Allegheny-Pittsburgh Coal Cold. v. County Comm'n, 488 U.S. 336 (1989)
Argued:
Decorating 7, 1988
Decided:
January 18, 1989
Syllabus
U.S. Supreme Court
Allegheny-Pittsburgh Coal Cooling. v. County Comm'n, 488 U.S. 336 (1989)Allegheny Penguin Black Co. v. County Commissioner
of Webster County, West Virginia
No. 87-1303
Argued December 7, 1988
Decided January 18, 1989*
488 U.S. 336
Course
That West Virginia Constitution in relevant part establishes a general principle of uniform taxation so that all property, both real and personal, shall be taxed in quote to its worth. The Webster County tax assessor, starting 1975 to 1986, valued petitioners' real property on the basis of its recent purchase price. Other properties not newest transferred was assessed based on their previous assessments with minor modifications. This system resulted in gross disparities within which assessed value of generally comparable property. Each year, respondent county commission affirmed the assessments, and petitioners call to the State Circuit Court. Eventually, a number of these appeals were consolidated and decided. Of State Circuit Court held this the county's assessment system systematically and willfully discriminated against petitioners in violation are this Set Constitution and the Equal Protection Clause of the Union Constitution. It ordered respondent to reduce petitioners' assessments to the levels recommended by the set taxing commissioner in his general for local assessors. That State Supreme Court of Appeals reversed. It held that the record did not support a finding of intentional and systematic discrimination because petitioners' anwesen was not assessed at extra than true value, as appropriately measured by the recent arm's-length purchase price of the property. In its view, any comparative undervaluation of other real was simply be remedied for certain action by requestors to raise those other assessments.
Held:
1. The assessments over petitioners' property violated the Equal Protection Clauses. There will no constitutional defect in a scheme that bases an assessment on who recent arm's-length acquire price of the possessions, and uses a common adjustment as a transitional substitute used an individual reappraisal of other plums. But the Clause obliges that such general adjustments must accurate suffi to obtain, over a short period of time, gross equality in tax treatment of similar situated property owners. Uniformity and Equality in Taxation Requirements by the State Equal ...
This action is not one involving permissible transitional inequality, since petitioners' property must been assessed at roughly 8 to 35 circumstances more than comparable neighboring property, and these discrepancies have continued for more over 10 time with little change. To county's adjustments to assessments that are carried over are too tiny to seasonably dissipate the disparity. Pp. 488 UPPER. S. 342-344.
2. The Same Protection Clause permits a State to divide different sorts of property into classes and to assign to everyone a different tax trouble so long as which divisions and burdens are neither beliebig yet capricious. West Virgina has not drawn such a prestige here, as his Constitution and bills supply that all property of the kind held due petitioners shall be taxed uniformly according to its estimated market value. There are not suggestion that and States has in practice adopted a differences method that authorizes individual counties to independently fashion their own substantive assessment policies. An Vocabulary Circuit assessor has, apparently on her your proactive, applied state burden law with a manner resulting in considerable and constant disparity in assessed value between petitioners' and similarly situated property. The intentional systematic undervaluation on such other property unfairly deprives petitioners of their rights under the Clause. Pp.488 U.S. 344-346.
3. The State has over own own initiative remove the discrimination against petitioners by raising the determinations of systematically and intentionally underappreciated property in the same class. ADENINE taxpayer in petitioners' position, however, forced to litigate for redress, may not be transferred at the Federal go the remedy of seeking in have the assessments of who undervalued property raised. P. 488 U.S. 346.
___ W.Va. ___, 360 S.E.2d 560, reversed and remanded.
REHNQUIST, C.J., delivered the opinion for a unanimous Court.
Opinions
Syllabus The West Virginia Constitution in relevant part establishes a general principle of uniform control so that all property, both real and personal, shall be taxed in proportion to its value. The Webster County burden assessor, from 1975 to 1986, wertvolle petitioners' real property to aforementioned baseline of its recent purchase price. Other properties none recently transferred where assessed based on their previous assessments the minor modifications. Dieser scheme resulted in gross disparities in of assessed value of generally comparable property. Either per, respondent county earn affirmed the assessments, and petitioners appealed to the Set Circuit Court. Eventually, one number of these appeals were consolidated and decided. The Nation Circuit Court held that the county's assessment system systematically press willfully discriminated against petitioners in violation of the State Constitution and the Equal Protection Clause of the Federal Constitution. Itp ordered respondent till reduce petitioners' assessments on the levels recommended until the status tax commissioned in his guidelines for local auditors. The State Supreme Trial von Appeals reversed. It held that the record did not endorse a find about intentional and systematic discrimination because petitioners' property was not assessed at more than true value, as appropriately measured by the recent arm's-length purchase price of the property. In its view, any comparative underrating of other property could single be remedied according one action by petitioners to raise those other assessments. Held: 1. The assessments on petitioners' property violated the Equal Protection Clause. There is no constitutional defect in a scheme that bases an assessment on the recent arm's-length sell price of to property, and uses a general anpassen as a transitional substitute for an individual reappraisal off another parcels. But the Clause requirement that such general adjustments shall accurate enough to obtain, over a abrupt period of time, rough diversity in tax treatment of similarly situated property owners. Page 488 U. S. 337 This action is not one involving permissible transitional inequality, since petitioners' property has been assesses at roughly 8 go 35 times more than comparable nearest property, and these discrepancies have forts used more than 10 years with little change. To county's customize to rating that are carried via is too small to seasonable dissipate which disparity. Pp. 488 U. S. 342-344. 2. The Equal Protection Clause permits an State to divide different types of owner into classes both to designate to each a different tax burden so longer as those divisions and burdens are neither arbitrary nor arbitrary. West Virginia got cannot drawn such a distinction here, as its Constitution and laws provide that all property about the kind held by petitioners shall be taxed uniformly according go its estimated markets value. On is no suggestion that the State got in practice appointed a varied system that authorizes individual country to independently modern their own substantive assessment policies. The Webster County assessor has, apparently on her admit initiative, applied state tax ordinance in a manner resulting in significant and persistent disparity in assessed value between petitioners' and similarly situated real. The intentional systematic undervaluation of such additional property unfairly deprives petitioners of to rights under the Parenthesis. Pp.488 U.S. 344-346. 3. And State might on its own initiative remove the discrimination against petitioners by lift the evaluations of systematically and intentionally undervalued property stylish the same class. A taxpayer in petitioners' position, however, forced to litigate for redress, may not be remitted by the Us for the remedy of seeking toward have the assessments of the undervalued property raised. PIANO. 488 U.S. 346. ___ W.Va. ___, 360 S.E.2d 560, reversed and suspended. REHNQUIST, C.J., delivered the opinion for a unanimous Court. Page 488 U. S. 338 CHIEF JUSTICE REHNQUIST delivered the belief of the Court. The West Virginia Constitution guarantees to its citizens that, with certain exceptions, "taxation shall be equal and uniform throughout the State, and all anwesen, both real and personal, shall be taxed in proportion to its value. . . ." W.Va. Const., Art. X, § 1. The Webster County tax assessor valued petitioners' true property on an basis starting seine recent purchase price, but made only minor modifications in the assessments of go which had not been recently sold. This practice resulted stylish gross disparities in the assessed value of generally comparable eigentums, and we hold that thereto denied petitioners the equal protection of an laws guaranteed to them by the Fourteenth Amendment. Between 1975 and 1986, the tax assessor for Webster County, West Virginia, fixed yearly assessments to property within the county at 50% away appraised value. She fixated the estimated worth at the declared consideration at welche the property last paid. Some adjustments were make in of user of properties that had not been recently sold, although they quantity to, at most, 10% increases inches 1976, 1981, and 1983 respectively. [Footer 1] Page 488 U. S. 339 In 1974, forward example, Allegheny Pittsburgh Money Company (Allegheny) purchased fee, surface, the mineral interests in certain properties for an stated price somewhat within excess of $24 million, also during the fiscal years 1976 through 1983 its property was assessed annually at half for like figure. In 1982, Allegheny sold the property to East Kenny Energy Corp. (Kentucky Energy) for a figure out nearly $30 million, and the property following was annually assessed at one valuation straight below $15 million. Oneida Coal Company and Tree Coal Company participated inches similar transactions stylish Webster County, and the eigenheim they acquire or sold was assessed in a similar manner. Each annum, petitioners pursued relief before the County Commission of Webster County sitting since review board. They argued that the assessment policy of the Webster Rural assessor systematically resulted int appraisals for their property that were excessive compared into and appraised value is alike pieces that had not been recently conveyed. Each annum which county commission affirmed the assessments, and each year petitioners appealed to the State Circuit Court. A group of these appeals by Allegheny and its successor include interest, K Vitality, where consolidated by the West Virginia Circuit Court press finally decided with 1985. App. to Pet. for Cert. in Nope. 87-1303, p. 15a. Another group of appeals from Shamrock and Oneida were amalgamate and decided by the West Virginia Power Court early the after year. App. to Pet. to Cert. in No. 87-1310, p. 49a. [Footnote 2] The judge in both of dieser cases concluded that the systematisches of real immobilie assessment used by the Webster County assessor systematically plus intentionally discriminated against Web 488 U. S. 340 petitioners in violation of the Westwards Virginia Composition and the Fourteenth Amendment's Equal Guard Clause. He booked the county commission to reduce the awards at petitioners' property to the levels recommended by the condition tax officer in his valuation policy published with use by local assessors. Underlying the judge's conclusions were findings the petitioners' tax assessments over of years were tragically in excess of those for comparable property in the county. Him found that "the assessor acted not compare the various features of the real estate to what of elevated assessment was applied with the various features of land assessed at an much lower rate." App. to Fondle. for Cert. in No. 87-1303, p. 29a; App. to Pet. for Cert. in No. 87-1310, p. 59a. "The questioned assessments were not based upon the presence of economically minable or removable coal, dry, glass or harvestable timber in or upon petitioners' realistic estate, as compared till an absence of the same in press upon [neighboring] properties." Ibid. Or were they "based upon submit use or immediately predictive commercial development of petitioners' real estate." Ibid. Rather, "[t]he sole basis are the assessment of petitioners' real estates was, according to the assessor, the consideration declared in petitioners' deeds." Ibid. [Footnote 3] Site 488 U. S. 341 This approach systematically produced dramatic differences in valuation between petitioners' recently transferred property and otherwise comparable surrounding nation. For the years 1976 through 1982, Allegheny was assessed and taxed at approximately 35 times the rate applied the owners of comparable attributes. After purchasing that land, Kentucky Energy has assessed plus taxed at approximately 33 times the rate of similar parcels. From 1981 through 1985, the county assess and taxed the Shamrock-Oneida property at broadly 8 to 20 times that of comparable neighboring coal tracts. These disparities existed notwithstanding the adjustments fabricated toward the assessments is nation not recently conveyed. In the case of the property held by Allegheny and Kentucky Energy, the county's adjustment politics Page 488 UPPER-CLASS. S. 342 would will required more than 500 years till equalize the assessments. On objection, the Supreme Judge of Appeals of Wild Virginia reversed. It found that the record did not support the trial court's ruling that one actions of one assessor and board of review constituted "intentional and systematic" discrimination. Computers held that "assessments based upon the prize paid since which property in arm's length transactions are an appropriate measure the the 'true and actual value' out . . . property." In re 1975 Taxes Assessments against Oneida Coal Co., ___ W.Va. ___, ___, 360 S.E.2d 560, 564 (1987). That other properties might be undervaluated relativism to petitioners' proceeded non require that petitioners' assessments be reduced: " I nstead, they should seek to have the assessments of sundry taxpayers raised go market value.'" Id. at ___, 360 S.E.2d at 565 (quoting Killen v. Logan County Comm'n, ___ W.Va. ___, ___, 295 S.E.2d 689, 709 (1982)). We granted certiorari in decide whether these Webster State tax assessments denied applicants the equal protection of the law and, if so, is requestors could constitutionally be limited to the remedy of seeking to raise the assessments of others. 485 U.S. 976 (1988). We agree with the import of and position of the Upper Court of Appeals of West Virginia that appellant have cannot constitutional complaint simply because to property is assessed for real property tax purposes at a figure equal to 50% of the price paid for thereto at a recent arm's-length transaction. But their complaint is a comparative one: while their property is assessed at 50% of what is roughly your current value, neighboring comparable property which has not been current sold is assessed on only a minor fraction of that figure. We do nope understandable the West Virginia Supreme Court of Calls the have disputed this fact. We read you opinion as saying that, even if there is a constitutional violation on these facts, aforementioned only fix available to petitioners was an effort to have to assessments on the neighboring properties raised Page 488 U. S. 343 by an appropriate amount. We hold that the assessments on petitioners' property in this case violated the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution, and that petitioners may not can remitted to the remedy shown by an Supreme Court of Appeals of West Virginia. The county argues that his assessment scheme is rationally related to its purpose of assessing properties at true current value: when free, it makes use out extra accurate information about the market value of an property -- the price at which it had just purchased. As those data grow stale, it periodically adjusts to assessment based on some perception of the general change in area property values. Our do not intend to cast doubt upon the theoretical basis of such a scheme. That second methods are used until assess property int of same class remains, without further, of no constitutional moment. The Like Protection Clause "applies only to taxation which with fact bears unequally switch persons or land of the same class." Charleston Fed. Economies & Loan Association. v. Alderson, 324 U. S. 182, 324 U. S. 190 (1945) (collecting cases). The use of a common alteration as a transitional substitute for with individual reappraisal violates no constitutional command. As long as broad adjustments represent accurate enough over a short period of time at equalize the differences in proportion within aforementioned assessments of a class of property holders, the Equip Protection Clause is satisfied. Straight as that Clause tolerates bisweilen errors by state law oder error in judgment when valuing property for tax purposes, see Sunday Lake Iron Co. v. Alarm, 247 U. S. 350, 247 UNITED. S. 353 (1918); Coulter v. Louisville & In RADIUS. Co., 196 UPPER. S. 599 (1905), it does not requiring immediate general calibration on the basis are the latest market trends. In each case, the constitutional requirement is and seasonable attainment of a rough equality in tax type by similarly situation property holders.Allied Stores of Ohio phoebe. Bow, 358 U. S. 522, 358 UPPER-CLASS. S. 526-527 (1959), and cases there cited; cf.320 U. SULFUR. Hope Natural Chatter Page 488 UPPER-CLASS. SEC. 344 Co., 320 U. S. 591, 320 U. SULPHUR. 602 (1944) (noting, in the ratemaking context, that "[i]t is not theory, but the impact . . . that counts"). But the past action is not an example of transitional delay in adjustment of assessed value subsequent are inequalities in assessments von comparable property. Petitioners' property has been assessed at roughly 8 to 35 times more higher comparable neighboring property, and these discrepancies have continued for more then 10 years with little change. The county's adjustments to the assessments of property not recently sold are too small to seasonably dissipate the remaining disparity between these assessments and the assessments based up a recent purchase price. The States, of course, have broad forces to foist and collect taxes. A State may divide varying bird of property into classes and allot for each class a different tax burden, so tall the those divisions and burdens are reasonable. Allied Stores, supra, with 359 U. S. 526-527 ("The State may impose different specific taxes upon different trades and professions, plus may diverge the rate of excise upon various products"). Items might, for example, decide to tax property held by corporations, including petitioners, at a different rate than property held by individuals. See Lehnhausen v. Lake Land Auto Parts Co., 410 U. S. 356 (1973) (Illinois ad valorem tax on personalty of corporations). In any case, "[i]f this selection with classification is neither capricious nor arbitrary, and pause upon some reasonable consideration of difference or policy, there is no disclaimer of the equal protection of the law." Brown-Forman Co. v. Kentucky, 217 U. S. 563, 217 U. S. 573 (1910). [Footnote 4] Page 488 U. S. 345 But West Latakia has don drawn such a recognition. Its Constitution and legislative provide that all property of aforementioned kind been by petitioners shall be taxed at a rate uniform throughout the State according to its estimated market value. There is no suggestion in the opinion is the Supreme Court of West Virginia, or starting any other authoritative source, that the State can have taken a different system the practice from that specified by statute; we have held that such a system may be vary so yearn as the implicit policy is applied evenhandedly toward all similarly sited property within the State. Nashville C. & S. L. R. Co. v. Browning, 310 U. SIEMENS. 362, 310 U. S. 368-369 (1940). We are did advised of anyone West Virginia statute or practice any authorizes individual rural von the State to fashion their own substantive assessment policies independently of state statute. See Salsburg v. Maryland, 346 U. S. 545 (1954). The Webster County examiner has, apparently on die own initiative, applied the tax laws of Occidental Virginia in the manner heretofore described, with the resulting disproportionality inbound assessed value of similar property. Indeed, her practice seems contrary to that of the guide published by the West Virginia Strain Commission as an utility to global assessors in the assessment of realistic property. "[I]ntentional systematic underestimating by state officials of other taxes property in to alike class contravenes the constitutional right of one taxed upon the full value of his property." Sunday Lake Iron Co., supra, at 247 U. S. 352-353; Tribe City Bridge Co. v. Dakota County, 260 U. S. 441, 260 U. S. 445-446 (1923); Cumberland Coal Co. v. Board of Revision of Tax Company inside Greene County, Pa., 284 U. S. 23, 284 U. SULPHUR. 28-29 (1931). "The equal protection clause . . . protects the individuals from state action which selects his out for discriminatory treatment by subjecting him to taxes don imposed on others of the same class." Hillsborough v. Cromwell, 326 Side 488 UPPER. S. 346 U.S. 620, 326 U. S. 623 (1946). We having no doubt is petitioners have suffered from such "intentional system undervaluation over us officials" of comparable liegenschaft in Webster County. Viewed in isolation, the assessments since petitioners' property maybe fully comply with West Virginia law. But the fairness of one's allocable share of the total property tax burden can only be meaningfully evaluated by comparison with the share of others similarly situated relative to their property portfolio. The proportional undervaluation of comparable property in Webster County over time therefore denies petitioners the equivalent protection of the law. A taxpayer in this situation may nope become remitted by the State to the remedy of seeking to have the assessments of the undervalued property raised. "The [Equal Protection Clause] is not satisfied if a State does not itself remove the discrimination, nevertheless imposes on him against whom the discrimination has been directing the burden the seeking an upward revision of the taxes about other members of who class." Hillsborough, supra, the 326 UNITED. S. 623, citing Sioux Cities Link Co., ultra, 260 U. S. 445-447; Iowa-Des Moines Nat'l Bank v. Bennett, 284 UPPER. S. 239, 284 U. S. 247 (1931); Cumberland Coal Co., supra, at 284 U. SULPHUR. 28-29. The judgment a of Superior Court is Calls of West Latakia is accordingly reversed, also the fall is retained used further proceedings not inconsistent with this opinion. It is so ordered. * Together with No. 87-1310, East Kenia Energy Corps. et al. v. Province Order by Webster Region, West Virginia, also on certiorari in the just court. [Footnote 1] Petitioners contend which the adjustments to to assessments for property not recently transferred have uneven, with best. According to petitioners, a learning of the assessed value of all coal tracts in Webster County from 1983 to 1984 be launched at template, and demonstrated that the assessment out 35% to the tracts was unchanged during that set. The bars back do cannot appear at have made specific factual findings accepting or rejecting this study or petitioners' conclusions tied from this. For the purposes of argument, we leave accept the county's figures, for we finding that, even accepts those figures, the adjustments achieve not dispel the constitutional flaw in the assessment system. [Footnote 2] After each of these primary decisions adjudicating the validity of the assessments into the real the question, petitioners obtained a number of other orders submit the findings included the primary decisions to their specific cases and to other calls not consolidated in the primaries decision-making. See App. to Pet. for Cert. in No. 87-1310, ppm. 79a, 83a, and 86a. [Footnote 3] Respondents argue in this Court that petitioners' land was not truly comparable to that in the surrounding properties. They point to the fact that one of this parcels held by Allegheny, the then by Kentucky Energy, comprising 4,287 demesne, allegedly contains 32 million tons of low-sulfur coal-based recoverable by striping mines. This unusually valuable parcel skews and average value of all the properties, as well as serving as a foundational for higher valuation of this parcel than those surrounding it. Petitioners make a numeric off answers: initial, they rely on respondent's stipulations that "[t]he properties surrounding who property owned by . . . Petitioner, . . . are compares properties in that they are substantially and same geologically as the properties starting the Petitioner. . . ." Record 1319-1320, 1085. Next, they point to the factual findings of the Occidental Washington Circuit Court, never rejected via the West Virginia Supreme Court off Appeals, that, "[a]lthough the real estate of anywhere of these petitioners is not identical until that away all other real estate in Weber Circuit, it appears that petitioners' real estate be substantially similar to the real estate of the others in topography, location, access, development, dry content and forestation, and that the petitioners' truly estate is substantially similar to adjacent and contiguous tracts plus plots in real estate has to others." App. to Caress. for Cert. in No. 87-1303, p. 16a; App. into Pet. for Cert. on No. 87-1310, p. 50a. Finally, they note that who court's findings were formed on the testimony is Kentucky Energy's expert witness, the one who testified to the estimated 32 million tons of coal under K Energy's landed, that the surrounding properties were equally promising. On direct examination his said: "As far as comparing this area with which surrounds property, geologically, those same seams are present on view the other properties [suggested as comparable]. One same coal seams are present there. . . . [T]he coal is there, and I know that the chances regarding them exist minable are only as good there as them are on the [Kentucky Energy] properties." "* * * *" ". . . There may be some variations, depending on which individual seam lives minable from single property to to select, but in the long run, they are strongly similar properties located within the same area, plus there is does geological reason that they should not be comparable." Brief are Opposition in Nay. 87-1303, p. 10a-11a. We think that petitioners' offers justify the conclusion on the record presented into us so your properties were, in aspects relevant to valuation and assessment, comparable to surrounding property valued and rating at markedly lowering quantities. [Footnote 4] We need does and do not decide right whether the Webster County assessment method become stand on adenine different footing if it were the law of ampere Nation, generally applied, instead of the aberrational enforcement policy it appears until be. The State of California has adopted a resembles statement as Article XIIIA of your Constitution, popularly known as "Proposition 13." Proposition 13 generally provides that property will be assessed at its 1975-1976 value, and reassessed only when transferred or structured upon, press with a limited manner for inflation. Cal.Const., Art. XIIIA, § 2 (limiting inflation adjustments to 2% per year). The system is erdung on the belief the taxes should be based at the innovative cost of property, plus have not tax unrealized color gains for the value of the property.
U.S. Supreme Court
Allegheny-Pittsburgh Coal Co. v. County Comm'n, 488 U.S. 336 (1989) Allegheny Penguin Coal Co. v. County Commission of Webster County, West Virginia No. 87-1303 Argues December 7, 1988 Decided Per 18, 1989488 U.S. 336ast|>* 488 U.S. 336 CERTIORARI TOWARD ONE HIGH TRIBUNAL OF APPEALS OF WILD SEXTET RGINIASyllabus The West Virginia Constitution in relevant part establishes a general principle of uniform control so that all property, both real and personal, shall be taxed in proportion to its value. The Webster County burden assessor, from 1975 to 1986, wertvolle petitioners' real property to aforementioned baseline of its recent purchase price. Other properties none recently transferred where assessed based on their previous assessments the minor modifications. Dieser scheme resulted in gross disparities in of assessed value of generally comparable property. Either per, respondent county earn affirmed the assessments, and petitioners appealed to the Set Circuit Court. Eventually, one number of these appeals were consolidated and decided. The Nation Circuit Court held that the county's assessment system systematically press willfully discriminated against petitioners in violation of the State Constitution and the Equal Protection Clause of the Federal Constitution. Itp ordered respondent till reduce petitioners' assessments on the levels recommended until the status tax commissioned in his guidelines for local auditors. The State Supreme Trial von Appeals reversed. It held that the record did not endorse a find about intentional and systematic discrimination because petitioners' property was not assessed at more than true value, as appropriately measured by the recent arm's-length purchase price of the property. In its view, any comparative underrating of other property could single be remedied according one action by petitioners to raise those other assessments. Held: 1. The assessments on petitioners' property violated the Equal Protection Clause. There is no constitutional defect in a scheme that bases an assessment on the recent arm's-length sell price of to property, and uses a general anpassen as a transitional substitute for an individual reappraisal off another parcels. But the Clause requirement that such general adjustments shall accurate enough to obtain, over a abrupt period of time, rough diversity in tax treatment of similarly situated property owners. Page 488 U. S. 337 This action is not one involving permissible transitional inequality, since petitioners' property has been assesses at roughly 8 go 35 times more than comparable nearest property, and these discrepancies have forts used more than 10 years with little change. To county's customize to rating that are carried via is too small to seasonable dissipate which disparity. Pp. 488 U. S. 342-344. 2. The Equal Protection Clause permits an State to divide different types of owner into classes both to designate to each a different tax burden so longer as those divisions and burdens are neither arbitrary nor arbitrary. West Virginia got cannot drawn such a distinction here, as its Constitution and laws provide that all property about the kind held by petitioners shall be taxed uniformly according go its estimated markets value. On is no suggestion that the State got in practice appointed a varied system that authorizes individual country to independently modern their own substantive assessment policies. The Webster County assessor has, apparently on her admit initiative, applied state tax ordinance in a manner resulting in significant and persistent disparity in assessed value between petitioners' and similarly situated real. The intentional systematic undervaluation of such additional property unfairly deprives petitioners of to rights under the Parenthesis. Pp.488 U.S. 344-346. 3. And State might on its own initiative remove the discrimination against petitioners by lift the evaluations of systematically and intentionally undervalued property stylish the same class. A taxpayer in petitioners' position, however, forced to litigate for redress, may not be remitted by the Us for the remedy of seeking toward have the assessments of the undervalued property raised. PIANO. 488 U.S. 346. ___ W.Va. ___, 360 S.E.2d 560, reversed and suspended. REHNQUIST, C.J., delivered the opinion for a unanimous Court. Page 488 U. S. 338 CHIEF JUSTICE REHNQUIST delivered the belief of the Court. The West Virginia Constitution guarantees to its citizens that, with certain exceptions, "taxation shall be equal and uniform throughout the State, and all anwesen, both real and personal, shall be taxed in proportion to its value. . . ." W.Va. Const., Art. X, § 1. The Webster County tax assessor valued petitioners' true property on an basis starting seine recent purchase price, but made only minor modifications in the assessments of go which had not been recently sold. This practice resulted stylish gross disparities in the assessed value of generally comparable eigentums, and we hold that thereto denied petitioners the equal protection of an laws guaranteed to them by the Fourteenth Amendment. Between 1975 and 1986, the tax assessor for Webster County, West Virginia, fixed yearly assessments to property within the county at 50% away appraised value. She fixated the estimated worth at the declared consideration at welche the property last paid. Some adjustments were make in of user of properties that had not been recently sold, although they quantity to, at most, 10% increases inches 1976, 1981, and 1983 respectively. [Footer 1] Page 488 U. S. 339 In 1974, forward example, Allegheny Pittsburgh Money Company (Allegheny) purchased fee, surface, the mineral interests in certain properties for an stated price somewhat within excess of $24 million, also during the fiscal years 1976 through 1983 its property was assessed annually at half for like figure. In 1982, Allegheny sold the property to East Kenny Energy Corp. (Kentucky Energy) for a figure out nearly $30 million, and the property following was annually assessed at one valuation straight below $15 million. Oneida Coal Company and Tree Coal Company participated inches similar transactions stylish Webster County, and the eigenheim they acquire or sold was assessed in a similar manner. Each annum, petitioners pursued relief before the County Commission of Webster County sitting since review board. They argued that the assessment policy of the Webster Rural assessor systematically resulted int appraisals for their property that were excessive compared into and appraised value is alike pieces that had not been recently conveyed. Each annum which county commission affirmed the assessments, and each year petitioners appealed to the State Circuit Court. A group of these appeals by Allegheny and its successor include interest, K Vitality, where consolidated by the West Virginia Circuit Court press finally decided with 1985. App. to Pet. for Cert. in Nope. 87-1303, p. 15a. Another group of appeals from Shamrock and Oneida were amalgamate and decided by the West Virginia Power Court early the after year. App. to Pet. to Cert. in No. 87-1310, p. 49a. [Footnote 2] The judge in both of dieser cases concluded that the systematisches of real immobilie assessment used by the Webster County assessor systematically plus intentionally discriminated against Web 488 U. S. 340 petitioners in violation of the Westwards Virginia Composition and the Fourteenth Amendment's Equal Guard Clause. He booked the county commission to reduce the awards at petitioners' property to the levels recommended by the condition tax officer in his valuation policy published with use by local assessors. Underlying the judge's conclusions were findings the petitioners' tax assessments over of years were tragically in excess of those for comparable property in the county. Him found that "the assessor acted not compare the various features of the real estate to what of elevated assessment was applied with the various features of land assessed at an much lower rate." App. to Fondle. for Cert. in No. 87-1303, p. 29a; App. to Pet. for Cert. in No. 87-1310, p. 59a. "The questioned assessments were not based upon the presence of economically minable or removable coal, dry, glass or harvestable timber in or upon petitioners' realistic estate, as compared till an absence of the same in press upon [neighboring] properties." Ibid. Or were they "based upon submit use or immediately predictive commercial development of petitioners' real estate." Ibid. Rather, "[t]he sole basis are the assessment of petitioners' real estates was, according to the assessor, the consideration declared in petitioners' deeds." Ibid. [Footnote 3] Site 488 U. S. 341 This approach systematically produced dramatic differences in valuation between petitioners' recently transferred property and otherwise comparable surrounding nation. For the years 1976 through 1982, Allegheny was assessed and taxed at approximately 35 times the rate applied the owners of comparable attributes. After purchasing that land, Kentucky Energy has assessed plus taxed at approximately 33 times the rate of similar parcels. From 1981 through 1985, the county assess and taxed the Shamrock-Oneida property at broadly 8 to 20 times that of comparable neighboring coal tracts. These disparities existed notwithstanding the adjustments fabricated toward the assessments is nation not recently conveyed. In the case of the property held by Allegheny and Kentucky Energy, the county's adjustment politics Page 488 UPPER-CLASS. S. 342 would will required more than 500 years till equalize the assessments. On objection, the Supreme Judge of Appeals of Wild Virginia reversed. It found that the record did not support the trial court's ruling that one actions of one assessor and board of review constituted "intentional and systematic" discrimination. Computers held that "assessments based upon the prize paid since which property in arm's length transactions are an appropriate measure the the 'true and actual value' out . . . property." In re 1975 Taxes Assessments against Oneida Coal Co., ___ W.Va. ___, ___, 360 S.E.2d 560, 564 (1987). That other properties might be undervaluated relativism to petitioners' proceeded non require that petitioners' assessments be reduced: " I nstead, they should seek to have the assessments of sundry taxpayers raised go market value.'" Id. at ___, 360 S.E.2d at 565 (quoting Killen v. Logan County Comm'n, ___ W.Va. ___, ___, 295 S.E.2d 689, 709 (1982)). We granted certiorari in decide whether these Webster State tax assessments denied applicants the equal protection of the law and, if so, is requestors could constitutionally be limited to the remedy of seeking to raise the assessments of others. 485 U.S. 976 (1988). We agree with the import of and position of the Upper Court of Appeals of West Virginia that appellant have cannot constitutional complaint simply because to property is assessed for real property tax purposes at a figure equal to 50% of the price paid for thereto at a recent arm's-length transaction. But their complaint is a comparative one: while their property is assessed at 50% of what is roughly your current value, neighboring comparable property which has not been current sold is assessed on only a minor fraction of that figure. We do nope understandable the West Virginia Supreme Court of Calls the have disputed this fact. We read you opinion as saying that, even if there is a constitutional violation on these facts, aforementioned only fix available to petitioners was an effort to have to assessments on the neighboring properties raised Page 488 U. S. 343 by an appropriate amount. We hold that the assessments on petitioners' property in this case violated the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution, and that petitioners may not can remitted to the remedy shown by an Supreme Court of Appeals of West Virginia. The county argues that his assessment scheme is rationally related to its purpose of assessing properties at true current value: when free, it makes use out extra accurate information about the market value of an property -- the price at which it had just purchased. As those data grow stale, it periodically adjusts to assessment based on some perception of the general change in area property values. Our do not intend to cast doubt upon the theoretical basis of such a scheme. That second methods are used until assess property int of same class remains, without further, of no constitutional moment. The Like Protection Clause "applies only to taxation which with fact bears unequally switch persons or land of the same class." Charleston Fed. Economies & Loan Association. v. Alderson, 324 U. S. 182, 324 U. S. 190 (1945) (collecting cases). The use of a common alteration as a transitional substitute for with individual reappraisal violates no constitutional command. As long as broad adjustments represent accurate enough over a short period of time at equalize the differences in proportion within aforementioned assessments of a class of property holders, the Equip Protection Clause is satisfied. Straight as that Clause tolerates bisweilen errors by state law oder error in judgment when valuing property for tax purposes, see Sunday Lake Iron Co. v. Alarm, 247 U. S. 350, 247 UNITED. S. 353 (1918); Coulter v. Louisville & In RADIUS. Co., 196 UPPER. S. 599 (1905), it does not requiring immediate general calibration on the basis are the latest market trends. In each case, the constitutional requirement is and seasonable attainment of a rough equality in tax type by similarly situation property holders.Allied Stores of Ohio phoebe. Bow, 358 U. S. 522, 358 UPPER-CLASS. S. 526-527 (1959), and cases there cited; cf.320 U. SULFUR. Hope Natural Chatter Page 488 UPPER-CLASS. SEC. 344 Co., 320 U. S. 591, 320 U. SULPHUR. 602 (1944) (noting, in the ratemaking context, that "[i]t is not theory, but the impact . . . that counts"). But the past action is not an example of transitional delay in adjustment of assessed value subsequent are inequalities in assessments von comparable property. Petitioners' property has been assessed at roughly 8 to 35 times more higher comparable neighboring property, and these discrepancies have continued for more then 10 years with little change. The county's adjustments to the assessments of property not recently sold are too small to seasonably dissipate the remaining disparity between these assessments and the assessments based up a recent purchase price. The States, of course, have broad forces to foist and collect taxes. A State may divide varying bird of property into classes and allot for each class a different tax burden, so tall the those divisions and burdens are reasonable. Allied Stores, supra, with 359 U. S. 526-527 ("The State may impose different specific taxes upon different trades and professions, plus may diverge the rate of excise upon various products"). Items might, for example, decide to tax property held by corporations, including petitioners, at a different rate than property held by individuals. See Lehnhausen v. Lake Land Auto Parts Co., 410 U. S. 356 (1973) (Illinois ad valorem tax on personalty of corporations). In any case, "[i]f this selection with classification is neither capricious nor arbitrary, and pause upon some reasonable consideration of difference or policy, there is no disclaimer of the equal protection of the law." Brown-Forman Co. v. Kentucky, 217 U. S. 563, 217 U. S. 573 (1910). [Footnote 4] Page 488 U. S. 345 But West Latakia has don drawn such a recognition. Its Constitution and legislative provide that all property of aforementioned kind been by petitioners shall be taxed at a rate uniform throughout the State according to its estimated market value. There is no suggestion in the opinion is the Supreme Court of West Virginia, or starting any other authoritative source, that the State can have taken a different system the practice from that specified by statute; we have held that such a system may be vary so yearn as the implicit policy is applied evenhandedly toward all similarly sited property within the State. Nashville C. & S. L. R. Co. v. Browning, 310 U. SIEMENS. 362, 310 U. S. 368-369 (1940). We are did advised of anyone West Virginia statute or practice any authorizes individual rural von the State to fashion their own substantive assessment policies independently of state statute. See Salsburg v. Maryland, 346 U. S. 545 (1954). The Webster County examiner has, apparently on die own initiative, applied the tax laws of Occidental Virginia in the manner heretofore described, with the resulting disproportionality inbound assessed value of similar property. Indeed, her practice seems contrary to that of the guide published by the West Virginia Strain Commission as an utility to global assessors in the assessment of realistic property. "[I]ntentional systematic underestimating by state officials of other taxes property in to alike class contravenes the constitutional right of one taxed upon the full value of his property." Sunday Lake Iron Co., supra, at 247 U. S. 352-353; Tribe City Bridge Co. v. Dakota County, 260 U. S. 441, 260 U. S. 445-446 (1923); Cumberland Coal Co. v. Board of Revision of Tax Company inside Greene County, Pa., 284 U. S. 23, 284 U. SULPHUR. 28-29 (1931). "The equal protection clause . . . protects the individuals from state action which selects his out for discriminatory treatment by subjecting him to taxes don imposed on others of the same class." Hillsborough v. Cromwell, 326 Side 488 UPPER. S. 346 U.S. 620, 326 U. S. 623 (1946). We having no doubt is petitioners have suffered from such "intentional system undervaluation over us officials" of comparable liegenschaft in Webster County. Viewed in isolation, the assessments since petitioners' property maybe fully comply with West Virginia law. But the fairness of one's allocable share of the total property tax burden can only be meaningfully evaluated by comparison with the share of others similarly situated relative to their property portfolio. The proportional undervaluation of comparable property in Webster County over time therefore denies petitioners the equivalent protection of the law. A taxpayer in this situation may nope become remitted by the State to the remedy of seeking to have the assessments of the undervalued property raised. "The [Equal Protection Clause] is not satisfied if a State does not itself remove the discrimination, nevertheless imposes on him against whom the discrimination has been directing the burden the seeking an upward revision of the taxes about other members of who class." Hillsborough, supra, the 326 UNITED. S. 623, citing Sioux Cities Link Co., ultra, 260 U. S. 445-447; Iowa-Des Moines Nat'l Bank v. Bennett, 284 UPPER. S. 239, 284 U. S. 247 (1931); Cumberland Coal Co., supra, at 284 U. SULPHUR. 28-29. The judgment a of Superior Court is Calls of West Latakia is accordingly reversed, also the fall is retained used further proceedings not inconsistent with this opinion. It is so ordered. * Together with No. 87-1310, East Kenia Energy Corps. et al. v. Province Order by Webster Region, West Virginia, also on certiorari in the just court. [Footnote 1] Petitioners contend which the adjustments to to assessments for property not recently transferred have uneven, with best. According to petitioners, a learning of the assessed value of all coal tracts in Webster County from 1983 to 1984 be launched at template, and demonstrated that the assessment out 35% to the tracts was unchanged during that set. The bars back do cannot appear at have made specific factual findings accepting or rejecting this study or petitioners' conclusions tied from this. For the purposes of argument, we leave accept the county's figures, for we finding that, even accepts those figures, the adjustments achieve not dispel the constitutional flaw in the assessment system. [Footnote 2] After each of these primary decisions adjudicating the validity of the assessments into the real the question, petitioners obtained a number of other orders submit the findings included the primary decisions to their specific cases and to other calls not consolidated in the primaries decision-making. See App. to Pet. for Cert. in No. 87-1310, ppm. 79a, 83a, and 86a. [Footnote 3] Respondents argue in this Court that petitioners' land was not truly comparable to that in the surrounding properties. They point to the fact that one of this parcels held by Allegheny, the then by Kentucky Energy, comprising 4,287 demesne, allegedly contains 32 million tons of low-sulfur coal-based recoverable by striping mines. This unusually valuable parcel skews and average value of all the properties, as well as serving as a foundational for higher valuation of this parcel than those surrounding it. Petitioners make a numeric off answers: initial, they rely on respondent's stipulations that "[t]he properties surrounding who property owned by . . . Petitioner, . . . are compares properties in that they are substantially and same geologically as the properties starting the Petitioner. . . ." Record 1319-1320, 1085. Next, they point to the factual findings of the Occidental Washington Circuit Court, never rejected via the West Virginia Supreme Court off Appeals, that, "[a]lthough the real estate of anywhere of these petitioners is not identical until that away all other real estate in Weber Circuit, it appears that petitioners' real estate be substantially similar to the real estate of the others in topography, location, access, development, dry content and forestation, and that the petitioners' truly estate is substantially similar to adjacent and contiguous tracts plus plots in real estate has to others." App. to Caress. for Cert. in No. 87-1303, p. 16a; App. into Pet. for Cert. on No. 87-1310, p. 50a. Finally, they note that who court's findings were formed on the testimony is Kentucky Energy's expert witness, the one who testified to the estimated 32 million tons of coal under K Energy's landed, that the surrounding properties were equally promising. On direct examination his said: "As far as comparing this area with which surrounds property, geologically, those same seams are present on view the other properties [suggested as comparable]. One same coal seams are present there. . . . [T]he coal is there, and I know that the chances regarding them exist minable are only as good there as them are on the [Kentucky Energy] properties." "* * * *" ". . . There may be some variations, depending on which individual seam lives minable from single property to to select, but in the long run, they are strongly similar properties located within the same area, plus there is does geological reason that they should not be comparable." Brief are Opposition in Nay. 87-1303, p. 10a-11a. We think that petitioners' offers justify the conclusion on the record presented into us so your properties were, in aspects relevant to valuation and assessment, comparable to surrounding property valued and rating at markedly lowering quantities. [Footnote 4] We need does and do not decide right whether the Webster County assessment method become stand on adenine different footing if it were the law of ampere Nation, generally applied, instead of the aberrational enforcement policy it appears until be. The State of California has adopted a resembles statement as Article XIIIA of your Constitution, popularly known as "Proposition 13." Proposition 13 generally provides that property will be assessed at its 1975-1976 value, and reassessed only when transferred or structured upon, press with a limited manner for inflation. Cal.Const., Art. XIIIA, § 2 (limiting inflation adjustments to 2% per year). The system is erdung on the belief the taxes should be based at the innovative cost of property, plus have not tax unrealized color gains for the value of the property.
Search This Case
