State Tax Commission of Missouri
JEAN BINDER,)
)
Complainant,)
)
v.) Appeal No.08-32507
)
SCOTT SHIPMAN, ASSESSOR,)
ST. CHARLES COUNTY, MISSOURI,)
)
Respondent.)
DECISION AND ORDER
HOLDING
Decision of the St. Charles County Board of Equalization sustaining the assessment made by the Assessor is AFFIRMED.Complainant did not rebut the presumption of correct assessment by the Board.True value in money for the subject property for tax year 2008 is set at $286,500, residential assessed value of $54,440.Complainant appeared pro se.Respondent appeared by Assistant County Counselor, Charissa Mayes.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, 2007.
SUMMARY
Complainant appeals, on the ground of overvaluation, the decision of the St. Charles County Board of Equalization, which sustained the valuation of the subject property.The Assessor determined an appraised value of $286,500, assessed value of $54,440, as residential property.Complainant proposed a value of $256,000, assessed value of $48,640.An evidentiary hearing was conducted on November 13, 2008, at the St. Charles County Administration Building, St. Charles, Missouri.
The Hearing Officer, having considered all of the competent evidence upon the whole record, enters the following Decision and Order.
Complainant’s Evidence
Complainant testified as to the true value in money for the subject property as of
January 1, 2007.The owner’s opinion of value was $256,000.Exhibits A and B were offered into evidence.Objection was made to both exhibits on the grounds of relevancy and hearsay.Objection was sustained.Exhibits A and B are maintained in the Commission file for the appeal.Exhibits A and B are not part of the evidentiary record.
Respondent’s Evidence
Respondent placed into evidence the testimony of Mr. Steven D. Riney, appraiser for St. Charles County.The appraiser testified as to his appraisal of the subject property.The Appraisal Report, Exhibit 1, of Mr. Riney was received into evidence.Mr. Riney arrived at an opinion of value for the subject property of $295,000 based upon a sales comparison approach to value.In performing his sales comparison analysis, the appraiser relied upon the sales of five properties deemed comparable to the subject property.
FINDINGS OF FACT
1.Jurisdiction over this appeal is proper.Complainant timely appealed to the State Tax Commission from the decision of the St. Charles County Board of Equalization.
2.The subject property is located at 2 Boschert Creek Drive, St. Peters, Missouri.The property is identified by parcel number 2-55-8524-71, Assessor Account Number T012500151.The property consists of .32 of an acre lot improved by a one-story brick and vinyl, ranch, single-family structure of average quality construction.The house was built in 2001 and appears to be in average condition.The residence has a total of seven rooms, three bedrooms, three bath, and contains 2,119 square feet of living area.There is a full finished basement and an attached three-car garage.
3.There was no evidence of new construction and improvement from January 1, 2007, to January 1, 2008.
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, 2007, to be $256,000, as proposed.
5.The properties relied upon by Respondent’s appraiser were comparable to the subject property for the purpose of making a determination of value of the subject property. The properties were located within the subject subdivision.Each sale property sold at a time relevant to the tax date of January 1, 2007.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.
6.The appraiser made appropriate adjustments to the comparable properties for differences existing between the subject and each comparable, to bring the comparables in line with the subject for purposes of the appraisal problem.
7.Respondent’s evidence met the standard of substantial and persuasive to establish the value of the subject, as of January 1, 2007, to be $295,000.However, Respondent’s appraisal was accepted only to affirm the original assessment made by the Assessor and sustained by the Board and not for the purpose of raising the assessment above that value.Respondent meet the standard of clear, convincing and cogent evidence in this appeal to sustain the original valuation of $286,500.
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.[1]
Presumption In Appeals
There is a presumption of validity, good faith and correctness of assessment by the CountyBoardof Equalization.[2]The presumption of correct assessment is rebutted when the taxpayer presents substantial and persuasive evidence to establish that the Board’s valuation is erroneous and what the fair market value should have been placed on the property.[3]An owner’s opinion unsupported by relevant evidence does not meet the stand of substantial and persuasive to rebut the presumption of correct assessment.
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.[4]It is the fair market value of the subject property on the valuation date.[5]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.[6]
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, 2007.[7]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.”[8]
Substantial evidence can be defined as such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.[9]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.[10]
Owner’s Opinion of Value
The owner of property is generally held competent to testify to its reasonable market value.[11]The owner’s opinion is without probative value however, where it is shown to have been based upon improper elements or an improper foundation.[12]The owner’s opinion of value was based upon a review of certain sales data for sales in 2007 in the subject neighborhood and a listing sheet on a single property.The sales data was contained in Exhibit A.The listing data was contained in Exhibit B.
Exhibit A was a CMA data sheet and MLS sales sheets on five properties which sold during 2007.Exhibit B was a multi-list sheet on a property at 55 Boschert Creek Drive.These tendered exhibits were excluded from evidence upon objection by Respondent’s Counsel.
With the exclusion of these exhibits, the owner’s opinion was not shown to have any basis in fact derived from admissible market information.An owner’s opinion standing alone is not founded upon proper elements or a proper foundation.Therefore, it has no probative weight in the appeal.
CMA and Multi-List Documents
Taxpayers often want to rely upon a CMA and Multi-List documents in support of their opinion of value.It is true that appraisers utilize the information from such data sources in performing their appraisals.However, the data, in and of itself, without the benefit of adjustments to account for differences between the property being appraised and the individual sales is of no substantial benefit in arriving at fair market value for a given date.Such documents are hearsay.
When taxpayers seek to introduce such information into evidence they are, in effect, asking the Hearing Officer to become an appraiser.The raw data does not establish an indicated value.It is not the responsibility of the Hearing Officer to take such data and develop a sales comparison to arrive at fair market value.To do so would convert the Hearing Officer from impartial judge to an advocate for the taxpayer.Simply averaging such sales data is not a proper methodology for arriving at an indicated value.[13] For CMA or Multi-List information to be useful, it must be incorporated into a proper sales comparison methodology by one qualified by education, training and experience to develop an appraisal on real property.
Respondent’s Burden of Proof
The Respondent has imposed upon him by the provisions of Section 137.115.1, RSMo, the burden of proof to present clear, convincing and cogent evidence to sustain a valuation on residential property which is made by a computer, computer-assisted method or a computer program.There is a presumption in this appeal that the original valuation, which was sustained by the Board of Equalization, was made by a computer, computer-assisted method or a computer program.There was no evidence to rebut the presumption, therefore, in order to sustain the valuation of the subject property at $286,500, appraised value, Respondent’s evidence must come within the guidelines established by the legislature and must clearly and convincingly persuade the Hearing Officer as to the value sought to be sustained.
The statutory guidelines for evidence to meet the standard of clear, convincing and cogent include the following:
(1)The findings of the assessor based on an appraisal of the property by generally accepted appraisal techniques; and
(2) The purchase prices from sales of at least three comparable properties and the address or location thereof.As used in this paragraph, the word comparable means that:
(a)Such sale was closed at a date relevant to the property valuation; and
(b) Such properties are not more than one mile from the site of the disputed property, except where no similar properties exist within one mile of the disputed property, the nearest comparable property shall be used.Such property shall be within five hundred square feet in size of the disputed property, and resemble the disputed property in age, floor plan, number of rooms, and other relevant characteristics.[14]
Clear, cogent and convincing evidence is that evidence which clearly convinces the trier of fact of the affirmative proposition to be proved.It does not mean that there may not be contrary evidence.[15]The quality of proof, to be clear and convincing must be more than a mere preponderance but does not require beyond a reasonable doubt.[16]“For evidence to be clear and convincing, it must instantly tilt the scales in the affirmative when weighed against the evidence in opposition and the fact finder’s mind is left with an abiding conviction that the evidence is true.”[17]
Respondent’s appraisal report met the statutory standard to sustain the value of $286,500 as originally determined by the Assessor.
Evidence of Increase in Value
In any case in St. Charles County where the assessor presents evidence which indicates a valuation higher than the value finally determined by the assessor or the value determined by the board of equalization, whichever is higher, for that assessment period, such evidence will only be received for the purpose of sustaining the assessor’s or board’s valuation, and not for increasing the valuation of the property under appeal.[18]Mr. Riney’s Appraisal Report established fair market value as of January 1, 2007 to be $295,000.However, that valuation was only received to affirm the value of $286,500 determined by the assessor and sustained by the Board.
ORDER
The assessed valuation for the subject property as determined by the Assessor and sustained by the Board of Equalization for St. Charles County for the subject tax day is AFFIRMED.
The assessed value for the subject property for tax year 2008 is set at $54,440.
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.The application shall contain specific 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 appeal is based will result in summary denial. [19]
The Collector of St. Charles County, as well as the collectors of all affected political subdivisions therein, shall continue to hold the disputed taxes pending a 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.
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 December 16, 2008.
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 16thday of December, 2008, to:Jean Binder, 2 Boschert Creek Drive, St. Peters, MO 63376, Complainant; Charissa Mayes, Assistant County Counselor, 100 North Third Street, Room 216, St. Charles, MO 63301, Attorney for Respondent; Scott Shipman, Assessor, 201 North Second, Room 247, St. Charles, MO 63301-2870; Amy Gann, Registrar, 100 North Third Street, Suite 206, St. Charles, MO 63301; Michelle McBride, Collector, 201 North Second Street, Room 134, St. Charles, MO 63301.
___________________________
Barbara Heller
Legal Coordinator
[2] 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).
[3] Hermel, supra; Cupples-Hesse Corporation v. State Tax Commission, 329 S.W.2d 696, 702 (Mo. 1959).
[4] 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).
[6] 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.
[8] 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).
[11] Rigali v. Kensington Place Homeowners’ Ass’n, 103 S.W.3d 839, 846 (Mo. App. E.D. 2003); Boten v. Brecklein, 452 S.W.2d 86, 95 (Sup. 1970).
[12] Cohen v. Bushmeyer, 251 S.W.3d 345, (Mo. App. E.D., March 25, 2008); Carmel Energy, Inc. v. Fritter, 827 S.W.2d 780, 783 (Mo. App. W.D. 1992); State, ex rel. Missouri Hwy & Transp. Com’n v. Pracht, 801 S.W.2d 90, 94 (Mo. App. E.D. 1990); Shelby County R-4 School District v. Hermann, 392 S.W.2d 609, 613 (Sup. 1965).