1804, Inc. v. Department of Revenue

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BEFORE THE STATE TAX APPEAL BOARD
OF THE STATE OF MONTANA
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)
1804, INC., & PASTA PACIFICA, ) DOCKET NO.: PT-2000-11
)
Appellant, )
)
-vs- )
)
THE DEPARTMENT OF REVENUE ) FACTUAL BACKGROUND,
OF THE STATE OF MONTANA, ) CONCLUSIONS OF LAW,
) ORDER and OPPORTUNITY
Respondent ) FOR JUDICIAL REVIEW
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The above-entitled appeal was heard on August 14, 2001,
in Thompson Falls, Sanders County, Montana, in accordance
with an order of the State Tax Appeal Board of the State of
Montana (Board). The notice of the hearing was duly given
as required by law. The taxpayer, represented by Curtis Cox
(agent), presented testimony in favor of the appeal. The
Department of Revenue (DOR), represented by appraisers Ed
Thompson and Larry Richards, and Shirley Gross, Auditor,
presented testimony in opposition to the appeal.
The duty of this Board is to determine the appropriate
market value for the property based on a preponderance of
the evidence. Testimony was presented and exhibits were
received.

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The Board denies the taxpayer’s request for a value in
the amount of zero dollars. One piece of equipment is
removed from the taxpayers’ assessment.
This decision modifies the decision of the Sanders
County Tax Appeal Board.
STATEMENT OF ISSUE
The issue before this Board is the market value of the
subject property.
FACTUAL BACKGROUND
1. Due, proper, and sufficient notice was given of this
matter, the hearing hereon, and of the time and place
of the hearing. All parties were afforded opportunity
to present evidence, oral and documentary.
2. The property which is the subject of this appeal is
described as follows:
Personal property: various items of equipment including a
Cat D4D bulldozer, batch plant, tractor-loader, and a
forklift.
3. This property was appealed to this Board in 1997 by
1804, Inc (PT-1997-49).
4. In the above-mentioned appeal, the taxpayer requested a
market value of zero dollars. The Board denied the
taxpayer’s request and upheld the value as determined
by the DOR. (PT-1997-49)

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5. 1804, Inc. did not appeal that decision to the District
Court pursuant to §15-2-303, MCA.
6. The Sanders County Tax Appeal Board received and appeal
on June 8, 2000 for tax year 2000.
7. The County Board issued its decision on November 16,
2000, denying the taxpayers request for a reduction in
value, stating:
Mr. Cox has provided verbal testimony, but no evidence to support
his testimony to justify any change. Heavy equipment also listed
on appeal #1.
8. 1804, Inc. appealed that decision to this Board on
December 28, 2000.
TAXPAYER’S CONTENTIONS
Mr. Cox testified that at the time of the DOR’s lien
date, he no longer owned the Cat D4D. In addition, he
offered testimony as to why the remaining heavy equipment
has no monetary value.
DOR’S CONTENTIONS
The DOR testified that the taxpayer has neglected to
return the personal property reporting form, which is mailed
to each owner of personal property within the county. The
taxpayer neglected to file for tax year 2000 as well as past
tax years.
The DOR testified that the CAT D4D would be removed

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from the assessment for tax year 2000. The remaining
property received an estimated market value based on the
lack of filing or cooperation by the taxpayer.
BOARD’S DISCUSSION
While the taxpayer provided no proof that he no longer
owned the Cat D4D, the DOR decided that it would remove that
piece of equipment from the taxpayer’s assessment based on
his testimony.
The Board heard similar testimony from the taxpayer in
PT-1997-49 and the Board upheld the DOR in that proceeding.
The Board is at a loss as to the reason the taxpayer is
unwilling to work with the DOR in ascertaining a proper
assessment for the items of personal property. Until that
event occurs, the DOR must proceed as it has in the past
pursuant to Montana Code Annotated and Montana
Administrative Rules.
It is the opinion of this Board that the three
remaining pieces of equipment shall be assessed by the DOR
at the present estimated values. In addition, the 20%
penalty assessment shall be applied to the remaining
equipment.

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CONCLUSIONS OF LAW
1. The State Tax Appeal Board has jurisdiction over this
matter. §15-2-301 MCA.
2. §15-8-111 MCA. Assessment - market value standard -
exceptions.
3. §15-8-201 MCA. General Assessment Day.
4. §15-8-301 thru §15-8-309 MCA. (How Property Is
Assessed)
5. 42.21.158 ARM. Property Reporting Requirements.
6. 42.21.162 ARM. Personal Property Taxation Dates.
7. PT-1997-49, 1804, INC v. Montana Department of
Revenue.
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ORDER
IT IS THEREFORE ORDERED by the State Tax Appeal Board
of the State of Montana that the subject property shall be
entered on the tax rolls of Sanders County by the local
Department of Revenue office at the values pursuant to the
above discussion. The decision of the Sanders County Tax
Appeal Board is modified.
Dated this 24th day of August 2001.
BY ORDER OF THE
STATE TAX APPEAL BOARD
( S E A L )
________________________________
GREGORY A. THORNQUIST, Chairman
________________________________
JEREANN NELSON, Member
NOTICE: You are entitled to judicial review of this Order
in accordance with Section 15-2-303(2), MCA. Judicial
review may be obtained by filing a petition in district
court within 60 days following the service of this Order.

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CERTIFICATE OF SERVICE
The undersigned hereby certifies that on this 24th day of
August, 2001, the foregoing Order of the Board was served on
the parties hereto by depositing a copy thereof in the U.S.
Mails, postage prepaid, addressed to the parties as follows:
1804, Inc.
P.O. Box 751
Plains, Montana 59859
Office of Legal Affairs
Department of Revenue
Mitchell Building
Helena, MT 59620
Edward R. Thompson
Appraiser
Sanders County
County Courthouse
Thompson Falls, MT 59873
Doris Grimm
Chairperson
Sanders County Tax Appeal Board
P.O. Box 875
Thompson Falls, Montana 59873
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DONNA EUBANK
Paralegal