J. Rosenbaum & Sons, Inc. v. Coulson

• Decision Date: 05 April 1955
• Docket Number: No. 48645,48645
• Citation: 246 Iowa 848,69 N.W.2d 403
• Parties: J. ROSENBAUM & SONS, Inc., Appellant, v. C. C. COULSON, Chairman, and F. Paul Staley and Lloyd Davis, Members of the Board of Review, Appanoose County, Iowa, Appellees.
• Court: Iowa Supreme Court

Page 403

69 N.W.2d 403

246 Iowa 848

J. ROSENBAUM & SONS, Inc., Appellant, v. C. C. COULSON, Chairman, and F. Paul Staley and Lloyd Davis, Members of the Board of Review, Appanoose County, Iowa, Appellees.

No. 48645.

Supreme Court of Iowa.

April 5, 1955.

Valentine & Greenleaf, Centerville, for appellant.

Charles L. Johnston, County Atty. of Appanoose County, Centerville, for appellees.

BLISS, Justice.

Plaintiff's lots are legally described as Lots 1 and 4, Block 4, Range 4 in the original Town of Centerville, Iowa, and are a half-block north of the northeast corner of the Centerville square, on the west side of and abutting on, North 13th Street. Each lot is 100 feet square and together they have an area 200 ft. north and south along the street, and 100 feet east and west. In 1953 the assessor appraised each lot at $5,000, or $10,000 for the two lots, and they were assessed at 60% of said valuation, as required by statute, or $6,000. On plaintiff's protest to the Board of Review that body confirmed the valuation and assessment, which were later affirmed by the district court on plaintiff's appeal.

Plaintiff has no improvements on either lot and had leased them to near-by garage operators for the storage of used motor vehicles. From August 15, 1946 to December 31, 1946, the rental was $60 a month, and from the latter date to January 1, 1953, the monthly rental was $75, and, in addition, the lessee paid the real-estate taxes. From January 1, 1953 to September 30, 1954 the rental was $100 a month, and in addition, the lessee was to pay all real-estate taxes on the property and any special assessments that became due during the term of the lease, and annual special assessments in the sum of $44.96.

For the assessment in 1949 the County Assessor had devised a plan which had approval of the State Tax Commission by which all land on the Centerville square was assessed at $120 a front foot, or 60% of a front-foot appraisal of $200, and all land within one block off the square was assessed at $60 a front foot. This plan did not apply to residential property located within one block of the square. This same plan was used in the 1953 assessments.

In plaintiff's protest to the Bd. of Review, of May 12, 1953, it objected to the assessment against the real estate, as of January 1, 1953, in the sum of $6,000, on the following grounds:

1. The assessment is not equitable as compared with assessments of other like property. (Then follows the description of five properties within the blocks around the Square, with their respective assessments for 1953).

2. That its property is assessed for more than the value authorized by law, and that the over-assessment is $3,600, and its actual value is $4,000, and that 60% thereof or $2,400 is a fair assessment.

3. That residential property in the Centerville taxing district constituting approximately 41% of all the taxable property, is generally assessed at 25% of its actual value.

4. That personal property in said taxing district, constituting approximately 17% of all taxable property, is generally assessed at 25% of its value.

5. That utility property in said taxing district, constituting approximately 27% of all taxable property, is generally assessed at 42% of its actual value.

6. That protestant's property is assessed in excess of 100% of its actual value and is bearing greater than its proportionate share of the tax burden.

Protestant prayed that its assessment be reduced to an amount that 'is fair, equitable, and just, or canceled if property is not assessable.'

It was stipulated that the protest was denied May 22, 1953, the Board adjourned May 29, 1953 and notice of appeal was served on the Board on June 8, 1953, and on the same day, plaintiff filed its petition of appeal in the district court, alleging the assessment, the protest thereto, and the grounds of the protest, designated paragraph 5(a, b, c, d), with two additional grounds, to wit: that there is fraud in the assessment of its property in that it is business property and that business property is deliberately, designedly, and according to a definite plan assessed at a higher per cent of its actual value than are other types of property in the Centerville taxing district all as more specifically set out in paragraph 5(a, b, c, d) the grounds of the protest; and subparagraph (e) to paragraph (5) thereof, to wit: that the assessment of its property is inequitable as compared with the assessment of other similar property in said tax district.

Plaintiff prayed that the Court reduce its assessment, and for further equitable relief.

Defendants' answer admitted their membership in the Board of Review, plaintiff's ownership of the land, the assessment thereon, the denial of the protest, and denied the assessment was not equitable as compared with other assessments of similar property in the Centerville taxing district, and with respect to residential, personal, and public utility property, and denied that the assessment of plaintiff's property as business property was fraudulent. The answer admitted that, in the Centerville taxing district, residential, personal, and utility property constituted respectively 37%, 17%, and 27% of all taxable property.

Plaintiff used the Appanoose County Assessor as its witness. He testified to his instruction of the deputy assessors as to the front-foot assessment of $120 on property around the square, and of $60 a front foot on property in the blocks directly off the square, according to the survey and card system made out the previous fall, and similar to the plan used in the 1949 assessment. They were instructed that they could use their own judgment and depart from the plan if they thought a change was justified. The designated front footage was to be their standard. These cards were made for practically every property in town. Residential properties located within a block of the square were not assessed on a front-foot basis, and, if it was used, the residential front footage was generally lower than the business front footage basis. The assessments as made were generally as designated on the cards.

Plaintiff used as valuation witnesses Ralph Packard, Henry Dukes, and Hale Greenleaf, real estate brokers or agents in Centerville, who testified to their respective qualifications and knowledge generally of real estate values in Centerville. Each testified that one of the plaintiff's attorneys in his automobile took the witness along different streets in Centerville and either asked the witness his opinion of the market values of designated business and residential properties as of January 1, 1953, or the witness voluntarily expressed his opinion of such values of other properties with which the witness was familiar. A list of these properties of which each witness had expressed a value opinion was prepared by the witness or the attorney or someone, and marked as an exhibit and received in evidence. Each such exhibit had four columns. In the first or left-hand column were the legal descriptions of the properties. In the second column were the 'Assessed Values' (presumably taken from the official or public tax records, although the evidence does not definitely so show). In the third column, designated 'Appraised Values', were the values of the properties in the opinion of the witness. In the fourth column, designated 'Per Cent', are shown various percentages. Neither of these three witnesses testified with respect to his 'Per Cent' column, or as to just what the percentages were, but we ascertain from a few computations, and from statements in appellant's brief and argument, that the percentage figure noted as to each property indicates what percentage the 'Assessed Value' is of the witness' opinion value as shown in the 'Appraised Value' column. The record does not show the actual value which the assessor placed on any of these properties. The lists of the three witnesses being Exhibits P-2 to P-7, inclusive, include 124 pieces of property, mostly improved business and residential properties. The first twelve properties, except item 4 on Exhibit P-2, and the eight properties on Exhibit P-3, being the lists of the witness, Mr. Packard, are apparently improved business properties, the other 32 items in Exhibit P-2 are residences. The forty or more business and residence properties in Exhibit P-4 and P-5 were those on which Mr. Dukes placed values. Mr. Greenleaf apparently listed the 32 properties shown in Exhibits P-6 and P-7. These witnesses testified to very few facts relative to the locations of these properties, the character of the improvements, type of construction, their size, age, state of repair, their earning capacity, or rentals. Section 441.13 of the 1950 Code refers to various matters which the assessor shall take into consideration in determining the actual values of taxable property. The record gives no information of these or other matters affecting the values of the properties in those Exhibits. Each of these witnesses included plaintiff's two lots in his list. Mr. Packard noted their assessed value at $6,000, his opinion of their value at $5,000, and the 'Per Cent' as 120%. He had no knowledge of their rental income, and gave the matter no consideration. He testified that had he known of it, he would have placed the market value of the lots at $10,000. Mr. Dukes' list showed the assessed value of the lots as $6,000, his opinion of their value as $5,000, and the percentage as 120%. He testified that he had no knowledge of the rents received from the lots when he formed his opinion of their value, but nevertheless he would not change his opinion. Mr. Greenleaf appraised plaintiff's lots at $6,000. Having the thought that these rentals might not continue, the witness said he would not increase his valuation, but assuming those rentals would continue for five years, he thought the valuation as of January 1, 1953 'would be up around $10,000'.

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