Montana Attorney General Opinion 17-84

Opinion No. 84. Improvement Districts-Rural Im- provement Lighting System. HELD: I n figuring the assessed value of lands for a rural improvement lighting system, the value includes the buildings and improvements on the land. lVlr. P. R. Heily County Attorney Columbus, Montana Dear Mr. Heily: April 14, 1937. You have requested my opinion as to whether, in assessing lands for a rural improvement lighting system, improve- ments should be considered in the value of the lands. Section 4601.1, R. C. M. 1935, pro- vides: " * * * The cost of said service to said rural improvement district may be apportioned among the various tracts of land within said improve- ment district in proportion to the assessed value of said lands as deter- mined by the said board of county commissioners, and before the first Monday of September of each year, the board of county commissioners shall pass, and finally adopt, a resolu- tion levying and assessing all the prop- erty within the district, an amount equal to the whole cost of maintain- ing said lighting system, and the same shall be proportioned against the sev- eral tracts of land in said district as provided herein. * * *" The theory on which special assess- ments are levied on property for local improvements is that the property as- sessed has been specially benefitted by the improvement and that those whose property is thus enhanced, and who have received the benefit of the im- provement, should pay the cost. (44 C. J. 483, Section 2808.) While Section 2002.2 requires that the assessor, in valuing and assessing real estate, shall also value and assess all buildings, structures and other im- provements, such improvements are considered a part of the land and the total represents the assessed value of the land. This procedure in making the assessment is no doubt for the pur- pose of preventing such improvements from escaping taxation. Certainly on the' theory of benefits derived, all of the property is enhanced. This would be especially true in case of a lighting system, which would be of peculiar benefit to dwellings and other buildings. Such lighting system would be of potential value only so far as unimproved property is concerned. It is my opinion therefore, in the ab- sence of express exemption, that the Legislature intended that buildings and other improvements should be consid- ered as a part of the land in determin- ing the assessed value. (61 C. J. 645, Section 795.) It is of interest to note that the area of tract, or frontage of 96 OPINIONS OF THE ATTORNEY GENERAL tract, as a basis for assessment, is used in case of city improvements. See Section 5238, R. C. M. 1935. The Leg- islature, however, saw fit to apply a different basis for assessment in case of rural improvements in the nature of a lighting system, as provided by said Section 4601.1.