Opinion by
The Jefferson County Board of Equalization (JCBOE) seeks judicial review of a consolidated order entered by the State Boаrd of Assessment Appeals (BAA) reducing the 1989 assessed valuation of real property owned by 117th Associates (taxpayer) in the Broomfield Industrial Center. We reverse the order.
Taxpayer’s appeal of the Jefferson County Assessor’s assessment valuations of two parcels with separate tax schedule numbers was denied by the JCBOE, whose resolution sustained the tоtal assessed valuation at $999,431. Thereafter, taxpayer sought de novo review of the JCBOE’s decision by the BAA, pursuant to § 39-8-108(1), C.R.S. (1990 Cum.Supp.).
In its petition, taxpayer stated that it would be present and represented by legal counsel at the de novo hearing and that it would provide attachments stating the facts and law upon which the appeal was based, and a list of witnesses and exhibits to be used аt the hearing. The petition was signed by a representative of taxpayer and by its legal counsel.
A hearing was scheduled and held before the BAA on February 28, 1990. No representative, witness, or legal counsel for the taxpayer appeared at the hearing. However, the BAA did enter into evidence two unsigned “market reports” submitted by the taxpayer that consisted of a list of sales representing claimed comparable values lower than those used by the assessor and thе JCBOE.
Counsel for the JCBOE objected to admission of the “market reports” and moved to dismiss the appeal on the grounds that tаxpayer’s exhibits were hearsay statements and that the non-appearance by taxpayer or the author оf the market reports denied the JCBOE its opportunity for and right of cross-examination.
In denying the motion to dismiss, the BAA chairman statеd the following:
“The Petitioners have notified us that they will not be present at the hearing today and that they would like the [BAA] to rule on the documentation submitted. ...
“What we have done in the past ... is if the Petitioner has submitted any documentation that pertains to either [sic] of the three approaches [cost, market and income], we consider it. We decide what weight tо give that evidence....”
The JCBOE then presented both testimonial and documentary evidence through a representativе of the Jefferson County Assessor’s office. On March 9, 1990, the BAA entered its order reducing the total valuation to $893,011, relying upon its consideration of “both parties’ comparable sales.”
An assessor’s ascertainment of the value of property for taxation is presumed to be сorrect. Colorado & Utah Coal Co. v. Rorex,
In order to sustain the burden of proving the assessors’ valuation incorrect, only competent evidence can be considered. Here, the only evidence offered by the taxpayer was the unsignеd written hearsay “market reports” prepared by an unknown author.
The fact, however, that evidence is hearsay does not necessarily render it incompetent in administrative proceedings. See § 24-4-105(7), C.R.S. (1988 Repl.Vol. 10A). Although an administrative hearing officer or body may rely on hearsay evidence, due process requires that such evidence be shown to be of a kind сommonly relied upon so as to be worthy of belief under similar circumstances. See Colorado Department of Revenue v. Kirke,
Our Supreme Court has set out nine factors which are instructive in determining whether hearsay evidence is rеliable, trustworthy, and probative for purposes of an administrative hearing. They are: (1) whether the statement is written and signed, (2) whether the statement was verified, (3) whether the declarant had a bias, (4) whether the hearsay is contradicted, (5) whether the declarant is credible, (6) whether the hearsay has corroboration, (7) whether the case turns on credibility of witnesses, (8) whethеr the party relying on the hearsay adequately explains his failure to call the declarant to testify, and (9) whether the аdverse party had sufficient prior access to the statement or the opportunity to subpoena the declarant. Industrial Claim Appeals Office v. Flower Stop Marketing Corp.,
Our review of the record convinces us that the taxpayer’s hearsay evidence does not have sufficient indicia of trustworthiness to satisfy the Flower Stop criteria.
Although the rules of evidence are relaxed under the State Administrative Procedure Act, see § 24-4-105(7), C.R.S. (1988 Repl.Vol. 10A), such relaxation must not be extended so as to disregard duе process of law and fundamental rights. Puncec v. City & County of Denver,
Section 24-4-105(7) provides that “every party ... shall have the right ... to submit rebuttal evidence and to conduct such cross-examination as may be required for a full and true disclosure of the facts.” Cross-examination is а right rather than a mere privilege; and while its scope may be reasonably restricted within a court’s sound discretion, crоss-examination cannot be denied. Puncec v. City & County of Denver, supra.
Here, the JCBOE’s right to any cross-examination was completely and conclusively dеnied. Therefore, because the taxpayer’s evidence did not comport with guidelines established in the Flower Stop ruling, and was not subjеct to cross-examination by the JCBOE, such evidence was incompetent for admission and consideration by the BAA.
There bеing no other evidence whatsoever in support of the taxpayer’s appeal, the order of the BAA is reversed, and the cause is remanded to the BAA with directions that the petition for de novo review be dismissed.