STATE TAX COMMISSION OF MISSOURI
|MERCEDES CLEVETT WILBURN,||)||Appeal No. 21-15870|
|)||Parcel No. 13F540993|
|JAKE ZIMMERMAN, ASSESSOR,||)|
|ST. LOUIS COUNTY, MISSOURI,||)|
DECISION AND ORDER
Mercedes Clevett Wilburn (Complainant) appeals the St. Louis County Board of Equalization’s decision valuing the subject residential property at $55,200 as of January 1, 2021. Complainant alleges overvaluation and asserts the true value in money (TVM) of the subject property as $50,000 as of January 1, 2021. The BOE decision is affirmed.
The evidentiary hearing was held on July 27, 2022, via Webex. Complainant appeared pro se. Respondent was represented by counsel, Tim Bowe. The appeal was heard and decided by Senior Hearing Officer Benjamin C. Slawson
FINDINGS OF FACT
- The Subject Property. The subject residential property consists of a lot improved with a single family home located at 1225 Bluegrass Drive in St. Louis, Missouri. The house was built in the 1950s. Complainant testified that the square footage of the living space of the home is about 900 square feet and includes two bedrooms, one bathroom, living room/dining room, basement, and a one-car garage. Complainant purchased the property about 20 years ago.
- Assessment and Valuation. Respondent determined that the subject property’s value as of January 1, 2021, was $55,200. The BOE determined the subject property’s appraised value as of January 1, 2021, was $55,200.
- Complainant’s Evidence. Complainant introduced Exhibit A, consisting of three pages of photographs of the interior and exterior of the home. Respondent had no objection to the admission of Exhibit A, and it was admitted and received into evidence.
The photographs show an outdated kitchen and bathroom, peeling tile flooring in the main hallway, cracks in the driveway caused by neighbor’s tree root systems, and water damage to the floors and walls in the basement from a sewer main break.
Complainant testified that she would have to get foundation and drywall work performed because of this water damage. Complainant testified that she has not made any updates or renovations since she purchased the property. Complainant has not obtained any estimates to repair these issues. She did not get to present all of these issues to the BOE because of technical difficulties at that hearing. Complainant testified that she is not a licensed appraiser in the State of Missouri, nor does she have any training or experience in that field.
- Respondent’s Evidence. Respondent introduced Exhibit 1, consisting of the BOE decision letter for the subject property. Exhibit 1 shows the BOE valued the subject property at $55,200. Exhibit 1 was admitted without objection.
- Value. The TVM of the subject property as of January 1, 2021, was $55,200.
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. Sections 137.115.1; 137.115.5(1)(a). The TVM is “the fair market value of the property on the valuation date[.]” 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). “True value in money is defined in terms of value in exchange not value in use.” Tibbs v. Poplar Bluff Assocs. I, L.P., 599 S.W.3d 1, 7 (Mo. App. S.D. 2020) (internal quotation omitted). The TVM “is a function of [the property’s] highest and best use[.]” Snider, 156 S.W.3d at 346. “Determining the true value in money is an issue of fact for the STC.” Cohen v. Bushmeyer, 251 S.W.3d 345, 348 (Mo. App. E.D. 2008).
The TVM of a property is typically determined by the sales comparison approach, the income approach, or the cost approach. Snider v. Casino Aztar/Aztar Missouri Gaming Corp., 156 S.W.3d at 346-48.
- 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). “Although technical rules of evidence are not controlling in administrative hearings, fundamental rules of evidence are applicable.” Mo. Church of Scientology v. State Tax Comm’n, 560 S.W.2d 837, 839 (Mo. banc 1977).
- Complainant’s Burden of Proof. The taxpayer bears the burden of proof and must show by a preponderance of the evidence the property is overvalued. Westwood P’ship v. Gogarty, 103 S.W.3d 152, 161 (Mo. App. E.D. 2003). The BOE’s valuation is presumptively correct. Tibbs, 599 S.W.3d at 7. The “taxpayer may rebut this presumption by presenting substantial and persuasive evidence that the valuation is erroneous.” Id. (internal quotation omitted). The taxpayer also 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 v. State Tax Comm’n, 722 S.W.2d 72, 77 (Mo. banc 1986) (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”).
Property owners are competent to testify to the reasonable fair market value of their property. Cohen, 251 S.W.3d at 348. However, if owner’s testimony is based on “improper elements or an improper foundation[,]” it is not substantial and persuasive evidence rebutting the presumptively correct BOE value. Id. at 349.
- Complainant Did Not Produce Substantial and Persuasive Evidence of Overvaluation.
Complainant did not produce substantial and persuasive evidence rebutting the presumptively correct BOE value. Complainant did not produce evidence supporting a comparable sales approach, income approach, or cost approach to value. Concerning the condition issues with the subject property that Complainant testified about and which are evidenced in Exhibit A, Complainant provided no evidence providing a way to quantify the dollar amount effect of these issues on value. Complainant did not provide contractor estimates of repair costs.
Neither Complainant’s exhibits nor her testimony utilized the comparable sales approach, income approach, or cost approach to support her proposed value. The lack of evidence relating to a recognized valuation method renders Complainant’s proposed value speculative and unpersuasive. See Cohen, 251 S.W.3d at 349 (holding an opinion of value loses probative value when based on an improper foundation). Complainant did not produce substantial and persuasive evidence showing the BOE overvalued the subject property and “the value that should have been placed on the property.” Tibbs, 599 S.W.3d at 7.
CONCLUSION AND ORDER
Complainant did not produce substantial and persuasive evidence of overvaluation. The BOE decision is affirmed. The TVM of the subject property as of January 1, 2021, was $55,200.
Application for Review
A party may file 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 of Missouri, 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.
The Collector of St. Louis County, and 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 the disputed taxes have been disbursed pursuant to a court order under the provisions of section 139.031.
SO ORDERED October 7, 2022.
Benjamin C. Slawson
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 October 7, 2022, to: Complainant(s) and/or Counsel for Complainant(s), the County Assessor and/or Counsel for Respondent and County Collector.
 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, sec. 14; Section 138.430.1, RSMo 2000. All statutory citations are to RSMo 2000, as amended.