Shipman v. Dominion Hospitality, SC 85905.

Citation148 S.W.3d 821
Decision Date26 October 2004
Docket NumberNo. SC 85905.,SC 85905.
PartiesScott SHIPMAN, St. Charles County Assessor, Appellant, v. DOMINION HOSPITALITY, Respondent.
CourtUnited States State Supreme Court of Missouri

Charissa L. Mayes, Office of St. Charles County Counselor, St. Charles, for Appellant.

James P. Gamble, St. Louis, for Respondent.

PER CURIAM.

The St. Charles County Assessor ("assessor") appeals a judgment of the circuit court affirming a decision of the State Tax Commission ("STC") to set aside the assessor's commercial classification of real property located in St. Charles, Missouri, known as TownePlace Suites — Marriott ("property"). The STC reclassified the property as "mixed-use," sixty percent residential and forty percent commercial, and assessed the property at $416,810 residential and $468,000 commercial. After opinion by the Court of Appeals, this Court granted transfer. Mo. Const. art. V, sec. 10. The judgment is reversed.1

The record shows the following: Dominion Hospitality, LLC ("Dominion") owns the real property located at 1800 Zumbehl Road in St. Charles, Missouri, known as TownePlace Suites — Marriott. Dominion advertises and operates this property as an extended-stay residential facility. It also accepts guests for short-term stays of less than thirty days. The property has ninety-five residential units, each of which has a full kitchen and an individual telephone line with voice mail. There are laundry facilities on the property for the use of the occupants of the units. Dominion also provides housekeeping services to each unit three times per week. Upon arrival, each guest signs a registration card in which the guest agrees to stay at the property for the number of days indicated on the card. In return, Dominion agrees to provide housing space for them for that period. Those who indicate on the registration card that they intend to stay for thirty days or more are billed at a lower rate than guests who indicate that they will stay for a shorter period. The registration card also states that a person who agrees to an extended stay but departs early is subject to paying a higher daily cost for his accommodations.

The undisputed fair market value of the property in 2000 was $3,656,226. The assessor classified it as commercial property, which is assessed at thirty-two percent of its fair market value. Dominion appealed this classification and assessment for tax year 2000 to the St. Charles Board of Equalization, which affirmed the classification of the property as completely commercial on July 25, 2000. Dominion timely appealed to the STC in August 2000, asserting that the property was misclassified.

An evidentiary hearing was held before a hearing officer of the STC on July 2, 2002. Dominion presented testimony and documentary evidence concerning the use of the property in 2000. This included several computations of actual use by residents and guests. All of these computations of use compared the number of days of long-term stays to the number of days of all stays. These computations did not include any units that were not occupied. Assessor did not introduce any evidence, but did cross-examine Dominion's witnesses.

Based on the evidence presented before the hearing officer, the STC found that the property was not used primarily for transient housing, but rather was used for residential and commercial purposes, with the residential use being sixty percent. The STC concluded that where use by permanent residents makes up a substantial portion of the use of property, section 137.016.4, RSMo Supp.1997,2 requires allocation of the assessment between residential and commercial use. The STC further concluded that the transient housing exclusion of section 137.016.1(1) should not apply in such circumstances. The STC set aside the classification of the assessor, reclassified the property for tax year 2000 as sixty percent residential and forty percent commercial, and assessed the property for tax year 2000 at $416,810 residential and $468,000 commercial. Assessor appealed the order of the STC to the circuit court, which affirmed the decision of the STC. This appeal followed.

On appeal, this Court examines the underlying decision of the administrative agency, here, the STC, and not the judgment of the trial court. Psychcare Mgmt., Inc. v. Dept. of Soc. Services, 980 S.W.2d 311, 312 (Mo. banc 1998). This Court is limited to a determination of whether the decision is supported by competent and substantial evidence upon the entire record, or whether it was arbitrary, capricious, unreasonable,...

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3 cases
  • Bateman v. Rinehart
    • United States
    • Missouri Supreme Court
    • February 26, 2013
    ...appeal.Standard of Review On appeal, this Court examines the STC's decision, rather than the circuit court's judgment. Shipman v. Dominion Hospitality, 148 S.W.3d 821, 822 (Mo. banc 2004). This Court must determine whether the STC's decision: “(1) is in violation of constitutional provision......
  • Algonquin Golf Club v. State Tax Com'n
    • United States
    • Missouri Court of Appeals
    • March 20, 2007
    ...Court examines the underlying decision of the administrative agency, the STC, and not the judgment of the trial court. Shipman v. Dominion Hospitality, 148 S.W.3d 821, 822 (Mo. banc 2004). While undertaking this review, we are limited to determining whether the decision constituted an abuse......
  • Shipman v. Dns Electronic Materials, Inc.
    • United States
    • Missouri Court of Appeals
    • September 2, 2008
    ...the underlying decision of the administrative agency, in this case the STC, and not the judgment of the trial court. Shipman v. Dominion Hospitality, 148 S.W.3d 821, 822 (Mo. banc 2004). We are limited in our review to a determination of whether the decision of the administrative agency is ......

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