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County tax appeals board illegal, say Boise lawyers A retired circuit judge, now a practicing attorney, charged Tuesday that Clarke County's Board of Equalization is illegal and its decisions on Boise's tax assessments- and perhaps many others- are invalid. Hardie Kimbrough referenced state law Tuesday in Clarke County Circuit Court in Grove Hill as he alternately called the county board, a "purported board," "a bogus board," and "this group of three people" in his defense of Boise White Paper and its appeal of the board's decision affirming 2006 county appraisals of parts of the Jackson paper mill. Boise appealed the tax appraisals, first to the equalization board and then to circuit court. The mill sold a few years ago and Boise lawyers contend that the value of the operation should be based on the purchase price. Charge dubbed 'smokescreen' Attorney Gaines McCorquodale, representing the county board, said Kimbrough's charges were nothing but a "smokescreen," to cover up the fact that Boise did not file its appeal to circuit court in the time allotted by law. Judge Thomas Baxter moderated the nearly daylong hearing before a filled courtroom of principals and other school employees and county officials. Boise's tax bill runs over $1 million annually. The disputed portion isn't that much but because of the conflict, Boise hasn't paid its 2006 taxes that are in question and did not receive a bill for its 2007 taxes and they have not been paid either. Public schools in the county receive the lion's share of the tax revenues with the county receiving a sizeable portion too. Both agencies say they have been severely crippled by the lack of the revenue. The issue has been pending since the fall of 2006. Circuit Judge Stuart DuBose was first assigned the case but at a hearing in 2007 abruptly resigned saying he had a conflict because his mother is a county commissioner and the county receives tax income from Boise. Different arguments The two sides offered different arguments to Judge Baxter. Boise attorneys wanted to proceed with discovery, investigations into the matter that would include the deposition of witnesses but have been rebuffed by the board of equalization. They asked Baxter to compel cooperation. McCorquodale contends that all of that is moot because Boise's lawyers did not file an appeal to circuit court within the time allowed by law. Instead of filing within the prescribed 30 days, they filed an appeal on the 32nd day. He termed their request a "fishing trip" and said, "If they didn't file on time, this court doesn't have the jurisdiction to allow them to go on a fishing trip." Kimbrough detailed how the board is composed of three county residents. The school board, county commission and municipalities each submit three nominees and the state revenue commissioner picks three to serve on the board. The three hear complaints and appeals of tax appraisals and can reaffirm the appraisals or set lower ones if a taxpayer can show reason why they should be lowered. The intent was for "local people to make local decisions on local issues" and to ensure there will not be "taxation without representation," said Kimbrough. He cited state law that board members must be residents of the county and not be county, state or federal employees or officials. At the Sept. 25 meeting where the Boise appeal was considered, Joe Merida was the only legitimate board member, Kimbrough charged. Harold Thomas and Marcus Bailey, employees of the State Department of Revenue in Montgomery, were appointed by someone to fill the two vacant seats on the board. Their inclusion was illegal, Kimbrough reasoned. "The proceedings should have been stopped and continued." Others wronged too? He suggested that Boise isn't the only one with grounds to challenge the board's decision. Thirtynine appeals were heard during the 2006 session and over 20 were denied appraisal reductions. Boise and other taxpayers have the right to be "outraged" by the action of the "purported board," Kimbrough said. McCorquodale countered that Boise's rejection of the board was to mask the fact that it did not file an appeal to circuit court on time. "If they want to file a new lawsuit challenging the assessments they need to go down the hall and file it," he charged. He said two of Boise's top officials, including George Perala, manager for Boise's U.S. properties and sales taxes, were at the board of equalization where the members were identified and they did not protest at that time. He contended that although Boise is a "sophisticated and knowledgeable taxpayer…they still missed the filing deadline." Judge Baxter appeared ready to adjourn the session but McCorquodale asked that he listen to arguments for dismissal first and Baxter agreed to after a short lunch break. After the break, McCorquodale explained that the Boise case was heard on Sept. 25 but no action was taken. The board came back on Oct. 13 and decided not to change the tax rates and then adjourned. Adjournment date said critical The adjournment date is critical because law says that any appeals must be filed within 30 days of adjournment. McCorquodale contended that then-Revenue Commissioner Jay Duke had communications with George Perala regarding the board's decision and Perala asked Duke to send him a letter stating the decision. Law does not require notification but Duke did so as a courtesy, McCorquodale said. That letter was dated Oct. 16. Boise lawyers contend that Perala had no communication with Duke and thought Oct. 16 was the date of action on the case given the wording of the letter. Both sides referenced a case in which the Alabama Supreme Court set aside the filing deadline because of "misconduct or misrepresentation" by tax officials in stating the correct date. McCorquodale stood by Jay Duke, now circuit clerk, and current Revenue Commissioner Chris Beverly and asked if anyone thought they deliberately misrepresented the facts. He charged that Boise officials and attorneys knew the law regarding the filing date but now were seeking to blame someone for their mistake. Kimbrough observed that Gaines McCorquodale and his brother Mac (who sat with his brother but made few comments during the hearing) had a "fine reputation for seeking relief for individuals" and suggested that the motion to dismiss should be denied and depositions allowed so the facts could be determined so that those wronged in this matter could receive justice. That prompted a closing comment from Mac McCorquodale. "When he [Kimbrough] sat on the bench, if I missed a deadline he would and did rule against me. He himself would not allow a case to be filed after the statute expired and he knows it." During a break, Wendell Allen, an attorney for Boise, said Bosie is ready to pay a fair tax and wants to resolve the matter but has been stymied and rebuffed at every turn by Gaines McCorquodale who had refused to allow the county to cooperate on items of discovery. He said the difference in the values amounted to a few hundred thousand dollars in taxes. Allen added that Marcus Bailey, the state employee who served on the board of equalization had also helped set the appraisals on the Boise property. That was not brought out during the hearing.
Judge Baxter told the lawyers he would consider their motions and rule on them as soon as possible.
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