Reprint from the Progress Times - March 2, 2007
©Progress Times 2007 - All Rights Reserved

County Hears Protest Over Recreational Vehicle Tax

By Blake Hall

EDINBURG – Winter Texans showed up in mass to protest an Hidalgo County Appraisal District policy that taxes recreational vehicles, normally exempt from ad valorem taxes.

Personal property, such as recreational vehicles and automobiles, are exempt from valorem taxes (real estate taxes). But apparently not in Hidalgo County.

The county interprets the tax code to mean that recreational vehicles “substantially affixed” to their lots are to be taxed as real property rather than personal property. If an RV has attachments, such as canopies, skirting, or tie-downs, apparently the appraisal district considers that RV as a permanent dwelling and taxes it.

Winter Texans, such as Gene Phagan, of Twin Lakes RV Park in Mission, say that Hidalgo and Cameron counties are the only two counties in the entire state that interpret the tax code that way.

Several Winter Texans spoke to Hidalgo County commissioners during their standing-room-only meeting Tuesday, February 27. Some said that RVs were not always taxed in Hidalgo County.

"We didn’t have property taxes back when I moved into the park," noted Marshall Putney, a RV park resident.

Others wanted to know whether they are even welcome.

But Precinct 4 Commissioner Oscar Garza said Winter Texans are welcome, noting they are an important part of the economy. "We depend on them," he said.

Rolando Garza, chief appraiser for the county's appraisal district, was present to offer the reasoning behind the current tax. He used a slideshow presentation to show how some recreational vehicles are not as easy as others to appraise for taxation purposes.

Many recreational vehicles are just that, the chief appraiser said - wheeled units without any attachments. Others have simple attachments that can be removed in a short period of time. Neither of those is difficult to appraise, he added.

The challenge for appraisers happens in evaluating vehicles that have more sturdy attachments added. Chief Appraiser Garza said some attachments, such as canopies, cannot be removed without damaging the property. Reasonably, he said, they would be considered a physical attachment, much like an added room.

The dissent in the courtroom at the appraiser's last comment was audible, with Commissioner Garza commenting it doesn't take more than an hour to remove even a well-fastened canopy.

Armando Barrera, tax assessor and collector for the county, said all county property that is not temporary is taxable. He added many Winter Texans are protesting taxation on mobile homes which have remained unmoved for several years.

He admitted whether a structure is temporary is left to the discretion of the person appraising the property.

Chief Appraiser Garza continued to show slides of different mobile homes, which gradually evolved into recreational vehicles which looked more similar to park homes. Although those additions to a vehicle might complicate the decision, the commissioner said, there are relatively few vehicles like that.

"I bet you don't have more than a hundred homes like that in the entire county," he added.

The Precinct 4 commissioner asked Raul Lozano, assistant chief administrator to the county judge, to form a committee to resolve the issue. Included on the committee are Chief Appraiser Rolando Garza, Precinct 4 Commissioner Oscar Garza Jr., Richard Talbot - a lawyer for the appraisal district - and several Winter Texans.

Lozano said there will be an open meeting Monday, March 5, at 2 p.m. in the county appraisal district’s boardroom to address the issue. He said the committee is more likely to make progress if RV parks send a representative rather than a group of people.

In drainage district news, Hidalgo County Drainage District No. 1 chose a securities firm, UBS Securities LLC, to sell $28 million in bonds. That sum is part of a larger $100 million in bonds approved by voters in November to fund a series of drainage improvements.

The firm will sell the bonds at an interest rate of 4.248 percent. That comes as good news to the county since the original estimated interest rate was closer to 4.6 percent.

Representatives for the drainage district had visited New York during the past few weeks in order to get the bonds insured, and also to get the county's credit rated. The county received a high rating from Standard & Poor's and Moody, which was boosted because the county's bonds were insured, said Godfrey Garza, the county's drainage district manager.

In Precinct 3 news, La Joya ISD No. 22 subdivision was given preliminary approval for development. Evergreen Valley Estates, another subdivision, was given final approval after being completed, and also has a financial guarantee.