262 A.3d 679
R.I.2021Background:
- The 903 is a Providence condominium complex whose units were under a tax-stabilization agreement (TSA) that fixed tax payments through 12/31/2013.
- The city performed a 2012 citywide valuation (update) that set new fair-market values but because of the TSA The 903 paid stabilized taxes for 2013.
- After the TSA expired on 12/31/2013 the city performed a 2013 revaluation (assessing values as of 12/31/2013) that increased The 903 unit assessments roughly 30% over the 2012 values.
- Petitioners received only their 2014 and 2015 tax bills reflecting the 2013 revaluation, then sued in Superior Court challenging the 2013 reassessments for being selective, arbitrary, and discriminatory.
- The Superior Court ruled for petitioners, ordering tax bills be revised to 2012 values and awarding over $1.5 million; the city appealed and enforcement was stayed.
- The Supreme Court reversed, holding the record did not prove selectivity, statutory notice requirements were met, and remanded with instructions to enter judgments for the city.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 2013 revaluation was selective/arbitrary/discriminatory | Petitioners: city singled out The 903 for revaluation when similar properties were not | City: revaluations were standard practice when a TSA expires mid-cycle; other properties were similarly revalued | Held: No selective assessment proven; record does not show The 903 was singled out |
| Whether statutory notice/procedural protections were denied | Petitioners: they were denied full procedural/substantive benefits of a revaluation | City: complied with §44-5-15 posting/advertising and §44-7-7 taxpayer notice via tax bills | Held: City complied with statutory notice; trial court erred to find procedural discrimination |
| Whether city could reassess after TSA expiration mid-cycle | Petitioners: argued revaluation process violated expectations from prior 2012 update | City: upon TSA expiration property is taxable at fair-market value as of 12/31 of each year and revaluation is appropriate | Held: City was entitled and required to assess at fair market value after TSA expired |
| Burden of proof and trial-justice factfinding | Petitioners: trial justice credited evidence and found revaluation illegal | City: assessors are presumed to act properly and petitioners bore burden to prove selectivity | Held: Trial justice misconceived/overlooked material evidence and applied burden incorrectly; appellate court reverses |
Key Cases Cited
- Whittemore v. Thompson, 139 A.3d 530 (R.I. 2016) (appellate deference to trial justice factual findings)
- Balmuth v. Dolce for Town of Portsmouth, 182 A.3d 576 (R.I. 2018) (interpretation of assessment date and not locking taxpayers into prior revaluation)
- Picerne v. DiPrete, 428 A.2d 1074 (R.I. 1981) (selective assessments unlawful when similar property not assessed)
- Capital Properties, Inc. v. State, 749 A.2d 1069 (R.I. 1999) (selective assessments are discriminatory)
- Willow Street Associates LLP v. Board of Tax Assessment Review, 798 A.2d 896 (R.I. 2002) (plaintiff bears burden to prove assessor acted improperly)
- Narragansett Electric Company v. Carbone, 898 A.2d 87 (R.I. 2006) (articulation of preponderance burden for civil cases)