City of Richmond v. Chesterfield Apartment Co.

• Decision Date: 26 April 1965
• Citation: 206 Va. 22,141 S.E.2d 703
• Parties: CITY OF RICHMOND v. CHESTERFIELD APARTMENT COMPANY.
• Court: Virginia Supreme Court

Page 703

141 S.E.2d 703

206 Va. 22

CITY OF RICHMOND v. CHESTERFIELD APARTMENT COMPANY.

Supreme Court of Appeals of Virginia.

April 26, 1965.

James A. Eichner, Asst. City Atty. (J. E. Drinard, City Atty., on brief), for appellant.

Robert T. Barton, Jr., Richmond (Christian, Barton, Parker, Epps & Brent, Richmond, on brief), for appellee.

Before EGGLESTON, C. J., and SPRATLEY, BUCHANAN, SNEAD, I'ANSON, CARRICO, and GORDON, JJ.

EGGLESTON, Chief Justice.

Pursuant to Code [Repl. Vol. 1959], § 58-1145, Chesterfield Apartment Company, hereinafter called Chesterfield, filed its petition in the court below praying for the correction of alleged erroneous assessments for the years 1961 and 1962 of its land and apartment building located at 900 West Franklin street in the city of Richmond. The petition alleged that for the year 1961 the assessor had assessed the land at $24,500 and the apartment building thereon at $329,000, or a total of $353,500; that the Board of Review of Real Estate Assessments had reduced the assessment on the building to $259,500, leaving the assessed value of the lot at $24,500; that in 1962 the assessor had assessed the property at the same amount fixed by the Board of Review for 1961; and that such assessments were excessive and erroneous and should be corrected.

The City of Richmond filed a cross-petition alleging that the proper assessments of the property for 1961 and 1962 should have been $350,000, $24,500 for the land and $325,500 for the apartment building, and praying that the assessment be increased to that amount.

After hearing the evidence ore tenus the lower court filed a written opinion holding that neither party had borne the burden of showing that the 1961 and 1962 assessments, as determined by the Board of Review, were erroneous. It further held that Chesterfield had not borne the burden of showing that the assessment of the property was not uniform and out of proportion to that of other like property in the city of Richmond. Accordingly, it held that the assessments should be sustained.

Thereafter Chesterfield filed an amendment to its petition, alleging that the property had been assessed in 1963 at $350,000, $24,500 for the land and $325,500 for the building; that such assessment was in excess of what the court had found to be a fair assessment for 1961 and 1962, namely $24,500 for the land and $259,500 for the building, or a total of $284,000. It prayed that the assessment for 1963 be reduced to the latter amount.

By agreement of counsel the evidence previously submitted was considered by the lower court in determining the correctness of the 1963 assessment as well as those for 1961 and 1962.

In its final decree the court, in accordance with its written opinion, denied Chesterfield's petition for a reduction of the 1961 and 1962 assessments and denied the city's cross-petition for an increase of such assessment. It granted Chesterfield's prayer for a reduction of the 1963 assessment to $284,000, and directed a refund of $930.60, the proportionate amount of the 1963 taxes which had been paid.

From this decree the city has appealed and Chesterfield has assigned cross-error. Neither party complains of the assessment of the land at $24,500 for the years 1961, 1962 and 1963. The controversy is as to the amount at which the building should be assessed for these years. In its assignments of error the city contends that the value of the building for these years should be fixed at $325,500, while Chesterfield contends that it should be fixed at $180,000.

Chesterfield further contends that the lower court erred in holding that it had not shown that the assessment of its property was out of proportion to that of other like property in the city.

The property is located at the northwest corner of Franklin and Shafer streets. It consists of a lot fronting 80 feet on Franklin street and 153 feet and 4 inches on Shafer street, on which is erected a 7-story apartment building with a finished basement. The building is of steel and reinforced concrete construction and faced with brick. In it are 72 apartments which are serviced by a passenger and freight elevator. It was erected in 1904 and is now operated as a residential apartment, without kitchens, but having a central dining room. The apartments vary in size from two rooms and bath to three and four rooms and bath. There are a number of furnished apartments. It had a gross annual rental income of approximately $108,000 in 1961 and $114,000 in 1962.

The evidence shows that the property had been assessed for the years 1961, 1962 and 1963 at the amounts alleged in Chesterfield's pleadings.

Section 169 of the Constitution of Virginia provides that 'all assessments of real estate' shall be at its 'fair market value, to be ascertained as prescribed by law.' Section 168 requires that 'all taxes' shall be uniform upon the same class of subjects within the taxing area.

By Act of 1958, ch. 339, § 3, p. 396, a city board of review of real estate assessments 'shall have and may exercise the power to review any assessment of real estate made by the assessor * * *, and to that end shall have all the powers conferred upon the said assessor * * *. Any person or any such city aggrieved by any assessment made by the assessor * * * or by the board of review may apply for relief to the corporation or hustings court of such city * * * and the procedure in such cases shall be in the manner prescribed by §§ 58-1145 to 58-1151, both inclusive, of the Code of Virginia.'

Code, § 58-1145, says that in a proceeding to correct erroneous assessments of local taxes 'the burden of proof shall be upon the taxpayer to show that the property in question is assessed at more than its fair market value or that the assessment is not uniform in its application, * * *.'

Similarly, when a city applies for relief to the corporation or...