Montgomery County v. Supervisor of Assessments of Montgomery County

Murphy, C. J., delivered the opinion of the Court. Appellant Montgomery County, Maryland (the County) has appealed from an order of the Maryland Tax Court affirming an assessment of appellees’ real property by the Appeal Tax Court of Montgomery County; the County claims that the Tax Court erred in not granting it a hearing after permitting it to intervene in the case as a party. The relevant facts are these: in August, 1972, the Supervisor of Assessments for Montgomery County assessed appellees’ real estate at $328,820. The appellees sought review of this decision in the Appeal Tax Court which, in March, 1973, reduced the assessment to $221,860.

In April, 1973, the Supervisor and appellees each filed a petition for appeal in the Maryland Tax Court. On February 4, 1974, two days before the hearing scheduled in the Tax Court, Montgomery County filed a petition to intervene, claiming it had a direct and substantial interest in the case and would be affected by the outcome. 1 The County alleged that the action of the Appeal Tax Court in reducing the assessment was “arbitrary, capricious, illegal and erroneous, and was contrary to fact and law.” The appellees opposed the petition ⁶⁰ to intervene, claiming that it was untimely and that they would be severely prejudiced by the intervention. The Tax Court heard argument on the County’s petition to intervene immediately prior to the scheduled hearing on the merits of the appeal; it denied the County’s request on the ground that it had not filed a timely appeal pursuant to Maryland Code (1975 Repl. Vol.) Art. 81, •§ 256 (a).

Thereafter, an evidentiary hearing was held on the merits of the appeal and the Tax Court took the case under advisement. On March 8, 1974, the County filed an order appealing the denial of its petition to intervene. Shortly thereafter the County was notified by the Tax Court that it had reconsidered its earlier denial. On April 4, 1974, the Tax Court, over appellees’ objection, entered an order permitting the County to intervene and making it “a party . . . with all rights incident thereto.” On April 30, 1974, the County filed a “Petition for Hearing,” alleging that it had “not had the opportunity to exercise the right given by § 229 of Article 81, to present evidence and testimony in these cases.” In its petition, the County asserted: “The evidence and testimony to be presented by Montgomery County bears on the sole and only issue in these cases, that is the fair market value of the subject property.

It does not raise any new issue in the cases. The evidence and testimony to be presented is not cumulative or repetitive of the testimony previously presented by the Supervisor of Assessments. The testimony and evidence consists of expert testimony of a professional appraiser as to the fair market value of the property, and the testimony of County officials as to the effect of the sewer moratorium. This evidence and testimony is not now in the record.

This Court will not have a complete and accurate record without the presentation of this evidence and testimony by the County.” The Tax Court took no action on the County’s petition for hearing. On August 21, 1974, it issued an order affirming the ⁶¹ assessment of the Appeal Tax Court, and this appeal followed. 2 The County argues that the Tax Court’s refusal to grant it a hearing “violated due process of law and invalidated the entire proceeding.” It also contends that the Tax Court’s failure to grant the County a hearing “violated Article 81, Annotated Code, and the Rules and Procedure of the Maryland Tax Court.” Appellees contend that the Tax Court’s reconsideration of its original denial of the County’s petition to intervene constituted a mere “change of mind” and as such was an abuse of discretion. Appellees also argue that the Tax Court was correct in its initial decision to deny intervention. 3 Under Code, Art. 81, § 229 (f), the Tax Court has “full power to hear, try and determine or remand any matter before it and may permit or require all explanations, amendments and additions to be made to any of the proceedings or pleadings, including the petition of appeal, as in its discretion shall be necessary or desirable so that the case may be properly heard and determined.” Section 229 (b) authorizes the court to adopt rules of procedure relating to pleadings, notices, hearings and arguments as it may deem proper; § 229 (c) provides that proceedings before the court shall be conducted “in a manner similar to proceedings in courts of equity in this State.” Section 229 (h) empowers the court “to assess anew, classify anew, abate, modify, change or alter any valuation, assessment, classification, tax or final order appealed from, provided that in the absence of any affirmative evidence to the contrary or of any error apparent on the face of the proceedings, the assessment,