as of January 1 of any tax year is not deductable in computing the
value of the capital stock of such bank for ad valorem tax purposes; and
WHEREAS, the above questions of law are involved in at least one
case now pending before the Supreme Court of the State of Texas and from which
there is a likelihood of appeal to the Federal Courts and the parties will
be adversely affected anymore than necessary by any future decision of the
Supreme Court of Texas or the Federal Courts that may be dispositive of the
issues involved herein; and
WHEREAS, in said agreement, the banks have agreed to pay their 1981
tax on their real property, personel property, capital stock, and United
States obligations as computed by the Hale County Tax Appraisal District
in behalf of the City of Plainview; and
WHEREAS, in the event the banks are entitled to a refund of all or
parts of amounts paid to the City of Plainview by virtue of this agreement,
the City of Plainview shall pay such refund in cash or, ~in the alternative,
shall credit any such refund to Which the banks are entitled toward payment of
real estate taxes which may become payable by such bank in the next succeeding
tax year or years until the full amount of such refund is exhausted:
CITY OF PLAINVIEW
00
136
NOW, THEREFORE BE IT RESOLVED by the Mayor and City C~u~il~f~the
City of Plainview, Texas to:
SECTION l::Approve the agreement between the City of Plainview
and Hale County State Bank, City National Bank, First
National Bank, Haleco BancShares, Inc., Plainview
BancShares, Inc., and First National BancShares, Inc.
for the payment of their 1981 tax on real property,
personel property, capital stock, and United States
obligations as computed by the Hale County Tax
Appraisal District on behalf of the City of Plainview.
SECTION 2: Authorize the i~i~y-Attorn~y to sign ~h~ aforementioned agreement
PASSED AND APPROVED this the l?th day of December, 1981.
ATTEST:
WALTER S. DODSON, City Clerk
