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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe Indiana Tax Court affirmed the decision by the Indiana Board of Tax Review to reduce the total assessed value of six parcels in an Indianapolis shopping center by several million dollars.
The Marion County assessor assigned the subject property – three buildings with about 270,000 square feet of leasable space; a retention pond; two access roads; and a pylon sign – total assessed values of $17,426,500 for 2007, $18,112,000 for 2008, $18,112,000 for 2009, and $17,003,100 for 2010. Gateway Arthur Inc., the owner of the land, appealed and submitted an appraisal that valued the property under the income approach at $12,800,000 for 2007, $13,800,000 for 2008, $12,900,000 for 2009, and $10,300,000 for 2010.
The tax board issued a final determination in which it explained that despite the fact the appraisal undervalued the subject property by not accounting for certain property tax reimbursements, it was still probative of the subject property’s value. The board also explained that the assessor’s evidence lacked probative value and, therefore, he did not rebut the appraisal’s valuations. The board determined that the subject property’s value was no more than the appraisal’s stated valuations, “augmented” by $1 million to account for property tax reimbursements. The board ultimately valued the subject property at $13,800,000 for 2007, $14,800,000 for 2008, $13,900,000 for 2009, and $11,300,000 for 2010.
The assessor appealed in 2012, the Tax Court heard arguments in 2013, and Senior Judge Thomas Fisher issued the opinion Wednesday upholding the decision.
Fisher rejected the assessor’s argument that Indiana’s assessment guidelines do not allow the use of loaded capitalization rates when valuing real property, the method used by the appraisal. The judge also held that the board did not exceed its authority by increasing Gateway Arthur’s requested valuations by $1 million for each of the years at issue after it found the appraisal undervalued the subject property.
The case is Marion County Assessor v. Gateway Arthur, Inc., 49T10-1212-TA-81.
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