Texas Central Railway failed to pay property taxes last year

County attorneys along the proposed Texas Central high-speed rail route assert the railroad company is delinquent in paying over $622,000 in property taxes.

While the decision by the Supreme Court of Texas in the eminent domain case, Miles v. Texas Central, is awaited, county attorneys along the proposed high-speed rail route have submitted a supplemental letter to the court listing the counties and delinquent taxes for 2021.

The list includes 10 counties. The most is owed to Harris County $216,359.85, while the least is owed in Leon County $3,942.30.

The amount owed in Ellis County is still to be determined.

According to public records, Ellis County was the only county granting an exemption.

The Ellis County Press asked Kathy Rodrigue, RPA, chief appraiser, Ellis Appraisal District to explain why Texas Central Railroad property in Ellis County is exempt from property taxes.

Rodrigue responded, “Yes, we were aware of this issue and in the process of correcting the erroneous exempt status on all properties in the name of Texas Central Railroad and Infrastructure, Inc.

“These accounts, now without exemptions, are viewable on our website at www.elliscad.com.

“We are submitting these corrections to the Ellis County Tax Office and this owner will receive corrected tax statements for all years.

“It was incorrect for our office to have granted this owner an exemption on these accounts and unfortunately this owner did not communicate with us to question the exempt status.

“This was a human error on our part, misinterpreting this ownership was associated with the State of Texas, instead of recognizing this as a taxable corporation.

“Our goal is to serve all property owners of Ellis County with excellence, but recognize, we are human.

“We appreciate your communication on this matter,” she concluded.

She also provided the names and contact information of all the appraisal board members at ECP’s request.

The county attorneys believe the information is relevant to the Supreme Court’s decision because Texas Central “has not demonstrated that it can fund the project according to the plan.”

The finances of the proposed railroad have been a concern of many.

In 2020, Texas Central board chairman Drayton McLane Jr. admitted in a letter the project’s costs had increased significantly to about $30-billion.

The high-speed rail line would need to be approved by the Surface Transportation Board before construction, a process that would include examining the financing and viability of the project.

Waller County Judge Trey Duhon said, “We felt it was important to share this telling information with the Supreme Court of Texas. Texas Central would have the Court believe they are capable of building a $30B project and should be entrusted with the enormous power of eminent domain yet, the truth is they are incapable of doing something that responsible property owners must do every year – pay their property taxes.”

By holding land but not paying the taxes, the county attorneys say Texas Central “is actively harming the impacted counties by depriving them of funds needed for essential public services.”

Texans Against High-Speed Rail has also recently learned several property owners associations have liens against Texas Central for unpaid maintenance charges.

For example, White Oak Falls Homeowners Association in Harris County filed a lien for delinquent charges on March 10. It claims Texas Central owes $1,516.23.

Although it originally claimed the high-speed rail line would be privately financed, Texas Central CEO Carlos Aguilar last year admitted it needs funding from the federal government for the project to happen.

Texas Central did not reply to a request for comment by the time of publication.