Tuesday, August 3, 2010

THE DELINQUENT TAX PASSION (RE) PLAY

By Juan Montoya
Well, it's that time of the year again.
The Cameron County Commissioners Court is struggling to pass a balanced budget. The Cameron County Appraisal District issues its new (and predicably higher) tax appraisal on personal property and inventory.
And Cameron County Tax Assessor-Collector Tony Yzaguirre charges across the tax landscape in his silver outfit riding his white horse, aptly named Tax Auction.
In the coming days, many taxing entities will proudly announce to the world that they have not increased ad valorem taxes, and in some cases, have lowered them some minuscule percentage.
But, of course, the increased appraisal values will make those statements meaningless because even if the tax rates doesn't increase, the higher appraisal value will mean that the "average taxpayer" will see an increase in real dollars.
"The power to tax involves the power to destroy," Chief Justice John Marshall declared in a landmark decision some time back. Of course, he was referring to the states taxing the federal government, but the same logic applies locally.
Yzaguirre told the media that he had some 60 properties on the block that when sold would garner gadzillions for our impoverished taxing entities such as the county, the municipalities, and the schools.
Interestingly, one of those properties up for tax sale is the old Dolly Vinsant Memorial Hospital in San Benito, which went broke. For a mere $630,275, a buyer can have the property and buildings valued at $2.7 million.
Also on the block is the property where the aquaculture enterprise called the Taiwan Shrimp Farms used to operate. Those lots can be had for a mere $57,874 in back taxes.
Of course, someone may come forth between the time that Yzaguirre wants to unload these and the other 60-plus properties to save the county and the rest of the taxing entities from fiscal doom.
Or perhaps an order from a bankruptcy court (or some other legal action) will prevent their sale. One never knows when high-stake properties are involved.
Doubtless, many of the properties on the block will be salvaged by the owners or someone close to them who knows that the value of the properties is too much for the tax-delinquent price attached in the sale.
Yzaguirre says that he is acting on behalf of the average taxpayer who pays his (ever rising) taxes on time while these tax deadbeats have not.
But have you ever thought of the number of people who held jobs, made a living and provided for their families from these now defunct businesses? Hundreds, if not thousands, of people used to work at Dolly Vinsant, as they did in the shrimp farms.
Unfortunately, not every business succeeds or can meet the rigors of competition of an increasingly difficult market. When things go wrong and the businesses fail, we can count on Yzaguirre to step in and pounce on the carcass in defense of the average taxpayer.
Funny, though, that we never see the average taxpayer protesting that these deadbeats be evicted and their property confiscated.
What we do see is the interminable auction of properties (residential and commercial) outside the county courthouse month after month.

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