New on The McTexLaw Business Owner's Resource Center:

PIERCING THE VEIL; TEXAS PROVIDES EXTRA PROTECTION

In 1987, the Texas Supremes supremely confused the law allowing plaintiffs to impose business liabilities on individual owners by "piercing the veil." Fortunately, a pro-business state legislature stepped in to undo the problem and give owners of Texas businesses extra protection from this risk. Click the headline to read how Article 2.21 of the Texas Business Corporation Act makes Texas a great state to charter a business. This is a follow-up article to a story in our June 1, 2002 Alert.

New on The McTexLaw Commercial Real Estate Resource Center:

CLEANING UP THE SOB'S IN DALLAS

For many, many years now the City of Dallas has waged war against the "sexually oriented business" industry (commonly known as "SOBs"). Or maybe the clubs have been at war against Dallas. Time and again Dallas amended its zoning ordinance, only to have it struck down as unconstitutional under the First Amendment. But now, some finality has been reached with the recent 5th Circuit Court of Appeals ruling upholding a portion of Dallas' latest zoning attempt. Click the headline to read more than just this bare summary of the case, and see whether relocation is finally in the future of the Northwest Highway Entertainment District. Baby Dolls Topless Saloons, Inc. v. City of Dallas, Texas, Case No. 00-10651.

"SPECIFICALLY PERFORM THIS" SAYS DAVID McDAVID

How can something so beautifully simple as a written contract become so confused, that it takes litigation from 1997 to 2002 to decide whether there is or is not a contract? Make the subject of the contract real estate, and amend it with several oral agreements. In a June 18, 2002 decision, the Texas 5th District Court of Appeals at Dallas affirmed a district court decision requiring a seller to specifically perform a commercial sales contract for $1.2 million. Read how "time is of the essence" got written right out of the contract by the course of dealings between buyer and seller. 17090 Parkway, Ltd., v. David McDavid, Case No. 05-00-1-01362-C.

PROPERTY TAX PROTESTS ACROSS TEXAS

There are two ways to increase property taxes: (1) increase the tax rate; or (2) increase the value of the property being taxed. In the past, taxing districts, particularly school districts, have increased their tax rates. This year, property taxes across Texas are skyrocketing due to dramatic increases in property valuations. In Tarrant County, more than 41,000 people protested their increased valuations. And in Dallas County that number exceeded 70,000 this year, a 73% increase from 2001.

The chief appraiser for Harris County estimates that about half of the protests filed result in lower valuations, whereas a Dallas expert believes the success rate is over 61% for D/FW.

How to decide whether to protest? Success will depend on determining the fair market value of your property, by comparing it to similar properties. If the comparison shows the appraisal district's valuation is too high, your value gets lowered.

The in's and out's of valuations can get very technical depending on the particular characteristics of each property, especially with properties that are burdened by easements and licenses or those that generate income streams. But with such high tax rates, ad valorem taxation can become the proverbial tail that wags the dog. And in cases of property with an agricultural exemption, the taxpayer may not feel the tax pinch today, but somebody certainly will come time to pay "rollback taxes" when land use is changed. We think the wisest course of action is to seriously consider filing a protest each year unless you are absolutely convinced that the appraisal district gave you a below-market valuation.

EMERSON AND THE 2ND AMENDMENT UPDATE

In the June 1, 2002, McTexLaw Email Alert, we reported the progress of two controversial cases on the 2nd Amendment's "right to bear arms." Emerson v. United States, Case No. 01-8780, U.S Supreme Court; Haney v. United States, Case No. 01-8272, U. S. Supreme Court. Subsequently, the U.S. Super Supremes have refused to hear the appeals, and so the 5th Circuit's decision remains, for now, the highest court to specifically hold that the 2nd Amendment guarantees the right of individuals to keep and bear arms.

REFERRAL NETWORKS

Your referrals are a big part of our continued success, and the same is true about this newsletter. Please take a moment to think about friends you know who might enjoy receiving our Email Alerts and forward this to them. Individual subscription information is below.

SUBSCRIPTION MANAGEMENT

To subscribe to the free McTexLaw Email Alert, please click here to send a blank Email with "subscribe" in the subject line.

To unsubscribe, click here to send a blank Email with "unsubscribe" in the subject line.

back to top

Close Window

©1995-2002, McPherson & Associates, PC. All rights reserved.