Excel Auto v. Alief Ind. School Dist.
| Decision Date | 31 August 2007 |
| Docket Number | No. 01-04-01185-CV.,01-04-01185-CV. |
| Citation | 249 S.W.3d 46 |
| Parties | EXCEL AUTO AND TRUCK LEASING, L.L.P., Appellant, v. ALIEF INDEPENDENT SCHOOL DISTRICT, Charterwood Municipal Utility District, Chelford One Municipal Utility District, Cimarron Municipal Utility District, City of Baytown, City of Deer Park, City of Houston, City of Katy, City of Pasadena, Clear Brook City Municipal Utility District, CY-Champ Public Utility District, Cypress-Fairbanks Independent School District, Deer Park Independent School District, Fallbrook Utility District, Goose Creek Consolidated Independent School District, Harris County, Harris County Education Department, Harris County Emergency Service District No. 1, Harris County Emergency Service District No. 7, Harris County Emergency Service District No. 9, Harris County Emergency Service District No. 28, Harris County Flood Control District, Harris County Fort Bend Emergency Service District No. 100, Harris County Hospital District, Harris County Municipal Utility District No. 33, Harris County Municipal Utility District No. 38, Harris County Municipal Utility District No. 64, Harris County Municipal Utility District No. 81, Harris County Municipal Utility District No. 120, Harris County Municipal Utility District No. 132, Harris County Municipal Utility District No. 158, Harris County Rural Fire Prevention District No. 13, Harris County Rural Fire Prevention District No. 16, Harris County Rural Fire Prevention District No. 17, Harris County Rural Fire Prevention District No. 20, Harris County Rural Fire Prevention District No. 24, Harris County Rural Fire Prevention District No. 25, Harris County Rural Fire Prevention District No. 26, Harris County Rural Fire Prevention District No. 29, Harris County Rural Fire Prevention District No. 46, Harris County Rural Fire Prevention District No. 48, Harris County Utility District No. 6, Harris County Water Control and Improvement District No. 113, Harris County Water Control and Improvement District No. 132, Harris County Water Control and Improvement District No. 133, Horsepen Bayou Municipal Utility District, Houston Community College District, Houston Independent School District, Humble Independent School District, Katy Independent School District, Klein Independent School District, Lake Forest Utility District, Lee College District, Louetta North Public Utility District, North Belt Utility District, North Forest Independent School District, North Harris Montgomery Community College District, Northpark Public Utility District, Northwest Harris County Municipal Utility District No. 16, Pasadena Independent School District, Ponderosa Forest Utility District, Port of Houston Authority of Harris County, Rankin Road West Municipal Utility District, Sagemeadow Utility District, San Jacinto Community College District, Spring Branch Independent School District, Spring Independent School District, Timber Lane Utility District, West Harris County Municipal Utility District No. 6, Appellees. |
| Court | Texas Court of Appeals |
Bonner Smith, Law Offices of Bonner Smith, Lubbock, TX, for Appellant.
R. Greg East, Perdue, Brandon, Fielder, Collins, & Mott, Josh Kahn, Coats, Rose, Yale, Holm, Ryman, & Lee, Houston, TX, for Appellees.
Panel consists of Justices TAFT, KEYES, and HANKS.
We withdraw our Opinion of April 19, 2007 and issue this one in its stead. Excel Auto and Truck Leasing, L.L.P.'s motion for rehearing is denied.
In this suit for delinquent ad valorem taxes, Excel Auto & Truck Leasing, L.L.P., appellant/taxpayer, complains of the trial court's granting summary judgment in favor of the various taxing units, appellees. In three issues, Excel argues that the trial court erred in (1) finding that it was the owner of the vehicles and liable for ad valorem taxes; (2) finding that there was no genuine issue as to any material fact as to ownership of the vehicles; and (3) granting summary judgment to Pasadena Independent School District ("ISD"), which filed no Motion for Summary Judgment, rendering the judgment interlocutory.
We affirm.
This action arises from the non-payment of ad valorem taxes by Excel Auto & Truck Leasing, L.L.P. Pasadena ISD filed a delinquent tax suit against Excel, and numerous taxing units intervened. The intervening taxing units sought to collect delinquent personal property taxes on vehicles that the taxing units allege were owned by Excel. The Tax Master recommended judgment for the taxing units, and Excel appealed the recommendation to the trial court and requested a jury trial de novo. The taxing units moved for summary judgment contending that Excel is the owner of the vehicles for which the 2002 and 2003 delinquent taxes are due and owing, and Excel is responsible for the payment of those taxes. Attached to the motions were certified copies of the delinquent tax records.
Excel responded by asserting that it does not own the vehicles because its "leases" are actually security agreements. It argued that "it is not the owner of the vehicles and the lease agreement form used is actually a security agreement creating a security interest in the vehicles its customers own." Its customers have possession of the automobiles and insure and care for them, but Excel maintains a lien by possession of the original title. Excel included an affidavit from Larry Tschoerner, Excel's general manager and finance director, in which he testified that Excel's customers were responsible for paying the taxes on their vehicles. The affidavit further states that, "in addition, pursuant to the terms of the agreement, these agreements could not be terminated by a customer." Excel asked the trial court to deny the taxing units' motions for summary judgment, enter judgment in favor of Excel as to no tax liability, or "on the alternative, that the Court find as a matter of law, that the form agreement Excel used was a security agreement, and/or that Excel is not the owner of the vehicles, or, in the alternative, that one or both of these matters should be submitted to the Jury in this case for a determination of the fact questions involved."
The trial court found that there was no genuine issue as to any material fact that the taxing units were entitled to judgment as a matter of law and that the motions should in all things be granted against Excel Auto and Truck Leasing, L.L.P. and Excel Lease Fund, Inc. as successor in interest to BLJ & Associates, Inc. d/b/a Excel Financial Company (in rem only).1
In issue three, Excel contends that the trial court erred in granting summary judgment to Pasadena ISD, which filed no motion for summary judgment, rendering the judgment interlocutory.
The taxing units supplemented the appellate record with Pasadena ISD's motion for summary judgment. We overrule issue three.
In issues one and two, Excel argues that the trial court erred in finding that it was the owner of the vehicles and liable for ad valorem taxes and in finding that there was no genuine issue as to any material fact as to ownership of the vehicles.
A party moving for summary judgment must conclusively prove all of the elements of its cause of action or defense as a matter of law. TEX.R. CIV. P. 166a(c); Holy Cross Church of God in Christ v. Wolf, 44 S.W.3d 562, 566 (Tex. 2001); Rhone-Poulenc, Inc. v. Steel, 997 S.W.2d 217, 222-23 (Tex.1999). When, as here, both sides move for summary judgment, and the trial court grants one motion but denies the other, a reviewing court should review both sides' summary judgment evidence, determine all questions presented, and render the judgment that the trial court should have rendered. FM Props. Operating Co. v. City of Austin, 22 S.W.3d 868, 872 (Tex.2000). When a summary judgment does not specify or state the grounds on which the trial court relied, the non-movant on appeal must negate any grounds on which the trial court could have relied, and we will affirm the summary judgment on appeal if any of the grounds presented in the motion is meritorious. See Harwell v. State Farm Mut. Auto. Ins. Co., 896 S.W.2d 170, 173 (Tex. 1995); Mellon Serv. Co. v. Touche Ross & Co., 17 S.W.3d 432, 435 (Tex.App.-Houston [1st Dist.] 2000, no pet.). A non-movant is required to show that each ground alleged in the motion for summary judgment was insufficient to support summary judgment. Star-Telegram, Inc. v. Doe, 915 S.W.2d 471, 473 (Tex.1995).
All tangible personal property is taxable unless otherwise exempt by law. TEX. TAX CODE ANN. § 11.01 (Vernon 2004). Property taxes "are the personal obligation of the person who owns or acquires the property on January 1 of the year for which the tax is imposed." TEX. TAX CODE ANN. § 32.07 (Vernon 2004). In a prosecution for the collection of delinquent taxes, certified copies of a taxing unit's tax records or tax statements constitute prima facie evidence of all of the elements of the taxing unit's petition, including ownership of the property, and create a presumption that the taxing units complied with all of the requirements imposed upon them by law. TEX. TAX CODE ANN. § 33.47(a) (Vernon 2004); Davis v. City of Austin, 632 S.W.2d 331, 333 (Tex.1982); Aldine Indep. Sch. Dist. v. Ogg, 122 S.W.3d 257, 263-64 (Tex. App.-Houston [1st Dist.] 2003, no pet.). It is an affirmative defense to tax liability that the person against whom the tax is assessed was not the owner of the property at the time of assessment. TEX. TAX CODE ANN. § 42.09(b)(1) (Vernon 2004). It has also been held that a person holding a lien or other security upon the property is not an owner for tax purposes. Comerica Acceptance Corp. v. Dallas Cent. Appraisal Dist., 52 S.W.3d 495, 497 (Tex.App.-Dallas 2001, pet. denied).
Here, the taxing units attached certified copies of their tax records to their ...
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