Maine Consol. Power Co. v. Inhabitants of Town of Farmington
Citation | 219 A.2d 748 |
Parties | MAINE CONSOLIDATED POWER COMPANY, a Maine Corporation with its principal place of business in Farmington, County of Franklin, State of Maine, Plaintiff, v. The INHABITANTS OF the TOWN OF FARMINGTON and Raymon J. Magno, Sr., Milford E. Beal, B. A. Etzel, John R. Pillsbury and Linwood J. York, as the Assessors for the Town of Farmington, Defendants. |
Decision Date | 18 May 1966 |
Court | Supreme Judicial Court of Maine (US) |
Skelton, Taintor & Abbott, by Frederick G. Taintor, Lewiston, for plaintiff.
Peter Mills, Farmington, for defendants.
Before WILLIAMSON, C. J., and WEBBER, TAPLEY, SULLIVAN and MARDEN, JJ.
RESCRIPT
On report. Case is submitted upon complaint (less Exhibit A attached thereto), answer and agreed statmeent of facts.
This case is an appeal from the decision of the Assessors of the Town of Farmington denying a petition for abatment of 1964 taxes assessed against Maine Consolidated Power Company, a public utility. The pertinent portion of the agreed statement states:
'The plaintiff-appellant contends that the valuation of its property for the purpose of municipal taxation is limited to the cost of the property when first devoted to public use, less depreciation thereon, the question of 'prudent acquisition cost' not being involved insofar as its properties in Farmington are concerned.
'The Town and its Assessors contend that other factors, such as replacement cost, may be considered in reaching the valuation for the purpose of municipal taxation.
'At pre-trial it was established that the plaintiff-appellant's proposed exhibits and testimony would be limited to the single aspect of valuation indicated above.
The plaintiff-appellant (hereinafter referred to as Company) contends that tax value is determined for property of a public utility by the 'original costs, less depreciation' formula as a result of the 1957 Amendment to R.S.1954, Chap. 44, Sec. 18 (35 M.R.S.A. Sec. 52).
The 1957 Amendment struck from Sec. 18 the words, 'current value thereof' and added thereto the words, 'but such other factors shall not include current value,' so that Sec. 18, after the Amendment, reads in part:
The question of 'prudent acquisition cost' is not involved insofar as the Company's properties in Farmington are concerned.
The Company further says that the result of applying the 1957 Amendment artificially creates a 'market value' for utility properties; that it establishes a meansure of capacity of the property to earn money for its owner.
'All taxes upon real and personal estate, assessed by authority of this state, shall be apportioned and assessed equally, according to the just value thereof; * * *.' Article IX, Sec. 8, Constitution of the State of Maine.
Sweet v. City of Auburn, 134 Me. 28, 32, 33, 180 A. 803, 805, 104 A.L.R. 784.
The idea of taxation implies an equal apportionment and assessment upon all property according to its just value. Brewer Brick Company v. Inhabitants of Brewer, 62 Me. 62.
Opinion of the Justices, 97 Me. 595, 597, 55 A. 827.
In 1953 this Court, in New England Tel. & Tel. Co. v. Public Utilities Commission, 148 Me. 374, on page 388, 94 A.2d 801, on page 808, in interpreting the then existing rate fixing statute (R.S.1944, Chap. 40, Sec. 17) said in part:
'The evidence of reproduction cost less depreciation is one of the major factors which must be considered by the commission reaching its conclusion.'
In the case of Central Maine Power Co. v. Public Utilities Commission, 150 Me. 257, 109 A.2d 512 (1954) this Court found that the Amendment of 1953 made no change in the substantive law but was only an attempt at clarification of procedural requirements for the determination of current value. This case, on pages 261, 262, 109 A.2d on page 514, states:
(emphasis supplied).
Central Maine Power Co. v. Public Utilities Commission, et al., 156 Me. 295, 315, 163 A.2d 762, 774.
By consent of the parties the Court is presented with a very simple issue. Are the assessors confined to basing their assessment on the cost of the property first devoted to public use less depreciation without consideration of any other factors?
The assessors are charged by statute with ascertaining the nature, amount and value of real and personal property subject to tax.
'The assessors shall ascertain as nearly as may be the nature, amount and value as of the first day of each April of the real estte and personal property subject to be taxed, and shall...
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