Tennessee Taxpayers Association

 
SB 2111 / HB 2075 -  Change hearings and appeals
 to Judicial Review at State  Board of Equalization

The Executive Secretary of the State Board of Equalization had filed a bill in the Legislature, which if passed, would have changed the entire hearing and appeal process before the State Board. This bill was filed without the knowledge of the State Board but once they were advised of the bill, the State Board took no position.   So, it cannot be said that the Board was in favor of its passage.

At the present time, the hearings are not on the record; meaning, that if a taxpayer wants to appeal further, that taxpayer is not bound by the record made at the previous hearing. This procedure is called de novo and it goes all the way to the first level of the court system, Chancery Court.

A change to recorded hearings would have limited the judges to considering any appeal to only what appears in the record from the previous hearing. No new evidence could be presented.

Judicial review would increase costs of the hearings because court reporters would be necessary and also attorneys to ensure that the record was made adequate for the courts to review. To be without an attorney in an appeal limited to the record would prejudice the taxpayer because the record may be made inadequately.

The do novo procedure was part of the legislation package authorizing taxpayers and assessors to choose non-attorney representatives in State Board hearings. The de novo amendment was offered by Senator Haynes who made the statement of intent on the Senate Floor that de novo would be required in order to prevent prejudice to the taxpayers and allow them to continue to freely choose their own representatives.

In addition, TTA had sponsored and passed legislation requiring the State Board to conduct all hearings on an informal basis. Judicial review would have formalized the appeal process to the detriment of the taxpayers.

The Senate State & Local Government Committee heard the arguments from both sides on May 5th and solidly rejected judicial review. The proponents only received one or two voice votes for their amendment which made the bill. They were offered the opportunity to come back with a better bill, but did not return.

This was a good victory for the taxpayers. Judicial Review would have harmed many taxpayers in their attempts to protest their taxes.

If you wish to view the legislative process on this bill on video, here is a link:

http://wapp.capitol.tn.gov/apps/BillInfo/Default.aspx?BillNumber=SB2111

Click on video clips then click on SB2111 for May 5th. After the video screen appears, scroll down to SB2111 and click.

Thanks to all for their help in defeating this bill.

Email this post