Appeal of Reeves Broadcasting Corp., 536

• Citation: 273 N.C. 571,160 S.E.2d 728
• Decision Date: 01 May 1968
• Docket Number: No. 536,536
• Parties: Appeal of REEVES BROADCASTING CORPORATION from the Valuation Placed on Property by Brunswick County for 1965.
• Court: United States State Supreme Court of North Carolina

Page 728

160 S.E.2d 728

273 N.C. 571

Appeal of REEVES BROADCASTING CORPORATION from the Valuation

Placed on Property by Brunswick County for 1965.

No. 536.

Supreme Court of North Carolina.

May 1, 1968.

E. J. Prevatte, Southport, for Brunswick County, appellant.

Sullivan & Horne, Southport, Broughton & Broughton, by John D. McConnell, Jr., Raleigh, for Reeves Broadcasting Corporation, appellee.

HUSKINS, Justice.

The assessment, listing and collection of taxes is regulated by the Machinery Act, G.S. § 105--271 et seq., which prescribes the time and manner for listing and valuing property for ad valorem tax purposes. Portions of the act pertinent to decision in this case are analyzed below.

Real property in Brunswick County must be listed and assessed for ad valorem taxes on January 1, 1958 and every eighth year thereafter. G.S. § 105--278. The Board of County Commissioners is required to appoint a tax supervisor, G.S. § 105--283, who is responsible for the proper listing and appraising of property. G.S. § 105--286. The tax supervisor appoints list takers who in the first instance determine valuations. G.S. § 105--287. The tax supervisor has the power, however, at any time prior to the meeting of the Board of Equalization and Review, 'to change the valuation placed on any property by the list taker.' G.S. § 105--286(g). After the property has been listed and valuations placed upon it by the list takers or by the tax supervisor, the County Commissioners sit as a County Board of Equalization and Review. In such capacity it has the duty to equalize the valuation of all property in the county to the end that property shall be listed on the tax records at the valuation required by law. G.S. § 105--327(g)(1). This board is required to correct, Inter alia, the valuation of any taxable property on the tax list, increasing or decreasing the assessed value so as to conform the valuation to legal requirements. The board may not change the valuation of any real property from the value at which it was assessed for the preceding year except in accordance with the terms of G.S. § 105--278 and G.S. § 105--279. G.S. § 105--327(g)(3). Real property is valued octennially as provided in G.S. § 105--278. In other than octennial revaluation years, all real property Not subject to reassessment must be listed for ad valorem taxes at the value at which it was assessed at the last revaluation. The following property, however, is subject to reassessment in other than revaluation years, to wit: (1) all real property which has increased more than $100 in value by virtue of improvements or appurtenances added since the last assessment (except those exempt from taxation by G.S. § 105--294 not pertinent here); and (2) all real property which has been subdivided into lots On streets already laid out and open for travel, and sold or offered for sale as lots, since the date of the last assessment. However, where lands have been subdivided into lots and more than five acres of any such subdivision remain unsold by the owner, the unsold portion may be listed as land acreage in the discretion of the tax supervisor. G.S. § 105--279(3) b., f.

Any taxpayer may except to the order of the Board of Equalization and Review and appeal to the State Board of Assessment in the manner provided by G.S. § 105--329.

In appraising real property for tax purposes, it is the duty of the county tax supervisor to see that every lot, parcel, tract, building, structure and other improvement being appraised is actually visited and observed by the township list taker or an expert appraiser employed to assist the tax supervisor and list takers. G.S. § 105--295. Furthermore, the county tax supervisor is required to provide for the development and compilation of standard uniform schedules of values to be used in appraising real property in the county. G.S. § 105--295. A separate property record for each tract, parcel, lot or group of contiguous lots must be prepared so property owners may ascertain the method and standard of value used in evaluating their properties. G.S. § 105--295.

In determining value, the assessors should consider any or all of the following Indicia when applicable to the particular property being valued, to wit: the location, quality of soil, timber, water power and privileges, mineral deposits, fertility, adaptability for commercial and other uses, past and probable future income therefrom, present assessed valuation, and any other features affecting the value of each separately listed tract, parcel or lot. G.S. § 105--295. This statute, generally speaking, is directory. Failure to consider each and every Indicia of value recited in the statute does not vitiate the appraisal. In appraising a vacant lot on Main Street, for example, an assessor would not likely give attention to mineral deposits or water power.

With respect to tax valuation, all real property as far as practicable, shall be appraised at its true market value in money. In revaluation years and annually thereafter, the Board of County Commissioners is required to adopt some uniform percentage of the appraised value as the value to be used in taxing property. This percentage is known as the assessment ratio and is applied to the appraised value of all property subject to assessment. The tax records of the county should show both the appraised value and the assessed value for tax purposes. G.S. § 105--294.

When appeal is taken from the County Board of Equalization and Review to the State Board of Assessment, said Board is authorized, after timely notice to all interested parties and after hearing all evidence offered, to reduce, increase or confirm the valuation fixed by the County Board. The valuation thus determined by the State Board is entered upon the fixed and permanent tax records 'and shall constitute the valuation for taxation.' G.S. § 105--329. Failure of the tax listers, or of the tax supervisor, to perform all duties imposed upon them in strict compliance with law does not give the taxpayer a tax-free year nor deprive the State Board (on appeal) of its authority 'to reduce, increase, or confirm' the valuation fixed by the County Board. The State Board has full authority, notwithstanding irregularities at the county level, to determine the valuation and enter it accordingly. Such valuation so fixed is final and conclusive unless error of law or abuse of discretion is shown. Belk's Department Store, Inc. v. Guilford County, 222 N.C. 441, 23 S.E.2d 897. But judicial review of its administrative decisions is always available. In re Pilot Freight Carriers, 263 N.C. 345, 139 S.E.2d 633. When a judicial review is sought in the superior court on the record made before the State Board, as in this case, that court is without authority to make findings at variance with the findings of the State Board which are supported by material and substantial evidence because that is the exclusive function of...