*1 MAPLE In re the Petition of MEADOW RELIEF FOR
MINING COMPANY REAL PROPERTY ASSESS-
FROM TAX YEAR 1992.
MENT FOR the
No. 21900. Virginia.
Supreme Appeals Court of of West May
Submitted July
Decided *2 Mairs, Kelly, A.
John Jackson & Charles- ton, Maple for Meadow Min. Roop, Canterbury, Poling Roop, Carl W. & Beekley, Com’n. McGraw, Jr., Gen., Atty. Barry Darrell V. Koerber, Gen., Charleston, Atty. L. Asst. Tax & W. Va. Revenue.
McHUGH, Justice: upon appeal This ease is before this Court January order of the Circuit order, Raleigh County. Court appellee’s, circuit court Ra- affirmed the (hereinafter leigh County “county Assessor’s assessor”) appellant’s, tax assessment of the (hereinafter Mining Company Meadow”), “Maple which con- Raleigh County. sists of coal reserves in On appeal, Maple Meadow asks that this Court adopt a in order to the circuit court and tax commissioner reverse the order appraise per- all real and order that this case be remanded jurisdiction at fair sonal their to reduce the circuit court with instructions However, property that is to market value. natural re- assessment on below, affirmed. the decision property.1 For the reasons stated of the circuit court is be valued under board of 6-1, et *3 W.Va.Code, seq. public is excluded either the works under 11-1C-10 from this section. tax commissioner W.Va.Code, 11- [1990] or the W.Va.Code, specifically, 11-1C-10 More I [1990], to val- requires the tax commissioner West than the current market value or assessed market value. The to ensure and assessments. Prior to Virginia was sometimes valued equality among property valuation 1990, property in the State of lower than legislature sixty percent of the saw the the Fair at need less at ue all natural resource line public works to value roads, graph Code, al property throughout the companies, express companies and tele- 11-6-1 toll and bridges, telephone [1986] car line requires companies. property and industri- state, companies, the board such while W.Va. as rail- pipe- (here- Act Equitable Property and Valuation provided Raleigh County’s valuation Act”) by legisla- “the was enacted inafter reappraise a assessor would require reappraisal ture to portion of the located within the purposes. tax See by Fur- on a district district basis. Code, 11-1C-1, findings seq. et The of the thermore, plan provided prop- for all real legislature setting purpose forth the of the erty ll-lC-l(a) W.Va.Code, Act found in are in, starting approximately thirty phased states, [1990], Legisla- “The forty percent year, per- tax for the 1990-91 hereby fifty ture finds and declares that all year per- tax and cent for the 1991-92 fairly equita- year in erty in this state should be and for the 1992-93 tax order to cent by rate bly achieve a assessment valued wherever it is situated so all July fairly no individu- citizens will be treated and species al or class of will be over- assessor, January, Act, or Under the undervalued[.]”
valued newspaper, in the local through publication equality is to be Raleigh of the notified the citizens three-year cycle. by the of a achieved end assessed valuation of ensuing increase ll-lC-l(d) W.Va.Code, and Ultimately, county. all in the real Specifically, at the of the three- end [1990]. all valuation of the assessed 1, 1993, July year cycle, is to be year in for the 1992tax was increased 24.61% annually sixty percent of its then assessed at forty percent assess- order to achieve the Code, fair 11- current market value. W.Va. but, year; tax as- ment value for the 1992 lC-l(d) [1990]. falling the nat- within sessments automatically re- ural resources sub-class succeeding sections of this article set The rate, be- sixty percent assessment ceived a policies procedures forth to be followed oil, gas cause the assessor had by county personnel and state order to placed sixty and other mineral equitable establish and maintain fair and implementa- percent from the outset W.Va.Code, property values. Pursuant the Act. tion of [1990], county are to em- 11-1C-7 assessors proper- methodologies in this Act ploy set forth Meadow, by Maple was ty, attested to system established and the valuation ural resources gas W.Va.Code, [etc.]." 11-1 property” as C-l0(a)(2) 11-1C-10 was amended "coal, oil, defines "nat- the case before us. 1994; however, the amendments do not affect $763,350 year. arguing assessed at for the 1991 tax Because Meadow is that a increased for tax statute within the Act has the 1992 been violated assessor, $7,112,647.20, $11,- year an examination percent 854,412, statutory provisions relevant reappraised proper- value of is warranted. We note that tax statutes are often not mod- as determined the tax commissioner. clarity, els of statutes within this challenged the 1992 assess- appear Act no different. grounds ment on the that the asses- sor violated legislature’s objectives goals Maple Meadow asserted that the assessment ll-lC-l(e) (d) set forth in discriminatory, was nonuniform and uncon- [1990]: February hearing stitutional. On *4 (c) Legislature The requiring finds that Raleigh County was held before the Commis- the valuation of to occur in three- sion, sitting as the Board of Review and year cycles adjustment (hereinafter with an annual Board”). of Equalization “the On to those February the 1992 assessment of change in which a value is discovered shall Maple Meadow’s natural resources provision not violate the and uniform by Maple was affirmed the Board. Meadow one, of section article ten of the West appealed this decision to the of Circuit Court Constitution, Virginia Legislature fur- 30, 1992; and, on March finding three-year cycle ther that such and January order dated the circuit adjustment integral annual are an in- court affirmed the 1992 It assessment. is dispensable part systematic of a review from this order of the circuit court that Ma- all equality order to achieve ple appeals to this Court. among of assessed valuation within and counties of Notwithstanding this state. II finding, Legislature such intends to permit pub- the assessors and the board of primary The focus this case is on the place lic proportionately works to uniform Maple assessment rate used for percentage changes in values on the books property. Our state’s Con- during years preceding the two tax proclaims stitution that all is to be year beginning day July, on the first one Const, sixty percent. assessed at art. ninety-three, thousand nine hundred in ac- X, § legislature, attempt lb. The in an to provisions cordance with the of section sev- equally property, imple- all value assess en of this [§ 11-1C-7] article. Equitable Property mented the Fair and Val- legislature recognized, uation Act. The (d) with- Legislature deems that the 11-1C-1 that the three- of this article is that the end of the year phase-in cycle is essential to achieve three-year cycle contemplated by this arti- equality among of assessed valuation cle, year year, and thereafter from to process state’s counties and the to achieve annually shall be assessed at six- equality this is not violative of ty percent W.Va. Const. of its then current fair market X, 1,§ art. which calls for and uniform except for the values derived for throughout managed taxation the state.2 properties, farms and timberland above, us, previously prior 2. As we mentioned to the In the case before we note that article, properly enactment of this some within challenge Meadow does not the method em- appraised the state was at less than the current ployed by determining the tax commissioner in market value and was assessed at a property. the now current market value of their sixty percent. lower than the enactment of Properties, See WesternPocahontas Ltd. v. adversely taxpayers this article can affect in one County, Commission Wetzel ways. Property likely of two value will most (1993) (Valuation of coal re- previously increase if it was valued at less than upon legislative regulation pre- serves based value; or, the current market the assessed value correct.) sumed property may their of erty increase since not all requisite sixty percent. was assessed at the value, prescribed by of fair to which are to be valued as market day this article one-c and article four 11- be reached on or before the first [§§ seq. seq.] July, ninety- 11^-1 1C-1 et et of this one thousand nine hundred chapter. three. methodologies employed by appeal, Maple On Meadow contends that very purpose failing assessors to achieve the the circuit court erred in to order the
of the Act is set forth in 11-1C-7 Meadow’s natural re- (d) provision, year [1990]. Subsection this for tax “in like herein, provision controversial states as fol- manner” as accorded other real lows: pursuant [1990]. Meadow, therefore, argues that such approval Upon plan, of the valuation disparity in treatment is violative of article immediately begin imple- assessor shall X, section 1 of the West Constitu- process. Any mentation of XIV, tion and amendment section 1 of the subsequent in value discovered United States Constitution. the certification of values the assessor commission, acting as the begin by setting We forth the stan review, equalization board of *5 applied challenging dard to be in assess given year placed upon shall be the ments: erty books the next certification of Provided, notwithstanding values: That general ‘It ais rule that valuations for any provision other purposes of this code to the assessing taxation fixed an contrary, property training the valuation presumed officer are to correct. be procedures may showing commission authorize of burden an assessment approve is, course, the tax commissioner to upon taxpayer, valua- erroneous of the plan public proof tion and the board of to Syl. works of such fact must be clear.’ plan permit submit such a pt. Against which would the In re Tax Assessments Po- placement Co., proportionately per- of uniform cahontas Land (1983). centage changes in values on the books S.E.2d 691 percentage that estimate the difference be- Syl. pt. Properties, Western Pocahontas sixty tween the current assessed value and Ltd. v. Commission Wetzel Coun- percent of the fair market value for classes ty, 189 W.Va. property or identified sub-classes of clearly upon Maple The burden falls Meadow distribute the the between two tax through convincing to demonstrate clear years preceding year beginning the tax on evidence that the tax assessments erro- were day July, the first one thousand nine neous. ninety-three. procedure hundred This case, in placing be used lieu of individual Maple begins In this Meadow sixty percent values on the contending books that the 1992 assessment of its discovered, may or property value addition is in violation of to valuation. If such procedure is and the Ra- adopted by county, property then whose leigh County plan. Maple valuation Meadow responsibility reevaluation is the gives county the that the asserts this section public option placing changes board of works and the state tax assessor the of either property commissioner shall values estimat- on the books at have its placed phasing any ed and on the books like manner. of value or Such estimates shall be based on the best increases value as discovered as a result of assessor, three-year reappraisal during reap- information obtained the the further, county public praisal period; board of works and the tax commis- if the assessor sioner, county changes phase-in option, and the shall move those chooses the as- substantially sixty percent phase values towards sessor must also increases the tax commissioner is missioner submit that other classes of real sixty responsible appraising percent in “like manner.” were not at and the Maple argues, county percentages that because the had to Meadow assessor raise the county phase-in assessor elected to use the on these the levels set forth however, option year; on plan respective all other real within the for each county, county necessary county it assessor must also assess was not for the assessor Maple adjust sixty Meadow’s natural resources the assessment percent Maple on Maple in the same manner. Meadow Meadow’s natural re- county Maple in that asks that the assessor be compli- property, along resources follow the with ance with other natural resources [1990] so county, implemen- was from the outset of Meadow is treated the same as all statutory tation Act at and consti- owners.3 sixty percent. tutional As the and the tax com- suggest, essentially agree with the missioner We assessor’s and asking regarding the tax commissioner’s contentions assessor to lower forty determining assessor’s method of percent Meadow’s assessment rate to year ultimately the assessed valuation of the for the 1992 tax and then within sixty percent by Raleigh County. raise it to 1993. The We believe that the metho- dologies resulting assessor and the tax commissioner maintain and the assessments em- ployed by language appropri- that the within assessor were 11-1C- 7(d) [1990], procedural light existing ate and correct in focuses on the statu- aspects achieving tory provisions and constitutional and methodical set forth percent goal, require not herein. does *6 county
the assessor to lower the assessments ll-lC-7(d) sixty W.Va.Code, percent that were at from the outset of [1990] autho Act, implementation the approve the but rather rizes the tax commissioner to and a county op- county adopt allows the assessor to choose an plan assessor to a valuation bring tion to all properties permit placement pro other within the which “would the portionately and treat percentage changes rate uniform in properties per classes assessed like fashion. values on the books that estimate the Thus, county centage assessor and the tax com- difference between the current as- 3. Because missioner, erty is set forth in subsection $11,854,412. formula and the tax commissioner is W.Va.Code, ow's Code, ered "natural resources personal property resulting assessed value in the land book or the Formulas for natural resources valuation commissioner shall forward each natural re- sor of the each tax geological or other common factors. The tax contain located and the assessor shall 11-1C-10 provides, Meadow's natural resources appraisal by sixty percent property appraisal differing Maple during year. 11-1 process The assessed value of for tax C-l0(d)(2) Meadow's coal land is consid- the 1992 tax variables based for natural resources book, in which that purposes. property” valuing Maple [1990], (d)(2) appropriate, year, appraised and include the to follow W.Va. within the multiply The valuation of this statute The tax com- upon known Mead- Mead- asses- each may Act, at is ment rate sioner's sixty percent figure multiplied by majority Maple figure will be increase in the ow's natural resources ple primarily rate to ow's natural resources lenging the tax commissioner's valuation of Ma- rather reappraised market value. assessment level of Pursuant ow’s natural resources $7,112,647.20, We reiterate that Meadow’s natural resources Meadow's Maple arrive property appraisal by figure, obviously applied due to the valuation of assessor W.Va.Code, larger. Meadow is at the reappraised sixty percent of increase in the assessed value is to the Maple multiplies Maple assessed value. When the is property. property, property. 11-1C-l contesting the assessed valuation value of increased due to the Meadow is not chal- the assessed value of the tax commis- $11,854,412, the assessment and not in the 0(d)(2) [1990], property, Maple However, the assess- 1992, property. Mead- Mead- larger was but
525 placed sixty property not fair classes of real sixty percent of the value and sessed value from the percent sub- of the fair market for classes or identified market value implementation of the Act. and distribute outset classes [1990], W.Va.Code, preceding tax years tax between the two 1, [July This year beginning 1993].” on arbitrarily unequal assess- This is not an in addition of valuation be used method system pronounced negation ment or placing individual values on to or in lieu of ll-lC-l(c) The na- sixty percent of value. The the books at among equality ture of the Act is to achieve proper- all provision is to ensure that of this assessed valuation of ties, whether it be revaluated Unfortunately, in order for the state state. assessor, public the board of inequalities continue goal, to realize this will commissioner, reach works or the state tax system equality until total to exist within the sixty per- rate of the standard assessment We, uniformity can be attained. there- 1,1993, by July fair market value cent of the fore, opinion Maple Meadow are of the 1C—1(d) pursuant [1990]. 11— by clear and con- has failed to demonstrate vincing that the tax assessment evidence text, coun As earlier in the stated process employed the assessment valuation provided prop for all real assessor’s is erroneous and forty erty phased [1990]. violation of fifty percent for percent for Against Poca- In re Tax Assessments See sixty by July percent to reach order Co., 303 hontas Land valuation of the assessed (1983) (“It is obvious S.E.2d property was increased other classes of real protests his assessment taxpayer where a 1992, in to achieve the by 24.61% for order board, he the burden of dem- before a bears forty percent assessment value for the convincing onstrating by clear and evidence words, asses year. In other erroneous.”); accord that his assessment W.Va.Code, 11- implementing sor what was Prop- Pocahontas syl. pt. part, Western lC-7(d) “proportionately to as [1990] refers (“The erties, Ltd., supra burden is on percentage changes values” so as uniform challenging to dem- taxpayer the assessment eventually at the mandated arrive convincing by clear and evidence onstrate by July rate percent assessment *7 erroneous.”) that the tax assessment assessor testified before The oil, gas and
circuit court that Ill the outset assessed other minerals were from statutory constitutional of Meadow’s next at the and This leads us to necessary it not to sixty percent, and so was which is that such selec- point of contention natural adjust property, ratio on the assess- unequal the assessment of tive W.Va.Code, 11-1C- properties. sixty per- resources at ing property 10(d)(2) [1990] specifically addresses cent of fair market value while other classes that natural property and states forty percent resources of at of are assessed multiplied by X, be value, § resources shall 1 art. of the fair market violates arrive at the assessed percent to amendment Virginia and Constitution 2, supra. property. n. species of this of See XIV, § 1 of the United States Constitution. conspicuously striving to achieve and Il-1C-I0(d)(2) Article Constitution X, section provides, 1 of the West relevant Subject exceptions in this section to the mandates and what our state’s Constitution contained, equal and uni- shall be taxation at property to be assessed that is for all real State, proper- and all throughout the form to achieve sixty percent. In order a rate of taxed in ty, personal, shall be both real was goal, the this as value to be ascertained proportion to its of those other raise the assessed value 526 species directed law. proper- rather, No one of ments need not be reduced but “ ‘they ty should from which a tax be seek have the assessments collected shall ” taxpayers of other raised to market value.’ higher any species taxed than other of 490, 565, Id. at 360 quoting S.E.2d Killen equal of value[.] Commission, Logan County v. 170 W.Va. XIV,
Amendment
1
section
of the United
(1982) (citation
295 S.E.2d
709
provides,
pertinent
States Constitution
omitted).
part,
deny
any
...
“[n]o State shall
Supreme
The United States
Court re-
person
jurisdiction
equal pro-
within its
versed this Court’s decision and found that
tection of the laws.”
companies’,
therein,
the coal
petitioners’
argues
prior
this Court’s
assessments were determined to be in excess
recognizance
prohibition
any
taxing
similarly
other
owners
situated
species
property higher
one
than
oth-
petitioners
and the
were entitled to have
species
er
their
accordingly.
value.
assessments lowered
Court,
Supreme
United
syllabus point
arriving
States
3 of In re
Tax Assessments
conclusion,
system
its
held that a
of taxation
Against
Corporation,
Pocahontas Land
158
intentionally
which
systematically
results
(1974),
was sold. This resulted dramat- system an established are not a sufficient ic differences in the valuation of each of the basis for reversal of an assessment[.]” re companies’ four coal properties. This Court Corp., U.S. Steel 165 W.Va. 268 held the actions of the assessor did (1980) (citation omitted). S.E.2d 132 systematic” not constitute “intentional and discrimination. Id. at 360 at 564. S.E.2d commissioner and implied contend, companies’ We that the coal agree, assess- and we that
527 Equaliza- Raleigh v. Board Review and process in er Co. valuation (1932). tion, 862 112 W.Va. 164 S.E. upon Maple County impinge not Mead- does un- uniform taxation right ow’s Properties, Syl. pt. Western Pocahontas general ad- of this state. The der the laws Ltd. v. Commission Wetzel Coun- any inequalities justments ty, transitional 661 S.E.2d record, years. Upon review of the we conclude only last three result will ruling circuit court should be of the rectify inequity and the duration The Act will affirmed. any corollary to all disparity is short. The equality.4 of this is Affirmed.
taxpayer’s right tion under lated when a certain class of taxpayer than certain other classes tion is satisfied XIV, payers regarding property valuation and as- er equalize ation achieving equality of assessed of the laws under amendment of the United States Constitution is seq. Accordingly, article sessments. Therefore, taxpayers utilized over a short section of the United States Constitu- Virginia Constitution and amendment pursuant the differences is assessed at a Constitution article within the we are of the when X, W.Va.Code, 11-1C-1, section 1 of the West general three-year period of existing among tax- X, and uniform taxa- higher period equal protection section opinion XIV, section 1 adjustments of time to not vio- of that of oth- that a of the valu- et right in this case as follows: leigh County NEELY, reappraisal period; books result increases changes in ow asserts that this section contending that the 1992 assessment of its NEELY, Justice, dissenting: assessor chooses In this any assessor the to file a majority opinion increases assessor must also J., case, dissenting opinion. valuation reappraisal dissents and reserves the option property is in violation of value as discovered further, value on the summarizes the issue phase-in option, plan. Maple Mead- Meadow of value or [1990] of either that the tax com- gives phase if the and the Ra- three-year begins by the coun- phasing placing as a responsible appraising missioner
rv
argues,
“like manner.”
Meadow
ry
ruling regarding
viously held that:
tended
the assessments for the real
taxpayers of
this case
sor’s method
or
constitutional violation exists as con
We are of the
by Maple Meadow. The record
clearly supports
of and conclusions in
Raleigh County.
opinion that no statuto
Raleigh County Asses
property of the
circuit court’s
We have
arriving
pre
use the
with
property that because the
manner.
sessor must also assess
Maple Meadow is treated the
resources
phase-in option
Thus, Maple
assessor be
county assessor elected to
county,
on all other real
Maple Meadow’s
same as all
compliance
county as-
the same
asks that
to follow
so that
property own-
of re-
‘An assessment made
a board
ers.
equalization
approved
view and
obviously right.
Maple Meadow is
not be reversed when
circuit court will
*9
juris-
supported by substantial evidence unless
To the extent that there is authentic
equal protection
Syl.
prudential content
plainly wrong.’
pt. West Penn Pow-
three-year cycles
adjustment of
legislature's anticipation
with an annual
4. We reiterate the
as to those
for which
possible inequalities
could arise as found in
that
ll-lC-l(c)
specifically
not violate the
in value is discovered shall
one,
states,
provision
Legislature
of section
arti-
finds
and uniform
in relevant
“The
Virginia
Constitution^]”
requiring
to occur
cle ten of the West
the valuation of
that
Constitution,
(as
clause of U.S.
amend. XIV
Maple Meadow and other mineral owners singled they were out because have lots of Submitted March 1994. Nonetheless, money and no votes. it is enti- provide jobs ties like Rehearing July Denied are so scarce in West and on That, Virginia depends. July which West unfor- Decided tunately, always way it is with the they actually something do useful— rich — why
which is we have restrained ourselves lining up against
from them the wall and
mowing guns. them down with machine
Third completely fig- World countries haven’t out, why
ured all of this which is residents of frequently
Third World countries resort
eating one another de mieux. faute equal protection may
Inconvenient as be at
times, golden-egg- it is a rubric under which
laying geese protected from wholesale Therefore,
slaughter. I dissent.