Opinion ID: 2287933
Heading Depth: 3
Heading Rank: 1

Heading: Standing for Declaratory Judgment

Text: The longstanding rule in Missouri is that individual taxpayer plaintiffs lack standing to challenge other taxpayers' property tax assessments, as they are not injured personally by others' assessment calculations. Id.; see also W.R. Grace & Co. v. Hughlett, 729 S.W.2d 203, 206-7 (Mo. banc 1987) (finding that a plaintiff did not have standing to challenge excused tax obligations of others). Furthermore, neither a city nor a school district has standing to appeal or seek review of another's assessment by a county board of equalization. City of Richmond Heights v. Bd. of Equalization, 586 S.W.2d 338, 341-42 (Mo. banc 1979); State ex rel. St. Francois County Sch. Dist. v. Lalumondier, 518 S.W.2d 638, 643 (Mo.1975); see also Bartlett v. Ross, 891 S.W.2d 114, 116-17 (Mo. banc 1995) (holding, following Lalumondier, that just as school districts may not appeal an administrative decision, they may not appeal a refund judgment, absent a statute); State ex rel. Brentwood Sch. Dist. v. State Tax Comm'n, 589 S.W.2d 613, 614 (Mo. banc 1979) (holding that school districts do not have sufficient standing to appeal a tax assessment, following Lalumondier, and that they have no right to intervene in such an appeal because the county in which such districts are located represents whatever interests or rights the school districts may have). In counts I and III of their petition, which seek declaratory relief, the plaintiffs allege that the assessor failed to comply with her legal duty to calculate the true value in money of KCPL's property and to assess the entire Iatan I plant as local property. These allegationsand extensive argument on this issue in the plaintiffs' briefsreveal that the request for declaratory relief is, at least in part, a challenge to the past assessment of KCPL's property. To the extent that the declaratory judgment action constitutes a challenge to past assessments, the plaintiffs lack standing. Whether the taxpaying property owner is a corporation or a next-door neighbor (and the plaintiff a school district or an individual taxpayer), the principle that a third party is not permitted to challenge another's property tax assessment applies equally. However, to the extent that the plaintiffs merely seek a declaration of their rights and the assessor's duties under the utility taxation statutes, they do have standing. By statute, Missouri courts have power to declare rights, status, and other legal relations whether or not further relief is or could be claimed. § 527.010. A declaratory judgment is open to any person whose rights, status, or other legal relations are affected by a statute. § 527.020. Moreover, the declaratory judgment statutes are to be liberally construed, § 527.120, and administered to terminate the controversy or remove an uncertainty. § 527.050. Rule 87 reinforces the provisions of the declaratory judgment statutes, providing that anyone may obtain such relief in any instance in which it will terminate a controversy or remove an uncertainty. Rule 87.02(d). In the context of an action for declaratory judgment, Missouri courts require the plaintiff to have a legally protectable interest at stake in the outcome of the litigation. Ste. Genevieve Sch. Dist. R-II v. Bd. of Aldermen, 66 S.W.3d 6, 10 (Mo. banc 2002). A legally protectable interest exists if the plaintiff is directly and adversely affected by the action in question or if the plaintiff's interest is conferred by statute. Id. Under Missouri law, school districts threatened with imminent unlawful deprivation of their funding have standing to seek declaratory judgment regarding a statutory interpretation that would lead to the deprivation. State ex rel. Sch. Dist. of Independence v. Jones, 653 S.W.2d 178, 189 (Mo. banc 1983). [6] Moreover, the school district has an interest in the methodology used by the assessor for future utility property assessments, particularly in relation to the assessment of local property, which is subject to the local school district tax levy. The individual taxpayers also have an interest, though attenuated, due to their status as taxpayers in the school district and the fact that the alleged failure of the assessor to comply with the utility taxation statutes, if true, would cost the district future tax revenue. See Ste. Genevieve Sch. Dist., 66 S.W.3d at 10-11 (finding that a taxpayer has standing to seek a declaratory judgment challenging an alleged expenditure of public funds because of his status as a taxpayer of the city and school district and because the redevelopment project would cost the district and city future tax revenue). The plaintiffs have a sufficient interest to seek a declaratory judgment as to the assessor's duties under the utility taxation statutes.