ORDERS:
FINAL ORDER AND DECISION
STATEMENT OF THE CASE
This matter is a contested case brought by C. Frank Kelley ("Petitioner" or "Taxpayer") against the Lexington County Auditor
("Auditor") concerning the payment of property taxes on a 1995 Dodge Caravan and a 1999 Dodge Caravan for the tax year 2000 and
the appeals process before the Lexington County Auditor. The parties have exhausted their prehearing remedies and jurisdiction is
granted to the Administrative Law Judge Division ("ALJD") by S.C. Code Ann. 12-60-2540.
A contested case hearing was held at the offices of the Administrative Law Judge Division at the Edgar A. Brown Building, 1205
Pendleton Street, Columbia, South Carolina on November 7, 2000, after notice to the parties.
I find that the Auditor must reassess the personal property taxes against the taxpayer's 1995 Dodge Caravan for the year 2000 based
upon a valuation of $3,125.00, and that the Auditor's assessment for personal property taxes against the taxpayer's 1999 Dodge
Caravan for the year 2000 is correct. Further, I find that the Auditor's office handled this case in the statutorily prescribed manner.
FINDINGS OF FACT
Having carefully considered the credibility of the testimony and accuracy of the evidence presented at the hearing and taking into
consideration the burden of persuasion by the parties, I make the following findings of fact by a preponderance of the evidence:
1. This Division has personal and subject matter jurisdiction.
2. Notice of the date, time, place and nature of the hearing was timely given to all parties.
3. Taxpayer is a resident of Lexington County, South Carolina. He resides at 209 Maple Road, Lexington, South Carolina.
4. Taxpayer owns a 1995 Dodge Caravan which has the vehicle identification number 2B4GH25K5SR156070. Also, Taxpayer owns
a 1999 Dodge Caravan which has the vehicle identification number 2B4FP25B4XR261110.
5. The 1995 Dodge Caravan was assessed by Lexington County for the year 2000 at 760, less a reduction of 290 for high mileage (in
excess of 65,001 miles), for a value of 470. This equated to a property value of $4,476.00. Applying the millage of 321.1 times the
value of 470, the amount of property taxes sought by Lexington County was $150.92.
6. The 1999 Dodge Caravan was assessed by Lexington County for the year 2000 at 1,540 mills. This equated to a property value of
$14,666.00. After applying the millage of 321.1 to the property value of $14,666.00, the amount of property taxes sought by
Lexington County was $494.50.
7. The 2000 "Vehicle Assessment Guide" for Dodge Caravans, as provided by the South Carolina Department of Revenue to
Lexington County for assessment purposes, lists an assessment value of 760 for the 1995 Dodge Caravan and 1540 for the 1999
Dodge Caravan. This guide was utilized by Lexington County in assessing Taxpayer's vehicles. Further, Lexington County utilized
the "High Mileage Chart" for the year 2000 in reducing the value of the 1995 Dodge Caravan. No reduction was allotted for the 1999
Dodge Caravan.
8. Taxpayer requested a conference with the Lexington County Auditor and met with him on May 31, 2000. They met for a very
lengthy period of time. The Auditor did not change the valuation of either vehicle as a result of the conference.
9. The Auditor provided Taxpayer the form on which to file a protest. The protest was timely filed with the Auditor and was denied
by the Auditor on June 21, 2000.
10. Taxpayer was notified of his right to request a contested case hearing before the Administrative Law Judge Division to review the
decision of the Auditor.
11. On June 8, 2000, Taxpayer filed a protest of the final determination of the Auditor with the Administrative Law Judge Division
and the case was assigned to the undersigned for adjudication.
12. Taxpayer obtained a written valuation from John Addy of Addy Dodge of Lexington, South Carolina wherein Mr. Addy
determined that the N.A.D.A. value for the 1995 Dodge Caravan was $1,900.00 and the N.A.D.A. value for the 1999 Dodge Caravan
was $11,000.00. In making these valuations, Mr. Addy did not visually inspect either vehicle owned by Taxpayer.
13. Taxpayer obtained from the South Carolina Federal Credit Union a copy of the May 25, 2000 N.A.D.A. Official Used Car Guide
valuation for a 1995 Dodge Caravan Truck. It lists the retail value at $4,950.00, the trade-in value at $3,125.00 and the loan value at
$2,550.00. The same guide lists the valuation for a 1999 Dodge Caravan truck as follows: $15,025.00 for retail value, $12,550.00 for
trade-in value and $11,250.00 for loan value.
14. Sanford Houck, Jr., Revenue Manager in the Property Division of the South Carolina Department of Revenue listed the value of
the 1995 Dodge Caravan truck at 760 and the value on the 1999 Dodge Caravan truck at 1,580.
15. Taxpayer paid the property taxes for tax year 2000 on both vehicles to the Lexington County Auditor "under protest."
16. Taxpayer alleges that the true valuation of the 1995 Dodge Caravan truck is $1,900.00 and the true valuation of the 1999 Dodge
Caravan truck is $11,000.00 based upon the opinion of Mr. John Addy.
CONCLUSIONS OF LAW
Based upon the foregoing Findings of Fact, I conclude, as a matter of law, the following:
1. S.C. Code Ann. § 1-23-600 (Supp. 1999) grants jurisdiction to the Administrative Law Judge Division to hear contested cases
under the Administrative Procedures Act.
2. Pursuant to S.C. Code Ann. § 12-39-340 (2000), the county auditor is responsible for ascertaining that all personal property subject
to ad valorem taxation by the Constitution or general law is listed and assessed according to manuals, guidelines and rules and
regulations promulgated by the Commission (now the Department of Revenue).
3. S.C. Code Ann. § 12-39-350 (2000) provides that the county auditor "shall adopt valuations of the assessor and the department."
4. S.C. Code Ann. Regs. 117-119 and 117-119.1 (1976) provide "Assessment Guides for Personal Property" which the county auditor
is required to follow and use in assessing personal property.
5. Effective August 1, 1995, the South Carolina Revenue Procedures Act established the procedure for personal property tax
assessment protests, appeals and refunds where the county auditor has assigned the value. S.C. Code Ann. §§ 12-60-2910 to 12-60-2940 (2000). The Act provides that the taxpayer may object to a personal property tax assessment and may request in writing to meet
with the auditor. Further, the taxpayer may file a protest with the auditor within 30 days after the conference with the auditor if he
disagrees with the value determined by the auditor at the conference.
6. S.C. Code Ann. § 12-37-210 (2000) defines property which is taxable in South Carolina as follows:
All real and personal property in this State, personal property of residents of this State which may be kept or used temporarily out of
the State, with the intention of bringing it into the State, or which has been sent out of the State for sale and not yet sold, and all
moneys, credits and investments in bonds, stocks, joint-stock companies or otherwise of persons resident in this State shall be subject
to taxation.
7. Pursuant to S.C. Code Ann. §§ 12-37-710, -890 and -900 (2000), residents of this State are required annually to list for taxation all
tangible personal property which they own, or which is in their control or possession on December 31 preceding the relevant tax year.
Such personal property shall be taxed at the place where the owner resides at the time of listing.
8. S.C. Code Ann. § 12-60-2920 (2000) provides that a taxpayer may request a contested case hearing with the Administrative Law
Judge Division if he is aggrieved by the decision of the county auditor. Although the statutory procedure does not provide Taxpayer a
hearing before a local board, it does afford Taxpayer an impartial and fair hearing before an administrative law judge where he can
present any relevant testimony and evidence. Taxpayer has been provided a proper forum to argue his legal position.
9. Taxpayer has offered evidence in this case which is persuasive as to the valuation of the 1995 Dodge Caravan truck. I find that the
valuation placed by the Auditor on the 1995 Dodge Caravan truck is excessive. Further, I find that the trade-in valuation of $3,125.00
as listed in the N.A.D.A. guide is a more reasonable valuation for this vehicle which has in excess of 140,000 miles. The "willing
buyer-willing seller" concept espoused by Taxpayer is applicable to the valuation of the 1995 vehicle which is older and its value is
subject to market conditions. Based upon the age and mileage of this vehicle, the trade-in value is more appropriate than the
valuation listed by the Department.
10. I find that the value determined by the Lexington County Auditor for the 1999 Dodge Caravan truck is a reasonable valuation for
this vehicle. Taxpayer offered no evidence other than the estimate by Mr. Addy, which was made without any actual inspection of the
vehicle, to show that the value of the 1999 Dodge Caravan truck should be less than that determined by the Lexington County
Auditor. However, the 1999 vehicle did not have high mileage and there was no testimony or evidence that it was not in excellent
condition. Accordingly, the valuation determined by the Auditor was correct and reasonable.
11. S.C. Code Ann. § 12-37-2680 (2000) provides that the assessed value of any vehicle must be determined as of the first day of the
month preceding the beginning of the tax year for vehicles. Further, it provides that the assessed values must be published in guides
or manuals by the South Carolina Department of Revenue and provided to the auditor for each county as often as may be necessary to
provide for current values. When the value of any vehicle is not set forth in the guide or manual, the auditor shall determine the value
from other available information.
A strict construction of this provision infers that when applicable facts establish a value other than that set forth in the Department of
Revenue guides, the county auditor is not bound by the guides, but has the authority to make necessary value changes.
ORDER
Based upon the foregoing Findings of Fact and Conclusions of Law, it is hereby:
ORDERED that the Lexington County Auditor must recalculate the property taxes for the 1995 Dodge Caravan truck owned by
Taxpayer based upon a valuation of $3,125.00 immediately upon receipt of this order and assess Taxpayer accordingly, and it is
further
ORDERED that the valuation placed by the Lexington County Auditor on the 1999 Dodge Caravan truck owned by Taxpayer is
correct and reasonable and is affirmed by this court,
AND IT IS SO ORDERED.
__________________________________
MARVIN F. KITTRELL
Chief Administrative Law Judge
November 22, 2000
Columbia, South Carolina |
