575 A.2d 164 | Pa. Commw. Ct. | 1990
OPINION
Harry G. Banzoff, appellant, purchased two adjoining tracts of land in the city of Harrisburg on March 27, 1985, for the sum of $26,000. Each tract contains a two and one-half story brick dwelling house with a common wall between the houses. When the property was purchased the entire structure (i.e. the two connected houses) was being used as a twelve room boarding house. After purchasing the property appellant rehabilitated the property and converted it into two residential units.
At the time of purchase, the existing assessment on the property was $4,053. Prior to 1985 Dauphin County had not conducted a county-wide assessment since 1972. The $4,053 figure therefore represented the 1972 market value multiplied by the ratio used for assessment purposes which was 30%. In 1985 the Dauphin County Commissioners abandoned the 30% ratio and adopted a 100% ratio. This brought appellant’s assessment figure to approximately $13,500. The Commissioners then performed a statistical updating by doubling the 1972 assessments for the entire county. The reasoning behind this computation was that the statistics used by the State Tax Equalization Board for 1985 revealed that the 1972 market value was 50% of the 1985 market value.
The Dauphin County assessors evaluated the improvements which appellant made to his property in two phases. Work on one of the two units was completed and the unit was occupied in 1985. The assessors determined that the value of the renovation was $31,700. Appellant received no notice of the increase in 1985 since none of the increase was taxable in 1986. In 1986 appellant received notice that his assessment for the 1987 tax year was $33,300, an increase of $6,300, or approximately 20% of $31,700.
Renovation work on the second unit was completed early in 1987. The assessors determined the value of that renovation to be $54,400. No increase in the assessment due to the second phase of work occurred in 1987. Appellant received notice that for the 1988 tax year his assessment would be $50,500, which included the $33,300 from the previous year, an additional $6300 for the first phase, and $10,900 which is approximately 20% of $54,400. At this point appellant appealed the assessment to the Dauphin
According to the Board’s calculations, the final assessment at the conclusion of appellant’s participation in the tax abatement program would be $113,100. This is the sum of the base year assessment, $27,000, and the value of the two phases of renovation, $31,700 and $54,400. At the time of the hearings before the trial court near the end of 1988, William Collins, who is the chief assessor for the county and the Board’s appraisal expert, testified that his estimate of the market value of the property was $142,500. At the time of the hearings the common level ratio for Dauphin County was 79.5%. Multiplying the board’s market value by the common level ratio yields approximately $113,288, a figure consistent with the previously calculated $113,100.
Appellant, who is not represented by counsel, makes several arguments. First he argues that he did not receive notice of the reassessment as required under Section 6 of the Improvement Act, 72 P.S. § 4711-205
Although we feel that the Board did not provide proper notice to appellant, this does not mean we will reverse the trial court’s decision for this reason. The Improvement Act does not specify what relief is to be granted in the event that notice is not given. Section 11 of the Third Class County Assessment Law
Appellant next argues that the use of the common level ratio violates the objective of Section 7(d) of the Third Class County Assessment Law, 72 P.S. § 5348(d), to accomplish equalization with other similar properties within the taxing district and the requirement of uniformity of taxation in the Pennsylvania Constitution. Appellant seems to be arguing that because his property is worth more than similar property in other parts of the county, the Board must make some adjustment so that the assessment of similar properties is equal. This argument is meritless. The purpose of establishing a common level ratio for the county is to assure that the same ratio of assessment to market value is uniformly applied to all property within a county. If the assessors did not use the same ratio then
Appellant next tries to argue that because the rental income was reduced when the property was converted from a twelve unit residential dwelling to a two unit residential dwelling the property was not improved. This argument is also meritless. The evidence presented by the Board clearly established that the value of the property was greatly enhanced by appellant’s extensive renovations. These assessments are made based on the market value of the property. Section 7(c) of the Third Class County Assessment Law, 72 P.S. § 5348(c).
The Board’s determination of market value was based on the potential sale of each dwelling unit as a separate tract. In fact, the Board presented evidence that appellant had offered the units for sale separately at a price per unit which would have yielded more than the Board’s estimate of market value. Appellant testified that he would incur certain costs in separating the units for sale and argues that the trial court erred in not considering the cost of separating the units. We find no error as appellant presented no evidence of the amount of such costs, nor did he contend at trial or in this Court that the asking prices of the units were improperly admitted in evidence.
Finally appellant argues that the trial court erred in not allowing him to present evidence of the assessments of other property in the vicinity of the property in question. We agree it was error to exclude this testimony. Appellant refers to the language in Sections 8(d.3) and 9(a.2) of the
The problem, if there is one, lies with fair market value determinations. Thus, if two properties located next to or near each other have comparable worth but appreciably different assessments, the explanation is simply that the fair market value determination for one of the properties is more realistic or ‘fair’ than such a determination for the other property. Since both are assessed at a 50-percent ratio, a question of uniformity in that regard cannot arise.
We do not mean to imply that the appellant has proven the invalidity of his assessment. We remand, however, for the trial court to consider the testimony, and to accept or reject it. The argument that this is appropriate only through expert testimony is misplaced, since the assessments are a public record, and are estimates of the market value of properties allegedly similar to the one involved here made by one of the parties to this litigation.
A remand for the sole purpose of considering the excluded evidence has been ordered.
ORDER
NOW, May 15, 1990, the order of the Court of Common Pleas of Dauphin County, dated April 25, 1989, at Docket No. 3595-S-1988, is vacated. The case is remanded for the sole purpose of the taking of testimony and the filing of a revised order and opinion, in accordance with the attached opinion.
Jurisdiction relinquished.
. Both the majority and dissenting opinions in Croasdale v. Dauphin County Board of Assessment Appeals, 89 Pa.Commonwealth Ct. 409, 492 A.2d 793 (1985), view the Dauphin County reassessment schemes with some skepticism, but there has been up to this point no judicial decision that the assessments are patently invalid.
. Act of July 9, 1971, P.L. 206, as amended, 72 P.S. §§ 4711-101— 4711-305. This act applies to residential property, including multifamily dwellings, while the Local Economic Revitalization Tax Assistance Act (LERTA), Act of December 1, 1977, P.L. 237 as amended, 72 P.S. §§ 4722-4727, applies to industrial, commercial, and other business property. 72 P.S. §§ 4711-102 and 4711-201; 72 P.S. § 4723. Both parties argue as if LERTA applies but for the purposes of the arguments, there is no substantive difference between the statutes, which provide for similar tax abatement programs. We will therefore treat the arguments as if made under the correct statute.
. Appellant cites Section 6(a) of LERTA, 72 P.S. § 4727(a).
. Act of June 26, 1931, P.L. 1379, as amended, 72 P.S. § 5350b.
. 72 P.S. §§ 5349(d.3) and 5350(a.2).