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Fall 2019
 

Valuation Analyses

Arkansas’ “Dark Store Theory” Test Cases for Walmart Stores Land in Circuit Court

Walmart and the assessing community in Arkansas prepare for the state’s first test cases of the “dark store theory” after the world's largest retailer appeals ten unfavorable decisions from a county judge in its home state. 

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Georgia Supreme Court Finds Section 42 Tax Credits Do Not Constitute “Actual Income” for Purposes of Valuing LIHTC Properties

In a major win for LIHTC owners, Georgia Supreme Court clarifies years of confusion and uncertainty in valuation of low income housing projects. 

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Kansas Board of Tax Appeals Cuts Tax Valuation of Casino Development by More Than $100 Million

The Kansas Board of Tax Appeals sided with the owner of a recently constructed casino development finding that its ancillary improvements were a major detriment to the property’s income.  The significant obsolescence attributable to the superadequacy warranted a $100 million assessment reduction.

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Michigan Tax Tribunal Independently Determines Value of Large Automotive Industrial Property after Rejecting Competing Appraisals

The Michigan Tax Tribunal performed its own independent valuation analysis and utilized only one sales comparable from the property owner’s appraisal to determine the assessment for a large automotive manufacturing facility.  The Tribunal criticized both appraisers’ reports for their use of significantly smaller automotive manufacturing facilities and out of state facilities in their sales comparison approaches. 

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Ohio Board of Tax Appeals Further Confirms Method for Determining Value for Skilled Nursing Facility

The Ohio Board of Tax Appeals ruled that the income approach used to value a skilled nursing home facility cannot utilize leases that reflect business value. 

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Washington State Board of Tax Appeals Upholds Assessor’s Valuation for Seattle Apartment Complex

Washington State BTA denies appeal filed by one of the nation’s largest apartment owners after relying on the County’s income approach value conclusion for a Seattle apartment complex.

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Other Valuation Headlines From Across the Country (click here to read more)

Indiana Tax Court Denies Motion to Dismiss Due Process and Equal Protection Clause Challenges

Kansas Board of Tax Appeals Determines that Cost Approach Was best Indicator of Value for 6 Home Depot Stores

Kansas Board of Tax Appeals Finds Costco’s Value Should be Reduced Based Upon Income Approach to Value

Louisiana Orders Valuation of Riverboat Casino and Hotel Using Cost Approach

Michigan Tax Tribunal Holds that Sales Comparison Approach is Appropriate Method to Value Big-Box Retail Property

Michigan Tax Tribunal Finds for Property Owner in Appeal Involving Walmart Ground Lease

Minnesota Supreme Court Finds that the Minnesota Tax Court Partially Erred in Valuation of Mall

Minnesota Tax Court Orders County to Turn Over Financial Data From Competing Downtown Hotels as Part of Valuation Dispute

Missouri State Tax Commission Denies Charitable Exemption to Majority of Parcels Owned By Non-Profit, But Grants Prospective Use Exemption on Some Parcels

Nebraska Appeals Court Affirms Board of Equalization Value on Warehouse Property and Rejects Argument that the Property’s Value Was Not Equalized With Similar Properties

New Jersey Business Can’t Contest Property Value because of Failure of Prior Owner to Provide Requested Income Information

North Carolina Tax Commission Accepts LIHTC Owners’ Income Approach Utilizing Actual Expenses; Rejects County’s Use of Expense Ratio

Ohio Appeals Court Affirms BTA’s Increase in Value for a McDonald’s Restaurant

Ohio Board of Tax Appeals Concludes Owner Occupied Lowe’s Highest and best Use is for the Current User

Ohio Board of Tax Appeals Rejects Appraisal of LIHTC Property that Relied Upon Conventional Housing Market Rents

Oregon Supreme Court Upholds Reduction for High Vacancy Shopping Center

Pennsylvania Commonwealth Court Rules that School District’s Decision to Appeal only the Assessments of Commercial Property is an Unconstitutional Exercise of the District’s Discretion

South Carolina Supreme Court Relies on Absurdity Principle to Deny Hampton Inn’s Attempt to Value Hotel as Vacant Lot

Tennessee State Board of Equalization Retains Local County Board’s Valuation for Retail Bank Branch

Tennessee Board of Equalization Finds that Property Used to Distill Whiskey Should be Valued as Commercial Property, Not as Agricultural Property

Tennessee State Board Retains Local Board’s Valuation for Vacant Big Box Retail Store Based Upon Land Values

Washington Board of Tax Appeals Reduces Valuation of office Buildings Based on Evidence that Vacancy Had Negative Impact on Property’s Market Value

Washington Board of Tax Appeals Upholds Assessor’s Valuation for Supermarket

Washington Decision Reminds Owners that Sales Comparables must be Comparable

Deadlines Looming in 6 States

  


 

Contacts

Nicholas M.J. Ray
614.464.5640
nmray@vorys.com

Karen H. Bauernschmidt
216.479.6141
khbauernschmidt@vorys.com

Kenneth R. West
202.467.8814
krwest@vorys.com

David M. Aldous
412.904.7705
dmaldous@vorys.com

Lauren M. Johnson
614.464.5418
lmjohnson@vorys.com

Andrew E. DeBord
513.723.4024
aedebord@vorys.com

Lindsay Doss Spillman
216.479.6199
ldspillman@vorys.com

Hilary J. Houston
614.464.4968
hjhouston@vorys.com

Steven L. Smiseck
614.464.5438
slsmiseck@vorys.com

Megan Savage Knox
614.464.6380
msknox@vorys.com

Anthony L. Ehler
614.464.8282
tlehler@vorys.com

David A. Froling
614.464.3022
dafroling@vorys.com

Scott J. Ziance
614.464.8287
sjziance@vorys.com

Steven R. Rech
713.588.7017
srech@vorys.com


 

 

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This alert is for general information purposes and should not be regarded as legal advice. As always, please let us know if you want more information or have questions about how these developments apply to your situation.