Bradley Partner Ian Faria Quoted in Houston Business Journal on Property Tax Refund

Bradley attorney Ian Faria was quoted in the Houston Business Journal about a refund of $1.7 million in excess property taxes collected by the League City Public Improvement District (PID) to fund new infrastructure within Magnolia Creek, a master-planned community developed by Mag Creek Partners LP. In 2015, the 56^th District Court of Galveston County ruled that the excess taxes should be refunded to current homeowners living in Magnolia Creek, but McGuyer Homebuilders Inc. (MHI) took issue with the ruling. The Houston homebuilder, who built spec homes in the community and paid property taxes on their inventory of homes, argued that the developers, homebuilders and original homeowners who paid the property taxes at the time should be owed the refund.

“We said that people would be getting a windfall, not a refund,” said Faria, who represented MHI in their appeal, along with colleagues Ryan Kinder and John Paul Hoelscher. They argued that the trial court decision could set a precedent that there’s no guarantee that residential developers and homebuilders could recoup the cost of building public infrastructure in a new community. Developer Mag Creek and homebuilder MHI each claim they are owed more than $100,000 property tax refunds, Faria explained.

“That could put a chilling effect on development,” Faria said. “No developer or homebuilder wants to be subjected to PID fees that they can’t recover.”

The complete article, “Houston-area homeowners, developers eligible for part of a $1.7M property tax refund,” appeared in the Houston Business Journal on May 4, 2017. (login required)