Trustees of Flynn's Estate v. Board of Review of City of Des Moines
| Decision Date | 20 June 1939 |
| Docket Number | 44072. |
| Parties | TRUSTEES OF FLYNN'S ESTATE v. BOARD OF REVIEW OF CITY OF DES MOINES. |
| Court | Iowa Supreme Court |
Appeal from District Court, Polk County; Russell Jordan, Judge.
Appeal by property owners from decree of the district court fixing the valuation of certain real estate in the city of Des Moines for taxation. The facts are stated in the opinion.
Reversed and remanded.
Superseding opinion reported in 278 N.W. 342.
Kelly Shuttleworth & McManus and J. R. McManus, all of Des Moines L. W. Powers, of Denison, and M. H. Johnson, of Des Moines for appellants.
Vernon R. Seeburger, Ronald L. Ryan, Chas. Hutchinson, Carl Burkman and F. T. Van Liew, all of Des Moines, for appellees.
This case was originally determined in an opinion filed March 13, 1938, Iowa, 278 N.W. 342.Petition for rehearing was granted and the matter is now before us for consideration.
The property involved is what is known as the Flynn building, located at the southeast corner of Locust and Seventh streets in the city of Des Moines. It is a tract 66 feet east and west on Locust street, and running back 132 feet on Seventh street to the east-and-west alley. On this tract is constructed a six-story building, the lower floor of which is occupied by stores and the other floors are used as shops and offices. Locust street is one of the principal business streets of the city, and Seventh is also a street in the principal retail district of the city of Des Moines. On the southwest corner of block 12, in which the Flynn building is located, and at the northeast intersection of Walnut and Seventh streets, is what is known as the " key" property, variously called the Kraft building and the Kresge building. This is supposed to be the heart of the retail business district of Des Moines.
The valuation placed upon the Flynn tract as of January 1, 1933, was $325,622. From this assessment the plaintiffs appealed to the district court and on trial the assessment was reduced to $319,022. From the decree of the district court the plaintiffs have appealed to this court. The board of review also appealed, but this appeal has been abandoned and need not be considered here.
Plaintiffs devote considerable of their argument to an expression used in the original opinion, claiming that it is contrary to the views of this court as expressed in previous decisions. The statement was there made that there can be no claim in this appeal that the property was assessed in excess of its actual value, as the record discloses that the actual value exceeded the assessed valuation. We cannot interpret this statement in the opinion as do the plaintiffs, that it tends to establish any departure from our former holdings. It is a mere statement of fact and in no way lays down the rule that is suggested by the argument of counsel. It did not mean, nor do we think it can be held to mean, that if it appears from the record that the actual value of the property exceeded the assessed valuation this court will not inquire into what the facts are or consider the evidence as to whether such actual value as fixed by the assessor in the first instance was correct.
Under the provisions of section 7109 of the Code of 1931,
In determining values it is the duty of the assessor to fix such values equitably in comparison with other like property. Under our laws property cannot be assessed at more than its actual value and cannot be assessed inequitably as compared to other property. It has consistently been held by this court, as in the case of Iowa Cent. R. Co. v. Board, 176 Iowa 131, 157 N.W. 731, 732, that:
To the same effect, see Chapman Bros. v. Board of Review, 209 Iowa 304, 228 N.W. 28.
It is clear that the question at issue is a question of fact. There cannot be much controversy about the legal aspects of the case. The law upon the various questions involved in such disputes as this has been frequently determined, but always there has been and always there will be difference of opinion as to values. Nearly every person called upon to appraise property, especially improved property, approaches the task with ideas based largely upon experience, occupation, and training. Honest minds will necessarily differ on values, and exact equality, though eminently desirable, is impossible of attainment. The presumption is that the valuation placed by the assessor upon any particular property is correct, and the burden of proof is upon the person challenging that estimate. It is so made by statute (section 7109, Code, 1931) and such has been the uniform holding of this court. Butler v. City of Des Moines, 219 Iowa 956, 258 N.W. 755; Sioux City Bridge Co. v. Board of Review, 192 Iowa 1224, 184 N.W. 733; Talbott v. City of Des Moines, 218 Iowa 1397, 257 N.W. 393; In re Appeal of Blank, 214 Iowa 863, 243 N.W. 173.This does not mean, of course, that the opinion of the assessor is conclusive, but, when properly based and apparently not erroneous or excessive or out of proportion, it is to be held as the true value of the property. See Butler v. City of Des Moines, supra.
It is obvious that in fixing values in a business district such as the one in question, the first duty of an assessor is to endeavor to arrive at the true value of the property. We realize that this is difficult. There are so many factors that must be taken into consideration that the fixing of a fair proportionate valuation is a serious problem; and it is also true that cases involving such valuations are among the most troublesome and vexatious that come into the courts. However, once having determined the actual value and the equitable valuation of the property proportionately with other properties of the district, the value for tax purposes is determined by the 60 per cent rule. In the case at bar the assessor worked under certain rules in a system, which system was supposed to give the approximate percentages affecting the value of the property in the district. As to the land values, after consultation with a number of persons supposed to be acquainted with the valuations throughout the business district, there was first fixed a key property at the corner of Sixth avenue and Walnut street; and afterwards the key property was fixed at the corner of Seventh and Walnut streets-the Kresge property before referred to. Estimating this property and its valuation at 100 per cent, other properties were valued in proportion to their distance from this supposed business center, on a front-foot valuation. In devising the formula there were also taken into consideration the effects of other conditions, among them corner influence the depth of the property, the influence of the alley, the ownership, whether in one person or divided among several, etc. The various influences and variations were combined into mathematical formulae and from them was derived the actual value of the real estate. The value of the building on a tract was determined to a great extent by the cubic content, the different values per cubic foot varying according to the type of construction. In determining the ground value of any tract its valuation was fixed at some certain percentage of the front-foot value of the key tract. Other matters taken into consideration were the trend of business in the neighborhood, the amount of pedestrian traffic, and the kinds of business in the vicinity. To the value of the land as fixed by these various formulae and percentages was added the value of the building estimated in the manner described, and the sum of these two values was supposed to be the actual value of the property. Elements other than those mentioned here were taken into consideration,...
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Trs. of Flynn's Estate v. Bd. of Review of City of Des Moines
...226 Iowa 1353286 N.W. 483TRUSTEES OF FLYNN'S ESTATEv.BOARD OF REVIEW OF CITY OF DES MOINES.No. 44072.Supreme Court of Iowa.June 20, Appeal from District Court, Polk County; Russell Jordan, Judge. Appeal by property owners from decree of the district court fixing the valuation of certain rea......