Opinion ID: 1224677
Heading Depth: 1
Heading Rank: 6

Heading: A person with a secondary contractual obligation to pay the taxes is an aggrieved party with standing to challenge the assessment.

Text: In its ruling on MSC's motion for rehearing, the Tax Appeal Court mentioned that MSC was not aggrieved because it did not pay the assessment. As we discussed in the previous section of this opinion, a person does not have to pay the assessment to gain standing under HRS § 232-1. However, HRS § 246-46 (1993) [11] and ROH § 8-12.1 [12] both state that only an aggrieved taxpayer may appeal an assessment. This comports with HRS § 232-1, which gives the contractually obligated person the same rights of appeal as the taxpayer, who, according to HRS § 246-46 and ROH § 8-12.1, must be aggrieved by the assessment. MSC first argues that HRS § 246-46 is no longer controlling because, effective July 1, 1981, the powers, functions, and duties exercised by the State director with respect to the taxation of real property were turned over to the respective counties. See 1980 Haw. Sess. L. Act 279, at 533 (codified in HRS chapter 246A (1993)). HRS § 246A, however, deals with the transfer of responsibilities for real property taxation to the counties and not with the parties' right to appeal. As such, it can be reasonably argued that the amendment did not disturb the parties right to appeal under HRS § 246-46. In any event, ROH § 8-12.1 also provides that only a person who deems himself or herself aggrieved by the assessment may appeal. MSC argues that this provision is also inapplicable because the ROH applies only to appeals before the Board of Review and not to an appeal to the Tax Appeal Court. MSC cites In re Tax Appeal of County of Maui, 81 Hawai`i at 250 n. 3, 915 P.2d at 1351 n. 3, in support of its argument. In that case, we mentioned in a footnote that Kauai`i County Code § 5A-12.3(1), (2) and (4), was inapplicable to the taxpayer's appeal of a judgment of the Tax Appeal Court because the code applied only to appeals before the Board of Review. The footnote was an interpretation of the specific code provision and not the entire county code. In the instant case, ROH § 8-12.1 grants an aggrieved taxpayer or owner the right to appeal to the board of review or the tax appeal court pursuant to HRS Section 232-16[.] (Emphasis added). Accordingly, ROH § 8-12.1 is applicable to the instant case, and, as such, a taxpayer must be deemed aggrieved by an assessment in order to maintain an appeal. In the context of real property tax laws, a person is aggrieved when that individual's pecuniary interests are or may be adversely affected. Big V Supermarkets v. Assessor of Town, 114 A.D.2d 726, 494 N.Y.S.2d 520, 521 (1985) (citations omitted). That a lessee, bound by his [or her] lease to pay an assessment laid, qualifies as such an aggrieved party is past dispute. Id. at 521 (citations omitted). Moreover, it is of no material consequence that aggrievement as the result of an assessed valuation originated in contract. Id. (citations omitted). Given these principles, and considering that MSC is contractually liable for the tax assessments albeit secondary to the sublesseesit is apparent that the assessment may adversely affect MSC's pecuniary interests. Accordingly, we hold that MSC has standing to appeal under HRS § 232-1.