Sovereign Bank v. Berks County Bd. of Assessment Appeals

21 Pa. D. & C.5th 164
CourtPennsylvania Court of Common Pleas, Berks County
DecidedJanuary 25, 2011
Docketno. 09-15775
StatusPublished

This text of 21 Pa. D. & C.5th 164 (Sovereign Bank v. Berks County Bd. of Assessment Appeals) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Berks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sovereign Bank v. Berks County Bd. of Assessment Appeals, 21 Pa. D. & C.5th 164 (Pa. Super. Ct. 2011).

Opinion

LASH, J.,

The appellant, Sovereign Bank (hereinafter “Sovereign”), has filed an appeal from the decision entered by the Berks County Board of Assessment Appeals (hereinafter board”) assessing real estate owned by Sovereign at nine hundred eighty-nine thousand dollars ($989,000.00), effective January 1, 2010 for city and county taxes and July 1,2010 for school taxes. A de novo trial reviewing assessments for 2010 and 2011 was held on December 28, 2010. The court enters the following findings of fact:

I. FINDINGS OF FACT

1. The appellant, Sovereign Bank (hereinafter “Sovereign”), is a banking institution maintaining a mailing address at P.O. Box 14115, Reading, Berks [166]*166County, Pennsylvania 19612-4115.

2. The appellee, Berks County Board of Assessment Appeals (hereinafter “board”), is located at the Berks County Services Center, Third Floor, 633 Court Street, Reading, Berks County, Pennsylvania 19601.

3. Tntervenor, Wyomissing Area School District (hereinafter “School District”), is a school district with its administrative office located at 630 Evans Avenue, Wyomissing, Berks County, Pennsylvania 19610-2636. School district filed a notice of intervention on December 16, 2009.

4. Sovereign is the legal owner of real estate located at 840 Penn Avenue, Wyomissing Borough, Berks County, Pennsylvania (hereinafter “property”), parcel identification number 96-5307-17-00-2018.

5. The land area of the property is approximately 31,150 square feet, improved with a building used as a bank branch and associated general office use. The building size contains 12,300 square feet, 8,200 square feet above grade and 4,100 square feet below grade. The building was constructed in 1980.

6. The building is located in the Wyomissing Area School District, in an area zoned TC, Township Center Residential/Office District.

7. The subject building is a two-(2) story brick structure. The entire building is occupied by Sovereign Bank. The first floor is the bank branch operations, while the second floor is used by the bank for general office [167]*167purposes. The basement finished area is used mainly for storage purposes at this time. Heating for the building is gas forced warm air, and the entire structure is centrally air conditioned.

8. The first floor of the building houses the bank’s daily business traffic. There are five (5) teller windows, the drive up window and an ATM room. There are four (4) private offices sectioned by partition walls, conference room and reception/waiting area. This floor is mainly carpeted.

9. The second floor of the building houses the bank’s general office area along with a break/file room area. There are six (6) private offices sectioned by partition walls and cubicle work stations. The floor is mainly carpeted in the office area, with tile in the break/file room.

10. The basement of the building is finished area. There is a break room, several storage areas and a private office.

11. There is also a 1,000 pound elevator located on the west side of the building, servicing the three (3) floors of the building.

12. Sovereign filed an appeal of its assessment on July 30, 2009. The matter proceeded to the board who, after hearing held, issued a notice, dated October 30, 2009, assessing the property at nine hundred eighty-nine thousand dollars ($989,000.00). The assessment figure is based upon a fair market value of one million four hundred sixty thousand eight hundred fifty-six dollars [168]*168($1,460,856.00), reduced by common level ratio.

13. On or about November 30, 2009, Sovereign appealed the board’s decision to the common pleas court.

14. The years in question for this appeal are 2010 and 2011. The Berks County common level ratio for tax year 2010 is .677 and for 2011 is .701.

II. DISCUSSION

The issue before this court is the fair market value of the premises. Actual or market value is defined as “the price which a purchaser, willing but not obligated to buy, would pay an owner, willing but not obligated to sell, taking into consideration all issues to which the property is adapted and might in reason be applied.” F & M Schaeffer Brewing Company v. Lehigh County Board of Appeals, 610 A.2d 1, 3, 530 Pa. 451, 457 (1992) (citation omitted).

In support of their respective positions, each party presented testimony by an appraiser expressing an opinion of fair market value. Sovereign’s expert was Paul W. Shoup, Jr., a Pennsylvania certified general real estate appraiser, who valued the fair market value of the property, as of August 1, 2009, to be seven hundred fifty thousand dollars ($750,000.00). The board and school district jointly retained Douglas A. Haring, MAT, SRA, who found the fair market value of the property to be one million four hundred eighty thousand dollars ($1,480,000.00) as of August 15, 2009 and August 15, 2010.

The court’s function is not to independently value the property, but to determine the value based on competent and [169]*169credible evidence. Appeal of F. W. Woolworth Company, 235 A.2d 793, 795, 426 Pa. 583, 586 (1967). When there are conflicting experts, the court may accept all, none or part of an expert’s testimony, part of one expert’s testimony and part of another’s. Appeal of Avco Corporation, 515 A.2d 335, 338, 621 (Pa. Super. 1986). In determining actual value, three approaches to valuation are to be used: cost (reproduction over placement, as applicable, less depreciation in all forms of obsolescence), comparable sales, and the income approach. 72 P.S. §5020-402, 5348(d), F & M Schaeffer Brewing Company, 610 A.2d at 3. In considering the weight to be given to various approaches to valuation, a trial court has discretion to determine which of the conflicting methods (cost, comparable sales or capitalized income) is the fairest and most reasonable for a particular property. Pennypack Woods Home Ownership Association v. Board of Revision of Taxes, 639 A.2d 1302, 1303 (Pa.Cmwlth. 1994), allocatur denied, 539 Pa. 669, 652 A.2d 839(1994).

Sovereign’s appraiser relied solely on the comparable sales approach, stating he was unable to obtain sufficient data to project income for this property and finding the cost approach to be impractical. School district’s appraiser applied the sales comparison and income approach, also declining to apply the cost approach.

Due to an issue raised at trial, we will initially address the assessment for 2011. As stated, the within matter is an appeal from the 2010 assessment of the property. During the pendency of the appeal, the 2011 assessment took place. As provided for in § 5350(c) of the general [170]*170county assessment law,1 the within appeal also operates as an appeal of the 2011 assessment. This point of law was recognized by all parties at time of trial.

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Related

Deitch Co. v. Board of Property Assessment
209 A.2d 397 (Supreme Court of Pennsylvania, 1965)
F. W. Woolworth Co. Tax Assessment Case
235 A.2d 793 (Supreme Court of Pennsylvania, 1967)
F & M Schaeffer Brewing Co. v. Lehigh County Board of Appeals
610 A.2d 1 (Supreme Court of Pennsylvania, 1992)
Pennypack Woods Home Ownership Ass'n v. Board of Revision of Taxes
639 A.2d 1302 (Commonwealth Court of Pennsylvania, 1994)
Strawbridge & Clothier, Inc. v. Board of Assessment Appeal
492 A.2d 108 (Commonwealth Court of Pennsylvania, 1985)
In re Appeal of Avco Corp.
515 A.2d 335 (Commonwealth Court of Pennsylvania, 1986)

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Bluebook (online)
21 Pa. D. & C.5th 164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sovereign-bank-v-berks-county-bd-of-assessment-appeals-pactcomplberks-2011.