Town of Vienna v. Kokernak

• Decision Date: 28 August 1992
• Citation: 612 A.2d 870
• Parties: TOWN OF VIENNA v. Kenneth J. KOKERNAK et al.
• Court: Maine Supreme Court

Page 870

612 A.2d 870

TOWN OF VIENNA v. Kenneth J. KOKERNAK et al.

Supreme Judicial Court of Maine.

Argued March 17, 1992.

Decided Aug. 28, 1992.

Stephen E.F. Langsdorf (orally), Michael J. Gentile, Preti, Flaherty, Beliveau & Pachios, Augusta, for plaintiff.

Geoffrey H. Hole (orally), Bernstein, Shur, Sawyer & Nelson, Portland, for defendants.

Before WATHEN, C.J., and ROBERTS, GLASSMAN, CLIFFORD and COLLINS, JJ.

ROBERTS, Justice.

Kenneth J. Kokernak and other property owners in the Town of Vienna appeal from a judgment of the Superior Court (Kennebec County, Chandler, J.) vacating the decision of the Kennebec County Commissioners that granted property tax abatements to the taxpayers. On appeal the taxpayers contend that the court erred by: (1) applying the incorrect standard of review; (2) finding that the property was not substantially overvalued; and (3) finding that there was no unjust discrimination. The Town argues that the county commissioners lost jurisdiction of the case and that it was denied due process at the commissioners' hearing. We conclude that substantial evidence in the record as a whole supports the county commissioners' tax abatement. Accordingly, we vacate the judgment of the Superior Court.

The 37 taxpayers all own property on the shores of Flying Pond in the Town of Vienna. For the tax years 1980 through 1988 their properties were assessed at $40 per front foot. For the 1989 tax year the taxpayers' properties were revalued at $330 per front foot and assessed at 80%, for an assessed value of $265 per front foot up to 200 feet.

When their request for an abatement was denied, the taxpayers filed a petition for tax abatement with the county commissioners, claiming that their properties were substantially overvalued and that there was unjust discrimination. See 36 M.R.S.A. §§ 841, 844 (1990 & Supp.1991). Following a June 1990 hearing, the commissioners granted the taxpayers an abatement of $165 per front foot. Despite the Town's request, no findings of fact or conclusions of law were issued by the commissioners. The Town then sought judicial review in the Superior Court pursuant to 36 M.R.S.A. § 844. The court reinstated the $265 per front foot assessment and the taxpayers' appeal followed.

I.

In order to successfully appeal the property tax assessment of a municipality, the taxpayer has the burden of proving that one of three situations exists:

(1) The judgment of the assessors was irrational or so unreasonable in light of the circumstances that the property is substantially overvalued and an injustice results;

(2) There was unjust discrimination; or

(3) The assessment was fraudulent, dishonest, or illegal.

See Moser v. Town of Phippsburg, 553 A.2d 1249 (Me.1989); Shawmut Inn v. Town of Kennebunkport, 428 A.2d 384, 393 (Me.1981); Delta Chemicals, Inc. v. Town of Searsport, 438 A.2d 483 (Me.1981). Because the Superior Court acts in an appellate capacity, we review directly the commissioners' decision for an abuse of discretion, error of law, or findings unsupported by substantial evidence in the record. See Moser, 553 A.2d at 1249. Application of the substantial evidence standard of review requires the reviewing court to "search the entire record ... to determine whether on the basis of all the testimony and exhibits before the agency it could fairly and reasonably find the facts as it did." Winship v. Brewer School Comm., 390 A.2d 1089, 1093 (Me.1978) (quoting In re Maine Clean Fuels, Inc., 310 A.2d 736, 741 (Me.1973)). That the record contains evidence inconsistent with the result, or that inconsistent conclusions could be drawn from the evidence, does not render the commissioners' findings invalid if a reasonable mind might accept the relevant evidence as adequate to support the commissioners' conclusion. See In re Maine Clean Fuels, Inc., 310 A.2d at 741.

The taxpayers correctly contend that the Superior Court applied the wrong standard of review to the facts on the issue of overvaluation. Discussing the issue of overvaluation, the court stated:

If the opinion and judgment of the assessors is so irrational and unreasonable in the light of the circumstances that the property is substantially overvalued and an injustice results, relief will be forthcoming. Kittery [Elec. Light Co. v. Assessors of Town, 219 A.2d 728] at 734 [ (Me.1966) ]. After reviewing the transcript of the hearing and the record compiled thus far, the court cannot say that the methods employed by the assessors to value the property and the result arrived at satisfy this standard for reversal.

....

... It is the opinion of the court that the judgment of the assessors cannot be said to be so irrational and unreasonable in the light of the circumstances that the property is substantially overvalued and that injustice has resulted.

Relying on Kittery Elec. Light Co. v. Assessors of Town, 219 A.2d 728 (Me.1966), the court applied an erroneous standard of review by treating the commissioners as an appellate panel and reviewing directly the action of the assessors. In Kittery the taxpayer appealed the tax assessor's denial of an abatement directly to the Superior Court pursuant to the statute then in effect. See 36 M.R.S.A. § 845, repealed by P.L.1977, ch. 694, § 694 (effective July 1, 1978). Thus the court in Kittery reviewed directly the actions of the tax assessors. See also Frank v. Assessors of Skowhegan, 329 A.2d 167, 171 (Me.1974); Sears, Roebuck & Co. v. Inhabitants of Presque Isle, 150 Me. 181, 189, 107 A.2d 475, 479 (1954). The statute now provides that an appeal from the tax assessors must be taken to the county commissioners or a board of assessment review before going to the Superior Court. See 36 M.R.S.A. § 844. In the instant case, because the court served only as an appellate tribunal, it should have reviewed the commissioners' decision directly. On the taxpayers' further appeal, we also review the commissioners' decision.

II.

The taxpayers argue that there was substantial evidence in the record that their properties were overvalued. The taxpayers presented evidence to the commissioners regarding the sale prices of three shorefront properties in Vienna for the years 1987 and 1988 that placed the value of shorefront property at approximately $180 per front foot. The taxpayers also presented evidence of the State Bureau of Taxation sales ratio calculations for the Town of Vienna which reflected that a property's average assessed value is 53% of its market value.

We have previously recognized that section 844, governing tax...