State Tax Commission of Missouri

 

RICHARD & MARYLYN COLBURN,          )

)

Complainants,               )

)

v.                                                         )           Appeal Number 05-62508

)                        

DON DAVIS, ASSESSOR,                            )

JASPER COUNTY, MISSOURI,                   )

)

 Respondent.                )

 

 

DECISION AND ORDER

 

HOLDING

 

Decision of the Jasper County Board of Equalization increasing the assessment made by the Assessor, AFFIRMED, true value in money for the subject property for tax years 2005 and 2006 set at $23,800, assessed value of $4,290, as mixed residential and agricultural property.

Complainants appeared pro se.

Respondent appeared in person and by Counsel, Jared P. Stilley, Assistant Prosecuting Attorney.

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

ISSUE

The Commission takes this appeal to determine the true value in money for the subject property on January 1, 2005.

SUMMARY

Complainants appeal, on the ground of overvaluation, the decision of the Jasper County Board of Equalization, which increased the assessed valuation of the subject property from $4,190 to $4,290.  The Assessor determined the assessed value as residential and agricultural property.  Complainant proposed an appraised value of $8,640.  A hearing was conducted on January 24, 2006, at the Jasper County Annex, Carthage, Missouri.

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

Complainant’s Evidence

Mr. Colburn testified on behalf of Complainants.  An opinion of value of $8,640 was offered.  No basis for this opinion of value was given.  Complainant contested the moving of the manufactured home on the subject property from the classification of personal property to real property and being assessed as such.  Complainant offered into evidence Exhibit A – copy of the 2004 and 2005 tax bills on the subject parcel showing that the assessed valuation had increased from $440 (taxes of $17.98) to $4,290 (taxes of $191.47) because the manufactured home had been added as real property.  Exhibit A was received into evidence.

Respondent’s Evidence

Respondent offered into evidence Exhibit 1 and the testimony of Lisa Perry, Deputy Assessor in explanation of Exhibit 1.  Exhibit 1 consisted of the property record card on the subject property, a photograph of the manufactured home on the subject and a map of the subject site.  Exhibit 1 was received into evidence.

FINDINGS OF FACT

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

2.         The subject property is located at 12421 County Lane 205, Jasper, Missouri.  The property is identified by locator number 08.5.0-16-002.001.  The property consists of 19.84 acres, 1 acre of which is classified as residential home site for the manufactured home, and 17.84 acres are agricultural graded land.

3.         There was no evidence of new construction and improvement from January 1, 2005, to January 1, 2006.

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, 2005, to be $8,640.

CONCLUSIONS OF LAW

Jurisdiction

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.

Board of Equalization Presumption

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).


Rebutting of Presumption of Correct Assessment

            The presumption of correct assessment is rebutted when the taxpayer presents substantial and persuasive evidence to establish that the assessor’s or Board’s valuation is erroneous and what the fair market value should have been placed on the property.  Snider, Hermel & Cupples Hesse, supra.

Standard for Valuation

Section 137.115, RSMo, 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, supra.

Market Value

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.

Complainants’ Burden of Proof

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, 2005.  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).

Complainants failed to meet their burden of proof in this appeal.  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).  The opinion of value offered in this case was not established to be based upon a proper methodology for the valuation of real property in Missouri.

Missouri courts have approved the comparable sales or market approach, the cost approach 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 opinion of value without a basis or foundation for that value has no probative weight or merit in an appeal before the Commission.

Complainant’s claim that the manufactured home which had been on the subject site for some time and which had previously been assessed only as personal property and not as part of this residential/agricultural tract of land, should be assessed only as personal property is without merit.  Manufactured homes used actually used as dwelling units are to be assessed as residential property.  Section 137.115.6, RSMo.  The valuation issue in this case was not what the fair market value of an individual manufactured home was on January 1, 2005.  The valuation issue is what was the fair market value of the subject real property as it existed on January 1, 2005, improved by a manufactured home and other improvements?  Complainants presented no evidence addressing this issue.  Copies of tax bills are not probative of fair market value in an appeal before the Commission.  Therefore, having failed to meet the burden of proof, judgment is in favor of Respondent and the assessment by the Board is affirmed.

 

ORDER

The assessed valuation for the subject property as determined by the Board of Equalization for Jasper County for the subject tax day is AFFIRMED.

The assessed value for the subject property for tax years 2005 and 2006 is set at $4,290.

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 2000.

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 Jasper 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 February 3, 2006.

STATE TAX COMMISSION OF MISSOURI

 

 

_____________________________________

W. B. Tichenor, Senior Hearing Officer

Certificate of Service

 

I hereby certify that a copy of the foregoing has been mailed postage prepaid on this 3rd day of February 2006, to:  Marilyn Colburn, P.O. Box 395, Alba, MO 64830, Complainant; Jared Stilley, Assistant Prosecuting Attorney, 601 Pearl, Room 100, Joplin, MO 64801, Attorney for Respondent; Donald Davis, Assessor, 302 S. Main Street, Carthage, MO 64836; Ron Mosbaugh, Clerk; Stephen Holt, Collector, Jasper County Courthouse, Carthage, MO 64836.

 

 

___________________________

Barbara Heller

Legal Coordinator