City of El Paso v. Mountain Vista Builders, Inc.

This tax suit presents two rather straightforward questions. The first is whether a taxpayer who claims lack of notice from the taxing entity as a defense must pursue an available administrative remedy upon learning of the claimed tax liability. The second question is whether a taxpayer can avoid tax liabilities at trial based on affirmative defenses which were never raised in a defensive pleading. Under the facts of this case, we answer the first question "yes" (one must pursue administrative remedies) and the second question "no" (you can't rely on affirmative defenses you never pled).…