Forum Development, L.C. v. Arizona Dept. of Revenue
| Decision Date | 11 December 1997 |
| Docket Number | CA-TX,Nos. 1,s. 1 |
| Citation | 192 Ariz. 90,961 P.2d 1038 |
| Parties | , 258 Ariz. Adv. Rep. 6 FORUM DEVELOPMENT, L.C., an Arizona limited liability company, Plaintiff-Appellant, v. ARIZONA DEPARTMENT OF REVENUE, an agency of the State of Arizona; Maricopa County, a political subdivision of the State of Arizona, Defendants-Appellees. WAHL TO WAHL, L.L.C., a limited liability company, Plaintiff-Appellant, v. ARIZONA DEPARTMENT OF REVENUE, an agency of the State of Arizona; Maricopa County, a political subdivision of the State of Arizona, Defendants-Appellees. Leslie WERTZ, an individual, Plaintiff-Appellant, v. ARIZONA DEPARTMENT OF REVENUE, an agency of the State of Arizona; Maricopa County, a political subdivision of the State of Arizona, Defendants-Appellees. 96-0019, 1 96-0020, 1 96-0021. |
| Court | Arizona Court of Appeals |
These consolidated appeals concern provisions enacted in 1994 and 1995 to govern the filing of valuation and classification appeals during a two-year transition between the pre-1995 statutory valuation and tax appeal timetable and the post-1996 timetable. For the reasons set forth below, we affirm.
In an uncodified session law, the legislature set forth procedures for the review of tax assessments during an interim period consisting of tax years 1995 and 1996. The session law required county assessors to mail property assessment notices for the 1995 and 1996 tax years on or before November 15, 1994, and allowed dissatisfied property owners either to petition for administrative review of an assessment on or before December 31, 1994 or to appeal directly to the tax court on or before November 1, 1995. It also provided an exception in cases of new construction, change in property use and change in ownership occurring after October 31, 1994, allowing appeals regarding those changes to be filed through December 15, 1995. 1994 Ariz. Sess. Laws ch. 323, § 49, 1995 Ariz. Sess. Laws ch. 249, § 36 (" § 49").
Appellant Forum Development, L.C.
Among the parcels that were the subject of the November 1994 valuation notices was a vacant 14.8-acre parcel in Gilbert. Forum Development, L.C. became the owner of this parcel on or about October 19, 1995, which prevented it from petitioning the Maricopa County Assessor ("Assessor") by the December 31, 1994 deadline for a valuation review and subsequent administrative review. Only the owner of the parcel at the earlier time could have done so. See § 49(A)(1)(c), (2), (3).
On December 15, 1995, Forum Development filed a valuation appeal in the tax court. See Ariz.Rev.Stat. Ann. ("A.R.S.") §§ 42-177, 42-246 (1994). It later filed an amended complaint alleging three alternate counts. Count One asked the court to find that the 1996 full cash and limited values of the parcel were excessive, to determine the correct valuations, and to award Forum Development the amount of its overpayment of 1996 taxes. Count Two asked the court to find that the 1996 assessment was illegal because the parcel's 1996 full cash value and limited value exceeded its market value, to determine the correct assessment for 1996, and to award Forum Development the amount of its overpayment. See A.R.S. § 42-204. Count Three asked the court to find that Forum Development had no plain, adequate, and speedy remedy at law for reviewing the 1996 assessment and taxes on the parcel, to order appellees to hold a hearing to correct the 1996 assessment, and to enter judgment reducing the 1996 assessment and refunding any excess payment to Forum Development.
Appellant Wahl to Wahl, L.L.C.
Among the parcels on which the Assessor sent valuation notices for 1995 and 1996 were three that comprised an office building in Phoenix. Wahl to Wahl, L.L.C., became the owner of these parcels on December 5, 1995. Like Forum Development, Wahl to Wahl was unable to pursue timely administrative review of the 1996 valuations. Section 49(A)(1), (2), (3). Wahl to Wahl was also unable to commence a valuation appeal in the tax court until after December 5, 1995, when it became the parcels' owner.
On December 15, 1995, through the same attorney who represented Forum Development, Wahl to Wahl filed an appeal in the tax court pursuant to A.R.S. sections 42-177 and 42-246. It later filed a three count amended complaint. Except for the factual details peculiar to Wahl to Wahl's situation, the substance of each count of the amended complaint was the same as the substance of each corresponding count asserted by Forum Development.
Leslie Wertz became the owner of a 39.39 acre parcel in Maricopa County in March 1994. The use of the parcel changed from vacant land to agricultural land at some point in 1995 and continued as such during 1996. Wertz was unaware of any claim she might have had concerning the assessment of her parcel for 1996 and filed no administrative appeal during 1995.
On December 14, 1995, through the same attorney who represented Forum Development and Wahl to Wahl, Wertz filed a 1996 valuation appeal in the tax court pursuant to A.R.S. sections 42-177 and 42-246. Five months later, she filed an amended complaint. Count One re-alleged the substance of her initial complaint--that the full cash and limited values of her parcel for 1996 were excessive because the parcel was used for agricultural purposes, so the 1996 full cash value should have been set at a much lower sum. See A.R.S. § 42-141(A)(5) (fourth sentence). Counts Two and Three alleged alternate illegality and special action claims analogous to those alleged by Forum Development and Wahl to Wahl.
Maricopa County moved to dismiss each action for lack of subject matter jurisdiction due to untimely filing. The county's motions also sought dismissal on the ground that each complaint failed to state a claim on which relief could be granted. See Rule 12(b)(6), Arizona Rules of Civil Procedure. The tax court dismissed all three actions without stating its reasons. Appellants timely appealed. We have jurisdiction pursuant to A.R.S. section 12-2101(B). The appeals were assigned to Department T of this court pursuant to A.R.S. sections 12-120.04(G) and 12-170(C).
We consider the following issues:
1. Whether appellants filed these tax appeals within the time provided by the tax code; and
2. Whether statutory alternative claims were available to appellants or, if not, whether the dismissal of the 1996 tax appeals as untimely violates due process.
The question whether the filing of appellants' actions conferred subject matter jurisdiction on the tax court is one of law, which we review de novo. Hughes v. Creighton, 165 Ariz. 265, 267, 798 P.2d 403, 405 (App.1990). In reviewing an order dismissing an action for failure to state a claim on which relief can be granted, we assume the truth of the complaint's allegations, and will uphold dismissal only if the plaintiff would not be entitled to relief on any legal theory under any facts the plaintiff could seek to prove in support of the claims alleged. See Menendez v. Paddock Pool Const. Co., 172 Ariz. 258, 261, 836 P.2d 968, 971 (App.1991).
Under Arizona's property tax valuation system for tax years before 1995, county assessors were to send valuation notices to property owners by November 15 of the year preceding the tax year. A.R.S. § 42-221(D) (1991). A property owner could petition the assessor to review the proposed valuation for the tax year within forty-five days after the notice was sent or by December 31, whichever was later. A.R.S. § 42-221(E).
A.R.S. section 42-221(B) provided that property was to be valued for a given tax year as of January 1 of that year. The inchoate lien on the property for that year's taxes arose as of the same date. See A.R.S. § 42-312(B); In re Ecology Paper, 17 B.R. 281 (Bkr.1982).
The assessor was required to rule on any property owner's review petition by April 1 of the tax year. A.R.S. § 42-221(I). A dissatisfied property owner could appeal to the county board of equalization within fifteen days of the mailing of the assessor's decision. A.R.S. § 42-241.01(A). The county board was required to rule by May 10. A.R.S. § 42-241.01(D). A property owner still dissatisfied with the county board's decision could appeal to division one of the state board of tax appeals within fifteen days after the county board mailed its decision. A.R.S. § 42-245(A). The state board was required to rule by July 25. Id. If still dissatisfied, the property owner could bring a valuation appeal in the tax court within sixty days after the date of the state board's decision. A.R.S. § 42-176(A).
Alternatively, a property owner could elect to bypass all or part of the administrative tax appeal process and file a valuation appeal in the tax court on or before November 1 of the tax year. A.R.S. § 42-246(A) (Supp.1996), as amended effective July 17, 1994.
Under the pre-1995 system, property tax assessments and collections proceeded concurrently with the administrative and judicial appeal processes. By April 20 of the tax year, the county assessor was required to certify the tax roll and deliver it to the board of supervisors. A.R.S. § 42-239(A). On the third Monday in August of that year, the tax rate would be set and the tax levied. See A.R.S. § 42-304(B). The first half taxes for the year became due on October 1 and delinquent after 5:00 P.M. on November 1. A.R.S. § 42-381(A).
Through 1994 Ariz. Sess. Laws ch. 323, 1995 Ariz. Sess. Laws ch. 249, the Legislature initiated a new property tax valuation and assessment system for tax...
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