357 Mass. 505 | Mass. | 1970
On June 5,1967, the State Tax Commission (commission) determined, pursuant to the provisions of G. L. c. 58, § 13, as amended through St. 1960, c. 593, § l,
The basis of the assessors’ appeal is certain rulings of law made by the board and the denial of certain rulings requested by the assessors. These raise two issues: (1) Did the board correctly interpret “fair cash value of all land” as used in § 13; (2) did the board err in allegedly relying on “knowledge” from a previous case between the parties?
The resolution of this controversy depends on the meaning of “fair cash value of all land” as used in c. 58, § 13. Ordinarily statutory words and phrases are to be construed according to “the common and approved usage of the language” unless “inconsistent with the manifest intent of the law-making body.” G. L. c. 4, § 6, Third. The words “fair cash value of all land” is controlled by the common and approved meaning of those words in other contexts, absent a contrary legislative intent. Pacific Wool Growers v. Commissioner of Corps. & Taxn. 305 Mass. 197, 199. The governing statutes require the Commonwealth to make annual payments to the town as reimbursement “for loss of taxes” on land owned by the Commonwealth and used by public institutions, including the University of Massachusetts. The amount of the Commonwealth’s payment is computed from a valuation of the land made every five years by the commission, which is then multiplied by a rate fixed by c. 63, § 58.
A. Although the reimbursement scheme is unique, we are of opinion that the board erred in its interpretation of “fair
The board’s conclusion that the Legislature had a contrary intent is not convincing. It cites first the statute’s legislative history as evidence that “fair cash value” was not to have its ordinary meaning. The governing statute, c. 58, §§ 13-17B, derives from St. 1910, c. 607. In c. 66 of the Resolves of 1909, the Legislature directed the commissioner to investigate and report on the effect of tax exemptions for the property of educational institutions on the financial status of the cities and towns wherein they were located. It further directed the commissioner to recommend appropriate legislation. The commissioner’s report, a sixty-eight page document, with the bill attached to it entitled “An Act relative to the reimbursement of certain cities and towns,” was filed as 1910 House Bill No. 1395. This bill with only minor alterations was enacted as St. 1910, c. 607, the predecessor of § 13 et seq.
The board reasoned that this report shows conclusively that the meaning of “fair cash value” was “assessed valuation” and that in enacting the bill, recommended by the commissioner, the Legislature adopted this meaning. An examination of the report, however, does not support this interpretation. The only direct reference in the report to the valuation of land by the commissioner reads: “In the bill
The board’s conclusions are unwarranted. Nothing in the language quoted suggests that “valuation” means “assessed valuation.” The reference to the commissioner’s expertise and knowledge of varying local practices merely qualifies him, rather than the local officials, as the appropriate person to determine the “fair cash value” of State land. Nor are the abuses envisaged by the board likely to occur if fair cash value carries its usual meaning. We recently decided in Bettigole v. Assessors of Springfield, 343 Mass. 223, that all land must be assessed at full, fair cash value. It is, of course, not intended that Amherst shall shift a larger burden of municipal taxes to the Commonwealth by assessing privately owned property at less than full, fair cash value.
B. Contrary to the commission’s argument, there is no basis for the conclusion that the Legislature in enacting § 13 intended “land” to have any but the “common and approved” meaning it has when used in valuation contexts. In valuating land for purposes of tax assessment and eminent domain awards, “land” generally comprehends the improvements made to it. Beale v. Boston, 166 Mass. 53, 56. Vineyard Grove Co. v. Oak Bluffs, 265 Mass. 270, 277. See G. L. c. 59, § 3. The commission, however, relies on the legislative history of § 13 for its contention that the legislative intent was to employ “land” in the narrow sense of unimproved land. 1910 House Bill No. 1395 explains the exclusion of buildings from the commissioner’s valuation on the ground that since they are paid for by the Commonwealth “no town can properly claim that it ever had any right to tax them.” The report then states: “But for the action of the State no part of the value of the buildings and furnishings would ever have been in the towns. The basis for reimbursement thus becomes the value of the land taken by the Commonwealth” (emphasis added). If buildings are excluded because they are a product of the State’s use of the land, it follows — so it is contended — that the value of all improvements made to the land must also be excluded. Improvements, it is said, like buildings, result from State activity, and therefore cannot properly be claimed by the towns to be taxable as of right.
We are of opinion, however, that the quoted section of the report does not control the scope of “land” as used in § 13. That language is addressed only to the exclusion of buildings from the valuation scheme. Applying similar reasoning to improvements, while logically consistent, conflicts with the statute’s purpose of reimbursement for lost taxes. For State use of the land diminishes tax revenues in two ways. First, unimproved land otherwise generative of tax revenue is exempt from taxation; and second, the higher
2. The board in reaching its decision stated: “On the basis of all the facts found, as stated above, and the careful view taken by the board, as well as its general familiarity with the area based on the former trial, the board found that the fair market value . . . was $1,342,610” (emphasis supplied) . The assessors contend that the italicized words show that the board relied on matters not before it, of which it could not take judicial notice, and which the assessors were not able to contest, all in derogation of its right to due process of law. We disagree. We interpret these words as meaning no more than that the board has merely indicated its former acquaintance with the particularities of the area through a case between the same parties in 1962. So interpreted, the challenged statement cannot be regarded as meaning that the board based its decision on evidence not introduced as such at the hearing. It was not, therefore, obnoxious to our holding in Boott Mills v. Board of Conciliation & Arbitration, 311 Mass. 223, 227.
The board’s decision is reversed, and the case remanded for further proceedings not inconsistent with this opinion.
So ordered.
Provisions of this section here pertinent are: “In nineteen hundred and fifty-seven, and in every fifth year thereafter, the commission shall, between January first and June first, determine as of January first the fair cash value of all land in every town owned by the commonwealth and used for the purposes of . . . the University of Massachusetts . . ..”
The Commission refers in its brief to an alleged disparity in the assessors’ valuation of State and private land. It appears that one and one-quarter square miles of university land was valued at $9,868,200 while about twenty-six and one-half square miles of taxable private land was valued at only $11,250,000. If in fact the town is not assessing all land, State and private, at fair cash value, then the Commonwealth may bring appropriate proceedings to compel compliance with the principles of the Bettigole case.