24 A.2d 109 | Pa. Super. Ct. | 1941
Argued December 10, 1941. The appeal to No. 120 October Term, 1941, was taken by the City of Allentown from the valuation of appellee's land for tax purposes as determined by the lower court. The premises at No. 520 Hamilton Street in Allentown was assessed, for the triennium beginning with 1940, at $60,000; it was reduced by the Board of Tax Revision and Appeals to $58,000. On appeal, the common pleas found that $52,500 was the actual value of the land and on a further finding from the evidence that the assessed values of other properties was less than 80% of the prices for which they were actually sold during the period reasonably near the date of assessment, fixed the valuation in this case at $42,000.
The duty of the assessor is prescribed by the Act of May 25, 1939, P.L. 225, § 1,
There is a presumption that the assessor in this case performed his duty and that he in compliance with the *388
law, assessed the land at its full "actual value." But that presumption does not prevent a property owner from reducing his assessment, on evidence sufficient to show that assessments generally throughout the district were made at a percentage of actual value, even though such method is a departure from the requirements of the statute. Between the standard of true value and the uniformity required by law, the latter requirement is to be given effect "as the just and ultimate purpose of the law."Cumberland Coal Co. v. Board of Revision, Etc.,
The contention of the property owner in the court below was twofold; that the assessment exceeded actual value, and that assessments generally throughout the city were computed on the basis of a ratio to actual values. As to the latter aspect, there is no direct evidence that the assessors used a percentage of actual values as a basis for assessments and since the city denies that they did, there was a heavy burden, because of the difficulty of proof, on the property owner to rebut the presumption that the property was assessed at full actual value. If the testimony is insufficient to establish that a ratio of assessed value to actual value was applied generally throughout the district, actual value is conclusive. Penna. Co. for Ins. onL. G. Annuities, Appeal,
The hearing before the lower court was de novo. Appeals to this court are regulated by the Act of May 22, 1933, P.L. 853. Section 519 (substantially a rescript of the Act of June 26, 1901, P.L. 601, repealed) provides for appeals by owners; § 520 gives the same right to the taxing municipality. 72 P. S. § 5020. Under the Act of 1901 the appellate courts were not limited to an inspection of the record, as on certiorari, but were required to review the judicial action of the court below *389
on the evidence disclosed by the record. Rockhill I. C. Co.,Appellant v. Fulton County,
The land in question is well located in the heart of the business section of the city. The buildings were originally designed for use as a furniture store. One brick building five stories high on Hamilton Street is connected with a three story building fronting on Maple Street. The former is 40 years old; the latter was built in 1916. The entire property is used by the owner in the conduct of an automatic heating and electrical appliance business. The ground floors and the basements are show rooms; the upper floors are used for storage. Appellee does not have use for all of the upper floors and the design of the buildings prevents a leasing of space to others. The cost of remodeling the upper floors to make them attractive to tenants would not be justified by the probable return in rentals.
In assuming the burden upon him, the owner, at the hearing in the court below, was permitted to prove the amounts realized on sales of other real estate throughout the City of Allentown in comparison with their assessed values. Schedules of these properties were received in evidence, showing the amount of the assessment and the sale price in each instance. We have made some attempt to analyze the evidence contained in these exhibits.1 From the exhibits the lower court *390 found: "Of said properties, one was assessed at less than 10% of its sale price, 11% of them at 100% or more of their sale price and about one-third at more than 80% of their sales prices." In addition to the exhibits there is testimony of a sale of a store and office building on *391 Hamilton Street between Seventh and Eighth Streets, to the Woolworth Company for $340,000, assessed at $171,000; a sale of property at 708 Hamilton Street for $85,000, assessed at $38,500; a sale at 714 Hamilton Street for $75,000, assessed at $39,000 and a sale of property at 1332 Hamilton Street for $12,500, assessed at $7,700.
We think it clear that the evidence of sale prices of other properties in the City of Allentown, alone, does not throw light upon the actual value of the property in question and is wholly insufficient to establish that a norm of 80% of actual value was applied for assessment purposes. The sales enumerated are for the most part moderate priced residence properties; only 4 of the 207 are adapted to other uses. A determining factor in arriving at assessment values under the prior act relating to Third Class Cities (Act of June 23, 1931, P.L. 932, § 2504) was fair public sale value, (Erie City's Appeal,
The exhibits, as an offer of proof of uniformity of assessment defeat themselves. There is no uniformity. `The ratio of assessed value to sales price varies in each instance and a selected list of 70 properties from the 207 in the exhibits shows the average assessment to be 96.4% (appellant's exhibit 1) of the sale price, thus *393 demonstrating clearly that all properties in Allentown were not under assessed.
We are not prepared to say that undervaluation or even the use of a uniform ratio cannot be established by full testimony of the actual value of 207 representative properties of a total of 32,000 units of real estate in Allentown. To require a property owner on appeal to revalue every other property in the district would be so burdensome and expensive as to amount to a denial of justice: Harleigh Realty Co.'s Case,
The effect of the conclusion of the lower court, in this case, is not that the land was assessed too high but that other lands of various character and uses throughout the City of Allentown, judged by the values established by sales prices alone, have been assessed too low. This is not ground for a revaluation of the property for tax purposes. Mineral R. M. Co. v. County Com'rs,
Though we cannot find justification for an assessment on the basis of 80% of actual value, there is sufficient competent evidence in the testimony of experts to support the finding of the lower court that the actual value of the property was $52,500. The assessment in this appeal will be fixed at that amount.
The order is modified and the assessment established by the board, on revision, is reduced to $52,500.
By agreement, the testimony in the foregoing case is made a part of the record in each of the following appeals, consolidated with the above appeal for disposition in this opinion. For the reasons stated, we find the evidence insufficient to rebut the presumption that full actual value was the standard of assessment in all of these appeals.
The order of the lower court fixing the amount of the assessment at a percentage of actual value is reversed and the assessment at $160,000 is reinstated. *395
The order of the lower court fixing the amount of the assessment at a percentage of actual value is reversed and the assessment at $198,800 is reinstated.
The order determining the amount of the assessment at a percentage of actual value is modified and the assessment for tax purposes is fixed at $20,000.
The order of the lower court, determining assessed value at a percentage of actual value, is modified and the assessment for tax purposes is fixed at $30,000.
EXHIBIT B. All real estate sold by Security Building Association between January 1937 and March 1940, similarly acquired. Two of the sixteen properties were sold after the assessment. Assessments range from 52% to 129% of sale prices; the average is about 75%. There is no testimony as to the character of the properties.
EXHIBIT C. Twenty-one pieces of improved real estate, acquired by foreclosure, sold by Penna. Loan Building Association and eight parcels sold by Mutual Loan Building Association between April 1, 1937 and March 2, 1940. Two of the properties were sold in 1940, one of them an apartment building. There is no evidence of the nature of the other properties. One sold for 112% of the assessment. The average assessment was about 72% of average sale price.
EXHIBIT D. Sixty-seven properties sold by Home Owners Loan Corporation between January 20, 1939 and February 15, 1940. Eight sales were made in 1940. Only one was commercial, assessed for 52% of the sale price. Five were sold for less than the assessed valuations. Highest sale price was $7,800. The average assessment was about 73% of the average sale price.
EXHIBIT E. Thirty-five properties sold by John W. Kessler, a real estate dealer, between January 20, 1937 and November 24, 1939. All properties were residential except one vacant lot. Nine were sold at or for less than assessed values. Highest price paid, $7,500. Average assessment 79% of sale price.
EXHIBIT F. Seven properties sold by Earl S. Kester, Agent, between December 1, 1938 and December 12, 1939. Assessments range from 48% to 72 1/2% of sales prices; average 58%. All properties residential, situated in outlying districts of the city.
EXHIBIT G. Twenty-nine properties sold by Roscoe Q. Jarrett, Agent, between January 1, 1939 and January 1, 1940. Three were sold for less than the assessments. Assessments range from 19% to 150% of sale prices; average about 59%. Three were commercial properties; the assessed value of 716 Hamilton Street is 45% of the sale price.
EXHIBIT H. Fourteen properties, in the 17th and 18th wards of the city, all residential, new houses, sold by the builder between June 18, 1939 and November 20, 1939. The assessments range from 42% to 65% of sale prices; average 51%.
Duplications in the above exhibits reduce the total number of sales to 207.