Legal Document

488 U.S. 336 109 S.Ct. 633 102 L.Ed.2d 688 ALLEGHENY PITTSBURGH COAL COMPANY, Petitioner,v.COUNTY COMMISSION OF WEBSTER COUNTY, WEST VIRGINIA EAST KENTUCKY ENERGY CORPORATION, et al., Petitioners, v. COUNTY VIRGINIA. Nos. 87-1303, 87-1310. Argued Dec. 7, 1988. Decided Jan. 18, 1989. Syllabus The West Virginia Constitution in relevant part establishes a general principle of uniform taxation so that all property, both real and personal, shall be taxed proportion to its value. Webster County tax assessor, from 1975 1986, valued petitioners' property on the basis recent purchase price. Other properties not recently transferred were assessed based their previous assessments with minor modifications. This system resulted gross disparities value generally comparable property. Each year, respondent county commission affirmed assessments, petitioners appealed State Circuit Court. Eventually, number these appeals consolidated decided. Court held county's assessment systematically intentionally discriminated against violation Fourteenth Amendment's Equal Protection Clause. It ordered reduce levels recommended by state commissioner his guidelines for local assessors. Supreme Appeals reversed. record did support finding intentional systematic discrimination because was at more than true value, as appropriately measured arm's-length price In view, any comparative undervaluation other could only remedied an action raise those assessments. Held: 1. violated There is no constitutional defect scheme bases uses adjustment transitional substitute individual reappraisal parcels. But Clause requires such adjustments accurate enough obtain, over short period time, rough equality treatment similarly situated owners. one involving permissible inequality, since has been roughly 8 35 times neighboring discrepancies have continued 10 years little change. are carried too small seasonably dissipate disparity. Pp. 342-344. 2. permits divide different kinds into classes assign each burden long divisions burdens neither arbitrary nor capricious. drawn distinction here laws provide kind uniformly according estimated market suggestion practice adopted authorizes counties independently fashion own substantive policies. assessor has, apparently her initiative, applied law manner resulting significant persistent disparity between unfairly deprives rights under 344-346. 3. might initiative remove raising undervalued same class. A taxpayer position, however, forced litigate redress, may remitted remedy seeking raised. P. 346. 178 W.Va. 485, 360 S.E.2d 560, reversed remanded. REHNQUIST, C.J., delivered opinion unanimous E. Barrett Prettyman, Jr., Washington, D.C., petitioners. William Ullrich, Charleston, W. Va., respondents. Chief Justice REHNQUIST 1 guarantees citizens that, certain exceptions, "taxation equal throughout State, . ." Art. X, § price, but made modifications land which had sold. we hold it denied protection guaranteed them Amendment. 2 Between County, Virginia, fixed yearly within 50% appraised She declared consideration last Some sold, although they amounted to, most, 10% increases 1976, 1981, 1983 respectively.1 3 1974, example, Allegheny Pittsburgh Coal Company (Allegheny) purchased fee, surface, mineral interests stated somewhat excess $24 million, during 1976 through annually half this figure. 1982 sold East Kentucky Energy Corp. (Kentucky Energy) figure nearly $30 thereafter valuation just below $15 million. Oneida Shamrock participated similar transactions or manner. 4 pursued relief before Commission sitting review board. They argued policy appraisals excessive compared parcels conveyed. year group successor interest, Energy, finally decided 1985. App. Pet. Cert. No. p. 15a. Another early next year. 87-1310, 49a.2 5 judge cases concluded used He published use Underlying judge's conclusions findings dramatically county. found "the compare various features estate high much lower rate." 29a; 59a. "The questioned upon presence economically minable removable coal, oil, gas harvestable timber estate, absence [neighboring] properties." Ibid. Nor "based present immediately foreseeable economic development estate." Rather, "[t]he sole was, deeds." Ibid.3 6 approach produced dramatic differences otherwise surrounding land. For 1982, approximately rate owners properties. After purchasing land, 33 From 1981 1985, Shamrock-Oneida 20 coal tracts. These existed notwithstanding case would required 500 equalize 7 On appeal, trial court's ruling actions board constituted "intentional systematic" discrimination. "assessments paid arm's length appropriate measure 'true actual value' property." re Tax Assessments Co., Va. 489, 564 (1987). That relative require reduced: " 'Instead, should seek taxpayers raised value.' Id., 490, S.E.2d, 565 (quoting Killen Logan Com'n, 170 602, 622, 295 689, 709 (1982)). We granted certiorari decide whether and, if so, constitutionally limited others. 485 976, 108 1268, 99 480 (1988). agree import complaint simply purposes transaction. one: while what current fraction do understand disputed fact. read saying even there facts, available effort amount. Amendment United States Constitution, specified Virginia. 9 argues rationally related purpose assessing value: when available, makes exceedingly information about property—the purchased. As data grow stale, periodically adjusts some perception change area values. intend cast doubt theoretical scheme. two methods assess class is, without more, moment. "applies fact bears unequally persons class." Charleston Fed. Savings & Loan Assn. Alderson, 324 182, 190, 65 624, 629, 89 L.Ed. 857 (1945) (collecting cases). violates command. time holders, satisfied. Just tolerates occasional errors mistakes judgment valuing purposes, see Sunday Lake Iron Co. Wakefield, 247 350, 353, 38 495, 495-496, 62 1154 (1918); Coulter Louisville Nashville R. 196 599, 25 342, 49 615 (1905), does immediate latest developments. case, requirement seasonable attainment Allied Stores Ohio Bowers, 358 522, 526-527, 79 437, 440-441, (1959), cited; cf. FPC Hope Natural Gas 320 591, 64 281, 287-288, 88 333 (1944) (noting, ratemaking context, "[i]t theory, impact counts"). example delay inequalities Petitioners' remaining 11 States, course, broad powers impose collect taxes. reasonable. Stores, supra, U.S., S.Ct., 440-441 ("The specific taxes trades professions vary excise products"). might, corporations, including petitioners, individuals. See Lehnhausen Shore Auto Parts 410 356, 93 1001, 351 (1973) (Illinois ad valorem personalty corporations). "[i]f selection classification capricious arbitrary, rests reasonable difference policy, denial law." Brown-Forman Kentucky, 217 563, 573, 30 578, 580, 54 883 (1910).4 12 distinction. Its authoritative source, statute; valid implicit even-handedly State. C. S. L.R. Browning, 310 362, 368-369, 60 968, 971-972, 84 1254 (1940). advised statute policies statute. Salsburg Maryland, 346 545, 74 280, 98 281 (1954). heretofore described, Indeed, seems contrary guide aid assessors 13 "[I]ntentional officials taxable contravenes right full 352-353, 495-496; Sioux City Bridge Dakota 260 441, 445-446, 43 191-192, 67 340 (1923); Cumberland Board Revision Greene Pa., 284 23, 28-29, 52 48, 50-51, 76 146 (1931). clause protects selects him out discriminatory subjecting imposed others Hillsborough Cromwell, 326 620, 623, 66 445, 448, 90 (1946). suffered officials" County. Viewed isolation, fully comply law. fairness one's allocable share total can meaningfully evaluated comparison holdings. therefore denies 14 situation [Equal Clause] satisfied itself discrimination, imposes whom directed upward revision members Hillsborough, citing 445-447, 191-192; Iowa-Des Moines Nat'l Bank Bennett, 239, 247, 133, 136, 265 (1931); 50-51. accordingly reversed, remanded further proceedings inconsistent opinion. 15 ordered. Petitioners contend uneven best. According study tracts 1984 introduced demonstrated 35% unchanged period. courts appear factual accepting rejecting it. argument, will accept figures find figures, dispel flaw system. primary decisions adjudicating validity lands question, obtained orders applying decisions. pp. 79a, 83a, 86a. Respondent truly points Allegheny, then comprising 4,287 acres, allegedly contains 32 million tons low-sulfur recoverable strip mining. unusually valuable parcel skews average properties, well serving higher make answers: First, rely respondent's stipulations owned Petitioner, substantially geologically Petitioner. Record 1319-1320, 1085. Next, point Court, never rejected Appeals, "[a]lthough identical appears topography, location, access, development, content forestation, adjacent contiguous others." 16a; 50a. Finally, note founded testimony Energy's expert witness, who testified equally promising. direct examination he said: "As far comparing geologically, seams [suggested comparable]. there. [T]he I know chances being mineable good [Kentucky Energy] * ". variations, depending seam other, run very located geological reason comparable." Brief Opposition 10a-11a. think submissions justify conclusion presented us were, aspects assessment, markedly amounts. need today method stand footing applied, instead aberrational enforcement be. California Article XIIIA popularly known "Proposition 13." Proposition provides 1975-1976 reassessed constructed upon, inflation. Cal. Const., XIIIA, (limiting inflation 2% per year). grounded belief original cost unrealized paper gains

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