In re Delinquent Real Estate Taxes
| Decision Date | 20 February 1931 |
| Docket Number | 28,254 |
| Citation | 235 N.W. 22,182 Minn. 543 |
| Parties | IN RE DELINQUENT REAL ESTATE TAXES, WASECA COUNTY; STATE v. RUSSELL-MILLER MILLING COMPANY |
| Court | Minnesota Supreme Court |
Proceeding in the district court for Waseca county to enforce payment of delinquent real estate taxes against property of defendant assessed on a valuation of $169,900. The matter was heard by Enersen, J. of the ninth judicial district acting for the judge of the fifth judicial district. The court found the value to be $150,000 and reduced the assessment accordingly. From the judgment entered pursuant to the findings defendant appealed. Reversed and new trial ordered.
Market value of real property controls for assessment purposes.
In determining the true and full value of real property for assessment purposes, the ordinary market value must control. In re Potlach Timber Co. 160 Minn. 209, 199 N.W 968, followed.
Moonan & Moonan, for appellant.
O. J. Ostensoe, County Attorney, and H. H. Sturner, for the state.
Defendant appealed from a judgment entered to enforce the payment of delinquent real estate taxes.
About September 1, 1925, defendant acquired what had been a very valuable mill at Waseca. Its operation ceased soon thereafter. It has since been idle. The machinery is now rusty, the belting is gone, and the buildings have suffered the usual deterioration incident to idleness. While the buildings were originally constructed at a great expense, perhaps in the neighborhood of $300,000, they are now unattractive. It is claimed that the milling industry has been subjected to such experiences and conditions that it is no longer feasible or practicable to operate this mill. It was once a big business in a small city. The property becoming unproductive and therefore undesirable, the owner put it on the market for $50,000. It was so offered and listed for sale. The local civic association attempted for the sake of the community to dispose of it at this figure. It could not be sold.
This action involves the taxes for the year 1928 payable in 1929. The assessor determined the true and full value of the mill on May 1, 1928, to have been $169,900. Defendant claimed such value to be $50,000 only. The trial court fixed such value at $150,000.
The "true and full value in money" as used in the statute means the usual selling price, not a forced sale. The statute so states.G.S. 1923 (1 Mason, 1927) § 1992. In re Potlach Timber Co. 160 Minn. 209, 199 N.W. 968. This rule was not modified by State v. Fritch, 175 Minn. 478, 221 N.W. 725, wherein lands of doubtful quality were involved. There were no buildings in that case. But it was in fact there stated that it was up to the assessor to form an opinion of the market value even when there is no market or sales to aid in fixing such value. Such is the mandate of the legislature, from which neither the assessor nor the court may depart.
It is clear that it was the duty of the assessor in the first instance in the instant case to determine such market value of the mill. He put down the true and full value at $169,900. He gave no consideration to the selling price and testified that the property could not be sold at his figures. He took the cubic contents of the building in feet and computed the value at so many cents per cubic foot. Then he deducted the depreciation, added the value of the land, and took 40 per cent of the total for the assessed valuation. He thus reached a result which we may assume reflected the intrinsic worth of the buildings but admittedly not upon a price which in his judgment could be obtained therefor if offered for sale. The sale value, not the actual value, is what must control. In re Potlach Timber Co. 160 Minn. 209, 199 N.W 968; State v. Fritch, 175 Minn. 478, 221...
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