State Tax Commission of Missouri

EL DORADO SPRINGS ESTATES, )

)

Complainant, )

)

v. ) Appeals No 97-49503 and 97-49504,

) 99-49501 and 97-49502

PAUL JOHNSON, ASSESSOR, ) and 01-49501

CEDAR COUNTY, MISSOURI, )

)

Respondent. )

DECISION AND ORDER

HOLDING

Complainant failed to present substantial and persuasive evidence establishing that the Cedar County Board of Equalization had overvalued the subject property for tax years 1997 through 2002. However, because neither party properly applied the Commission approved methodology for valuing subsidized properties, the Tax Commission sets value in accord with said approved methodology. The decisions of the Cedar County Board of Equalization are SET ASIDE. The proposed values, and the Tax Commission values, are as follows:

YEAR	BOE	RESPONDENT	COMPLAINANT	TAX COMMMISSION
1997	$477,315	$520,512	$350,000	$576,350
1999	$477,300	$520,512	$325,000	$544,350
2001	$484,737	$520,512	$300,000	$502,840

The subject property consists of two parcels. Because this is a single development sharing income and expenses, it has been valued as a single unit. For the purposes of dividing value between the two parcels, if same is necessary, 51% of value is attributable to parcel number 90-3-8-28-4-3-2 and 49% of value is attributable to parcel number 90-3-8-28-4-3-1.

ISSUE

The issue in this case is the true value in money of the subject property for tax years 1997 through 2002.

SUMMARY

Complainant appeals the assessment of its subsidized housing apartment complex. The Cedar County Assessor determined, and the Board of Equalization affirmed, that the subject property had a market value of $477,315 (assessed value $90,690) for tax years 1997 and 1998; $477,300 (assessed value $90,690) for tax years 1999 and 2000; and $484,737 (assessed value $92,100) for tax years 2001 and 2002. At hearing, Respondent proposed a value of $520,512 (assessed value $98,900) for all tax years in question. Complainant proposed a value of $350,000 (assessed value $66,500) for tax years 1997 and 1998; $325,000 (assessed value $61,750) for tax years 1999 and 2000; and $300,000 (assessed value $57,000) for tax years 2001 and 2002.

At Complainant’s request, these appeals were stayed pending the Tax Commission’s decision in Maryville Properties, L.P. v. Pat Nelson, Assessor of Nodaway County, Missouri, STC Appeal No. 97-74500. Said stay was continued, pending judicial review of the Maryville Properties case. On May 6, 2004, the Tax Commission issued its order lifting the stay and setting discovery and exchange schedules.

A hearing was held on June 22, 2005, at the Cedar County Courthouse in Stockton, Missouri. Complainant was represented by Cathy J. Dean, Esq. Respondent appeared pro se.

EXHIBITS

For the purpose of submitting exhibits, both the El Dorado Springs appeals and the Stockton Estates appeals (Numbers 97-49502, 99-49500 and 01-49500) were submitted into the same record. The following exhibits were submitted by the parties and accepted into the record:

Complainant’s Exhibits

A	Appraisal Qualifications of Teddy J. Blaylock, MAI
B	Income and Expense Worksheets
C	Appraisal Report – El Dorado Springs Estates, L.P.
D	Appraisal Report – Stockton Estates, L.P.
E	Missouri Housing Development Commission Low-Income Housing Tax Credit Program Compliance Manual
F	Rural Development Policy and Procedures
G	Tenant Selection Criteria
H	Marketing Plan
H-1	Phone Inquiry List
I	Checklist for Rent-Up
I-1	Rental Application
I-2	Applicant/Tenants Statement of Income Assets and Deductions (Tenant Profile)
I-3	Authorization for Release of Information for Tenant Tracker
I-4	Renter’s Screening Application
I-5	Authorization for Release of Information for Renter’s Screening
I-6	Employment Verification
I-7	Verification of Unemployment Benefits
I-8	AFDC or Other Assistance Inquiry
I-9	Social Security Administration Verification of Benefits
I-10	Certification of Disability
I-11	Verification of Military Compensation
I-12	Verification of Pension and Annuity Data
I-13	Verification of Child Support Payments
I-14	Student Certification Form
I-15	Student Income Verification
I-16	Verification of Unemployment Benefits
I-17	Verification from Landlord
I-18	Bank Verification
I-19	Child Care Verification
I-20	Section 8 Assistance Questionnaire
I-21	Live-In Care Attendant
I-22	Self-Employment Verification
I-23	Zero Income Worksheet
I-24	Zero Income Verification
I-25	Statement of Gifts Received By The Family
I-26	Criminal Record Check
I-27	Marital Separation Status Verification
J	Home Rental Housing Production Program
J-1	USDA Rural Housing Service Tenant Certification
J-2	Instructions for USDA-Rural Housing Service Tenant Certification
K	Tenant Emergency Information
L	Application Response
L-1	Fairway Management Notice of Unfavorable Action on Application
L-2	Notice of Withdrawn Application from Waiting List
L-3	Waiting List Form
L-4	In-House Waiting List Form
M	Missouri Housing Development Commission Trust Fund Program Rent Calculation Worksheet
M-1	Rental and Occupancy Charge and/or Utility Allowance Charges
N	Lease Agreement
N-1	Addendum to Lease Accessible Unit
N-2	Rental Agreement for a Drug-Free Property
N-3	Security Deposit Agreement Addendum to Lease
N-4	Smoke Detector Addendum to Lease
N-5	Waterbed Agreement Addendum to Rental Agreement
N-6	Addendum to Lease Alternative Rental Assistance
N-7	Rules and Regulations
N-8	Apartment Cleaning Procedures
N-9	Apartment Cleaning Procedures Suggest Supplies to Help You Clean Your Apartment
N-10	Apartment Cleaning Procedures For Checkout
N-11	Apartment Cleaning Procedures Escrow Deposit Refunds
N-12	Apartment Cleaning Procedures Guidelines To Deductions From Escrow Deposit For Damages & Cleaning
N-13	Apartment Inspection
N-14	Pest Control
N-15	Energy Conservation
O	Pet Ownership Policy
O-1	Pet Ownership Policy Pet Application
O-2	Pet Ownership Policy Questionnaire For Existing Pet Owners
O-3	Notice of Pet Violation
P	Evidence of Utility Transfer
Q	Evidence of Receipt of Keys
R	Change in Household Status Form
R-1	Marital Separation Status Verification
S	Rent Roster Procedure
S-1	Sample Rent Roster
S-2	Missouri Housing Development Commission Summary LIHTC Tenant Income and Rent Roll Reports
S-3	Weekly Report Delinquencies
S-4	Weekly Report Vacancies
S-5	Current Recipients of Lower Rent
T	Recertification Notice
T-1	Recertification Application
T-2	Happy Anniversary! 90-Day Reminder Notice
T-4	Annual Recertification 30-Day Warning Notice
T-5	Recertification Non-Compliance Notice
U	Notice of Violation
U-1	Late Rent Warning Letter
U-2	Notice of Delinquent Rent Warning
U-3	Correspondence Log For Each Tenant
V	Notice of Periodic Apartment Inspection
V-1	Housekeeping Inspection Checklist
V-2	Inspection Follow-Up Letter
V-3	Maintenance Checklist
V-4	Maintenance Request Form
W	Notice Of Rent And/Or Utility Change
W-1	Notice of Rent Change
W-2	Water and Sewer Charges
W-3	Water Meter Log
W-4	Sewer Meter Log
X	Notice to Terminate Lease
X-1	Notice of Intent to Vacate Apartment
X-2	Notice of Move-Out Inspection
X-3	Checklist for Move-Out
X-4	Notice of Abandoned Personal Items
X-5	Termination/Eviction Status
X-6	Security Deposit Disposition State
X-7	Vacancy Notice
X-8	Vacancy Or Transfer Notice
Y	Management Plan for Maryville Properties
Y-1	Management Agreement For FmHA Multiple Family Housing Projects-Maryville Properties
Y-2	Petty Cash Voucher
Y-3	Purchase Order Number Request Tracking Sheet
Y-4	Quotes and Bids Form
Y-5	Required 1099 Information
Y-6	Vendor List
Y-7	Warranty/New Construction Request Form
Y-8	Expense Report
Y-9	Incident Report
Z	Safeguarding Your Tax Credits
AA	Testimony of Fred Kay in the Maryville Properties litigation
BB	Testimony of Charles Marks in the Maryville Properties litigation
CC	Testimony of Pete Ramsel in the Maryville Properties litigation
DD	Testimony of Reid Teaney in the Maryville Properties litigation
EE	Prefiled Written Direct Testimony of Jack Blaylock

Respondent’s Exhibits

1	Sales No. 1
1-A	Sales No. 1 with Signature