Special Legislative Alert

April 2, 2009
    TO:   Taxpayers, Registered Tax Agents, Corporate Representatives, Assessors

     RE:    SB2111 / HB 2075 - Appeals to Court From State Board Hearings Will be Only a                 Review of the Record Made at the Hearing


Kelsie Jones, Secretary to the State Board of Equalization, is proposing to change the long standing de novo provision for appeals to court from the State Board of Equalization. He proposes to make the process judicial review only from the record made at the hearing. At the present time, the record made at the State Board is reviewed by the court, but also any new evidence may be admitted to court.

This change will most likely force the taxpayer to engage an attorney for representation in tax appeals before the State Board. The bill as drafted by Mr. Jones requires that a party show that the case was prejudiced because the party was not represented by an attorney. If this can be shown, the case may be remanded to the Board so the new evidence may be introduced.

De Novo, or the right to introduce new evidence in court, is a long standing right and a change will obviously have far reaching effects. The law was changed from strictly review of the record to enable taxpayers and assessors to engage other qualified representatives other than only attorneys.

If the bill passes, the argument will surely be, and it is almost indefensible, that only a lawyer can make a record that is sufficient for a court to review if no new evidence may be admitted. The argument will include that taxpayers are prejudiced by inadequate records made at the State Board.

Therefore, the taxpayers and assessors will most likely be forced to hire only attorneys for representation before the State Board. This will also affect in house corporate representatives, assessors, and small companies that are represented by owner officers. The administrative record will eventually have to be made by an attorney.

Here is a link to the bill SB 2111 / HB 2075 and attached is a list of the House State & Local Government Committee members with telephone numbers and emails along with a list of the Senate State & Local Government Members. The bill is in the Senate Committee next Tuesday at 8 AM and in the House Committee at noon Tuesday. The list also contains the Senate and House sponsors’ names. Please call, email, or both and voice your opposition. If you call, please just leave a message that you are against the bill. If you email just express your opposition to passage of the bill. We have a chance right now. Later, well, it will be too late. Any questions, contact Jerry Caruthers at tax [at] caruthersinc [dot] com, 901-726 -1074.

Mr. Jones now proposes to amend the bill to say that the new law will not affect the taxpayers’ right to choose representatives other than attorneys. Such language will surely be challenged by some attorneys or the Attorney General and will be decided by the Supreme Court, not the Legislature. Do Not Be Fooled by this amendment.

If you cannot contact all the committee members and others, at least please contact the bill's sponsors listed below:

       Bill Sponsors     Senate  Doug Overbey (615) 741-0981  sen.doug.overbey [at] capitol.tn [dot] gov
                                   House  Craig Fitzhugh (615)  741-2134  rep.craig.fitzhugh [at] capitol.tn [dot] gov

Thank you for your help and cooperation.