MOUMEN & THANAA KUZIEZ,	)
	)
Complainants,	)
	)
v.	)		Appeal Number 03-10109
	)
PHILIP MUEHLHEAUSLER, ASSESSOR,	)
ST. LOUIS COUNTY, MISSOURI,	)
	)
Respondent.	)

Decision of the St. Louis County Board of Equalization sustaining the assessment made by the Assessor, SET ASIDE, Hearing Officer finds true value in money for the subject property for tax years 2003 and 2004 to be $190,000, assessed value of $36,100.

Complainant, Moumen Kuziez, appeared pro se.

Respondent appeared by Counsel, Paula J. Lemerman, Associate County Counselor.

Case heard and decided by Hearing Officer, W. B. Tichenor.

The Commission takes this appeal to determine the true value in money for the subject property on January 1, 2003.

Complainant appeals, on the ground of overvaluation, the decision of the St. Louis County Board of Equalization which sustained the valuation of the subject property. The Assessor determined an appraised value of $201,500 (assessed value of $38,280, as residential property). Complainant proposed a value of $150,000 (assessed value of $28,500). A hearing was conducted on April 22, 2004, at the St. Louis County Government Center, Clayton, Missouri.

The Hearing Officer, having considered all of the competent evidence upon the whole record, enters the following Decision and Order.

Mr. Kuziez testified in his own behalf. Mr. Kuziez showed a series of digital photographs on his laptop computer to illustrate the various condition and structural problems with the subject property. He testified as to the foundation and basement settlement and roof problems with the home. The subject driveway and garage floor is also cracked due to general settlement. Settlement has also cause separation of the brick from the framing around the garage door. Mr. Kuziez also offered into evidence Exhibit A, a repair bid for repairing of cracks, settlement and installing a new roof. The total cost for such repairs was $29,500 as per Exhibit A. The exhibit was received into evidence. Mr. Kuziez offered his opinion of value to be $150,000. In his opinion he would not be able to see the property in its current condition, except to a developer who would want to rehab the entire home.

Respondent placed into evidence the testimony of Mr. Rebsamen, appraiser for St. Louis County. The appraiser testified as to his appraisal of the subject property. The Appraisal Report, Exhibit 1, of Mr. Rebsamen was received into evidence. Mr. Rebsamen arrived at an opinion of value for the subject property of $190,000 based upon a sales comparison approach to value. In performing his sales comparison analysis, the appraiser relied upon the sales of properties which he deemed to be comparable to the subject property.

1. Jurisdiction over this appeal is proper. Complainant timely appealed to the State Tax Commission from the decision of the St. Louis County Board of Equalization.

2. The subject property is located at 400 Country Club Dr., Ballwin, Missouri. The property is identified by locator number 21S310395. The property consists of .66 of an acre lot improved by a one-story masonry single-family structure of average quality construction. The house was built in 1964 and appears to be in only fair physical condition. The residence has a total of seven rooms, which includes three bedrooms, two full baths, and contains 2,289 square feet of living area. There is a full basement with approximately 750 square feet of recreation area. There is an attached two-car garage. There was no listing or sale of the property noted within three years prior to the tax date of January 1, 2003. The property suffers from deferred exterior maintenance. Foundation and settlement conditions were noted on the exterior brick, concrete flatwork, concrete footings and the concrete slab floor of the basement.

3. There was no evidence of new construction and improvement from January 1, 2003, to January 1, 2004.

4. Complainant=s evidence was not substantial and persuasive to rebut the presumption of correct assessment by the Board and establish the true value in money as of January 1, 2003, to be $150,000.

5. The properties relied upon by Respondent=s appraiser in performing his appraisal were comparable to the subject property for the purpose of making a determination of value of the subject property. The properties were located within .60 of a mile of the subject. Each sale property sold at a time relevant to the tax date of January 1, 2003. The sale properties were similar to the subject in style, quality of construction, age, condition, room, bedroom and bathroom count, living area, location, site size and other amenities of comparability. Exhibit 1, p. 5.

6. The comparables were described as follows:

Comparable 1 (623 Packford Dr., - .50 of mile northwest of the subject) sold in September 2001 for $242,500. This property consists of a .48 of an acre lot improved by a one- story masonry single-family structure of average quality construction. The house was built in 1965 and appears to be in very good physical condition. The residence has a total of eight rooms, which includes four bedrooms, two full bath, and contains 2,301 square feet of living area. There is a full basement and an attached two-car garage.

Comparable 2 (337 Country Club Dr., - .15 of a mile southeast of the subject) sold in February 2002 for $242,000. This property consists of a .55 of an acre lot improved by a one- story masonry single-family structure of average quality construction. The house was built in 1962 and appears to be in good physical condition. The residence has a total of eight rooms, which includes five bedrooms, two full baths, and contains 2,640 square feet of living area. There is a full basement and an attached two-car garage.

Comparable 3 (15240 Clayton Rd. - .60 of a mile northwest of the subject) sold in September 2001 for $175,000. This property consists of a .41 of an acre lot improved by a one- story masonry and frame single-family structure of average quality construction. The house was built in 1960 and appears to be in fair physical condition. The residence has a total of eight rooms, which includes three bedrooms, two full baths, and contains 1,928 square feet of living area. There is a full basement, which has 500 square feet of recreation area. There is an attached two-car garage.

7. The appraiser made various adjustments to the comparable properties for differences which existed between the subject and each comparable. All adjustments appear to be appropriate to bring the comparables in line with the subject for purposes of the appraisal problem. Adjustments were made to the first and second comparables to account for their overall superior condition as compared to the subject.

8. The net adjustments for Comparable 1 amounted to -$46,000 or 18,97% of the sales price. The net adjustments for Comparable 2 amounted to -$48,800 or 20,17% of the sales price. The net adjustments for Comparable 3 amounted to +$14,500 or 8.29% of the sales price.

9. The adjusted sales prices for the comparables calculated to $196,500, $193,200 and $189,500, respectively. The appraiser concluded on a $190,000 value which calculated to a value per square foot of $83.01 compared with the sales prices per square foot of living area for the comparables of $105.39, $91.67 and $90.77.

10. Respondent did not have to meet a standard of clear, convincing and cogent evidence in this appeal, under the provisions of Section 137.115, RSMo, as he was not seeking to sustain the original valuation presumed to have been made by a computer, computer-assisted method or a computer program.

11. Respondent=s evidence met the standard of substantial and persuasive to establish the value of the subject, as of January 1, 2003, to be $190,000.

CONCLUSIONS OF LAW

The Commission has jurisdiction to hear this appeal and correct any assessment which is shown to be unlawful, unfair, arbitrary or capricious. Article X, section 14, Mo. Const. of 1945; Sections 138.430, 138.431, RSMo. The hearing officer shall issue a decision and order affirming, modifying or reversing the determination of the board of equalization, and correcting any assessment which is unlawful, unfair, improper, arbitrary, or capricious. Section 138.431.4, RSMo.

There is a presumption of validity, good faith and correctness of assessment by the County Board of Equalization. Hermel, Inc. v. STC, 564 S.W.2d 888, 895 (Mo. banc 1978); Chicago, Burlington & Quincy Railroad Co. v. STC, 436 S.W.2d 650, 656 (Mo. 1968); May Department Stores Co. v. STC, 308 S.W.2d 748, 759 (Mo. 1958).

The presumption in favor of the Board is not evidence. A presumption simply accepts something as true without any substantial proof to the contrary. In an evidentiary hearing before the Commission, the valuation determined by the Board, even if simply to sustain the value made by the Assessor (which is not presumed to be correct), is accepted as true only until and so long as there is no substantial evidence to the contrary.

There is no presumption that the assessor=s valuation is correct. Section 138.431.3, RSMo.

Section 137.115, RSMo 1994, requires that property be assessed based upon its true value in money which is defined as the price a property would bring when offered for sale by one willing or desirous to sell and bought by one who is willing or desirous to purchase but who is not compelled to do so. St. Joe Minerals Corp. v. State Tax Commission, 854 S.W.2d 526, 529 (Mo. App. E.D. 1993); Missouri Baptist Children=s Home v. State Tax Commission, 867 S.W.2d 510, 512 (Mo. banc 1993). It is the fair market value of the subject property on the valuation date. Hermel, Inc. v. State Tax Commission, 564 S.W.2d 888, 897 (Mo. banc 1978).

Market value is the most probable price in terms of money which a property should bring in competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeable and assuming the price is not affected by undue stimulus.

Implicit in this definition is the consummation of a sale as of a specific date and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated.

2. Both parties are well informed and well advised, and each acting in what they consider their own best interests.

3. A reasonable time is allowed for exposure in the open market.

4. Payment is made in cash or its equivalent.

5. Financing, if any, is on terms generally available in the Community at the specified date and typical for the property type in its locale.

6. The price represents a normal consideration for the property sold unaffected by special financing amounts and/or terms, services, fees, costs, or credits incurred in the transaction.

Real Estate Appraisal Terminology, Society of Real Estate Appraisers, Revised Edition, 1984; See also, Real Estate Valuation in Litigation, J. D. Eaton, M.A.I., American Institute of Real Estate Appraisers, 1982, pp. 4-5; Property Appraisal and Assessment Administration, International Association of Assessing Officers, 1990, pp. 79-80; Uniform Standards of Professional Appraisal Practice, Glossary; Exhibit 1, p. 3.

In order to investigate appeals filed with the Commission, the Hearing Officer has the duty to inquire of the owner of the property or of any other party to the appeal regarding any matter or issue relevant to the valuation, subclassification or assessment of the property. The Hearing Officer=s decision regarding the assessment or valuation of the property may be based solely upon its inquiry and any evidence presented by the parties, or based solely upon evidence presented by the parties. Section 138.430.2, RSMo.

The Hearing Officer is not bound by any single formula, rule or method in determining true value in money, but is free to consider all pertinent facts and estimates and give them such weight as reasonably they may be deemed entitled. The relative weight to be accorded any relevant factor in a particular case is for the Hearing Officer to decide. St. Louis County v. Security Bonhomme, Inc., 558 S.W.2d 655, 659 (Mo. banc 1977); St. Louis County v. STC, 515 S.W.2d 446, 450 (Mo. 1974); Chicago, Burlington & Quincy Railroad Company v. STC, 436 S.W.2d 650 (Mo. 1968).

The Hearing Officer as the trier of fact may consider the testimony of an expert witness and give it as much weight and credit as he may deem it entitled to when viewed in connection with all other circumstances. The Hearing Officer is not bound by the opinions of experts who testify on the issue of reasonable value, but may believe all or none of the expert=s testimony and accept it in part or reject it in part. St. Louis County v. Boatmen=s Trust Co., 857 S.W.2d 453, 457 (Mo. App. E.D. 1993); Vincent by Vincent v. Johnson, 833 S.W.2d 859, 865 (Mo. 1992); Beardsley v. Beardsley, 819 S.W.2d 400, 403 (Mo. App. 1991); Curnow v. Sloan, 625 S.W.2d 605, 607 (Mo. banc 1981).

If specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue, a witness qualified as an expert on that subject, by knowledge, skill, experience, training, or education, may testify thereto.

The facts or data upon which an expert bases an opinion or inference may be those perceived by or made known to the expert at or before the hearing and must be of a type reasonably relied upon by experts in the field in forming opinions or inferences upon the subject and must be otherwise reliable, the facts or data need not be admissible in evidence. Section 490.065, RSMo; Courtroom Handbook on Missouri Evidence, Wm. A. Schroeder, Sections 702-505, pp. 325-350; Wulfing v. Kansas City Southern Industries, Inc., 842 S.W.2d 133 (Mo. App. E.D. 1992).

In order to prevail, Complainants must present an opinion of market value and substantial and persuasive evidence that the proposed value is indicative of the market value of the subject property on January 1, 2003. Hermel, Inc. v. State Tax Commission, 564 S.W.2d 888, at 897. Substantial evidence can be defined as such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. See, Cupples-Hesse Corporation v. State Tax Commission, 329 S.W.2d 696, 702 (Mo. 1959). Persuasive evidence is that evidence which has sufficient weight and probative value to convince the trier of fact. The persuasiveness of evidence does not depend on the quantity or amount thereof but on its effect in inducing belief. Brooks v. General Motors Assembly Division, 527 S.W.2d 50, 53 (Mo. App. 1975). See also, Westwood Partnership v. Gogarty, 103 S.W.3d 152 (Mo. App. E.D. 2003); Daly v. P. D. George Co., 77 S.W.3d 645 (Mo. App. E.D. 2002); Reeves v. Snider, 115 S.W.3d 375 (Mo. App. S.D. 2003).

Respondent, when advocating a value different from that determined by the original valuation or a valuation made by the Board of Equalization, must meet the same burden of proof to present substantial and persuasive evidence of the value advocated as required of the Complainant under the principles established by case law. Hermel, Cupples-Hesse, Brooks, supra.

The owner of property is generally held competent to testify to its reasonable market value. Boten v. Brecklein, 452 S.W.2d 86, 95 (Sup. 1970). The owner=s opinion is without probative value however, where it is shown to have been based upon improper elements or an improper foundation. Shelby County R-4 School District v. Hermann, 392 S.W.2d 609, 613 (Sup. 1965).

Missouri courts have approved the comparable sales or market approach, the cost approach (replacement or construction) and the income approach as recognized methods of arriving at fair market value. St. Joe Minerals Corp. v. STC, 854 S.W.2d 526, 529 (App. E.D. 1993); Aspenhof Corp. v. STC, 789 S.W.2d 867, 869 (App. E.D. 1990); Quincy Soybean Company, Inc., v. Lowe, 773 S.W.2d 503, 504 (App. E.D. 1989), citing Del-Mar Redevelopment Corp v. Associated Garages, Inc., 726 S.W.2d 866, 869 (App. E.D. 1987); and State ex rel. State Highway Comm=n v. Southern Dev. Co., 509 S.W.2d 18, 27 (Mo. Div. 2 1974).

An owner=s opinion of value otherwise unsupported by a valuation methodology that is recognized by generally accepted appraisal practice will not be sufficient to establish fair market value. An owner=s opinion not so supported and established is based upon only the opinion. It is not based upon proper elements and a proper foundation. Therefore, it has no probative value in an evidentiary hearing before the Commission. No weight can be afforded it when addressing the issue of fair market value.

Mr. Kuziez=s issues relating to fair market value were based upon the fact that his home is only in fair condition. The house suffers from a number of items of deferred maintenance. It is not a remodeled or updated home. These are certainly factors which must be taken into consideration and accounted for when valuing a home for an appeal before the Commission.

However, simply bringing before the Commission the photographs and repair estimates does not establish value. Mr. Kuziez clearly demonstrated the need for various repairs to his home. However, the Hearing Officer must have some basis upon which to account for what the market will recognize for the cost of such needed repairs. Bid proposals are not sufficient. It must be shown what other homes are selling for and then an adjustment be made to the sales prices of such similar homes. Without that, the Hearing Officer can give no credibility to an owner=s unsupported opinion of value.

The opinion of value given by Mr. Kuziez of $150,000 was not shown to be based upon proper elements or a proper appraisal foundation. Therefore, it has no probative value or weight in the present appeal.

Mr. Rebsamen had an appraisal assignment that afforded him very good comparables to arrive at an opinion of value. The three sale properties were all very similar in the most basic elements of site size and location, style, age and living area. The comparables nearly identical status with the subject on these foundational factors provided the best of starting points for the appraisal.

The major adjustment that was required to two of the comparables was to account for the fact that the subject home is only in fair condition. Mr. Rebsamen certainly recognized this crucial factor and adjusted accordingly for it. The third sale property required no such condition adjustment as it was only in fair physical condition, like the subject.

The other adjustments which were required to be made were for various differences in number of bedrooms, difference living area and various other amenities. The appraiser did account for comparables one and two being in slightly better locations than the subject. The range of indicated values arrived at be Mr. Rebsamen was a very close range.

The opinion of value determined by Mr. Rebsamen was derived from a recognized appraisal methodology. It was well supported and developed. The appraisal constituted substantial and persuasive evidence to establish the fair market value advocated.

The assessed valuation for the subject property as determined by the Assessor and sustained by the Board of Equalization for County for the subject tax day is SET ASIDE.

The assessed value for the subject property for tax years 2003 and 2004 is set at $36,100.

A party may file with the Commission an application for review of this decision within thirty (30) days of the mailing of such decision. The application shall contain specific grounds upon which it is claimed the decision is erroneous. Failure to state specific facts or law upon which the appeal is based will result in summary denial. Section 138.432, RSMo 1994.

If an application for review of this decision is made to the Commission, any protested taxes presently in an escrow account in accordance with this appeal shall be held pending the final decision of the Commission. If no application for review is received by the Commission within thirty (30) days, this decision and order is deemed final and the Collector of St. Louis County, as well as the collectors of all affected political subdivisions therein, shall disburse the protested taxes presently in an escrow account in accord with the decision on the underlying assessment in this appeal. If any or all protested taxes have been disbursed pursuant to Section 139.031(8), RSMo, either party may apply to the circuit court having jurisdiction of the cause for disposition of the protested taxes held by the taxing authority.

Any Finding of Fact which is a Conclusion of Law or Decision shall be so deemed. Any Decision which is a Finding of Fact or Conclusion of Law shall be so deemed.

SO ORDERED April 29, 2004.

STATE TAX COMMISSION OF MISSOURI

W. B. Tichenor

Hearing Officer