STATE TAX COMMISSION OF MISSOURI
| IGOR TRAMS | ) | |
| Complainant, | ) | Appeal No. 19-11005 |
| ) | ||
| ) | Parcel No. 18H43352 | |
| v. | ) | |
| ) | ||
| JAKE ZIMMERMAN, ASSESSOR, | ) | |
| ST. LOUIS COUNTY, MISSOURI | ) | |
| Respondent. | ) |
DECISION AND ORDER
Igor Trams (Complainant) appeals the St. Louis County Board of Equalization’s (BOE) decision finding the true value in money (TVM) of the subject property on January 1, 2019, was $560,000, with an assessed value of $106,400. Complainant claims the property is overvalued and proposes a value of $280,000. Complainant did not produce substantial and persuasive evidence establishing overvaluation. The BOE’s decision is affirmed.[1]
The evidentiary hearing was conducted on March 19, 2021, via WebEx. Complainant appeared pro se. Respondent was represented by counsel Steve Robson.
FINDINGS OF FACT
- Subject Property. The subject property is located at 822 Leland Ave. in St. Louis, Missouri. The parcel/locator number is 18H430352.
The subject property consists of a six-unit rental property with two bedroom and one bathroom units.
- Respondent and BOE. Respondent classified the subject property as residential and determined the TVM on January 1, 2019, was $562,700. The BOE classified the subject property as residential and independently determined the TVM on January 1, 2019, was $560,000.
- Complainant’s Evidence. Complainant asserts the TVM of the subject property on January 1, 2019, was $280,000. Complainant testified in support of his opinion of value and submitted the following exhibits[2]:
| Exhibit | Description | Ruling |
| Complainant 1 | Photograph of portion of kitchen with note indicating “old cabinets.” | Admitted |
| Complainant 2 | Photograph of sink with note indicating “old cabinets.” | Admitted |
| Complainant 3 | Photograph of window with note indicating “old window tenant put film over.” | Admitted |
| Complainant 4 | Photograph of portion of bathtub with note indicating “old bath tub tile and plumbing.” | Admitted |
| Complainant 5 | Photograph of portion of bathroom sink with note indicating “old vanity” and “old plumbing.” | Admitted |
| Complainant 6 | Photograph of steps with note indicating “steps have to repair.” | Admitted |
| Complainant 7 | Photograph of bathtub in bad condition with note. | Admitted |
| Complainant 8 | Summary of Complainant’s arguments. | Admitted |
| Complainant 9 | 2017 Schedule E (Form 1040) Supplemental Income and Loss page | Admitted |
| Complainant 10 | Photograph of bathtub in bad condition with note. | Admitted |
| Complainant 11 | Photograph of portion of bathroom sink with note indicating “old vanity” and “old plumbing.” | Admitted |
| Complainant 12 | Photograph of portion of bathtub with note indicating “old bath tub tile and plumbing.” | Admitted |
| Complainant 13 | Photograph of portion of countertop with note indicating “old countertop.” | Admitted |
| Complainant 14 | Photograph of portion of kitchen with note indicating “old cabinets.” | Admitted |
| Complainant 15 | Photograph of portion of kitchen with note indicating “old cabinets.” | Admitted |
| Complainant 16 | Photograph of window with note indicating “old window tenant put film over.” | Admitted |
| Complainant 17 | Photograph of portion of countertop with note indicating “old countertop.” | Admitted |
Respondent did not object to any of the exhibits, and Complainant’s Exhibits 1 through 17 were received into evidence. Complainant’s main argument is that the assessment has increased 81 percent[3] but that the subject property has not been remodeled or updated.
- Respondent’s Evidence. Respondent submitted Respondent’s Exhibit 1, the Findings and Notice of Decision dated October 4, 2019. Complainant did not object to the exhibit, and Respondent’s Exhibit 1 was received into evidence.
- Value. The TVM of the subject property on January 1, 2019, was $560,000, with an assessed value of $106,400.
CONCLUSIONS OF LAW
- Assessment and Valuation. Residential real property is assessed at 19% of its TVM as of January 1 of each odd-numbered year. Section 137.115.5(1)(a). “True value in money is the fair market value of the property on the valuation date, and is a function of its highest and best use, which is the use of the property which will produce the greatest return in the reasonably near future.” Snider v. Casino Aztar/Aztar Mo. Gaming Corp., 156 S.W.3d 341, 346 (Mo. banc 2005) (internal quotation omitted). The fair market value is “the price which the property would bring from a willing buyer when offered for sale by a willing seller.” Mo. Baptist Children’s Home v. State Tax Comm’n, 867 S.W.2d 510, 512 (Mo. banc 1993). Determining the TVM is a factual issue for the STC. Cohen v. Bushmeyer, 251 S.W.3d 345, 348 (Mo. App. E.D. 2008). The “proper methods of valuation and assessment of property are delegated to the Commission.” Savage v. State Tax Comm’n, 722 S.W.2d 72, 75 (Mo. banc 1986).
“For purposes of levying property taxes, the value of real property is typically determined using one or more of three generally accepted approaches.” Snider, 156 S.W.3d at 346. The three generally accepted approaches are the cost approach, the income approach, and the comparable sales approach. Id. at 346-48; see also St. Louis Cty. v. Sec. Bonhomme, Inc., 558 S.W.2d 655, 659 (Mo. banc 1977). The comparable sales approach “is most appropriate when there is an active market for the type of property at issue such that sufficient data are available to make a comparative analysis.” Snider, 156 S.W.3d at 348. “The comparable sales approach uses prices paid for similar properties in arms-length transactions and adjusts those prices to account for differences between the properties.” Id. at 347-48 (internal quotation omitted). “Comparable sales consist of evidence of sales reasonably related in time and distance and involve land comparable in character.” Id. at 348.
- Evidence. The hearing officer is the finder of fact and determines the credibility and weight of the evidence. Kelly v. Mo. Dep’t of Soc. Servs., Family Support Div., 456 S.W.3d 107, 111 (Mo. App. W.D. 2015). The finder of fact in an administrative hearing determines the credibility and weight of expert testimony. Hornbeck v. Spectra Painting, Inc., 370 S.W.3d 624, 632 (Mo. banc 2012). “It is within the purview of the hearing officer to determine the method of valuation to be adopted in a given case.” Tibbs v. Poplar Bluff Assocs. I, L.P., 599 S.W.3d 1, 9 (Mo. App. S.D. 2020). The hearing officer “may 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.” Section 138.430.2.
- Complainant’s Burden of Proof. The taxpayer bears the burden of proof and must show by a preponderance of the evidence that the property was overvalued or misclassified. Westwood P’ship v. Gogarty, 103 S.W.3d 152, 161 (Mo. App. E.D. 2003). The BOE’s valuation is presumptively correct. Tibbs v. Poplar Bluff Assocs. I, L.P., 599 S.W.3d 1, 7 (Mo. App. S.D. 2020). The “taxpayer may rebut this presumption by presenting substantial and persuasive evidence that the valuation is erroneous” and must prove “the value that should have been placed on the property.” Id. “Substantial evidence is that evidence which, if true, has probative force upon the issues, and from which the trier of fact can reasonably decide the case on the fact issues.” Savage, 722 S.W.2d at 77 (internal quotation omitted). Evidence is persuasive when it has “sufficient weight and probative value to convince the trier of fact.” Daly v. P.D. George Co., 77 S.W.3d 645, 651 (Mo. App. E.D. 2002); see also White v. Dir. of Revenue, 321 S.W.3d 298, 305 (Mo. banc 2010) (noting the burden of persuasion is the “party’s duty to convince the fact-finder to view the facts in a way that favors that party”).
- Complainant Did Not Prove Overvaluation. Complainant did not produce substantial and persuasive evidence establishing that the BOE’s valuation was erroneous and that his opinion of value, $280,000, was the TVM of the subject property as of January 1, 2019. Although Complainant’s Exhibits 1 through 7, Complainant’s Exhibits 10 through 17, and related testimony show that the subject property has not been updated, the evidence does not persuasively establish that the BOE value was based on an updated or renovated subject property. Additionally, Complainant’s Exhibit 9 and Complainant’s related testimony about income earned from the subject property do not directly address the TVM of the subject property. Complainant contends that the appraised value should not have increased 81 percent but does not provide a method of valuation to support his overvaluation claim or his $280,000 opinion of value. Therefore, Complainant’s evidence is insufficient to rebut the presumption of correct assessment by the BOE.
CONCLUSION AND ORDER
The BOE decision is affirmed. The TVM of the subject property as of January 1, 2019, was $560,000, with an assessed value of $106,400.[4]
Application for Review
A party may file with the Commission an application for review of this decision within 30 days of the mailing date set forth in the certificate of service for this decision. The application “shall contain specific detailed grounds upon which it is claimed the decision is erroneous.” Section 138.432. The application must be in writing, and may be mailed to the State Tax Commission, P.O. Box 146, Jefferson City, MO 65102-0146, or emailed to Legal@stc.mo.gov. A copy of the application must be sent to each person 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. Section 138.432.
Disputed Taxes
The Collector of St. Louis 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.
SO ORDERED December 3, 2021.
Laura A. Storck-Elam
Senior Hearing Officer
State Tax Commission
Certificate of Service
I hereby certify that a copy of the foregoing has been electronically mailed and/or sent by U.S. Mail on December 3, 2021, to: Complainant(s) and/or Counsel for Complainant(s), the County Assessor and/or Counsel for Respondent and County Collector.
Elaina Mejia
Legal Coordinator
[1] Complainant timely filed a complaint for review of assessment. The State Tax Commission (STC) has authority to hear and decide Complainant’s appeal. Mo. Const. art. X, Section 14; section 138.430.1, RSMo 2000. All statutory citations are to RSMo 2000, as amended.
[2] Some of the exhibits appear to be duplicates.
[3] For 2017 and 2018, the appraised value was $309,100.
[4] Missouri operates on a two-year reassessment cycle for valuing real property. See Section 137.115.1. Absent new construction or improvements to a parcel of real property, the assessed value as of January 1 of the odd year remains the assessed value as of January 1 of the following even year. Id.