ORDERS:
FINAL ORDER AND DECISION
The subject property was vacant at the time of the appraisal and was zoned for "light
industrial".
The subject property is improved with six buildings and has existing water and sewer
services provided by the city of Aiken.
Pursuant to the county-wide reassessment, the assessor determined the value of the
subject property at $192,000 as of December 31, 1994.
Babb appealed the new value, accepting the land value of $125,000, but claiming the
buildings did not have any value.
Appraisers with the Assessor's Office conducted a complete review of the property
and issued the "Appraisal of Light Industrial Site (Formerly M & M Supply Co.)" (hereinafter
"Appraisal").
The appraisers determined that the cost and income capitalization approaches were
not appropriate appraisal methods because the existing improvements contributed considerably less
value to the subject property than did the value of the land.
The appraisers did not assign major value to the subject property's improvements,
which were near the end of their functional life and which represented a cost to potential buyers who
would want to develop the property. The value determined by the appraisers was based upon the
land valuation/sales comparison approach.
After a conference with the taxpayer, the Aiken County Assessor's Office adjusted
the value from $192,000 to $161,877 to reflect the reduction in value attributed to the buildings.
The taxpayer submitted information on the assessed value of four properties that he
considered comparable to the subject property.
Taxpayer Comparable 1, a 28-acre tract (TMS# 00-154-0-01-033) (across the street
from the M&M property) has been valued at $80,200 or $3,000 per acre. This tract does not have
similar access to public services as the subject property and is larger than the subject property.
Taxpayer Comparable 2, the 27-acre Northside tract (TMS# 00-154-0-01-033), which
fronts on York Street, has been valued at $124,200 or $4,500 per acre. This tract also does not have
similar access to public services as the subject property, is more rural in nature, and is considerably
larger than the subject property.
Taxpayer Comparable 3, the 18-acre Fulmer tract (TMS# 00-154-0-01-143), which
fronts on York Street one tenth of a mile from the McGee property, has been valued at $99,825 or
$5,500 per acre. This tract does not have similar access to public services as the subject property,
is more rural in nature, and is considerably larger than the subject property.
Taxpayer Comparable 4, the 74-acre Seigler tract (TMS# 00-175-0-01-015), which
fronts on York Street approximately two tenths of a mile from the McGee property, has been valued
at $80,155 or $1,083 per acre. Like the other properties submitted by the taxpayer, this tract does not
have similar access to public services as the subject property, is more rural in nature, and is
considerably larger than the subject property.
The Assessor identified four sales of comparable properties, each involving vacant
land purchased in order to facilitate the construction of improvements, in the neighborhood near the
subject property.
Appropriate comparable sales in the immediate area ranged from $23,050 per acre
to $29,192 per acre, according to the appraiser's report.
In the report, the Assessor adjusted the comparable properties according to several
factors, including time of sale, location, size, frontage, utilities, and drainage.
Sale #1, a 0.459 acre lot at York and Hampton Streets, sold for $160,000. After
adjustments based on the location, size, frontage, utilities, and drainage, the value per acre was
$69,696. However, the dissimilarities requiring the adjustments were too great, therefore, the
property was not considered comparable.
Sale #2, a 1.98 acre lot on York Street near Coca-Cola, sold for $68,000. Except for
its size and frontage, it is very similar to the subject property. After adjustments, the value per acre
was $29,192.
Sale #3, a 5.64 acre lot on York Street near the Vocational Rehabilitation Center,
sold for $130,000 or $23,050 per acre. This property was very similar to the subject property and
no adjustments were made to the per acre value.
Sale #4, a 11.0 acre lot on Highway 118, east of York Street, sold for $275,000 or
$25,000 per acre. Only nominal adjustments were made based on the date of the sale. After
adjustments the per acre value was $24,250.
Sale numbers 3 and 4 used by the Assessor are most probative of the value of the
subject property.
The subject property was sold as part of the entire 30-acre M&M parcel on November
15, 1996, for $200,000 or $6,000 per acre. The property was originally marketed for $350,000 and
since December 1994 was marketed at $300,000.
Based upon the sales of similar properties, the fair market value of the subject
property as of December 31, 1994 was $161,877.(1)
CONCLUSIONS OF LAW
Based upon the foregoing Findings of Fact, I conclude, as a matter of law, the following:
- S.C. Code Ann. § 12-60-2540 (Supp. 1995) authorizes the South Carolina
Administrative Law Judge Division to hear contested cases pursuant to Chapter 23 of Title 1 of the
1976 Code, as amended.
- Taxes on real property have been based on the actual value of the property taxed since
1865. S.C. Const. Art. I § 8.
- S.C. Code Ann. § 12-37-930 (Supp. 1995) provides the following:
All real property must be valued for taxation at its true value in money which
in all cases is the price which the property would bring following reasonable
exposure to the market, where both the seller and buyer are willing, are not acting
under compulsion, and are reasonably well informed as of the uses and purposes of
which it is adapted and for which it is capable of being used.
- 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).
- There is no valid distinction between market value for sales purposes and market
value for taxation purposes under S.C. Code Ann. § 12-37-930. S.C. Tax Comm'n v. S.C. Tax Bd.
of Review, 287 S.C. 415, 339 S.E.2d 131 (Ct. App. 1985).
- While not conclusive, market sales of comparable properties present probative
evidence of the fair market value of similar property. 84 C.J.S. Taxation § 411 (1954).
- The assessor's decision as to the situs of property, its taxability, and the valuation put
on it generally is presumed correct until the contrary appears, and the person complaining has the
burden of proving his grievance. 84 C.J.S. Taxation § 537 (1954); Cloyd v. Mabry, 295 S.C. 86, 367
S.E.2d 171 (Ct. App. 1988).
- A taxpayer contesting an assessment has the burden of showing that the valuation of
the taxing authority is incorrect. Ordinarily, this would be done by proving the actual value of the
property. The taxpayer may, however, show by other evidence that the assessing authority's value
is incorrect. If he does so, the presumption of correctness is removed and the taxpayer is entitled to
appropriate relief. Cloyd v. Mabry, 295 S.C. 86, 367 S.E.2d 171 (Ct. App. 1988).
- Babb has not established that the subject property has been valued inappropriately.
- The Aiken County Assessors's Office properly valued the subject property at
$161,877.
ORDER
Based upon the foregoing Findings of Fact and Conclusions of Law, it is hereby
ORDERED, that the Aiken County Assessor shall assess the taxpayer's property identified
as Tax Map # 30-067-0-01-002, located at 727 York Street, N.E. (U.S. Highway 1), near the
intersection of Columbia Avenue in downtown Aiken, South Carolina, at $161,877 for tax year
1995.
AND IT IS SO ORDERED.
_______________________________
ALISON RENEE LEE
Administrative Law Judge
May 15, 1997
Columbia, South Carolina.
1. The appraisal report places a value of $161,877 on the property. The notice to the
taxpayer after the conference states an assessed value of $162,177. The Aiken County Tax
Review Board places a value of $162,177 on the property. The Assessor's Prehearing Statement
filed with the Division requests a value of $161,877. The value cited in the appraisal is the
appropriate value to use. There is no information to determine how a value of $162,177 was
determined. |
