Monday, January 04, 2016
Ind. Courts - Oral argument set before Tax Court in first big-box/dark box appeal
The ILB has had a number of posts on the appraisal/assessment of big box stores.
The first post, from nearly a year ago, Jan. 18, 2015, was headed, simply, "Appraisal/assessment of big box stores."
The post focused on the Dec. 1, 2014 Indiana Board of Tax Review decision in Meijer Stores LP v. Marion County Assessor. But the post concluded:
In addition to the Dec. 1, 2014 Meijer opinion, linked at the beginning of this post, on Dec. 31, 2014 the Indiana Board of Tax Review issued a 54-page decision in Kohl's Indiana LP v. Howard County Assessor, that begins:Oral argument in the Kohl's case is now set for Jan. 15th, 2016, before Judge Wentworth of the Indiana Tax Court. It will be videocast. Here is the docket.The parties offered valuation opinions from two experts who fundamentally disagree about how a built-to-suit big-box store like the subject property should be appraised. Much of the dispute lay in the experts’ differing interpretation of Indiana’s true tax value standard. The Assessor’s expert viewed that standard as being closely focused on the business model of the property’s current owner—Kohl’s. That led him to give little weight to approaches other than the cost approach and to recognize no external obsolescence, despite the oversupply of retail properties and the economic recession and slow recovery that spanned the valuation dates at issue. By contrast, the expert for Kohl’s focused much less on the owner and its business model and more on the property’s general retail use. And unlike the Assessor’s expert, she did not view the property as special purpose. We are more persuaded by the opinions of the expert for Kohl’s, which more closely follow the Indiana Tax Court’s interpretation of true tax value and more appropriately characterize the nature of the property. [ILB emphasis]See also starting at p. 38 of the ruling.