Washoe must refund $13 million to Incline property owners

A Washoe County District Court judge has ordered county treasurer Bill Berrum to issue a $13 million refund to all Incline Village and Crystal Bay property owners, a community representative said Tuesday.

Judge Brent Adams' ruling Tuesday affirmed a previous decision handed down by the Washoe County Board of Equalization that demanded Washoe County roll back taxes for 8,700 residents.

"We're just as happy as we can be right now; we've been through seven years of this," said Incline resident Maryanne Ingemanson, president of the Village League to Save Incline Assets, the nonprofit group of Incline tax revolter. "I've got tears in my eyes."

Ingemanson said the courthouse in Reno was packed with Incline residents to hear Adams' ruling, which issued a "writ of mandamus" against Berrum. A "writ of mandamus" can be legally be described as a higher body demanding a lower body to act on something.

It is unclear when or if the refunds will be issued, as phone calls to Washoe County spokeswoman Kathy Carter and Chief Deputy Attorney David Creekman seeking comment on Adams' decision were not immediately returned.

A July 20 decision by the Nevada Board of Equalization ordered Washoe County to roll back assessed property values for 8,700 Incline Village/Crystal Bay properties to the 2002-2003 tax year, based on a case involving the 2006-2007 tax year, in which the Washoe County Assessor's office challenged a Washoe County Board of Equalization decision to refund the Incline/Crystal Bay residents. The case eventually went to the state Supreme Court.

The Village League filed the petition for a writ of mandamus on Aug. 21, not long after Village League attorney Suellen Fulstone hand-delivered a letter to Berrum, demanding prompt refunds for Incline and Crystal Bay.

Carter issued a statement in response to Fulstone's letter, saying the county would wait until the Nevada Board of Equalization issued a written decision deciding on the proper action to take, if any.

The state taxation board never issued a written decision, which was one of the county's main arguments on Tuesday, Ingemanson said.

If the county does issue refunds the money is available as the county planned for a potential $13 million roll back regarding this case during budget planning for the current 2009/2010 fiscal year, Carter said in August.

According to estimations from county Finance Director John Sherman, Washoe County's burden would total $5.5 million, with the Washoe County School District footing $4.5 million and the North Lake Tahoe Fire Protection District, $2 million. The State of Nevada would lose $700,000, with Incline Village General Improvement District losing $300,000.

Washoe County could appeal Tuesday's ruling to Nevada District Court, a decision that would have to come from the county commission, Carter said in a previous interview.