Property Tax Battles: Hotels, Towers, Acres
Texan Hotel & West 7th Street Property Taxes Reduced:
City leaders approved tax relief for the Texan Hotel, lowering its property assessment basis and extending similar reductions to neighboring businesses on the south side of West 7th Street.Major Land Development Tax Appeal Denied:
An appeal by David Barrow to classify nearly 1,000 acres in the northwest hills as undeveloped acreage for tax purposes was rejected, upholding higher assessments based on subdivided lots.Luxury High-Rise Assessments Reviewed:
While a request to lower the Penthouse Apartment Hotel's assessment was denied, Cambridge Towers received a significant tax adjustment of $167,000 due to a discovered mathematical error in its original assessment.
Full Transcript
MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Special Meeting December 18, 1965 COUNCIL CHAMBERS, CITY HALL The meeting was called to order with Moyor Palmer presiding. Roll Call: Present: Councilmen Shanks, Long, Lekue, White, Mayor Palmer Absent: None The Mayor announced that it was 10:00 a.m. and time for the Special Meeting concerning the settlement of four tax cases being appealed from the Board of Equalization. The appeals were being made by Marvin Pergstrom's Penthouse Apartment, David Berrow, Cambridge Towers and the Texan Hotel.. The Council voted tax relief to the Texan Hotel at 121 West 7th Street and at the same time lowered taxes on other properties on the southside of Seventh between Colorado and the Congress Avenue alley. In granting the appeal the Council lowered the basis for figuring the Texan Hotel's property assessment from $1,800 to $1,600 per Seventh Street front foot. To apply evenly, the same basis would be used to figure taxes on the Texan's neighbors. However, Jack Klitgaard, tax assessor-collector, told the Council that the ruling did not have to apply on the north side of the street because of the higher volue of the Capital National Bank Building. He further stated that the ruling did not have to cross the alley toward Congress Avenue, an area where assessments were protested earlier in the year by owner George Nalle. Chairman of the City's Planning Commission, David Barrow had protested the ruling's of the Board of Equalization on many underdeveloped portions of land in the northwest hills. Berrow's protests covered 978 acres at 19 lots with assessments éith assessments totaling $591,110. Barrow stated that the lots should be counted as acreage rather than subdivisions on lots since he had not opened his subdivision. 2. * The Council voted unamously to sustain the Board of Equalization. The Council then debated taxes on the Penthouse and Cambridge Towers. Mr. Marvin Bergstrom had requested that the Council deduct approximately $100,000 off the assessmentor $788,507 on his Penthouse Apartment Hotel. The major part of the Council's debate centered on trying to equalize the differences between square foot costs on the Penthouse and Cambridge Towers. The Penthouse was assessed at an average of $8.71 Towers per square foot and the Cambridge was assessed at $12.50 per square foot. Councilman Shanks stated that the Council had no basis for lowering either of the assessments. He then urged for an equalization that would bring Cambridge Towers within $3.00 per square foot of the Penthouse. Councilman LaRue and Councilman Long wanted the * Penthouse assessment lowered. The Council then unanimously voted to sustain the Board of Equalization. Cambridge Towers was granted relief of $167,000 due to a mathematical error found in tax office computations. This left their assessment at $1,596,290. made during the Tuesday session The Council had paid on site inspections of all the properties in question. They then praised Mr. Klitgaard for his work with the tax department and noted that of the 23,000 tax notices handled that year, only 13 were appealed to the City Council. ADJOURNMENT The Council then adjourned. ATTEST City Clerk APPROVED Mayor