Cities Service Oil Co. v. Murphy

Fatzer, J.,

concurring in part and dissenting in part: I concur in the court’s opinion that the district court did not err in failing to adopt the values established by the plaintiffs’ expert witness, Mr. Yates, and in failing to substitute them for the values arrived at by the defendants. I dissent, however, from the court’s holding that the 1964 Kansas real estate assessment ratio study manual prepared by the property valuation director pursuant to K. S. A. 79-1436, was insufficient to show that the ratio assessment of real estate in Haskell County was twelve percent of justifiable value. The assessment ratio study prepared by the county clerk and introduced into evidence as an exhibit tended to show the same justifiable value. The finding of the district court that such evidence was insufficient upon which to base a comparison for the purpose of determining a valuation and assessment to be arbitrary, oppressive, capricious and discriminatory, cannot be sustained.

In Board of County Commissioners v. Brookover, 198 Kan. 70, 422 P. 2d 906, it was held that the ratio studies provided for in 79-1436 may properly be considered in determining the necessity of reappraisal of the taxable property in a county to arrive at a justifiable value for tax purposes as provided by K. S. A. 79-1439. In my judgment, if ratio studies are sufficient for that purpose, they are sufficient to establish a basis of comparison to determine whether a valuation and assessment constitutes constructive fraud. (Addington v. Board of County Commissioners, 191 Kan. 528, 382 P. 2d 315.)

In this case, the rate of assessment of the plaintiffs oil and gas leases fixed by the county clerk-assessor was thirty percent of justifiable value. The ratio studies and the exhibit prepared by the county clerk were sufficient, in my opinion, to show that the ratio of assessment of real estate in Haskell County was twelve percent of justifiable value. The action of the officers in assessing the plaintiffs’ personal property at thirty percent of justifiable value and real *296estate at twelve percent of justifiable value was the result of deliberation and intention, and was so arbitrary and capricious as to constitute fraud on the rights of the plaintiffs. (Bank v. Lyon County, 83 Kan. 376, 111 Pac. 496.)

The action taken by the State Board of Tax Appeals and by the director of property valuations results in piecemeal application of our law requiring reappraisal of the taxable property in this state when it is placed in effect in one county as to personal property but is not placed into effect as to real estate. Proper and efficient administration of the law would seem to require that justifiable values for all properties for tax purposes be established in a given county at one time.