Opinion ID: 1355183
Heading Depth: 2
Heading Rank: 2

Heading: Defining substantially the same revenues

Text: There is no statute or case law defining the phrase substantially the same revenues as used in section 67.110.2. In interpreting statutes, this Court determines the intent of the legislature, giving the language used its plain and ordinary meaning. State, Mo. Dep't of Soc. Servs., Div. of Aging v. Brookside Nursing Ctr., Inc., 50 S.W.3d 273, 276 (Mo. banc 2001). In determining legislative intent, the statute is read as a whole and in pari materia with related sections. Id. In interpreting statutes, `it is appropriate to take into consideration statutes involving similar or related subject matter when such statutes shed light upon the meaning of the statute being construed, even though the statutes are found in different chapters and were enacted at different times.' Buck v. Leggett, 813 S.W.2d 872, 874-75 (Mo. banc 1991) (quoting Citizens Elec. v. Dir. of Dept. of Rev., 766 S.W.2d 450, 452 (Mo. banc 1989)). Statutes involving the assessment, levy and payment of taxes should be construed in context with each other. See id. Although the phrase substantially the same revenues as found in section 67.110.2 has not been interpreted, this Court has interpreted the nearly identical phrase, substantially the same amount of tax revenue, found in section 137.073.2, commonly referred to as the rollback statute. The present version of section 137.073.2 provides in relevant part: Whenever changes in assessed valuation are entered in the assessor's books .... [a]ll political subdivisions shall immediately revise the applicable rates of levy for each purpose ... for which taxes are levied to the extent necessary to produce from all taxable property, exclusive of new construction and improvements, substantially the same amount of tax revenue as was produced in the previous year.... Sec. 137.073.2, RSMo Cum.Supp.2003 (emphasis added). In St. Louis-Southwestern Railway Co. v. Cooper, 496 S.W.2d 836 (Mo.1973), this Court interpreted the 1969 version of this section, which provided in relevant part: Whenever the assessed valuation of real or personal property within the county has been increased by ten percent or more over the prior year's valuation ... then such taxing authorities shall immediately revise and lower the rates of levy to the extent necessary to produce from all taxable property substantially the same amount of taxes as previously estimated to be produced by the original levy. Sec. 137.073, RSMo 1969 (emphasis added). In Cooper , railroads sought to recover school taxes they paid under protest because they believed them to be excessive in light of section 137.073, RSMo 1969. 496 S.W.2d at 838. This Court held that an excess of 9.3 percent [11] over that required according to the original estimates did not comply with the mandate of section 137.073, RSMo 1969, stating: The meaning of the phrase substantially the same is well known. Substantially, as the word is used in the statute, is synonymous with practically, nearly, almost, essentially and virtually. ... [A]n increase of 9% in revenue, obviously cannot be said to have produced almost the same amount of revenue as had been originally estimated. Cooper, 496 S.W.2d at 842. School District points out, however, that this Court's conclusion in Cooper suggests a variance of 5.5 percent is substantially the same for purposes of satisfying section 137.073.2. One of the plaintiffs in Cooper requested the imposition of a correct levy rate that would still have produced approximately 5.5 percent [12] excess revenues. Id. at 843. After acknowledging this rate would still produce an excess, this Court concluded that the rates suggested by plaintiffs would have produced sufficient revenue for the districts and at the same time would have met the requirements of [section] 137.073. Id. This Court was again confronted with a case arising under section 137.073, RSMo 1969, in Southwestern Bell Telephone Co. v. Hogg, 569 S.W.2d 195 (Mo. banc 1978). In Hogg, the school district argued that it made a good faith effort to comply with the substantially the same requirements of section 137.073, RSMo 1969. Id. at 201. This Court stated that although the school district's computations would not result in the exact amount of estimated need from taxation, ... it can and should be very close to it.  Id. (emphasis added). Section 67.110.2 and section 137.073.2, RSMo Cum.Supp.2003, use nearly identical language in phrasing their substantially the same requirements. [13] Further, section 67.110 and section 137.073.2, RSMo Cum.Supp.2003, involve similar subject matter. As such, it is logical to apply the same definition of substantially the same to both statutes. The legislature intended the phrase produce substantially the same revenues as required in the annual budget to mean that the amount of the revenues produced be practically, nearly, almost, essentially, or virtually the same as that required in the budget. Although this definition does not advise school districts and other political entities as to what range of deviation between revenues produced and budgeted needs is acceptable, this Court discussed the meaning of substantially the same in section 137.073 in Cooper : [T]he words substantially the same amount were used in [section] 137.073 with the recognition that a rate which would yield precisely the same amount would be virtually impossible to determine[, but] the purpose of the section is obviously to prevent windfalls in school taxes to the school districts merely because the assessed valuation of the real property in a county increases. Cooper, 496 S.W.2d at 841 (emphasis added). Following Cooper , this Court should determine if School District's tax levy was calculated to produce revenues practically, nearly, almost, essentially, or virtually the same as its budgeted needs, or whether it provided School District a windfall.