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Valuation Analyses_October 2020CALIFORNIA COURT DETERMINES TRANSFER TAX NOT APPLICABLE TO PURCHASE OF REAL ESTATE ENCUMBERED BY LONG-TERM LEASEIn June, a California appellate court affirmed the trial court’s decision, finding that the purchase of realty encumbered by a long term lease is not subject to San Francisco’s transfer tax if the leasehold has a remaining term of 35 years or more at the time of transfer. In California, transfer tax is due when there is “realty sold” because code and case law have developed in a way that defines this similar to “change in ownership” where transfer tax would be due.
MICHIGAN TAX TRIBUNAL RULES IN FAVOR OF MENARDS AND IGNORES CITY’S CLAIM THAT THE RETAILER RELIED UPON A “DARK STORE” VALUATION THEORYOn remand from the Michigan Court of Appeals, the Michigan Tax Tribunal (MTT) determined the true cash value of the taxpayer's big-box retail property and found that the subject property had been over assessed by the city.
FLORIDA APPEALS COURT CHANGES MIND ON DISNEY HOTEL RULING; REJECTS DISNEY’S VALUATION EVIDENCE AND ORDERS A REASSESSMENTIn August, a Florida appeals court reversed its previous ruling in a long-standing dispute over the assessment of a Walt Disney World resort. In its original decision, which was issued in June, the Court ordered that the assessment for Disney’s Yacht & Beach Club Resort be reduced from $337 million to $209 million and held that the Rushmore valuation method utilized by the county appraiser violated Florida law.
KENTUCKY COURT OF APPEALS SIDES WITH KROGER IN VALUATION APPEAL AND CONFIRMS PROPER APPLICATION OF RELATED EVIDENTIARY BURDENSThe Kentucky Court of Appeals recently sided with Kroger in a valuation appeal that hinged on proper application of the parties’ respective evidentiary burdens. On appeal from the Kentucky Claims Commission (the Commission), Kroger argued that the Commission had misinterpreted and misapplied the applicable presumption that the property valuation administrator (PVA’s) value is correct.
OTHER VALUATION HEADLINES FROM ACROSS THE COUNTRY (CLICK HERE TO READ MORE) California “Split Roll” Measure Qualifies For November Ballot Tennessee’s Largest City Approves 34% Increase In Real Property Tax Rates
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ContactsNicholas M.J. Ray  Andrew E. DeBord Lauren M. Johnson Lindsay Doss Spillman Hilary J. Houston Steven L. Smiseck John R. Conley Megan Savage Knox Anthony L. Ehler David A. Froling Scott J. Ziance Steven R. Rech |
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. |