Lane v. Supervisor of Assessments of Montgomery Co.
135 A.3d 828
Md.2016Background
- Ann Lane appealed a 2011 Montgomery County assessment of her Parc Somerset condominium (unit 1003) set at $2,130,000 (effective January 1, 2011 — the statutory “date of finality”).
- PTAAB reduced assessments for two other Parc Somerset units (703 and 803) but left Lane’s assessment unchanged; Lane appealed de novo to the Maryland Tax Court.
- Supervisor’s expert relied on three Parc Somerset comparables that sold in May 2011 (after the January 1, 2011 date of finality) and adjusted for size, floor premium, and land to value Lane’s unit at lower than the initial assessment; Tax Court favored the Supervisor’s evidence and reduced Lane’s assessment to $2,075,000.
- Circuit Court reversed, holding post–date-of-finality sales were legally inadmissible and remanded; Court of Special Appeals reversed the Circuit Court and affirmed the Tax Court.
- Maryland Court of Appeals granted certiorari to decide (1) whether post–date-of-finality comparable sales are admissible in assessing value as of that date, and (2) whether the Tax Court’s valuation lacked substantial evidence.
- Majority held post–date-of-finality comparable sales occurring reasonably soon after the date may be considered and that the Tax Court’s valuation was supported by substantial evidence; two justices dissented.
Issues
| Issue | Plaintiff's Argument (Lane) | Defendant's Argument (Supervisor) | Held |
|---|---|---|---|
| Admissibility of post–date-of-finality sales | TP § 8-104(b)(2) and plain meaning of “date of finality” preclude consideration of events after that date | Statute is silent on valuation methodology; Tax Court may consider probative evidence (including nearby post-date sales) to determine value as of the date of finality | Held: Post–date comparable sales occurring reasonably soon after the date of finality are admissible and relevant to valuing property as of that date |
| Article 15 uniformity challenge | Considering post–date sales produces non-uniform or unpredictable assessments across similar properties | Tax Court applied full cash (fair market) value standard; de novo review permits consideration of relevant evidence | Held: No Article 15 violation — assessment used full cash value yardstick and did not breach uniformity principles |
| Substantial-evidence on valuation | Reliance solely on post–date sales of non-identical units lacks substantial evidence; PTAAB valuations of similar units should control | Tax Court weighed evidence, discredited Lane’s refinancing appraisal, and reasonably relied on Supervisor’s comparables | Held: Tax Court’s factual determination was supported by substantial evidence; affirmed |
| Retroactivity / impermissible reassessment concern | Use of post–date sales is effectively retroactive and chills appeals | Distinguishes retroactive reassessment cases (Montgomery Cnty. Bd. of Realtors, Stellar GT); using comparables to determine market value as of the date is not a retroactive reassessment | Held: Not a retroactive assessment; distinct from cases that unlawfully moved the date of finality |
Key Cases Cited
- Hance v. State Roads Comm’n of Maryland, 221 Md. 164 (1959) (condemnation precedent holding sales shortly after valuation date may be admissible to show value as of that date)
- Shell Oil Co. v. Supervisor of Assessments of Prince George’s Cty., 278 Md. 659 (1976) (full cash value = fair market value and current zoning/factors may be considered)
- St. Leonard Shores Joint Venture v. Supervisor of Assessments of Calvert Cty., 307 Md. 441 (1986) (assessors have reasonable latitude in valuation methods to achieve full cash value)
- Montgomery County Board of Realtors, Inc. v. Montgomery County, 287 Md. 101 (1980) (invalidating county ordinance that reassessed property after date of finality — example of unconstitutional post-finality reassessment)
- Supervisor of Assessments v. Stellar GT, 406 Md. 658 (2008) (distinguishing permissible mid-cycle reassessments from unlawful retroactive assessments based on subsequent sale price)