State Tax Commission of Missouri
EDWARD W. WILLIS,)
)
Complainant,)
)
v.) Appeal Number 10-49000
)
BOB HUSTON, ASSESSOR,)
CASS COUNTY, MISSOURI,)
)
Respondent.)
DECISION AND ORDER
HOLDING
Assessment of the Assessor is AFFIRMED.True value in money for the subject personal property (motor vehicle) for tax year 2010 is set at $29,070, assessed value of $9,690.Complainant appeared pro se.Respondent appeared pro se.
Case decided by Senior Hearing Officer W. B. Tichenor.
ISSUE
Complainant appeals, on the ground of overvaluation, the Assessor’s valuation of the subject property.The Commission takes this appeal to determine the true value in money for the subject property on January 1, 2010.The Hearing Officer, having considered all of the competent evidence upon the whole record, enters the following Decision and Order.
FINDINGS OF FACT
1.Jurisdiction.Jurisdiction over this appeal is proper.Complainant timely appealed to the State Tax Commission from the Assessor’s assessment of the subject personal property.Case was submitted on exhibit filed by parties.[1]
2.Assessment.The Assessor appraised the property at $29,070, a personal property assessment of $9,690.[2]
3.Subject Property.The subject property is 2009 Lexus ES 350, 4-door Sedan, six cylinder automobile, VIN JTHBJ46G092290127.
4.Complainant’s Evidence.Complainant filed Exhibit A, which was received into evidence.It was a service work order from Superior Lexus, Kansas City, Missouri for the subject automobile.Complainant had circled the figure 29108 in the box “Stock No.” and identified that as “miles on my car.”The date on Exhibit A was 2/9/11 and the miles shown on the automobile were 28,915.No information was provided on Exhibit A, or otherwise by Complainant to establish what the car would have sold for on January 1, 2010.[3]
5.Respondent’s Evidence.Respondent filed the following exhibits which were received into evidence.
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EXHIBIT |
DESCRIPTION |
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1 |
2010 Assessor’s Valuation Guide – Assessed Valuation |
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2 |
NADA Suggested Retail Value of 2009 Lexus ES 350 |
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3 |
Complainant’s 2010 Personal Assessment List |
CONCLUSIONS OF LAW AND DECISION
Jurisdiction
The Commission has jurisdiction to hear this appeal and correct any assessment which is shown to be unlawful, unfair, arbitrary or capricious.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.[4]
Basis of Assessment
The Constitution mandates that real property and tangible personal property be assessed at its value or such percentage of its value as may be fixed by law for each class and for each subclass.[5]The constitutional mandate is to find the true value in money for the property under appeal. By statute real and tangible personal property is assessed at set percentages of true value in money.[6]In an overvaluation appeal, true value in money for the property being appealed must be determined based upon the evidence on the record that is probative on the issue of the fair market value of the property under appeal.
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.[7]True value in money is defined in terms of value in exchange and not value in use.[8]It is the fair market value of the subject property on the valuation date.[9]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 are 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 both 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.[10]
Complainant’s Burden of Proof
In order to prevail, Complainant 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, 2010.[11]There is no presumption that the taxpayer’s opinion is correct. The taxpayer in a Commission appeal still bears the burden of proof.The taxpayer is the moving party seeking affirmative relief.Therefore, the Complainant bears the burden of proving the vital elements of the case, i.e., the assessment was “unlawful, unfair, improper, arbitrary or capricious.”[12]
Substantial evidence can be defined as such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.[13]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.[14]
Complainant failed to present any evidence to establish what a willing buyer and seller would have agreed to as a purchase price for the subject automobile on January 1, 2010.
ORDER
The assessed valuation for the subject property as determined by the Assessor is AFFIRMED.
The assessed value for the subject property for tax year 2010 is set at $9,690.
Application for Review
Complainant may file with the Commission an application for review of this decision within thirty days of the mailing date set forth in the Certificate of Service for this Decision.The application shall contain specific facts or law as grounds upon which it is claimed the decision is erroneous.Said application must be in writing addressed to the State Tax Commission of Missouri, P.O. Box 146, Jefferson City, MO65102-0146, and a copy of said application must be sent to each person at the address listed below in the certificate of service.
Failure to state specific facts or law upon which the application for review is based will result in summary denial. [15]
Disputed Taxes
The Collector of Cass County, as well as the collectors of all affected political subdivisions therein, shall continue to hold the disputed taxes pending the possible filing of an Application for Review, unless said taxes have been disbursed pursuant to a court order under the provisions of Section 139.031.8, RSMo.If no Application for Review is filed with the Commission within thirty days of the mailing date set forth in the Certificate of Service, the Collector, 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.
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 27, 2011.
STATE TAX COMMISSION OFMISSOURI
_____________________________________
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 27thday of April, 2011, to:Edward Willis, 16002 Eastern Avenue, Belton, MO 64012,Complainant; Debbie Moore, County Counselor, 102 E. Wall, Harrisonville, MO 64701, Attorney for Respondent; Bob Huston, Assessor, 201 W. Wall; Janet Burlingame, Clerk, 102 E. Wall, Harrisonville, MO 64701; Pam Shipley, Collector, 102 E. Wall, Harrisonville, MO 64701.
___________________________
Barbara Heller
Legal Coordinator
Contact Information for State Tax Commission:
Missouri State Tax Commission
301 W. High Street, Room 840
P.O. Box 146
Jefferson City, MO 65102-0146
573-751-2414
573-751-1341 Fax
[2] Personal property is assessed at one-third of true value in money (fair market value), Section 137.115.5(1), RSMo
[3] Complaint for Review of assessment gave both the True Value (Market) and the Assessed Value to be $3,600.No evidence was presented to establish that this was the market or assessed value as of January 1, 2010.
[7] 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).
[8] Daly v. P. D. George Company, et al, 77 S.W.3d 645, 649 (Mo. App E.D. 2002), citing, Equitable Life Assurance Society v. STC, 852 S.W.2d 376, 380 (Mo. App. 1993); citing, Stephen & Stephen Properties, Inc. v. STC, 499 S.W.2d 798, 801-803 (Mo. 1973).
[10] 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.
[12] See, 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).Industrial Development Authority of Kansas City v. State Tax Commission of Missouri, 804 S.W.2d 387, 392 (Mo. App. 1991).