By Gina Tabonares
Variety News Staff

THE property tax case filed by the Attorney General’s Office against Gov. Felix P. Camacho and Department of Revenue and Taxation director Art Ilagan has been dismissed after both parties agreed to write off the civil charges through a stipulation.
In a stipulated dismissal notice filed in the U.S. District Court of Guam, Deputy Attorney General Joseph Guthrie, counsel for the plaintiff, agreed with Ilagan’s counsel, Raymond L. Souza, and the governor’s conflicts counsel, Dan Benjamin, to dismiss the case without prejudice.
The stipulation was made after the governor filed a motion to dismiss the case, saying it’s defective because it lacks jurisdiction and the AGO failed to state a claim.
The case was filed by former Attorney General Douglas Moylan, who said that the governor and Ilagan should follow the law by conducting a comprehensive island-wide appraisal.
Moylan earlier said that the appraisal is required in order to value, assess and tax real property for private and commercial property owners.
The lawsuit was originally filed on Dec. 22, 2005 and was dismissed in early 2006. The AGO revived it on Aug. 18, 2006.
The plaintiff alleged in the civil rights lawsuit that the people of Guam’s due process and equal protection rights have been violated due to non-appraisal of residential and commercial property.
According to Moylan, GovGuam has not conducted an appraisal in 12 years despite Guam law’s requirement that an appraisal be conducted every three years. The last appraisal was done in 1993.
On Sept. 5, 2006, Benjamin filed a motion to dismiss the revived complaint for lack of jurisdiction and for failure of the plaintiff to state a claim.
Benjamin earlier said that the case is defective because it seeks to assert a federal law which is not applicable to an unincorporated territory like Guam.
The defense stated in their motion to dismiss that the Supreme Court has established that declaratory and injunctive relief are unavailable in tax cases if there is a remedy at law that is plain, adequate and complete.
Benjamin said local law provides that if a triennial evaluation has not taken place, the Department of Revenue and Taxation shall rely upon the most recent island-wide appraisal conducted.
The defense added that the law permits taxpayers on an individual basis to have their property valuations reduced pursuant to an appeals process, and pay absolutely no taxes until their case is heard by the Board of Equalization.
“This system provides a mechanism for any property owner to obtain a new, accurate valuation for any taxpayer,” Benjamin said.
The governor’s lawyer further argued that there is a system that protects due process by guaranteeing landowners the right to have their assessment evaluated before paying any taxes.
“There is no discrimination because all property owners, whether they bought their property 20 years ago or 20 days ago, have the right to challenge each year’s assessment as it comes due and obtain a new appraisal,” he said.
The lawsuit seeks to compel the governor to faithfully execute the laws of Guam and like the federal courts in the U.S. Virgin Islands, asks the court to stop officials from seeking to exact real property taxes from Guam citizens under the Due Process and Equal Protection Clauses in the Organic Act, until an appraisal is conducted.
The plaintiff further alleged that Guam property values drastically depreciated approximately 80 percent for commercial real property and approximately 35 percent for residential real property and are now only beginning to regain their lost values.
“It has been 12 years since an appraisal was last conducted. A significant number of persons are affected by the respondents’ failure to follow the law and conduct a comprehensive island-wide appraisal,” Moylan said.