Opinion ID: 2124844
Heading Depth: 1
Heading Rank: 9

Heading: The Commission's Discretion in Valuation

Text: The purpose of valuing property for tax assessment purposes is to determine the true value in money of the property on the relevant day. Hermel, Inc., 564 S.W.2d at 897. In making this determination, the commission has some discretion in deciding which approach best estimates the value of a particular property. The commission's choice of valuation approaches must comply with the law. Both section 137.115 [4] and article X, section 4(b) of the Missouri Constitution [5] require that real property in Missouri be taxed according to its true value in money. True value is a function of the property's highest and best use. Aspenhof Corp., 789 S.W.2d at 869. Once the commission decides to use a particular approach, it must apply that approach properly and consider all of the factors relevant to that approach. See Stephen and Stephen Properties, Inc., 499 S.W.2d at 802. The commission, however, cannot ignore a lack of support in the evidence for adjustments made by the expert witnesses in the application of a particular valuation approach. Drey v. State Tax Commission, 345 S.W.2d 228, 234-36 (Mo.1961). Further, the commission cannot base its decision on opinion evidence that fails to consider information that should have been considered under a particular valuation approach. Id.; Security Bonhomme, Inc., 558 S.W.2d at 659.