Missouri Bluffs Golf Joint Venture v. St. Charles County Bd. of Equalization

• Decision Date: 25 February 1997
• Docket Number: No. 71272,71272
• Citation: 943 S.W.2d 752
• Parties: MISSOURI BLUFFS GOLF JOINT VENTURE and Missouri Golf, Inc., Plaintiffs/Respondents, v. ST. CHARLES COUNTY BOARD OF EQUALIZATION, Defendant/Appellant.
• Court: Missouri Court of Appeals

Page 752

943 S.W.2d 752

MISSOURI BLUFFS GOLF JOINT VENTURE and Missouri Golf, Inc. Plaintiffs/Respondents, v. ST. CHARLES COUNTY BOARD OF EQUALIZATION, Defendant/Appellant.

No. 71272.

Missouri Court of Appeals,

Eastern District,

Division Two.

Feb. 25, 1997.

Motion for Rehearing and/or Transfer to

Supreme Court Denied April 23, 1997.

Application to Transfer Denied

May 27, 1997.

Joann Leykam, St. Charles, for defendant/appellant.

Daniel L. Goldberg, St. Charles, Mark G. Arnold, Husch & Eppenberger, St. Louis, for plaintiffs/respondents.

PUDLOWSKI, Judge.

The St. Charles County Board of Equalization (Board), appellant herein, appeals the St. Charles County Circuit Court's peremptory writ of mandamus ordering it to presume that § 172.273.3 RSMo 1994 (Statute) is constitutional and to make its determination on the tax exemption of respondent's leasehold accordingly. The Board also appeals the circuit court's denial of its oral motion to amend its pleading to include the constitutionality of the Statute. Finally, the Board attempts to appeal on behalf of the St. Charles County Assessor (Assessor) on the court's denial of the Assessor's motion to consolidate the respondent's mandamus action with the declaratory judgment action addressing the constitutionality of the same Statute.

Because the Board must presume the Statute to be constitutional and determine the exemption issue according to the Statute, the circuit court did not abuse its discretion or exceed its jurisdiction in ordering the Board to do so. Also, because the Board exceeded its jurisdiction by considering the constitutionality of the Statute when making its determination on the exemption, the existence of other adequate remedies, administrative or judicial, does not preclude mandamus. Accordingly, we find that the circuit court lawfully entertained jurisdiction and did not abuse its discretion in issuing the peremptory writ of mandamus. We find further that the circuit court did not abuse its discretion in denying appellant's motions to amend its petition to raise the constitutionality of the Statute as the Board has no standing to raise the issue. Finally, we find that the Board is also without standing to appeal for the Assessor on the issue of consolidation of the mandamus and the declaratory judgment action. The judgment of the circuit court is affirmed and the stay, issued by this court, on the peremptory writ of mandamus of September 12, 1996, is hereby lifted.

The Board hears appeals of valuation and exemption on real and personal property as that valuation and exemption has been determined by the Assessor. Respondents are Missouri Bluffs Golf Joint Venture and Missouri Golf, Inc. (Missouri Bluffs). Missouri Bluffs is a tenant of the Missouri Research Park and operates a for-profit golf course on the land leased from the Missouri Research Park and owned by the University of Missouri.

Assessor gave Missouri Bluffs notice that it was assessing the possessory interest owned by them in the golf course and assessed a value to the leasehold interest. Missouri Bluffs appealed to the St. Charles Board of Equalization. Missouri Bluff's appealed asserting that its leasehold was exempted from taxation by the Statute.

In 1994 and 1995 the University of Missouri had tenants in the park, authorized under the Statute, who were issued notices of assessment for tax by the Assessor. Missouri Bluffs was one of these tenants and was so assessed. In each of these years Missouri Bluffs appealed to the Board. The Board voted to exempt the leasehold in each of these years, even though the Assessor raised the constitutionality and the applicability of the Statute and filed a Declaratory Judgment action. ¹

In 1996, the Assessor again issued a notice of assessment, refusing to exempt Missouri Bluffs' leasehold interest. Missouri Bluffs filed two appeals with the Board. Appeal number 96-95 addresses the issue of the exemption and number 96-96 addresses the valuation of the property. The appeal on the issue of exemption provides the substance of this appeal. On August 13, 1996 the Board voted to stay the decision on the exemption issue "due to irreconcilable conflict between the constitution and applicable law." On August 14, 1996 the Assessor filed a declaratory judgment action alleging the unconstitutionality of the Statute. The Assessor's action was filed in the Circuit Court of St. Charles County, Division 2. The action is still pending.

On August 22, 1996, Missouri Bluffs filed its Petition in Mandamus in the Circuit Court of St. Charles County, also assigned to Division 2. On August 29, 1996 the circuit court issued an order for the Board to meet on the exemption appeal and to vote on the issue and set forth the basis for its decision.

The Board met on September 5, 1996, and voted to tax Missouri Bluffs' leasehold at 100%, thereby denying the exemption provided by the Statute. The Board based its decision on the "unresolved perceived conflict on the issue between the law and the constitution."

On September 10, 1996, Missouri Bluffs filed its Amended Petition in Mandamus and its Motion for Leave to File the Amended Petition in Mandamus. The circuit court issued the peremptory writ of mandamus ordering the Board to reconsider its decision of September 5, 1996. In the order the court ordered the Board to make its determination based solely on: (1) the application of the language of § 172.273.3 and "with the presumption that the said Statute is, in fact, constitutional;" and (2) the evidence adduced before the Board of Equalization. The court further denied the Board's oral motion to amend its answer to raise the constitutionality of the Statute. The order granting the peremptory writ of mandamus also denied the Assessor's Motion to Consolidate the Declaratory Judgment action with the mandamus action pending before the court.

The Board then filed a notice of appeal and also requested a stay of the circuit court's ruling pending appeal. This court granted the stay pursuant to Rule 92.04 and ordered an expedited briefing and argument of the case.

We will first address the Board's first and third points regarding the propriety of the writ of mandamus and will lastly address the Board's second point.

In its first point on appeal, the Board asserts that the trial court erred in issuing the peremptory writ of mandamus. The Board asserts that the court exceeded its jurisdiction in ordering the Board to reconsider its original decision without considering Article X, Section 6 of the Missouri Constitution. We disagree.

We review the grant or refusal of a writ of mandamus under an abuse of discretion standard. A writ of mandamus will not be reversed where it appears to have been lawfully exercised and no abuse is shown. Williams v. Gammon, 912 S.W.2d 80, 83 (Mo.App. W.D.1995).

The Board, an administrative agency, has no jurisdiction to consider the constitutionality of the Statute. State Tax Commission v. Administrative Hearing Commission, 641 S.W.2d 69, 75 (Mo. banc 1982); Duncan v. Missouri Board for Architects, Professional Engineers and Land Surveyors, 744 S.W.2d 524, 531 (Mo.App.1988). The Board claims that it needed to consider both the Statute and the constitutional provision in order to reach the decision required of it. The Board realizes that its duties are limited to the ascertainment of facts and the application of existing law in order to resolve issues within the given area of expertise. State Tax Commission, 641 S.W.2d at 75. The existing law under which the Board is to determine the exemption issue is the Statute and not the constitution. The Board, however, may also hear evidence from the Assessor to develop a factual record in which the constitutionality of the Statute may be determined later, in the proper forum. See Schierding v. Missouri Dental Board, 705 S.W.2d 484, 487 (Mo.App. E.D.1985). At the same time, the Board is to presume the Statute is constitutional and has no power to declare it otherwise. Beatty v. State Tax Commission, 912 S.W.2d 492, 495 (Mo. banc 1995).

The Statute, in pertinent part, reads as follows:

The utilization of the real property, as provided by subsection 1 of this section, is hereby deemed to be a public purpose and in furtherance of the purposes of the university. Provided such land is owned by the university, no leasehold or other interest therein, by whomsoever held, shall be separately assessed or taxed, and such real property as a whole shall be deemed the property of the curators of the University of Missouri and be exempt from all forms of property tax.

§ 172.273.3 RSMo.1994.

The Statute is unambiguous and clearly provides an exemption to the leasehold held by Missouri Bluffs. Indeed, the Board found this to be true in the years 1994 and 1995. It was not until the Board considered the constitutionality of the Statute that it felt it must deny the exemption or issue a stay until the issue is judicially adjudicated. By doing so, the Board acted outside its jurisdiction as it is to presume that the Statute is constitutional and determine the issue of exemption according to the Statute only. The Board is to apply the evidence adduced at the hearing to the Statute and...