Opinion ID: 2612299
Heading Depth: 2
Heading Rank: 2

Heading: The BOTA's order of refund to taxpayer was made on the basis of substantial and competent evidence.

Text: As the record before this court discloses, the taxpayer's appeal to BOTA from the decision of the county board of equalization was filed on June 4, 1976. On August 11, 1976, an evidentiary hearing was held before BOTA to consider the merits of said equalization appeal. Thereafter, on September 14, 1976, for the first time taxpayer sought to inject the issue of the request for refund of taxes paid under protest. Johnson County opposed consideration of the request for refund in the memorandum of Johnson County in Opposition to Appellant's Motion for Refund served on December 8, 1976. After considering this memorandum and taxpayer's reply memorandum, BOTA made and entered its order in the equalization appeal on February 3, 1977, wherein it concluded, in part: 14. That this Board does have the power and authority to correct clerical errors as hereinbefore outlined in Paragraph 8. Further, that the record shows substantial differentiation between figures used to establish the 1976 value, the reappraisal having been made, and those figures used to establish the 1975 fair market value. That, therefore, the taxpayer is entitled to relief on this claim of error and that the County has had, and has taken, the opportunity to make its views known as to this Board's authority on this issue. Therefore, the Motion for Refund is sustained. Further, 15.... And, that the tax levied upon this property for the year 1975 was erroneously calculated not having taken into consideration the true and correct square footage of the improvements located upon the property here in question and, as such, the taxes levied for 1975 ought to be computed based upon those corrected figures as was the 1976 valuation. Any refund due and owing to the taxpayer should then be made or credited to succeeding tax liabilities. (Emphasis supplied.) Given this set of facts, Johnson County asserts that neither was a claim of any clerical error made at the evidentiary hearing on August 11, 1976, nor was evidence supporting such claim presented. Additionally, Johnson County submits BOTA failed to make any finding in the order of February 3, 1977, enumerating the evidence supporting the alleged error. Thus, it is asserted that BOTA's order of February 3, 1977, was not based on substantial competent evidence and should be vacated by this court. This issue can be readily resolved by resort to the applicable statutes and the record presently before the court. First, the court will concern itself with Johnson County's argument that taxpayer's claim for refund was not presented at the evidentiary hearing on August 11, 1976. Although not expressly stated, the county's argument in this regard is evidently questioning BOTA's ability to consider taxpayer's refund issue when no claim of refund was made at the evidentiary hearing, but was raised at a later date  September 14, 1976. The court is not directed to any statute, case, or treatise on the subject of administrative law in an effort to determine the proper procedure herein. Nevertheless, the court finds K.S.A. 79-1702 helpful in this regard. Once again, K.S.A. 79-1702 gives a taxpayer who feels aggrieved by an illegal or unequal assessment the right to appeal to BOTA to have its grievance heard. There is no time limitation imposed by this statute. Thus, the fact that taxpayer in the present case filed its grievance in September, 1976, is of no consequence. K.S.A. 79-1702 further provides that BOTA must be satisfied from competent evidence that a real grievance exists. However, the statute does not condition its application on evidence being supplied only from a previous equalization proceeding. Johnson County's assertion that no evidence supporting BOTA's refund order was presented is equally without merit. Upon reviewing the entire record, the court is of the opinion that the merits of the refund are more than adequately reflected. Before the county board, the witness for the assessor, Mr. Roger Harte, speaking in the presence of and on behalf of the assessor, stated that because of certain mechanical and clerical errors in the assessment of the improvements, the square footage computations of the assessment cards were brought up to date. As a direct result of this information, the county board of equalization ordered a reduction in the assessed valuation by an amount equal to 13%. Relying on this admission of error, coupled with the fact that the county had indeed reduced the subject property's valuation by 13%, BOTA determined that a refund was due and owing to the taxpayer. This result is fully supported in Paragraph 15 of the February 3, 1977, order, which states: ... that the tax levied upon this property for the year 1975 was erroneously calculated not having taken into consideration the true and correct square footage of the improvements located upon the property here in question and, as such, the taxes levied for 1975 ought to be computed based upon these corrected figures as was the 1976 valuation. After reviewing the complete record presented herein, the court is of the opinion that the evidence submitted before BOTA was sufficient to conclude that errors had been made in the calculation of the square footage of the subject improvements. As such, it was totally proper for BOTA to refund the excessive taxes paid in 1974 and 1975. .... IV. The record before the court fails to show that the orders of BOTA in denying taxpayer's appeals from the County Board of Equalization to BOTA were unreasonable, arbitrary or capricious. In cases 69,248 and 72,082 taxpayer appeals from the orders of BOTA to this court pursuant to K.S.A. 74-2426. As both parties are well aware, this court has ample authority to grant complete relief to a taxpayer who feels aggrieved by reason of discrimination in assessment of property. However, the parties must also be aware that the assessment and valuation of property are administrative functions, not judicial ones. Therefore, this court will not substitute its judgment for that of the assessing authority in the absence of fraud or conduct so oppressive, arbitrary, or capricious as to amount to fraud. Mobil Oil Corporation v. McHenry, 200 Kan. 211, 436 P.2d 982 (1968). Moreover, in reviewing the decision reached by BOTA in Docket No. 23-76-E, the court is limited to consideration of the evidence submitted before BOTA in reaching its conclusion. The record before BOTA reflected that The Clines Apartment complex was begun in 1969. At that time, land value was taxed with an improvement assessment added in 1970. Following the contractor's failure to complete the project, the property was subjected to foreclosure proceedings in 1971. A receiver was appointed and the remaining units left uncompleted by the contractor were finished. Thereafter, the improvement assessment was increased for 1972, reduced in 1973, raised in 1974 and this last assessment remained until taxpayer appealed to the Johnson County Board of Equalization contending the property was not being uniformly and equally assessed in accordance with art. 11 sec. 1 of the Kansas Constitution. Upon finding that errors had been made in calculation of square footage of the improvements, the county assessor reappraised the property, and as a result of said reappraisal, recommended a reduction of 13% from the 1976 valuation. By order of the county board made on May 12, 1976, the fair market value was reduced. From that order, the taxpayer properly perfected an appeal to BOTA. At the evidentiary hearing of August 11, 1976, and thereafter upon rehearing, taxpayer argued that the facts disclose an additional 10% reduction in the assessed valuation was necessary in order to bring the property in uniformity with comparable properties in the taxing district. Taxpayer's assertion for an additional 10% reduction was based solely upon the taxes levied on comparable properties when compared against the valuation of The Clines Apartments. Likewise, taxpayer's appeal to this court is premised on the idea that the real estate assessment on The Clines Apartment project is greater than comparable properties in the taxing district in Johnson County. However, as BOTA properly points out, there are numerous factors which must be considered in attempting to establish fair market value and basing the valuation on a simple comparison of the tax levies of comparable properties results in an inaccurate calculation. Thus, the court must agree with BOTA that taxpayer failed to present substantial, competent evidence which would support an additional reduction in the fair market value of The Clines. In the final analysis, taxpayer has failed to provide the court with any evidence presented before BOTA which would tend to support a finding of unreasonableness or arbitrariness on the part of the administrative board. As such, the court must find that taxpayer's appeals from the orders of BOTA as they relate to the equalization and assessment of The Clines should be denied. In addition to the foregoing, upon the filing of taxpayer's motion to vacate and set aside the order of dismissal in Case No. 49,941 entered August 17, 1976, by the Honorable Buford L. Shankel, and the taxpayer's motion for reassignment of that case to this court, the attorney representing the commissioners in the original case, No. 49,941, desired the opportunity to be heard and to present briefs in opposition to taxpayer's motion. These have been submitted, filed, and reviewed by the court. The court finds that the defenses asserted by James Bouska, attorney for said commissioners, although eloquently stated on the issues of res judicata, estoppel, and collateral estoppel, have been discussed in the foregoing opinion of the court. In substance, the court has been impressed with and has utilized the meaning and interpretation given to K.S.A. 60-260( b ) enlarging time in extenuating or unusual circumstances. The court finds the facts in this case fit that criteria.