In Re Bexar Appraisal District v. the State of Texas

CourtCourt of Appeals of Texas
DecidedSeptember 25, 2024
Docket04-24-00158-CV
StatusPublished

This text of In Re Bexar Appraisal District v. the State of Texas (In Re Bexar Appraisal District v. the State of Texas) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Bexar Appraisal District v. the State of Texas, (Tex. Ct. App. 2024).

Opinion

Fourth Court of Appeals San Antonio, Texas MEMORANDUM OPINION No. 04-24-00158-CV

IN RE BEXAR APPRAISAL DISTRICT, Relator

Original Proceeding 1

PER CURIAM Sitting: Luz Elena Chapa, Justice Irene Rios, Justice Liza A. Rodriguez, Justice

Delivered and Filed: September 25, 2024

PETITION FOR WRIT OF MANDAMUS DENIED

On March 6, 2024, relator, the Bexar Appraisal District (the “District”), filed a petition for

writ of mandamus, asserting the trial court abused its discretion when it granted pleas to the

jurisdiction and dismissed the District’s counterclaims in the lawsuits filed by property owners

appealing property valuation decisions. After considering the petition, the record, the response

filed by real parties in interest, and relator’s reply, this court concludes relator is not entitled to the

relief sought.

BACKGROUND

Real parties in interest, TMP Stone Oak Project, LLC and TMP Rim Project, LLC

(collectively, “TMP”), own the properties at issue in the underlying lawsuits. In 2022, the District

1 This proceeding arises out of Cause Nos. 2022-CI-14131 & 2022-CI-14159, pending in the 407th Judicial District Court, Bexar County, Texas, the Honorable Nicole Garza presiding. 04-24-00158-CV

set the ad valorem tax value for the properties. TMP filed administrative challenges of these

valuations on two grounds: (1) that the District’s appraisals exceeded the properties’ fairmarket

value, and (2) that the District’s appraised value was not equal and uniform with the appraised

value of similar properties. TMP’s challenges were considered at a hearing before the Appraisal

Review Board (“ARB”) on July 5, 2022. On July 11, 2022, the ARB issued an order lowering the

appraised value on both properties.

On August 29, 2022, TMP timely appealed the ARB’s administrative decisions to the

district court pursuant to Chapter 42 of the Texas Tax Code. The District did not appeal the ARB’s

decisions, but on June 20, 2023, the District filed counterclaims asserting the market value or

appraised value of the properties was greater than that determined by the ARB in 2022. On

September 21, 2023, TMP filed amended pleas to the jurisdiction asserting the District failed to

satisfy statutory conditions precedent when it filed its counterclaims. On February 8, 2024, the

trial court granted TMP’s pleas to the jurisdiction and dismissed the District’s counterclaims. The

District filed this mandamus, challenging the trial court’s February 8, 2024 orders dismissing the

District’s counterclaims.

ANALYSIS

TMP argues that mandamus relief should be denied because the grant or denial of a plea to

the jurisdiction is redressable by ordinary appeal. We agree. See In re Occidental W. Tex.

Overthrust, Inc., 626 S.W.3d 395, 399 (Tex. App.—El Paso 2021, orig. proceeding) (“Absent an

extraordinary situation, mandamus will not issue to correct a trial court’s denial of a plea to the

jurisdiction, as an appeal will generally be an adequate remedy.”).

The District presents two arguments for finding that an extraordinary situation requiring

mandamus relief exists.

-2- 04-24-00158-CV

First, the District asserts mandamus relief is appropriate when a trial court interferes with

the legislatively mandated function of a state agency. The District claims the trial court’s orders—

dismissing the District’s counterclaims that sought an increased valuation of the properties at

issue—“directly interfere with and prevent the District from performing its

legislatively[]mandated duties regarding property valuation in Bexar County” by preventing the

District from pursuing an increased valuation of the properties at issue.

Second, the District asserts that mandamus relief is appropriate because, if the trials

proceed without the District’s counterclaims, the District loses an important substantive and

procedural right—to bring a compulsory counterclaim on market value—and thus is prevented

from presenting evidence of market value derived from recent sales of the subject properties to

challenge TMP’s property valuation evidence.

We find neither argument persuasive because TMP’s appeal of the ARB’s decisions

initiated new trials in the district court to determine the proper valuation of the properties at issue,

in which the District may present arguments and evidence for an increase in the valuation of the

properties.

“If a taxpayer is dissatisfied with the board’s determination, then the taxpayer may seek

judicial review.” Tex. Disposal Sys. Landfill, Inc. v. Travis Cent. Appraisal Dist. by & through

Crigler, No. 22-0620, 2024 WL 3076317, at *2 (Tex. June 21, 2024). “An appeal of an ARB

determination to the district court is a trial de novo.” Willacy Cnty. Appraisal Dist. v. Sebastian

Cotton & Grain, Ltd., 555 S.W.3d 29, 50 (Tex. 2018). “A trial de novo is ‘[a] new trial on the

entire case—that is, on both questions of fact and issues of law—conducted as if there had been

no trial in the first instance.’” Id. (quoting BLACK’S LAW DICTIONARY (10th ed. 2014)). “The duty

of the trial court is to ‘fix the appraised value of property in accordance with the requirements of

law[.]’” Cherokee Water Co. v. Gregg Cnty. Appraisal Dist., 801 S.W.2d 872, 877 (Tex. 1990)

-3- 04-24-00158-CV

(quoting TEX. TAX CODE ANN. § 42.24). “Once in court, the parties start from scratch, without any

deference to the board’s decision.” Tex. Disposal, 2024 WL 3076317, at *2. “The trial court

conducts a trial de novo of the protest, setting an appraised value for the subject property based on

the evidence it hears.” Id. The trial court is “empowered to grant relief in favor of either side by

either increasing or decreasing the property values at issue.” Harris Cnty. Appraisal Dist. v.

Houston 8th Wonder Prop., L.P., 395 S.W.3d 245, 252–53 (Tex. App.—Houston [1st Dist.] 2012,

pet. denied) (emphasis added).

TMP’s appeals of the ARB’s administrative decisions result in de novo trials before the

trial court. The District may present arguments and evidence for an increase in the valuation of the

properties at the de novo trial. 2 In a case directly on point, the First Court of Appeals in Houston

concluded the dismissal of a taxing agency’s appeal is of no effect if the taxpayer has appealed the

same ARB decision.

In the circumstances of this case, a de novo bench trial mooted the effect of granting the property owner’s jurisdictional plea. Both parties had attempted to appeal from the ruling of the ARB—the appraisal district wanted to increase the ARB’s appraised value of the property, while the property owner wanted to further decrease that value . . . .

If the court had not dismissed the appraisal district’s appeal, the resulting proceeding still would have concerned the appraised value of the same property. The appraisal district was not required to perfect its own appeal for the trial court to have the ability to increase the property value in its de novo determination of “the appraised value of property in accordance with the requirements of law.” TEX. TAX CODE ANN. § 42.24(1); see Cherokee Water, 801 S.W.2d at 877. The appraisal

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