Town of Barnet v. Palazzi Corp.

• Decision Date: 07 June 1977
• Docket Number: No. 268-76,268-76
• Citation: 376 A.2d 24,135 Vt. 298
• Court: Vermont Supreme Court
• Parties: TOWN OF BARNET v. The PALAZZI CORPORATION.

Page 24

376 A.2d 24

135 Vt. 298

TOWN OF BARNET v. The PALAZZI CORPORATION.

No. 268-76.

Supreme Court of Vermont.

June 7, 1977.

John C. Candon and Garfield H. Miller of Black & Plante, White River Junction, for plaintiff.

Paterson, Gibson, Noble & Brownell, Montpelier, for defendant.

Before BARNEY, C. J., and DALEY, LARROW, BILLINGS and HILL, JJ.

HILL, Justice.

This is a tax appeal taken by the Town of Barnet pursuant to 32 V.S.A. § 4467 from action of the State Tax Appeal Board substantially reducing the appraised value of certain heavy construction equipment owned by the Palazzi Corporation for the tax year 1975.

The appellee, Palazzi Corporation, is a New Hampshire enterprise engaged in the highway construction business. It acquired a contract for work to be performed on the interstate highway in the Town of Barnet, and, under 32 V.S.A. § 3603, became liable for personal property tax on its equipment for the year of 1975.

Upon the request of the local tax listers, the appellee filed a personal property inventory form showing its taxable construction equipment to have an appraised, or fair market value of $816,000.00, and a listed value of $408,000.00. 32 V.S.A. §§ 3481, 4003. These valuation figures submitted by the appellee were accepted by the listers, and the property was placed in the town grand list at the appropriate statutory sums. On receiving its tax bill from the Town of Barnet, the appellee filed an appeal with the Commissioner of Taxes pursuant to 32 V.S.A. § 4461. The basis for this appeal was the appellee's view that it had not been equally treated with the resident taxpayers in Barnet and that the listed value to fair market value ratio prevailing in the town had not been applied to its property.

On June 22, 1976, a hearing was had before the Vermont Tax Appeal Board for the Northern District of Vermont. The appellee introduced before the board a copy of a letter written by George G. O'Brien, Director of the Property Tax Division, Vermont Department of Taxes, to one of the town listers. In that letter, Mr. O'Brien stated:

Our latest equalization study indicates that personal property in Barnet is in fact appraised at nearly 100% of fair market value. . . . We estimated it was listed at nearly 48% of its value. In regard to real estate, not including utilities, we estimated listed value represented from 18% to 30% of fair market value. The weighted average for the entire town including both real and personal property was estimated at 30.69%

The only evidence adduced regarding the presence and tax status of any comparable property in the town was to the effect that a highway construction firm had, between April 1 and the 15th of December, maintained "some equipment" in Barnet which had been "treated in a like manner" with no appeal taken.

Following this proceeding, the board issued its findings of fact and opinion in which it stated:

The Board believes that the Town of Barnet has, indeed, appraised and listed the property in question properly; however, because there is such a large disparity between the property under consideration and other properties within the Town, some adjustment must be made. It is the opinion of this Board that all properties whether real or personal, must demonstrate an equitable ratio of listed value to fair market value in order to sustain the principles of equity.

Since the only evidence offered at the hearing was that evidence supplied by the appellant referring to the equalization study conducted by the State of Vermont, it is the opinion of the Board that the fair market value of the subject property be lowered by 40% and thus establishing the appraisal value of $490,000.00 for the year 1975.

The Town of Barnet has chosen to appeal this determination of the Tax Appeal Board.

Pursuant to V.R.A.P. 13(d), the Commissioner of Taxes has certified two questions for review. However, the parties have chosen not to brief the second of these, and therefore, we will forego its consideration. Swanton v. Highgate, 128 Vt. 401, 264 A.2d 804 (1970).

Stated in the context of the facts of this case, the remaining certified question is twofold in nature: (1) Whether statutory and constitutional considerations mandate that both real and personal property be treated on the same basis; (2) Whether the State Board of Tax Appeals is required to ensure that the personalty of the appellee taxpayer is listed at the common ratio for all properties that exist in the taxing jurisdiction rather than at the ratio pertaining in only a particular category of property within that jurisdiction.

Generally, then, the issue is whether the board complied with its statutorily imposed duties in taking the presently appealed action. It is our conclusion from review of the relevant statutory, constitutional, and case law that the appellant has not demonstrated sufficient grounds to warrant reversal of the board's decision. I.

Title 32 V.S.A. § 3481 states that, " 'Listed value' shall be an amount equal to fifty per cent of the appraisal value. The ratio shall be the same for both real and personal property." This statutory requirement of uniformity, together with the directive of 32 V.S.A. § 4601 that all taxes be uniformly assessed, is a legislative implementation of the proportional contribution clause of Ch. I, Art. 9, of our Vermont Constitution, as well as the Fourteenth Amendment to the United States Constitution. There can be no doubt that the listing procedures applied to real and personal property in the Town of Barnet do not comply with this standard of uniformity. The appellant town, however, directs our attention to the following language of 32 V.S.A. § 4467:

If the board or court finds that the listed value of the property subject to appeal does not correspond to the listed value of comparable properties within the town, the board or court shall set said property in the...