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k RESOLUTION URGING GREATER STATE ASSISTANCE TO HELP THE COUNTIES IN DEFENDING LEGAL CIIALLENGES TO THE PROPERTY 'FAX WHEREAS, the major railroads in North Carolina brought a lawsuit' in federal district court, against Secretary of Revenue blark Lynch and Ad Valorem Tax Division Director Doug Holbrook, challenging the level of naxatio,] ,-,f their p~.uperty in 87 counties in relation to all other property in each jurisdiction for the 1980 tax year; and WliEREAS, the crial court rendered a decision iix that case adverse to the defendants and the several counties on two main legal points, and although the inteut of the lawsuit was to correct an inequity iu the property aax treatmenu of ~;ai!roads, the effect of the decision from the connty goverrunent v~ewpoint has been to create another inequity by placing the railroads in an unwarranted, favored tax status; and WHEREAS, other annually assessed property taxpayers are likely to consider similar legal challenges, and the effect could he to place an inequitable, disproportionate tax burden on residential real property taxpayers; snd WHEREAS, mos~ counties affected by the 1980 lawsuit faced a potentially small tax revenue loss compared to the legal expense of individually defending the suit; and WHEREAS, only Mecklenburg and bladison Counties directly intervened in the lawsuit, b~t the several co:~nties, though not joined as defendants, collectively raised in excess of $46,000 to hire outside legal counsel to assure t~'~at the counties' collective concerns were a~ least addressed; and I~{EREAS, the Attorney General's office has assigned one of its Assistant Attorney Generals in the Revenue Section to ~¢epresent state-level defendants, but because of his m[~ny other duties and responsibilities he has been able to devote nnly a porcion of his time to the railroad lawsuit; and WHEREAS, state law governs the administration of the property tax, including the requirement for an octenn~al revaluation cycle for real property; and WHEREAS, a legislative study co~mnittee is looking at the feasibility of requiring more frequent revaluations and county officials generally support this effort, but any legislative solution to the problem will take many years to implement fully because of the financial expense, technological improvements, ~nd increased qualified personnel that will be necessary to assure accurate revaluations on a more frequent basis, and in ~-he meantime other lawsuits may be brought by annually assessed property taxpayers; and