BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
CERTAIN
PARCELS OF PROPERTY )
LOCATED IN
UTAH COUNTY, :
STATE OF UTAH. ) Appeal Nos. 86 0464 to
: 86 0466
) Serial
Nos:
: XXXXX
) XXXXX
: XXXXX
_____________________________________
STATEMENT OF CASE
The
Utah State Tax Commission took original jurisdiction of this matter pursuant to
Utah Code Ann. § 59-5-47 (1953). An
Informal Hearing was held on XXXXX.
James E. Harward, Hearing Officer, heard the matter for the Utah State
Tax Commission. XXXXX appeared as owner
of the subject property. XXXXX, Utah
County Treasurer, XXXXX, Utah County Assessor's office, XXXXX, Utah County
Assessor, and XXXXX, Deputy County Attorney, represented Utah County.
XXXXX
timely appeared before the Utah County Board of Equalization to protest the
XXXXX valuation of the subject property.
The County Board of Equalization reduced the valuation of the subject
property, and based on this reduction, XXXXX requested a reduction in the
property value for previous years. The
subject property consists of subdivision lots in which improvements (curb,
gutter, sidewalks, and streets) were never constructed. Apparently, the property was valued as
though there were improvements. When
the XXXXX County Board of Equalization reduced the XXXXX valuation of the
subject property, it reserved making a decision on the valuation of the parcels
for previous years.
XXXXX
subsequently appeared before the County Board of Equalization in a regular
monthly personal property meeting to request a final decision on the valuation
of the subject property for years prior to XXXXX. In XXXXX, the County Board of Equalization granted XXXXX relief
on the valuation of the subject property for years prior to XXXXX.
At
the informal hearing, it was argued that the Board of County Commissioners has authority
pursuant to Utah Code Ann. § 59-10-58 (Supp. 1986) to accept less than the
amount due where taxes are unpaid. It
was also argued, however, that where the Board of County Commissioners accepts
less than the amount due under this section, it is prohibited from considering
issues of valuation. It was conceded
that the Utah Board of County Commissioners may have the authority to accept
less than the amount due where taxes are unpaid; however, that this authority
should be exercised with great discretion and pursuant to the statute.
FINDINGS
1. Utah Code Ann. § 59-7-1 (Supp. 1986)
provides for the Board of County Commissioners to sit as a County Board of
Equalization for certain periods of time each year to hold public hearings in
which taxpayers dissatisfied with valuations as assessed by the County Assessor
may have an opportunity to appear.
2. Utah Code Ann. § 59-7-3 (1953) requires the
person requesting reduction in the valuation of the property to file a verified
application for reduction in the valuation and to appear before the County
Board of Equalization to show facts upon which it is claimed such reduction
should be made.
3. Attorney General Opinion, No. 63028 (May 2,
1963) concludes that the provisions of Title 59, Chapter 7, of the Utah Code
indicate that the County Boards of Equalization have no power to adjust
valuations for years in which no protest of valuation was made. Id. at 4.
The County Boards of Equalization are not given express authority to
adjust the valuation for previous years, and the annual cyclical pattern of
property assessment, review, and equalization outlined in Utah Code Ann. §
59-7-1 (Supp. 1986) indicates that adjustment will be made only during the year
of the original assessment.
4. Utah Code Ann. § 59-10-58 (Supp. 1986)
provides that where property is sold to the county and is subsequently
assessed, no person shall be permitted to redeem the property from such sale
without also paying the amount of the subsequent assessment plus additional
costs. However, this section allows the
Board of County Commissioners to accept an amount less than the full amount due
where it is, in the judgment of the Board of County Commissioners, in the best
human interest and in the interest of the State where the Board of County
Commissioners accepts less than the amount due pursuant to this section, the
Board is not sitting as the County Board of Equalization. The person attempting to redeem the property
and pay less than the full amount due must submit a statement to the Board of
County Commissioners setting forth certain matters. The County Commissioners
may waive or abate the taxes after making a written record of the reasons. No such record was made, nor was proper
application made by the Petitioner.
DECISION AND ORDER
Based
on the foregoing, it is the Decision and Order of the Utah State Tax Commission
that the Utah County Board of Equalization was without authority to adjust the
valuation of the subject property for tax years prior to XXXXX. The Commissioner further finds that the
County Board of Commissioners did not comply with Utah code 59-10-58. Therefore, the actions taken by the Board of
Commissioners under color of said section are set aside. The County Auditor is hereby ordered to
assess and collect the taxes on the subject property without waiver, reduction
or abatement.
DATED
this 21 day of January, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner