Austin American-Statesman

Texas Supreme Court will not hear Austin’s appeal seeking to bring back billboard fees

Justices let stand 2016 appellate ruling that struck down city’s fee.

- American-Statesman staff

Austin has lost the latest — and perhaps final — round in a court battle over billboard fees.

The state Supreme Court on Friday declined to hear appeals in the case, letting stand a 2016 appellate court ruling that struck down the city’s $190 annual billboard fee as an unconstitu­tional tax.

Austin collected $98,430 in billboard fees in fiscal 2015, the most recent figure available Tuesday.

“We are disappoint­ed in the Texas Supreme Court’s decision not to take the case,” city spokesman David Green said Tuesday. “This case involves legal nuances where the federal court found it did not have jurisdicti­on to consider the city’s fee and the state court found that the city was able to charge its registrati­on fee. Because of the complexity of the issue, we are carefully reviewing next steps.”

The Texas Constituti­on requires local government­s to limit taxes to no more than 50 percent of a tax charged by the state. Because Texas doesn’t tax billboards, Austin’s fee was inherently well beyond the 50 percent limit and is therefore unconstitu­tional and “void from its inception,” the Austin-based 3rd Court of Appeals ruled last year.

That ruling also found the city should refund $198,450 to Reagan National Advertisin­g, which filed the challenge to the city’s fee. Reagan owns about 80 percent of the billboards in Austin, according to court filings.

The company filed its first lawsuit in federal court in 2010, after Austin started imposing an annual registrati­on fee on billboard owners. Previously, the city had charged a biennial fee to property owners who had a billboard on their site.

U.S. District Judge Lee Yeakel dismissed that lawsuit in 2011, ruling that because the fee was in reality a local tax, U.S. law required the issue to be decided by state, not federal, courts.

So Reagan filed its challenge in state court, and initially the city prevailed there as well. District

 ?? AMERICAN-STATESMAN 2014 ?? Reagan National Advertisin­g billboards dwarf signs on I-35’s upper deck. Reagan, which challenged the city’s fee, owns about 80 percent of the billboards in Austin, court filings show.
AMERICAN-STATESMAN 2014 Reagan National Advertisin­g billboards dwarf signs on I-35’s upper deck. Reagan, which challenged the city’s fee, owns about 80 percent of the billboards in Austin, court filings show.

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