Since the state instituted its deferred tax program for agricultural, horticultural and forest lands in the 1970s, Taylor has requested, through an application process, that his land be listed with a forest land tax deferment. The program allows a county to defer a portion of an individual's property taxes, provided their land is "under a program of sound management," until the land is sold or is reclassified.
The problem in this case, said Jackson County tax assessor Cecil Dills, is that Taylor has failed to file a management plan for his property, despite repeated requests from the county. The absence of a management plan in Taylor's file came to light in 1998 when the tax assessor's office reviewed all Jackson County land under forest management deferment in response to a claim from an area logger that another individual was not following his approved plan with regard to the management of his property.
The tax assessor's office notified Taylor that a forest management plan was needed to verify the property's classification in both 1998 and 1999, Dills said. With each request word came back that a plan was on its way, though one never arrived, he said.
"We feel we went the extra mile to inform (Taylor)," Dills said.
After not receiving a plan in 1999, Taylor's land was removed from deferred status, and full tax values were assessed and the 1999 taxes were paid by the congressman, according to Diane Sherrill, a lawyer in the firm hired to represent Jackson County. With the deferment classification removed, state statutes allowed the tax collector to require full tax payment from the previous three years. The $18,000 Jackson County claims Taylor now owes is the total of full tax values from 1996, 1997 and 1998, plus interest.
A collection notice was sent earlier this month to the General Council for the U.S. House of Representatives, according to tax collector Beverly Buchanan. No response to the request had been received as of Tuesday, she said.
While Congressional attorneys have not responded to Jackson County's claims, Taylor's Asheville attorney, Robert Long, has. In a request for a hearing before the Jackson County Board of Equalization and Review, Long says that "there is no requirement in the General Statutes of North Carolina that a written management plan regarding forest land for present-use value be filed, but rather said General Statutes only require that the forest land property be 'under a program of sound management.'"
To that, Sherrill points to the powers of the tax assessor as outlined in the state statutes that say "the assessor may require the owner of classified property to submit any information needed by the assessor to verify that the property continues to qualify for present-use value taxation."
"We can ask for what we need to check and see if the land is still under sound management," she said. "The burden is on the taxpayer to provide the information, so why not provide a written plan."
Any hearing granted the congressman at this time could only address his 2000 tax status, Sherrill said, since time has expired on the 1999 removal from the present-use value program.
"The county may be right; the congressman may be right, but like any other citizen, he has a right to argue the point," said Orville Coward Jr. a Jackson County attorney. "Therefore, (the county) should not garnish his wages like he's not paying child support while the question is pending. (The county commissioners) are just doing this to make him look bad."
Jackson County Manager Jay Denton agreed that Taylor will be treated like everyone else.
"Congressman Taylor is on our list of people who haven't paid their taxes," Denton said. "He's one of many, and he'll receive no special treatment."
Of the hundreds of delinquent taxpayers in Jackson County, the decision to take action against 37 to date was based on the amount owed, starting with the largest, according to Buchanan. The majority of the action has been an attachment of bank accounts, as was done in the case against Santa's Land owner Danny Lyons, said Buchanan. An additional 19 foreclosure notices have been sent to property owners, she said. In three other cases, including Taylor's, the county has attempted to collect back taxes through salary garnishments, she said.
The results of the county's action to collect back taxes has been positive, she said. Of the approximately 20 individuals with owed amounts owned larger than Taylor's, many have either paid (as was the case with Lyons) or are making payments, she said.
Information released Monday by officials with the Taylor campaign for re-election to Congress give credit for Jackson County's action to collect back taxes from the congressman to his Democratic opponent, Sam Neill of Hendersonville.
"When a candidate for office has nothing positive to say about himself, he goes on the attack," the statement reads. "Unfortunately, that's what is happening in the 11th Congressional District.
"Liberal Democrat Congressional candidate and trial lawyer Sam Neill is being handled by many of the same operatives who have previously tried - and failed - to smear Charles Taylor. As far back as 1990, this willful group of professional politicians has attempted to manipulate the people of Western North Carolina for their own ends. Now apparently, they are using local government in their efforts," it says.
The statement also points out that Taylor is a registered North Carolina forester who has been paying property taxes on land classified as forest land for years.
"This is courthouse politics at its worst," reads a quote attributed to Coward. "How can the average citizen have any faith in our government if it's willing to be used for such crass political purposes? Democrat Congressional candidate Sam Neill and his allies are attempting to use the power of the Jackson County government to smear Charles Taylor. I am shocked that a candidate such as Sam Neill would resort to such gutter tactics."
Neill, who says his speciality is real estate and tax law, calls his opponent's accusations that he had anything to do with the action against him by Jackson County "unbelievable."
"He's being treated like everyone else and he doesn't like it," said Neill, who further stated that he learned of the action against Taylor Tuesday morning from a colleague.
"The proper procedure (for tax deferred status) is to file a plan and implement a plan," said Neill. "He has never followed that procedure. He's committed a fraud on the people of Jackson County to reduce his taxes and increase theirs."
The question is a matter of law, attorney Long said, "and we intend to argue that."
Should the Jackson County Board of Equalization and Review find in the county's favor, Long said he'll appeal the issue to the property tax office in Raleigh. Following that, a decision against his client there would mean he'll take the case to the N.C. Court of Appeals.
Jackson County officials were recently informed of the conclusion of their case against the property owner who prompted the review of land under forest management. Tax assessor was informed last week that the N.C. Supreme Court has declined to hear a review of a ruling by the Court of Appeals that the Earl Young family of Cashiers had to have a plan on file and that it must be followed, Dills said.
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