| Haw. | Jan 19, 1901
Lead Opinion
OPINION OP THE COURT BY
This is an appeal from the assessment of the business lot and building on the westerly corner of Fort and King streets, and
Tbe first mentioned property was returned at $25,000. Tbe Assessor assessed it at $35,000. Tbe Tax Appeal Court sustained tbe Assessor’s valuation. Taxes were paid on a compromise valuation of $27,500 tbe year before. Tbe assessment in question is that for January 1, 1900. At that time tbe property was under a ten-year lease at a rental of $166.50 a month for tbe first five years, and $185 the last five years. Tbe lease would expire in about one year. There is evidence tending to show that a new lease was desired at $300 a month, but that tbe appellant declined to make a new lease until tbe expiration of tbe old. In tbe early part of tbe year previous a responsible party wished to buy tbe property for $35,000. This party testified that tbe value bad increased by January 1, 1900. Tbe appellant replied that be would not sell for $50,000. He testified that be valued the property at between $70,000 and $80,000. Tbe lot is about thirty-three feet square, according to one witness, and about 32£ x 37, according to another, and is covered by a two-story building. It is perhaps as valuable a' comer as there is in tbe city, centrally located and at tbe juncture of tbe two main street car routes. Tbe lot adjoining on Fort street, which is slightly larger than this-, but is not a comer lot, was sold in tbe early part of tbe year previous for $30,000., and was assessed on January 1, 1900, at $25,000. Tbe street frontages of a number of other properties in tbe vicinity, and tbe assessments placed thereon for tbe same date, as well as for tbe previous year, were put in evidence, namely, tbe property adjoining on Fort street already mentioned, tbe Hall (Austin) comer opposite, tbe McIntyre corner diagonally opposite, the Lewers & Cooke (Austin) property adjoining tbe Hall property on Fort street, tbe Brewer property on the corner of Fort and Hotel streets, tbe Mott-Smith property on another comer of tbe same streets, tbe Mclnerny, Cummings, Judd and Campbell properties on the four corners of Fort and Merchant streets, tbe last named property also extending down Fort and
The statute (Civ. L., Sec. 820) provides that “all real and personal property * * * shall be assessed * * ■* for its full cash value,” with a proviso that combined properties shall be assessed as a whole, and a further proviso “that when any real estate or house is leased or rented, the sum of eight years’ rental thereof shall be the assessment value of such real estate or house, unless such valuation shall be manifestly unfair or unjust.”
A valuation at eight years’ rental in this case would be manifestly unfair and unjust. It would amount to $17,760. Such is apt to be the case with property leased years ago at a smaller rental than can now be obtained, especially if the lease is about to expire. Since, then, this case does not fall within the proviso which prescribes the eight-year rental method, it must be governed by the main rule, which requires the property to be assessed at its full cash value, and we cannot say on the evidence that its full cash value is less than $35,000, the amount at which it was assessed.
The question is whether the appellant’s property is assessed too high, not whether some other properties are assessed too low. If it appeared that other properties generally were assessed at a lower rate, it might be proper to assess this at the same rate. But we cannot reduce the assessment in this case merely because some other properties have been assessed too low, through a failure in judgment on the part of the assessor. It is conceded that he acted in good faith in the present instance. But we may well repeat what was said in substance in Tax
The eight-year rental proviso, on which the appellant mainly relies, was no doubt adopted as a convenient rule for arriving approximately at the correct full cash value, and on the supposition that the actual rental was usually approximately the fair rental. See Parker v. Shaw, 9 Haw. 400. But values have changed, and land is now as a rule valued at a higher figure than eight times the fair rental. Therefore, (1) if land leased at its present fair rental value is assessed on the eight-year rule, and other land, because not rented or because leased years ago at a low rental, is assessed at its full cash value, there is unjust discrimination. Or (2) if such other land is assessed by analogy at eight times its fair rental value, as distinguished from its actual rental, and not at its full cash value, we depart from the plain provisions of the statute, and with the result that real
The property on Miller street was returned at $3,750. The assessor valued it at $6,000, and this was sustained by the Tax Appeal Court. The lot has a frontage of about 63 feet, and a depth of about 130 feet. There is a well-built story and a half house on it. The appellant paid $1,000. for the land a little over three years before the date of the assessment, and about $2,750. or $2,800. for the house. The house apparently cost more, but the appellant paid no more than the contract price because the contractor was under bonds to complete it at that. The Deputy Assessor testified that it must be worth at least $5,000, and that the land had increased in value and was worth at least $2,000, but that to be safely within the proper limits, he valued both together at $6,000. The appellant seemed to think that the “full cash value” was what the lot and house cost him, irrespective of what it cost someone, and irrespective of its market value. We regret that there was not more evidence in this case, as we are not wholly satisfied that the assessment was not placed at too high a figure, but on the evidence before us we do not see how we can find that the Tax Appeal Court erred. The appellant was without counsel before the Tax Appeal Court.
The findings of the Tax Appeal Court are affirmed and the appeal is dismissed.
Dissenting Opinion
I concur in the foregoing opinion, save in so far as it relates to the subject of the Miller street property. As to the latter, the valuation, upon the evidence, should, in my opinion, be placed at $5,000.