96-704

No. 96-704

IN THE SUPREME COURT OF THE STATE OF MONTANA

1997

RAYMOND and M. A. ALBRIGHT, et al.,

Plaintiffs, Respondents,

and Cross-Appellants,

v.

STATE OF MONTANA, by and through the

STATE OF MONTANA, and the MONTANA

DEPARTMENT OF REVENUE, et al.,

Respondents and Appellants.

APPEAL FROM: District Court of the Eighth Judicial District,

In and for the County of Cascade,

The Honorable Marge Johnson, Judge presiding.

COUNSEL OF RECORD:

For Appellants:

David W. Woodgerd (argued), R. Bruce McGinnis,

Deborah Harten, Brendan R. Beatty, Patrick N.

Dringman, Tax Counselors; Special Assistant

Attorneys General; Montana Department of

Revenue; Helena, Montana

For Respondents:

Larry G. Schuster (argued), and Jerry W. Schuster;

Attorneys at Law; Great Falls, Montana

For Amici Curiae:

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David J. Patterson; University of Montana;

School of Law; Missoula, Montana

(Montana Association of Counties)

J. Cort Harrington, Jr.; Attorney at Law;

Helena, Montana

(Montana County Treasurers Association)

Allen B. Chronister; Chronister,

Moreen & Larson; Helena, Montana

(Montana Education Association)

David L. Nielsen; Helena City Attorney;

Helena, Montana

(Montana League of Cities and Towns)

Janice Frankino Doggett and Lance Melton;

Helena, Montana

(Montana School Boards Association)

Geralyn Driscoll; Montana Office of Public

Instruction; Helena, Montana

(Montana Superintendent of Public Instruction)

Submitted: February 18, 1997

Decided: February 27, 1997

Filed:

__________________________________________

Clerk

Justice Terry N. Trieweiler delivered the Opinion of the Court.

 On December 30, 1993, a group of Montana taxpayers commenced

a class action suit in the District Court for the Eighth Judicial

District in Cascade County to challenge the constitutionality of

the statewide reappraisal of all residential and commercial

property conducted by the Montana Department of Revenue

(Department) pursuant to 15-7-111, MCA. The taxpayers filed

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fifteen motions for partial summary judgment, and the Department

responded with fifteen cross-motions for summary judgment. On

December 5, 1996, following oral argument, the District Court

entered an order in which it (1) granted one of the taxpayers'

motions for partial summary judgment and held that by utilizing

more than one method of appraisal for both residential and

commercial property, the Department had failed to equalize the

values of the taxpayers' properties as required by both Article

VIII, Section 3, of the Montana Constitution, and 15-7-112, MCA,

and (2) granted another of the taxpayers' motions for partial

summary judgment and held that the Department had failed to assess

taxable property in four Counties before the second Monday in July

1993, as required by 15-8-201, MCA. The District Court stayed

enforcement of its decision pending an appeal of its order to this

Court. The Department appeals the District Court's order which

granted two of the taxpayers' motions for summary judgment. The

taxpayers cross-appeal on three grounds. We reverse the order of

the District Court which granted summary judgment in favor of the

taxpayers and remand to that court for entry of judgment consistent

with this opinion. Based on our conclusions, we do not reach the

issues raised on cross-appeal.

 We address two issues on appeal:

 1. Did the District Court err when it granted summary

judgment to the taxpayers based on its determination that the

Department's appraisal and valuation processes violate 15-7-112,

MCA, and Article VIII, Section 3, of the Montana Constitution?

 2. Did the District Court err when it concluded that tax

assessments were invalid for those taxpayers whose assessment

notices were not sent before the second Monday in July 1993?

 FACTUAL BACKGROUND

 Pursuant to 15-7-111, MCA, the Montana Department of Revenue

is charged with the administration and supervision of a program for

the revaluation of all taxable property within the state for

ad valorem tax purposes. The Department began the revaluation or

reappraisal of property, which is the subject of this appeal, in

1987 and completed the process on or before December 31, 1992. As

part of its system of revaluation, the Department adopted a

comprehensive appraisal plan, as required by 15-7-111, MCA. That

plan is set forth in Rules 42.18.101 through 42.18.126, ARM. The

Department's original appraisal plan provided that, for the first

time, a Computer Assisted Mass Appraisal System (CAMAS) would be

implemented to assist the Department's appraisers in the valuation

process. 

 According to the Department's appraisal manuals, adopted

pursuant to Rule 42.18.123, ARM, the CAMAS system is "designed to

help the Appraiser create and maintain records and procedures

needed to arrive at a just, equitable, and defensible valuation for

each parcel of real estate within [each] county" in the state. 

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CAMAS uses its files of property assessment data to produce

computer-assisted valuations for residential, agricultural,

commercial, and industrial properties. 

 According to a Department of Revenue public document entitled,

"What is CAMAS?" CAMAS uses three approaches to valuing property:

(1) the cost approach, (2) the market data approach, and (3) the

income approach. The cost approach involves estimating the

depreciated cost of reproducing or replacing the building and site

improvements. Depreciation is deducted from this cost for loss in

value caused by physical deterioration and functional or economic

obsolescence. To this depreciated cost is added the estimated

value of the land. The widest application of the cost approach is

in the appraisal of properties where the lack of adequate market

and income data preclude the reasonable application of other

traditional approaches. 

 The market data approach involves the compilation of sales and

offerings of properties which are comparable to the property being

appraised. The sales and offerings are then adjusted for any

dissimilarities and a value range obtained by comparison of those

properties. According to the Department's document "[t]he

significance of this approach lies in the ability to produce

estimates of value which directly reflect the attitude of the

market. Its application is contingent upon the availability of

comparable sales, and therefore finds its widest range in the

appraisal of vacant land and residential properties." 

 The income approach measures the present worth of the future

benefits of the property by the capitalization of the net income

stream over the remaining economic life of the property. This

approach involves making an estimate of the "effective gross

income" of a property, derived by deducting the appropriate vacancy

and collection losses from its estimated economic rent, as

evidenced by the yield of comparable properties. From this figure,

applicable operating expenses, including insurance and reserve

allowances for replacements, are deducted, resulting in an estimate

of net income which may then be capitalized into an indication of

value.

 CAMAS's three approaches to the valuation of property are

consistent with the Department's appraisal plan, as set forth at

Rules 42.18.101 through 42.18.126, ARM. According to the

Department's appraisal plan, residential property is to be

appraised using the market data approach or the cost approach. 

Rule 42.18.108(9), ARM. Commercial property is to be appraised

using the cost approach, the income approach, or, when possible,

the market data approach. Rule 42.18.111(9), ARM. Industrial

property is to be appraised using only the cost approach. Rule

42.22.1304, ARM. The CAMAS system functions in accordance with the

Department's appraisal plan by producing computer-assisted cost and

market estimates of residential properties, cost and income

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estimates for commercial properties, and cost estimates for

industrial properties. 

 For the valuation of residential property, CAMAS produces both

a market value estimate and a cost estimate. CAMAS's market value

estimate is produced by averaging seven values. Five of the values

are comparable sales, which are determined by Realty Transfer

Certificates. The remaining two values are computer-driven values

from internal regression mathematics in CAMAS. The final market

value estimate is the result of arraying the seven numbers from

high value to low value. The two highest figures and the two

lowest figures are struck, and the middle three figures are

averaged to produce the market value estimate. A "Comparable Sales

Sheet" is generated when a residential parcel has been subject to

the market modeling tax appraisal process. When there are not a

sufficient number of comparable sales to create a market value

estimate, residential property is appraised solely by the cost

approach. CAMAS's cost estimate is produced by estimating the cost

of replacing or reproducing the residential structure, deducting a

depreciation value from this cost and adding the underlying land

value, as determined by Computer Assisted Land Pricing (CALP)

models. For those properties where there is sufficient data

available for both a market value estimate and a cost estimate,

CAMAS will produce both figures. Because it is unusual for both

figures to be identical, the appraiser reconciles the differences

by choosing the most accurate approach to value after a

consideration of the relevance of each approach to the subject

property, the amount and reliability of data collected in each

approach, and the inherent strengths and weaknesses inherent in

each approach. The appraisers choice of valuation approach and the

estimated appraisal of the property based on that approach are set

forth in a "Property Record Card," which is available to the

property owner for review.

 For the valuation of commercial property, CAMAS produces a

cost estimate and, in some instances, an income estimate. The

income approach to valuation is the preferred method of valuation

of commercial properties in Montana. The Department's process for

income valuation of commercial property begins with the submission

of income and expense questionnaires to commercial property owners

to complete and return. The information on the statements is

reviewed by an appraiser and entered into the CAMAS system. Once

in the computer, it can be sorted and analyzed using selectability

criteria. The information is then correlated and commercial income

models are developed. Such models may only be created, however, in

areas where sufficient income and expense data has been collected. 

Because commercial property owners are not required to provide such

information to the Department, the income approach to commercial

property valuation in Montana is limited to those six counties in

Montana in which ample data exists. In all other counties in

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Montana, commercial property is valued using the cost approach to

valuation. Although the Department's appraisal plan provides that

commercial property may also be estimated by the market data

approach, the Department has not developed any market models for

commercial property in Montana. Therefore, the CAMAS system

estimates commercial property values based on either the income

approach in six Montana counties or the cost approach in the

remaining counties. The evaluation approach for commercial

property and its estimated market value, as established by that

method, are set forth on a "Property Record Card," which is

available for review by the commercial property owner.

 For both residential and commercial property for which the

cost approach to property valuation is applied, the Department

adjusts property values based on an "Economic Condition Factor." 

An "Economic Condition Factor" (ECF) is defined by the Department's

CAMAS users' manual as "extraordinary economic obsolescence that

impacts all property located in a specific neighborhood, community,

or geographic area." According to the CAMAS manual, "[t]he

Economic Condition Factor attempts to correct for the difference

between replacement cost less normal depreciation and market value

as they may differ from locality to locality." 

 The purpose of the ECF is to adjust the cost approach to

valuation to take local market influences, such as a depressed or

very active market area, into account. For example, if a new

residence is constructed in an economically depressed area, the

cost of the new construction may well exceed the selling price of

the residence. According to the Department, to value this new

residence with a strict unadjusted cost approach would create a

significant disparity from appraisals based solely on the market

data approach and frustrate the goal of equalization. 

 The Department of Revenue applies ECFs to adjust both

residential and commercial property valuation where the cost

approach is used. An ECF is calculated for residential property by

comparing an estimation of values using the market approach to an

estimation of values using the cost approach. The ratio determined

by dividing the average market value by the average cost value is

the ECF. An ECF is calculated for commercial property by comparing

an estimation of the average sales price to an estimation of the

average cost value. The ratio determined by dividing the average

sales price by the average cost value is the ECF. ECFs apply only

to the depreciated reproduction or replacement cost of the

improvements to the land, and not to the value of the land itself. 

ECFs are not used for those residential properties whose value is

determined by the market value approach or for those commercial

properties whose value is determined by the income approach. In

addition, ECFs are never applied to industrial property valuation.

 For the valuation of industrial properties in Montana, CAMAS

uniformly uses the cost approach to valuation. CAMAS applies the

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cost approach by determining the value of the underlying land,

according to a CALP estimation, and adding to that value the cost

of replacement of the industrial building and improvements minus

the depreciation, as determined by use of depreciation schedules

taken from the Marshall and Swift Valuation Service. The final

estimated market value, as determined by the cost approach to

valuation, is set forth in the property record card.

 The culmination of the tax appraisal process is the

preparation of the "Property Record Card." That card reflects the

Department of Revenue's final tax appraisal activity for each

parcel of taxable property. The record card can be reviewed in the

paper format, or it can be reviewed through the CAMAS computer

program. Each property record card has a section entitled

"Appraisal Inspection Information." This section displays the

times that the Department's appraisers were physically present at

the subject property, the types of inspections, and the I.D. number

of the Department's employee who was at the premises. In addition,

each property record card has a section entitled "Summary of

Values." This section sets forth the final appraised land value,

the final appraised buildings value, the final adjusted appraised

market value for the property, and the appraisal approach used in

arriving at the final property valuation. If the cost approach to

property value was used to determine the final market value for the

property, the details of that approach, as well as the applicable

ECF, are detailed on the reverse side of the card. If the market

value approach was used, a separate "Comparable Sales Sheet" is

generated.

 The Department of Revenue completed its reappraisal of

property which is the subject of this appeal on or before

December 31, 1992. Following the revaluation, the Department

mailed to each of the plaintiff taxpayers a notice of

classification and appraisal, pursuant to 15-7-102, MCA, and an

assessment notice pertaining to the assessment required by 15-8-

201, MCA. In Madison County, the final mailing of classification

and appraisal notices was completed on July 12, 1993. In

Beaverhead County, the final mailing was completed on July 13,

1993. In Gallatin County the final mailing date was July 15, 1993. 

In Park County the final mailing date was July 19, 1993. In all

other counties, classification and appraisal notices were mailed

prior to July 12, 1993. 

 On December 30, 1993, a group of taxpayers filed a complaint

in the Eighth Judicial District Court in which they alleged, inter

alia, that (1) the Department had failed to equalize the values of

the plaintiffs' properties according to Article VIII, Section 3, of

the Montana Constitution, which provides that the State must

appraise, assess, and equalize the valuation of the plaintiffs'

properties in the manner provided by law; (2) the Department had

failed to equalize the values of the plaintiffs' properties and

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taxable property in Montana according to 15-7-112, MCA; and

(3) the Department had failed to fulfill the duties and obligations

set forth at 15-8-201, MCA, which provides that the Department is

required to assess the plaintiffs' properties before the second

Monday in July 1993. On December 5, 1996, the District Court

entered an order in which it granted the plaintiff taxpayers'

motion for summary judgment and held that the Department of

Revenue, by utilizing more than one "method" of appraisal for both

residential and commercial property, had failed to equalize the

values of the taxpayers' properties as required by both Article

VIII, Section 3, of the Montana Constitution, and 15-7-112, MCA. 

Although the court noted that the Department had "attempted to

apply the best market estimate appraisal method whenever possible,"

the court held that the application of three approaches to property

valuation was contrary to the constitutional goal of equalization. 

In addition, the District Court held that the Department had failed

to assess all taxable property before the second Monday in July, as

required by 15-8-201, MCA, and that that section "imposes a

mandatory duty to send out the tax assessment notices to taxpayers

before the second Monday in July." The court therefore held that

tax assessments mailed out after July 12, 1993, in Gallatin County,

Park County, Beaverhead County, and Madison County were invalid

pursuant to 15-8-201, MCA, and that any tax increase based on

those assessments was unenforceable.

 ISSUE 1

 Did the District Court err when it granted summary judgment to

the taxpayers based on its determination that the Department's

appraisal and valuation processes violate 15-7-112, MCA, and

Article VIII, Section 3, of the Montana Constitution?

 A. STANDARD OF REVIEW

 Summary judgment is governed by Rule 56(c), M.R.Civ.P., which

provides, in relevant part, as follows:

 The judgment sought shall be rendered forthwith if the

 pleadings, depositions, answers to interrogatories, and

 admissions on file, together with the affidavits, if any,

 show that there is no genuine issue as to any material

 fact and that the moving party is entitled to a judgment

 as a matter of law . . . .

 In this case, the taxpayers and the Department moved for

summary judgment on the salient issues. Both parties agree that

there are no genuine issues of material fact. Therefore, we review

only the District Court's conclusions of law. When we review a

district court's conclusions of law, the standard of review is

whether those conclusions are correct. Carbon County v. Union

Reserve Coal Co. (1995), 271 Mont. 459, 469, 898 P.2d 680, 686.

 B. SECTION 15-7-112, MCA

 Section 15-7-112, MCA, provides as follows:

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 Equalization of valuations. The same method of appraisal

 and assessment shall be used in each county of the state

 to the end that comparable property with similar true

 market values and subject to taxation in Montana shall

 have substantially equal taxable values at the end of

 each cyclical revaluation program hereinbefore provided.

 The District Court concluded that the Department's

market-based method--which utilizes, depending on the available

market data, the market data approach, the income approach, the

cost approach, or some combination of these approaches--violates

 15-7-112, MCA. In essence, the District Court concluded that

 15-7-112, MCA, requires the Department to utilize only one

"method" when it estimates statewide market values, and that the

Department's use of three different approaches, particularly the

market data approach, violates that requirement. Ultimately, the

District Court determined that in order to comply with 15-7-112,

MCA, the Department is required to appraise and assess all property

by utilizing only one approach, specifically, the cost approach, to

estimating market value. 

 On appeal, the Department contends that 15-7-112, MCA, does

not mandate the utilization of only one approach to estimating

market values statewide, and that its current method is, in fact,

the most effective way to approximate market values, given the

market data that is available. The Department, therefore, claims

that the District Court erred when it concluded that the

utilization of a market-based method, which utilizes and combines

three different approaches to estimating market value, violates

 15-7-112, MCA. In support of this claim, the Department asserts

that when 15-7-112, MCA, is analyzed in light of other statutory

mandates placed upon the Department, it is clear that 15-7-112,

MCA, permits utilization of the market data approach, that this

approach, by necessity, will vary from place to place depending on

available data, and therefore, that the District Court's

interpretation of 15-7-112, MCA, is incorrect. The Department

further asserts that, accordingly, the District Court's narrow

interpretation of the term "method," as it is used in 15-7-112,

MCA, is also incorrect. 

 1. STATUTORY SCHEME

 When we interpret a statute, our function is to effectuate the

intent of the Legislature. Pretty on Top v. Snively (1994), 266

Mont. 45, 47, 879 P.2d 49, 50. Furthermore, we have previously

concluded that when we construe a statute, "the whole act must be

read together and where there are several provisions or

particulars, a construction is, if possible, to be adopted that

will give effect to it all." Larson v. Crissmore (1987), 228 Mont.

9, 15, 741 P.2d 401, 405. Finally, it is well established that

"this Court presumes that the legislature would not pass

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meaningless legislation, and the Court must harmonize statutes

relating to the same subject, giving effect to each." Montana

Contractors' Ass'n v. Department of Hwys. (1986), 220 Mont. 392,

395, 715 P.2d 1056, 1058. We will, therefore, analyze 15-7-112,

MCA, based on these rules of statutory construction.

 Section 15-8-111, MCA, requires that "[a]ll taxable property

must be assessed at 100% of its market value except as otherwise

provided." This section provides the following definition of

market value:

 Market value is the value at which property would change

 hands between a willing buyer and a willing seller,

 neither being under any compulsion to buy or to sell and

 both having reasonable knowledge of relevant facts.

Section 15-8-111(2)(a), MCA (emphasis added). We conclude that

when the Legislature defined "market value" as the price at which

property would change hands in an arms-length sale, it evidenced

its intent that the market data approach to value--and not just the

cost approach--can and should be utilized by the Department when it

appraises and assesses property. 

 Our conclusion is further supported by our prior decision in

DeVoe v. Department of Revenue (1993), 263 Mont. 100, 866 P.2d 228. 

In that case, we interpreted 15-8-111, MCA, and stated:

 It is true that the very next paragraph found at

 15-8-111(2)(b), MCA, states that the DOR may use

 "construction costs as one approximation of market

 value." However, we hold that evidence of construction

 costs alone, without consideration of any market factors,

 does not satisfy the requirement of 15-8-111(1), MCA,

 that the assessed value equal market value. . . .

 

 Market value depends on the price that a willing

 buyer would pay a willing seller, taking into

 consideration relevant facts. Presumably, relevant facts

 would include the market and economic conditions

 prevailing at the time of sale.

DeVoe, 263 Mont. at 112, 866 P.2d at 235-36.

 Furthermore, 15-8-111, MCA, also states:

 If the department uses construction cost as one

 approximation of market value, the department shall fully

 consider reduction in value caused by depreciation,

 whether through physical depreciation, functional

 obsolescence, or economic obsolescence.

Section 15-8-111(2)(b) (emphasis added). We conclude that the

language of 15-8-111(2)(b), MCA, provides strong evidence that

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the Legislature did not intend for only one approach to value to be

utilized when property is appraised and assessed. In fact, if the

Legislature did intend for only one approach to be utilized, then

 15-8-111(2)(b), MCA, would be superfluous.

 Sections 15-7-301 through -311, MCA, are entitled the Realty

Transfer Act. This Act requires the parties to a real estate

transfer to submit to the Department a realty transfer certificate

which states the price of the subject property. The Department

then considers the information when it appraises property by the

market data approach to estimating market value. Pursuant to

 15-7-302, MCA, the express purpose of this Act is "to obtain

sales price data necessary to the determination of statewide levels

and uniformity of real estate assessments by the most efficient,

economical, and reliable method." Section 15-7-302, MCA. We

conclude that when the Legislature enacted this Act, it clearly

intended to allow the Department to utilize the market data

approach when it estimates market value.

 Finally, 15-7-401 through -403, MCA are entitled the

Appraisal of Residential Property in Areas of Changing Use. This

part provides that if residential property is located in an area of

commercial or industrial growth, the property owner can elect to

have the property assessed at its value as residential property,

rather than at its value as commercial property. It is designed to

protect homeowners from paying higher taxes when their property

could be sold for a higher price as commercial property than as

residential property. We conclude that if the Legislature

intended, as the District Court determined, that all property must

be assessed solely by one approach--the cost approach--to

estimating market value, then the protection provided by

 15-7-401 through -403, MCA, would be wholly unnecessary. 

 When the above-referenced statutes are read as a whole and the

pertinent principles of statutory construction are applied, it is

clear that the Legislature intended the Department to utilize both

the cost approach and the market data approach, depending upon the

available market data, when it assesses property and estimates

market value. The next question is whether utilization of various

approaches is contrary to the statutory mandate that appraisals be

done by the same "method" statewide.

 2. DEFINITION OF "METHOD," AS USED IN 15-7-112, MCA

 As previously noted, the District Court concluded that

 15-7-112, MCA, permits the Department to utilize one, and only

one, approach when it appraises property and estimates market

value. The District Court based its conclusion on the language of

 15-7-112, MCA, which provides, in part, that "[t]he same method

of appraisal and assessment shall be used." 

 The key term in the statute is "method." Apparently, the

District Court concluded that the term "method" is the equivalent

of the term "approach," and that, therefore, "method" could only

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entail either the market data approach, the income approach, or the

cost approach, but certainly not all three. 

 We conclude, however, based on the facts set forth previously,

that the term "method," as it is used in 15-7-112, MCA, does not

refer to any single approach; rather, the term "method" refers to

a consistent process for arriving at market value, the details of

which may vary from place to place, depending on available data,

and which will necessarily include a number of different

approaches--e.g., the market data approach, the income approach,

the cost approach--or some combination of these approaches,

depending on the market in the area where appraisals occur. 

Accordingly, we hold that the District Court also erred when it

interpreted the term "method," as it is used in 15-7-112, MCA, to

include only one approach.

 C. ARTICLE VIII, SECTION 3, OF THE MONTANA CONSTITUTION

 Having already held that the Department's market-based method

of assessing property and estimating market values does not violate

 15-7-112, MCA, we now must address the important question of

whether such a market-based method is constitutionally permissible.

 The relevant provision of the Montana Constitution is

Article VIII, Section 3, which provides as follows: "Property tax

administration. The state shall appraise, assess, and equalize the

valuation of all property which is to be taxed in the manner

provided by law." Mont. Const. art. VIII, 3.

 The District Court concluded that equalization, as mandated by

Article VIII, Section 3, of the Montana Constitution, can be

achieved only if a single approach to value is utilized for every

parcel of class four property within the state. On that basis, the

District Court found, as it did with regard to 15-7-112, MCA,

that the Department's market-based method--which necessarily

includes several approaches--violates Article VIII, Section 3, of

the Montana Constitution.

 On appeal, the Department contends that the District Court

erred when it concluded that the utilization of a market-based

method to appraise property and estimate market values violates

Article VIII, Section 3, of the Montana Constitution. 

Specifically, it asserts that a review of the 1972 Montana

Constitutional Convention's transcript reveals that, with regard to

Article VIII, Section 3, three "themes" prevailed: (1) the

delegates intended the provision to secure equalization between the

various counties; (2) the delegates intended the provision to be

flexible, so that future legislators would be able to define the

precise means of taxation; and (3) the delegates anticipated the

utilization of more than one approach to value as a legitimate

method of determining market values. In essence, it claims that

Article VIII, Section 3, contemplates a market-based method which

utilizes multiple approaches to estimating market values and that,

concomitantly, such a market-based method is constitutionally

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permissible.

 It is well established that the intent of the framers of a

constitutional provision must be given effect when the provision's

meaning is at issue. State ex rel. Nelson v. Ninth Dist. Court

(1993), 262 Mont. 70, 79, 863 P.2d 1027, 1032 (citing Keller v.

Smith (1976), 170 Mont. 399, 405, 553 P.2d 1002, 1006). 

Furthermore, we have previously held that when we construe a

constitutional provision, we are obligated to "employ the same

rules of construction employed to construe statutes." State v.

Cardwell (1980), 187 Mont. 370, 373, 609 P.2d 1230, 1232. It also

follows then, as with the construction of statutes, that we are

occasionally called upon to consider the enacting history of a

provision. Department of Revenue v. Puget Sound Power & Light Co.

(1978), 179 Mont. 255, 263, 587 P.2d 1282, 1287; Guillot v. State

Highway Comm'n (1936), 102 Mont. 149, 155, 56 P.2d 1072, 1074.

 Pursuant to Montana's 1889 Constitution, assessments were

conducted independently within each county by the County Board of

Equalization. See Mont. Const. art. XII, 15 (1889). The County

Board of Equalization consisted of county commissioners from that

county. All of the county boards were overseen by the State Board

of Equalization, which reviewed and "equalized" the valuations of

taxable properties between the counties in order to "secure a

fair, just and equitable valuation of all taxable property among

counties, between the different classes of property, and between

individual taxpayers." Mont. Const. art. XII, 15 (1889).

 At the 1972 Montana Constitutional Convention, the proposed

adoption of Article VIII, Section 3, generated a substantial amount

of debate. Ultimately, the delegates elected to adopt

Article VIII, Section 3, and as a result, drastically changed the

administration of property taxation within the State of Montana. 

One of the primary proponents of Article VIII, Section 3, Delegate

Rygg, commenced the debate with the following observations:

 [Article VIII, Section 3,] would open the door to a whole

 new concept of taxation . . . . However, it still would

 be the Legislature's prerogative to decide how

 far-reaching it wants the effects of the change to be

 . . . . It is a duty of the Legislative branch to define

 the tax administration system and the duty of the

 Executive branch to administer that system. Let us

 consider, for a moment, our present system of taxation. 

 Currently each county has its own administrating

 personnel. Now, if there were no need for statewide

 taxes and if our educational system was not funded at all

 by property tax, this method would be adequate. However,

 because much of the education equality is based on

 property tax, it is necessary that we change from an

 individual county system to a statewide system.

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Verbatim Transcripts, 1971-72 Montana Constitutional Convention,

Vol. V, pp. 1379-80 (March 3, 1972).

 Another proponent of Article VIII, Section 3, Delegate

McDonough, expressed the following similar observations:

 All it [Article VIII, Section 3,] does is give the

 ultimate authority to appraise and equalize taxes in the

 state . . . . Reclassification come [sic] into effect 14

 or 15 years ago, and there still is not equalization

 between counties. That is all we want to do by this

 section--is to give the Legislature the power to equalize

 the property tax in Montana . . . . They [the

 Legislature] can do what they want, and that's what we

 want to do by the--removing these restrictions on the

 valuation of the property tax . . . . And that's why

 we're here. We're allowing the Legislature to be able to

 make a statewide valuation of property. They're the ones

 . . . that have to pay the bill. They are the ones that

 have to levy the taxes. Therefore, they're the ones that

 have that responsibility, and they should also have the

 responsibility of setting this thing up so it will work.

Montana Constitutional Convention Transcript at 1386-87. 

 A review of the transcript reveals that the observations of

Delegates Rygg and McDonough are accurate representations of the

framers' views. On that basis, we conclude that the framers

intended Article VIII, Section 3, to (1) equalize assessment among

the counties, and (2) provide the Legislature with the necessary

flexibility to achieve equalization in the most efficient and

equitable manner. The fact that the framers intended to provide

the Legislature with substantial flexibility is further evidenced

by the express language in Article VIII, Section 3, which states,

"in the manner provided by law." 

 Furthermore, additional comments in the transcript provide

strong evidence that the framers anticipated and intended that

various approaches to estimating market value, and not just a

single approach, could be utilized in order to achieve

"equalization." For example, Delegate Lorello asked Delegate

McDonough the following hypothetical question:

 Let's get to the word "equalize." And let's suppose that

 today we build a home in Billings costing $25,000. Let's

 then build another home in Philipsburg, Montana, and it

 too will cost $25,000. Now then, would you tell me what

 the taxes would be on these two homes? Just what would

 they be at the end of the year? How would you equalize

 these things, between the two cities?

Delegate McDonough provided the following response:

 What we do by this proposal, we don't tell anybody how

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 they're going to equalize these two taxes between these

 two counties; we leave that to the Legislature. And one

 thing I'd like to make clear on that here--that we don't

 say anything has to be equalized in any one manner. We

 leave that to the Legislature and the body that they set

 up . . . . We don't say that land has to be taxed on

 market value. And incidentally, houses are--residential

 houses are in Montana. We don't say that other land

 can't be taxed on productive value . . . . And there's

 nothing in what we're proposing that you can't tax it on

 productive value. This thing about changing--how do you

 arrive at valuation, we're leaving that wide open,

 because how to arrive at valuation of any piece of

 property is very complex. And market value is just one

 of the things you take in consideration. Now, on the

 difference between the houses. Presently now, houses are

 started off with--that class of property does start off

 with market value. And if the house is only worth--you

 build a house in Philipsburg and if there's not too much

 market for a house and you pay $25,000 for it, it might

 only be worth 20. And if the Legislature says that

 houses will be on market value, then that house will be

 20 in Philipsburg and 25 in Billings . . . . But I don't

 know what the Legislature is going to do. They might

 actually go to a rental value instead of a market value

 . . . . And they should be allowed that flexibility

 . . . .

Montana Constitutional Convention Transcript at 1391. 

 We conclude that the record from our Constitutional Convention

clearly indicates the framers' understanding that productive value

(the income approach) and the market data approach can both be

utilized by the State when it attempts to "appraise, assess, and

equalize the valuation of all property which is to be taxed in the

manner provided by law." Therefore, we conclude that, contrary to

the District Court's determination, the framers of Article VIII,

Section 3, did not intend for equalization to require the exclusive

utilization of a single approach to estimating market value. 

Rather, the framers anticipated and intended that the State could

utilize a number of different approaches, including the utilization

of a market-based method, to "appraise, assess, and equalize the

valuation of all property." 

 The taxpayers argue that the ECFs, which are designed to

narrow the inconsistency between the cost approach and market data

approach, are no different than the "blanket multipliers," and

stratified sales assessment ratio studies (ratio studies), which we

condemned in Department of Revenue v. Barron (1990), 245 Mont. 100,

799 P.2d 533, and Department of Revenue v. Sheehy (1993), 262 Mont.

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104, 862 P.2d 1181. We disagree. The ratio studies at issue there

were the statutorily mandated method of appraisal and the issue was

whether that method was constitutional. These studies produced

ratios utilizing historical data (actual sales prices and existing

appraised values) without any actual new appraisal. Barron, 799

P.2d at 534. We concluded that the non-uniform application of the

ratios unconstitutionally required certain taxpayers to bear a

disproportionate share of the tax burden. Barron, 799 P.2d at 540.

The use of ECFs is a recognized and accepted practice by fee

appraisers. The ECFs used here are an integral component of CAMAS;

are applied uniformly in the localized area; and appropriately take

into consideration and adjust cost approach appraisals on

individual parcels of property for current local economic and

market conditions. Absent the integration of such economic and

market influences, the results of the new appraisal produced by the

cost approach would be skewed.

 We therefore conclude that the Department's market-based

method--which utilizes a combination of approaches--does not

violate Article VIII, Section 3, of the Montana Constitution. 

 D. CONCLUSION 

 We recognize that the Department's method of assessing

property and estimating market values is by no means perfect, and

will occasionally miss the mark when it comes to the Constitution's

goal of equalizing property valuation. However, perfection in this

field is, for all practical purposes, unattainable due to the

logical and historical preference for a market-based method, and

the occasional lack of market data. Nonetheless, we conclude that

the Department's interdisciplinary method--which utilizes the

market data approach, the income approach, the cost approach, or

some combination of these approaches--is a reasonable attempt to

equalize appraisal of real property throughout the State and that

it comports with the most modern and accurate appraisal practices

available.

 Finally, we note that in those occasional situations when, due

to the inherent imperfections in the Department's market-based

method, fair, accurate, and consistent valuations are not achieved,

individual taxpayers can and should avail themselves of the

property tax appeals process set forth at 15-15-101, -102, -103,

and -104, MCA. 

 For these reasons, we hold that the District Court erred when

it concluded that the Department's appraisal and valuation

processes violate 15-17-112, MCA, and Article VIII, Section 3, of

the Montana Constitution.

 ISSUE 2

 Did the District Court err when it concluded that tax

assessments were invalid for those taxpayers whose assessment

notices were not sent before the second Monday in July 1993?

 Section 15-8-201, MCA (1993), provides in relevant part that:

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(1) The Department of Revenue or its agent must, between

January 1 and the second Monday of July in each year,

ascertain the names of all taxable inhabitants and assess

all property subject to taxation in each county . . . .

In 1993, July 12 was the second Monday of July.

 The record does not indicate the date when the Department

completed its assessment of property subject to taxation in each

county. However, the District Court did find that in Madison

County notices of assessment were not sent out until July 12, 1993,

and in Beaverhead, Gallatin, and Park Counties, notices were sent

out between July 13 and 19, 1993. Based on these facts, and our

interpretation of 15-8-201, MCA (1993), in Butte Country Club v.

State (1980), 186 Mont. 424, 608 P.2d 111, the District Court held

that:

 The subclass of plaintiffs whose property taxes were

increased pursuant to assessment notices and levies sent

out after the second Monday in July, 1993, are granted

summary judgment and that the assessments and levies, to

the extent they increased taxes for those taxpayers, are

invalid . . . .

 On appeal from that holding, the Department requests that we

reconsider our decision in Butte Country Club, and that even if we

reaffirm that decision, we limit its effect to the facts in that

case for the following reasons respectively:

 1. The plain language of 15-8-201, MCA (1993), does not

require that notices of assessment be sent by the second Monday of

July, but only that property be assessed by that date.

 2. This Court misapplied 15-8-308, MCA (1993), in Butte

Country Club. That section provides that assessments are not

illegal simply because not completed within the time required by

law.

 3. Even if Butte Country Club is affirmed, its effect should

be limited to the facts in that case in which the taxpayers were

actually precluded from appealing their assessments because their

assessment notices were late. Based on changes in the law, that

result is no longer possible.

 The taxpayers simply respond that our holding in Butte Country

Club was recently reaffirmed in Canbra Foods Ltd. v. Department of

Revenue (Mont. 1996), 925 P.2d 955, 53 St. Rep. 954, and that our

decision in Butte Country Club requires that the District Court be 

affirmed.

 In Butte Country Club, the District Court issued writs of

prohibition restraining the Department from assessing the Butte

Country Club and the Grand Hotel at appraised values determined by

the Department in 1978. The Country Club received its notice of

change in property valuation on August 31, 1978. The owners of the

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Grand Hotel also received their notice in late August 1978. Both

taxpayers filed notices of appeal with the Butte-Silver Bow County

Tax Appeal Board. However, those appeals were not filed in time to

be heard by the local Board.

 In Butte Country Club, we affirmed the district court's

conclusion that untimely tax assessments were illegal and

unenforceable. We held that:

The words of section 15-8-201, MCA [1977], are plain,

unambiguous and certain. This statute requires the DOR to

assess all property subject to taxation between January 1

and the second Monday of July. The statute contains the

word "must", and this clearly indicates that the

statutory commands are mandatory, and not discretionary.

The DOR must assess property by the second Monday in

July, and that was not complied with in the instant case.

Butte Country Club, 186 Mont. at 429, 608 P.2d at 114.

 We held that 15-8-308, MCA, did not save the Department's

late assessments for the following reasons:

 The DOR's argument that section 15-8-308, MCA,

allows late assessments is without merit in the context

of the instant case. Section 15-8-308, MCA, provides:

 "No assessment or act relating to assessment or

collection of taxes is illegal on account of informality

or because the same was not completed within the time

required by law."

 The cases interpreting this statutory provision have

made a distinction between irregularities regarding

assessments which are informalities, and those which are

matter of substance. See Anderson v. Mace (1935), 99

Mont. 421, 45 P.2d 771; Perham v. Putnam (1928), 82 Mont.

349, 267 P. 305; Cobban v. Hinds (1899), 23 Mont. 338, 59

P. 1. A departure from a legal requirement is not an

informality, but rather is a matter of substance and is

vital. Perham v. Putnam, supra, 82 Mont. at 361.

Butte Country Club, 186 Mont. at 429, 608 P.2d at 114-15. We also

held that 15-8-201, MCA (1977), was a specific statute which must

prevail over 15-8-308, MCA (1977), because it is a general

statute. Although not specifically stated, it is obvious from the

context in which we arrived at our decision in Butte Country Club,

that critical to our conclusion was the fact that "[t]he DOR's late

assessment effectively precluded review by the Local Board in the

instant case." Butte Country Club, 186 Mont. at 432, 608 P.2d at

116.

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 While it was reasonable for the District Court to conclude

that our decision in Butte Country Club controlled the outcome of

the issue raised by late assessment notices, we conclude, for

several reasons, that that case should not be followed, based on

the facts in this case and subsequent developments in statutory

law.

 First, the plain language of 15-8-201, MCA (1993), does not

require that assessment notices be sent by the second Monday in

July. It requires only that property be "assessed" by that date. 

Black's Law Dictionary defines "assess" as "fix the value of." 

Black's Law Dictionary 116 (6th ed. 1990).

 There is no indication from the record before us that the

properties in the counties which are the subject of the District

Court's decision were not assessed before the second Monday of July

1993. The only evidence was that notices of assessment were not

sent out in those counties until or after that date. Furthermore,

our decision in Butte Country Club refers only to property which

was "assessed" after the deadline provided for in 15-8-201, MCA

(1977). Although it does seem to equate assessment with the date

on which notices of change in property valuations were sent,

nowhere does that decision specifically hold that assessments are

invalid simply because the notice of assessment is sent on or after

the second Monday in July.

 Second, our interpretation of 15-8-308, MCA (1977), seems to

focus exclusively on the term "informality" and ignore the separate

independent part of that statute which provides that no assessment

is illegal "because the same was not completed within the time

required by law." In doing so, we concluded that time periods

which are mandated by statute are not an "informality," but ignored

the inescapable conclusion that if there were not time periods

required by law, there would be no need to excuse them in the

second part of the statute. In the process, we ignored the most

fundamental rule of statutory construction, which is that the role

of a court is simply to declare what the terms of a statute are,

and not to omit what the Legislature has seen fit to include. 

Section 1-2-101, MCA. We also ignored those rules discussed

previously in this opinion to the effect that "this Court presumes

that the legislature would not pass meaningless legislation, and

the Court must harmonize statutes relating to the same subject,

giving effect to each." Montana Contractors' Ass'n v. Department

of Hwys. (1986), 220 Mont. 392, 395, 715 P.2d 1056, 1058. 

 Third, we concluded, without explanation, that 15-8-201,

MCA, is specific, but that 15-8-308, MCA, is general, and

therefore, that -201 must control if there is a conflict between

the two statutes. However, there is no apparent basis for

concluding that one statute is more specific than the other. 

Section -201 is found in that part of Title 15, Chapter 8, which

pertains to "when property is assessed." Section -308 is found in

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that part of Title 15, Chapter 8, which describes "how property is

assessed." If it was not for the time requirements found in

Part 2, there would be no logical need for the qualifications set

forth in -308.

 Finally, our decision in Butte Country Club was based on the

substantive effect that late assessments had on the taxpayers'

ability to appeal their changed property valuations. Section

84-603, RCM (1977), which applied to the taxpayers in the Butte

Country Club case, provided that:

No reduction may be made in the valuation of property

unless the party affected or his agent makes and files

with the county tax appeal board on or before the first

Monday in June a written application therefore. The

application shall state the post office address of the

applicant, shall specifically describe the property

involved, and shall state the facts upon which it is

claimed such reduction should be made.

Because of this statute, we concluded in Butte Country Club that,

"[t]he DOR's late assessment effectively precluded review by the

Local Board in the instant case." Butte Country Club, 186 Mont. at

432, 608 P.2d at 116.

 The successor to 84-603, RCM, which was in effect at the

time notices of assessment were sent out in this case, was

 15-15-102, MCA (1979), which provides as follows:

No reduction may be made in the valuation of property

unless the party affected or his agent makes and files

with the county tax appeal board on or before the first

Monday in June or 15 days after receiving notice of

classification and appraisal from the Department of

Revenue, whichever is later, a written application

therefore. The application shall state the post office

address of the applicant, shall specifically describe the

property involved, and shall state the facts upon which

it is claimed such reduction should be made.

(Emphasis added.)

 In other words, even if we assume that notice of assessment is

the equivalent of "assessment," the effect of a late notice no

longer has the substantive impact on a taxpayer that it had in the

Butte Country Club case. Therefore, even if we focused, as the

Court did in that case, on that part of 15-8-308, MCA, which

refers to "informality," rather than the part which refers to

timeliness, we could not come to the same conclusion that notices

of assessment are currently substantive, as opposed to an

"informality."

 Neither is it correct that the rule from the Butte Country

Club case was recently affirmed in Canbra Foods Ltd. v. Department

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of Revenue (Mont. 1996), 925 P.2d 855, 53 St. Rep. 954. Our

decision in Canbra Foods did not deal with the effect of late

"assessment" or "notice of assessment" on the legality of the

assessment. That case dealt only with the timeliness of the

taxpayer's application for reduction of property valuation. 

Therefore, it is irrelevant to our decision in this case. 

 For these reasons, we reverse that part of our decision in

Butte Country Club which is inconsistent with this opinion. We

conclude that 15-8-201, MCA (1993), does not render those

assessments for which notices and levies were sent out on or after

the second Monday in July 1993 invalid to the extent that taxes

were increased by those assessments. The District Court's

conclusion to the contrary is reversed.

 This case is remanded to the District Court for entry of

judgment consistent with this opinion.

 /S/ TERRY N. TRIEWEILER

We Concur:

/S/ J. A. TURNAGE

/S/ WILLIAM E. HUNT, SR.

/S/ JIM REGNIER 

/S/ JAMES C. NELSON

/S/ KARLA M. GRAY

/S/ W. WILLIAM LEAPHART

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