HomeMy WebLinkAboutR84-680RESOI33TION NO. R84-680
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PIAI~RK/EW,
TEX~, ACCEPTING THE AGgF~D PERC[~ SET~T.F~'~'Tf FOR
THE PAYMENT OF AD VALO~ TAXqES ON BANK STOCK FOR
CALENDAR (AND/OR TAX) YEARS 1981 & 1982 A~D ACCEPTING THE
PERCENTAGE OF BOOK VALUE AS ESTABLISHED BY THE APPRAISAL
REVIEW BOARD AT THEIR MEETING OF JANUARY 17, 1984 FOR THE
CITY ~UUTIONAL BANK, HALE CEI~fY STATE BANK, AND THE FIRST
NATIONAL BANK.
WHEREAS, through the opinion of the United States.Supreme Court
the method used in the State of Texas of assessing ad valorem taxes on
United States obligations owned bybanksas part of their capital stock
has been declared to be unconstitutioD~l; and
WHEREAS, no formula or cleartydefinedmethodof calculating ad
valorem taxes on bank capital stocks have beendevisedby the
courts or the legislative bodies; and
WHEREAS., on the 28th day of December 1981, the City of Plainview
entered into a Stipulation and Agreement with the three local banks
being the City National Bank, Hale County State Bank, and the First
National Bank addressing this issue and the bauRs paying the assessed
amount of taxes to the City with the City agreeing to refund monies paid
for tax year 1981 upon determ/nation that capital stock or United States
obligations are not .to be taxable; and
WHEREAS, for the tax year of 1982, the local banks took legal
action against the Hale County Tax Appraisal-District contending the
same position but makingpayment to the City in the amount of Taxes
assessed; and
WHEREAS, for all practical purposes, the ruling by the United
States Supreme Court has thrown out the tax law as it pertains to the
calculation of ad valorem taxes assessed on capital bank stock in the
State of Te3ms; and
~%%H~JEAS, there is a need to settle and put aside this matter
so thatthe banks and the City canclos~ tax years 1981 & 1982-:
O0
NOW, THEREFORE, BE IT RESOLVED by the City COuncil of the City of
Plainview that the following be done:
a) That the City accepts the agreement as proposed by the
three (3) local banks being City National B-~mk, Hale COunty
State Bank, and First National Bank and that ad valorem
taxes be calculated on 70% of book value for 1981, and tax
monies held by the City in excess of the amount owed
for taxes be retained by the City and applied as a credit
against assessed taxes in future years.
b) That the Chief Appraiser of the Hale COunty Appraisal.
District, Linda Jaynes, be made aware of and instructed to
notify the Board of Directors of the Appraisal District of
'the desire of the Plainview City COuncil to accept the
agreement as proposed by the three local banks as a
settlement of taxes for tax year 1982, said agreement being
the same as agreed to by the City and banks for tax year
1981.
c) That the Plainview City Council accepts the decision made
by the Appraisal Review Board during their meeting of
January 17, 1984, that being the establishment of the three
local bank's stock value to be at 35% of book value for the
tax year of 1983.
PASSED AND APPROVED this the 24th day of January,
V. RIDLEHUBER, Mayor
1984.
WALTER S. DODSON, City Clerk