ORDERS:
ORDER
I. Statement of the Case
This matter is a contested case brought by W. A. Atkinson as the Petitioner (hereinafter referred to
as "taxpayer") against the Oconee County Assessor (hereinafter referred to as "assessor") concerning
a property valuation for property tax year 1993. The taxpayer exhausted his prehearing remedies
with the assessor and the Oconee County Board of Assessment Appeals and is now seeking a
contested case hearing before the Administrative Law Judge Division (hereinafter referred to as
"ALJD"). Jurisdiction is granted the ALJD by 1995 S.C. Acts 60, § 12-60-2540(A). This matter was
heard on September 28, 1995. I conclude the property must be valued at $ 32,215.
Any issues raised in the proceedings or hearing of this case but not addressed in this Order are
deemed denied. ALJD Rule 29(B). Further, the filing of a motion for reconsideration is not a
prerequisite to any party filing a notice of appeal of this Order. ALJD Rule 29(C).
II. Issues
For the 1993 tax year, what is the fair market value of the 1991 Clayton Mobile Home owned by
the taxpayer?
III. Analysis
1. Positions of Parties:
The assessor asserts that the purchase price is evidence of value and that the sale of a similar property
demonstrates the taxpayer's mobile home is correctly valued at $32,215. The taxpayer asserts he paid
over $37,000 for the mobile home in 1991 but argues that he paid too much and that the value of the
mobile home for the 1993 tax year is $26,000.
2. Findings of Fact:
I find, by a preponderance of the evidence, the following facts:
1. The taxpayer purchased a new 1991 Clayton double wide mobile home in December 1991 for
$37,900.
2. The size of the mobile home is 56 x 28 feet with an approximate square footage of 1,568
square feet with a purchase price per square foot of $24.17.
3. The assessor valued the subject property at $33,200 for the tax year 1993.
4. After an appeal to the Oconee County Board, the County Board determined a value of
$32,215 was proper.
5. The assessor has adopted the Board's value of $32,215 as his value.
6. The assessor determined that a similar 1991 mobile home sold new for $38,000.
7. The comparable is a 1991 Southern Energy home, size 56 x 28 which sold in September of
1990, for $38,000.00 with a price per square foot of $24.23.
8. The assessor valued the mobile home under a cost approach.
9. The cost approach from the Marshall & Swift Valuation Service gave a value of $33,200 for
the taxpayer's property.
3. Discussion
The issue here is what is the value of a used 1991 mobile home on December 31, 1992. The assessor
relied upon a cost approach using the construction costs from the Marshall & Swift Valuation Service
for mobile homes. The cost approach determines the fair market value of property based upon the
cost to construct the property less depreciation to arrive at the value in the year in dispute. Such a
method produces a value of $33,200. The cost approach is an acceptable method of valuation. 84
C.J.S. Taxation § 410 (1954). There was no evidence indicating the cost method was incorrectly
applied.
In addition, the purchase price of the property is evidence of value. Belk Dep't Stores v. Taylor, 259
S.C. 174, 191 S.E.2d 144 (1972). Here the purchase price in December 1991 was $37,900. The
taxpayer does not dispute the purchase price but asserted the purchase price did not accurately
represent the value. In short, he testified he paid too much for the mobile home. He sought to submit
for my consideration an appraisal guide allegedly showing the value of a new 1991 mobile home with
a size of 56 x 28 feet to be $31,760. Pursuant to an objection, I ruled the document inadmissible as
irrelevant since the document was entered to show the value of a new 1991 mobile home when in fact
it shows the value in December 1991 of used mobile homes.
In any event, even if the appraisal guide were in evidence, such is insufficient to overcome the sale
of a similar new 1991 mobile home for $38,000 as demonstrated by the assessor. Such a sale
indicates the taxpayer's purchase price was a fair price for the property. Considering all of the
evidence, the assessor's value of $32,215 is appropriate for the taxpayer's 1991 Clayton double wide
mobile home for the tax year 1993.
4. Conclusions of Law
Based on the foregoing Findings of Fact and Discussion, I conclude the following as a matter of law:
1. All property shall be valued for taxation purposes at its true value in money which in all cases
shall be held to be the price which the property would bring following reasonable exposure
to the market, where both the seller and the buyer are willing, are not acting under
compulsion, and are reasonably well informed as to the uses and purposes for which it is
adapted and for which it is capable of being used. S.C. Code Ann. § 12-37-930 (Supp. 1994).
2. Fair market value is the measure of true value for taxation purposes. Lindsey v. S.C. Tax
Comm'n, 302 S.C. 504, 397 S.E.2d 95 (1990).
3. The fair market value of real and personal property, unless altered by a specific statute, is
determined as of December 31 of the year preceding the tax year under review. S.C. Code
Ann. § 12-37-900 (1976).
4. The valuation date for the taxpayer's mobile home is December 31, 1992, for the 1993 tax
year. S.C. Code Ann. § 12-37-900 (1976).
5. Cost minus depreciation can be an acceptable method to determine fair market value. 84
C.J.S. Taxation § 410 (1954).
6. Evidence of the purchase price of assessed property, while not conclusive, is to be accorded
substantial weight on the issue of fair market value. Belk Dep't Stores v. Taylor, 259 S.C.
174, 191 S.E.2d 144 (1972).
7. The value of $32,215 is the fair market value of the taxpayer's 1991 Clayton double wide
mobile home for the tax year 1993.
IV. ORDER
Based upon the foregoing Findings of Fact and Conclusions of Law, the following ORDER is issued:
The assessor is directed to value the taxpayer's 1991 Clayton double wide mobile home for the tax
year 1993 at a value of $32,215.
IT IS SO ORDERED
____________________________
RAY N. STEVENS
Administrative Law Judge
This 16th day of October, 1995 |
