Wilkins & Associates, Inc. v. Vimy Ridge Municipal Water Improvement District No. 139, 373 Ark. 580

Summary

The Arkansas Supreme Court considered whether a foreclosure action for unpaid municipal improvement district assessments was barred by the applicable three-year statute of limitations. It held that the special improvement taxes became delinquent under the specific statute governing improvement districts, rather than under the general tax-delinquency provisions, and that the foreclosure complaint was untimely. The court reversed the circuit court's summary judgment in favor of Vimy Ridge Municipal Water Improvement District No. 139.

Holdings

1. The general-tax provisions of Title 26 do not apply to municipal improvement district special taxes unless the district specifically adopts the applicable installment scheme by ordinance; absent such adoption, the specific delinquency provision in Ark. Code Ann. § 14-86-1204 governs.
2. Vimy Ridge's October 1, 2004 foreclosure complaint was barred by the three-year statute of limitations because the 2001 assessment became delinquent more than three years before the complaint was filed.

Questions Presented

1. Whether the foreclosure action for the 2001 municipal improvement district assessment was barred by the applicable three-year statute of limitations.
2. Whether the general-tax delinquency provisions in Ark. Code Ann. § 26-36-201 applied to the special taxes of the municipal improvement district.

Disposition

reversed