Stein v. State Tax Commission
| Citation | 379 S.W.2d 495 |
| Decision Date | 08 June 1964 |
| Docket Number | No. 1,No. 50103,50103,1 |
| Parties | Philip F. STEIN, Trustee (Plaintiff), Appellant-Respondent, v. STATE TAX COMMISSION of Missouri et al. (Defendants), Appellants-Respondents |
| Court | United States State Supreme Court of Missouri |
Lewis, Rice, Tucker, Allen & Chubb, James A. Singer, J. L. Pierson, John Torrey Berger, Jr., Clayton, for appellant.
Norman C. Parker, St. Louis County Counselor, Edward Lander, Asst. County Counselor, Clayton, for respondents.
Petitioner (hereinafter referred to as plaintiff) has appealed from a judgment of the circuit court affirming two decisions of the State Tax Commission upon review proceedings under Section 536.100 et seq. 1 Involved is the assessment of real estate known as Manhassett Village (located in Richmond Heights, St. Louis County) for the years 1961 and 1962. (The two proceedings were consolidated in the circuit court.) The defendants are the State Tax Commission of Missouri, Howard L. Love, John A. Williams, J. Ralph Hutchison, Commissioners of the Missouri State Tax Commission; James W. Hopkins, Director of Revenue, St. Louis County, Missouri; Frank J. Antonio, Assessor, St. Louis County, Missouri; James F. Bell, Collector of Revenue, St. Louis County, Missouri; and A. B. Riley, Collector, City of Richmond Heights, Missouri. Prior to the time the taxes for each year became delinquent the trial court, upon motion of plaintiff, made an order permitting plaintiff to pay the undisputed portion of the tax to the county collector and to deposit the amount of the disputed part with the circuit clerk, and further ordered that plaintiff (by so doing) would 'incur no interest or penalties on any amounts due or claimed to be due on said taxes.' Defendants have appealed from the part of the judgment based upon those orders.
We have appellate jurisdiction because the case involves the construction of the revenue laws of the State. Article V, Sec. 3, Constitution of Missouri 1945, V.A.M.S.
The real estate in question is a tract of 19.63 acres with improvements thereon consisting of apartment buildings containing 354 apartments, a detached garage, and minor buildings. The property was acquired by plaintiff on August 31, 1960, through the purchase of all of the stock of the Longmoor Corporation for the sum of $2,000,001, the sole asset of said corporation being the real estate here involved. At the time of the 1961 hearing all of the apartments were rented, and only four were vacant at the time of the 1962 hearing. It appeared that the improvements on the property were insured for $2,300,000.
It is contended by plaintiff that his purchase of the property was an arm's-length transaction and that the purchase price represented the true market value. The evidence, however, did not disclose that the real estate was placed on the open market for sale prior to the time it was purchased by plaintiff. One item in the contract of sale which would undoubtedly have an effect on the purchase price was the provision that the sale was made subject to a lease whereby Apartment 'A' had been leased to a tenant under a lease expiring September 30, 1970, at a rental of $1 per year.
In 1961 the property was valued by the assessor for assessment purposes at $799,440. Plaintiff appealed to the County Board of Equalization which board affirmed the assessment. Plaintiff then appealed to the State Tax Commission (hereinafter sometimes referred to as 'Commission') and a hearing was held on October 4, 1961. At that hearing the plaintiff relied on the facts heretofore stated concerning the alleged arm's-length purchase of the property.
The County produced as a witness Melville B. Martin, a deputy assessor, who testified that property in St. Louis County is assessed at one third of its true market value; that the property in question was appraised by him at a total of $2,398,532 and was therefore assessed at $799,440; that in August and September 1961, he had inspected both the exterior and the interior of the property and re-affirmed that appraisal; that the appraisal method used was replacement cost, less depreciation, plus the value of the land, although 'the valuation is checked by various other methods'; that in 1959 Roy Wenzlick Company appraised this property for the County and fixed its value at $2,796,000; that that figure had been accepted by the Assessor of St. Louis County but on May 2, 1961, was revised and reduced. At the conclusion of the hearing the Commission reduced the assessed valuation for 1961 to $716,660.
In 1962 the property was assessed by the assessor at the amount fixed by the Commission the previous year, to wit, $716,660. Plaintiff appealed to the County Board of Equalization, which board affirmed the assessment. He appealed from that ruling to the State Tax Commission and a hearing was held on September 19, 1962.
In addition to the evidence of the sale price of the property in 1960, plaintiff at that hearing produced as a witness John W. Gregory, a real estate broker and appraiser. It developed that Mr. Gregory had been employed by the Board of Equalization to appraise the property and had made a report to the board. He appraised the property by the use of one method at $1,760,000 and by the use of another method at $1,944,486. He finally expressed the opinion that it had a fair market value of $2,000,000. This witness explained, however, that before reporting to the board, he 'did not have enough time to make a complete accurate appraisal of the property.'
The County produced as a witness William A. Thomas who testified that he was the supervisor in charge of residential and multiple-family appraisals for St. Louis County; that he had re-inspected this property on September 6, 1962, in preparation for the hearing. He also produced 16 cards which he said were original records of the county assessor's office, made in the regular course of business and kept under his supervision and control, which cards were admitted in evidence without objection. These cards reflected the valuation placed upon this property by the Roy Wenzlick Company as described in connection with the 1961 hearing. He expressed the opinion that the true market value of this property was $2,149,980. When this witness was asked to recite what the records in evidence showed concerning the Roy Wenzlick valuation there was an objection that this testimony would be hearsay and he was permitted to testify thereto subject to that objection. He also testified that property for that year was assessed at one third of its true market value.
In regard to the 1962 assessment the Board found that the assessed valuation fixed by the assessor was not capricious, arbitrary, or intentionally discriminatory, and affirmed the assessed valuation in the amount of $716,660.
In our review of the orders of the State Tax Commission we agree that there 'is no such thing in assessments as an absolute 'true value,' and an assessment is, at best, a...
To continue reading
Request your trial
-
State Bd. of Registration for Healing Arts v. Finch
...for Healing Arts, 397 S.W.2d 347 (Mo.App.1965); Peck's Products Company v. Bannister, 362 S.W.2d 596 (Mo.1962); Stein v. State Tax Commission, 379 S.W.2d 495 (Mo.1964); and-Merritt v. State Hospital No. 1, Fulton, 403 S.W.2d 940 (Mo.App.1966). I fail to see any basis for holding that Sectio......
-
Equitable Life Assur. Soc. of U.S./Marriott Hotels, Inc. v. State Tax Com'n of Missouri, Nos. 62286
...and estimate on the part of the taxing officials. John Calvin Manor, Inc. v. Aylward, 517 S.W.2d 59, 63 (Mo.1974); Stein v. State Tax Commission, 379 S.W.2d 495, 498 (Mo.1964). On this record, we find that Taxpayer's failure to supply greater detail in support of its mathematical calculatio......
-
John Calvin Manor, Inc. v. Aylward
...to be paid into the registry of the court. American Airlines, Inc., v. City of St. Louis, 368 S.W.2d 161 (Mo.1963); Stein v. State Tax Commission, 379 S.W.2d 495 (Mo.1964). At the time American Airlines, supra, and Stein, supra, were decided, as stated, there was no statute that authorized ......
-
Greene County v. Hermel, Inc.
...No. 1, Fulton, 403 S.W.2d 940 (Mo.App.1966); Cupples Hesse Corp. v. State Tax Commission, 329 S.W.2d 696 (Mo.1959); Stein v. State Tax Commission, 379 S.W.2d 495 (Mo.1964); Peck's Products Company v. Bannister, 362 S.W.2d 596 (Mo.1962); Koplar v. State Tax Commission, 321 S.W.2d 686 (Mo.195......