Valuation Analyses_October 2020
CALIFORNIA COURT DETERMINES TRANSFER TAX NOT APPLICABLE TO PURCHASE OF REAL ESTATE ENCUMBERED BY LONG-TERM LEASE
In 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 THEORY
On 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 REASSESSMENT
In 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 BURDENS
The 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)
Arkansas Judge Denies Schools’ Request To Intervene In Highly Contested Walmart And Sam’s Club Appeals
California “Split Roll” Measure Qualifies For November Ballot
Indiana Tax Court Finds That The Indiana Board Of Tax Review Unreasonably Denied Property Owner’s Voluntary Dismissal
Massachusetts Appellate Tax Board Evaluates Market Conditions Affecting Data Centers And Performs Independent Income Approach To Determine Value
Michigan Tax Tribunal Performs Independent Income Approach To Determine Value For 920 Bed Student Housing Complex
Court Of Appeals Concludes That The Ohio Board Of Tax Appeals Properly Valued A Casino And Racetrack At $21.5 Million, Thus Rejecting A School Board’s Bid To Value The Property At More Than $44 Million
Ohio Board Of Tax Appeals Reverses Course On Real Property Tax Exemptions For Permanent Housing Facilities
Tennessee’s Largest City Approves 34% Increase In Real Property Tax Rates