Justia Ohio Supreme Court Opinion Summaries
Articles Posted in Real Estate & Property Law
Lowe’s Home Ctrs., Inc. v. Washington County Bd. of Revision
In 2010, the Washington County Auditor determined a value of $9,091,000 for a Lowe’s Home Center store in Marietta. Lowe’s filed a complaint before the Washington County Board of Revision (BOR) seeking a reduction to $3,600,000. The BOR retained the auditor’s valuation. On appeal, Lowe’s and the County presented competing appraisals. The Board of Tax Appeals (BTA) adopted the County’s appraisal, concluding that the County’s comparables were more appropriate. Lowe’s appealed, arguing that the BTA misapplied the Supreme Court’s decision in Meijer Stores Ltd. Partnership v. Franklin County Bd. of Revision by adopting the type of appraisal in this case that the BTA rejected in Rite Aid of Ohio, Inc. v. Washington County Bd. of Revision. The Supreme Court explained the significance of Meijer Stores in its decision in the Rite Aid appeal, also issued today. The Supreme Court vacated the BTA’s decision in the instant case, holding that reading the BTA decision in light of that explanation identified a significant omission in the BTA’s analysis. Remanded. View "Lowe's Home Ctrs., Inc. v. Washington County Bd. of Revision" on Justia Law
Rite Aid of Ohio, Inc. v. Washington County Bd. of Revision
The 2010, the Washington County Auditor determined a value of $3,319,000 for multiple parcels that together constituted a Rite Aid drugstore and its parking lot. Rite Aid of Ohio, Inc. filed a complaint before the Washington County Board of Revision (BOR) seeking a reduction. The BOR retained the auditor’s valuation. On appeal, Rite Aid and the County presented competing appraisals. The County’s appraisal was more than twice that of Rite Aid’s. The Board of Tax Appeals (BTA) adopted Rite Aid’s appraisal as the value of the property. The Supreme Court affirmed, holding that the Supreme Court’s decision in Meijer Stores Ltd. Partnership v. Franklin County Bd. of Revision did not require the use of the kind of comparables that the County’s appraiser relied upon because Meijer Stores was not applicable in this case. View "Rite Aid of Ohio, Inc. v. Washington County Bd. of Revision" on Justia Law
Cuyahoga County v. Testa
Cuyahoga County filed an exemption to a tract of real property it acquired in 2004. The property consisted of a marina/restaurant that operated in conjunction with an adjacent public park. The tax commissioner granted the application as to the the public park portion but denied the application as to the remainder constituting the marina and restaurant. In doing so, the Commissioner invoked his authority to order a split between the taxable and exempt portions. The County appealed, arguing that the Commissioner erred by finding that the property was not used exclusively for a public purpose. The Board of Tax Appeals affirmed primarily on the ground that the marina and restaurant were operated “with a view to profit.” The Supreme Court affirmed, holding that when the marina and restaurant are considered separately from the park, the denial of the exemption was neither unreasonable nor unlawful. View "Cuyahoga County v. Testa" on Justia Law
Warrensville Heights City Sch. Dist. Bd. of Educ. v. Cuyahoga County Bd. of Revision
In 2010, New Thistledown, LLC, which owned Thistledown Racetrack, petitioned for Chapter 11 bankruptcy relief. Thistledown was purchased at an auction for $43,000,000. The bankruptcy court authorized the sale, stating that the sale price constituted reasonably equivalent value and fair consideration of the purchased assets. For tax year 2010, the Cuyahoga County fiscal officer assigned a value of $14,264,000 to the parcels comprising Thistledown. The Board of Education of Warrensville Heights City School District filed a complaint with the board of revision (BOR) seeking an increase in valuation. The BOR retained the fiscal officer’s initial valuation. The Board of Tax Appeals (BTA) rejected the 2010 sale price as evidence of value and valued the real property at $13,800,000. The Supreme Court affirmed, holding (1) the BTA reasonably and lawfully determined that the 2010 sale did not establish the true value of Thistledown; and (2) the evidence supported the BTA’s finding that Thistledown was worth $13,800,000 as of the tax-lien date. View "Warrensville Heights City Sch. Dist. Bd. of Educ. v. Cuyahoga County Bd. of Revision" on Justia Law
Talawanda City Sch. Dist. Bd. of Educ. v. Testa
In 2010, the Talawanda City School District Board of Education (BOE) filed its application to exempt property located within the district. The tax commissioner granted an exemption for all of the property except for a parcel being farmed pursuant to lease, concluding that the pecuniary benefit realized by the farmer disqualified the land from exemption because that portion was not used for school purposes. The Board of Tax Appeals affirmed. the Supreme Court reversed, holding (1) following its amendment in 2010, Ohio Rev. Code 3313.44 does not contain a restriction requiring that the property owned by the BOE be used exclusively for school purposes; and (2) the entire property described in the BOE’s application shall be exempt for the year at issue. View "Talawanda City Sch. Dist. Bd. of Educ. v. Testa" on Justia Law
Megaland GP, LLC v. Franklin County Bd. of Revision
Appellee challenged the auditor’s valuation of a parcel of residential real estate for tax year 2012. The Columbus City Schools Board of Education (school board) sought retention of the auditor’s valuation. The Franklin County Board of Revision dismissed the complaint. Appellee appealed to the Board of Tax Appeals (BTA) from the dismissal order. On the notice of appeal, Appellee marked “yes” in response to a question asking whether the case should be referred to the small-claims docket. Accordingly, the case was placed on the small-claims docket. The school board filed a motion to return the case to the regular docket. The BTA denied the motion. The Supreme Court exercised its jurisdiction to review the interim order and affirmed the BTA’s denial of the school board’s motion, holding that the BTA did not err in denying the school board’s motion to have the case returned to the BTA’s regular docket. Remanded. View "Megaland GP, LLC v. Franklin County Bd. of Revision" on Justia Law
Steak ‘n Shake, Inc. v. Warren County Bd. of Revision
In 2010, Steak ’n Shake filed a complaint seeking a reduction for tax year 2009 from the auditor’s valuation of a Steak ’n Shake restaurant. The Warren County Board of Revision retained the auditor’s original valuation for the property. Stake ’n Shake appealed to the Board of Tax Appeals (BTA). At the BTA hearing, the property owner presented an appraisal report and testimony from a longtime state-certified appraiser, while the county presented an appraisal prepared by an employee of the county’s valuation consultant. The BTA adopted the county’s valuation. The Supreme Court reversed, holding (1) Steak ’n Shake’s objections to the competency and lack of independence of the county’s appraiser are rejected; but (2) the BTA erred in its acceptance of the county appraiser’s reliance on encumbered comparable properties in determining the value of the subject property, which is occupied by its owner. Remanded. View "Steak 'n Shake, Inc. v. Warren County Bd. of Revision" on Justia Law
Columbus City Schs. Bd. of Educ. v. Franklin County Bd. of Revision
In 2011, Donald Beck filed complaints against the auditor’s tax-year-2010 valuations of three two-family residential rental properties in Columbus. The Franklin County Board of Revision approved a reduction in the auditor’s original valuation based upon an unspecific sales-comparison and income approach. The Board of Tax Appeals (BTA) affirmed the reduction. The Columbus City Schools Board of Education (BOE) appealed, arguing that the BTA improperly affirmed the reduced valuation when the evidence for the reduction was not in the record. The Supreme Court affirmed the decision of the BTA, holding that the BOE waived its claim of error because it presented neither argument nor evidence before the BTA. View "Columbus City Schs. Bd. of Educ. v. Franklin County Bd. of Revision" on Justia Law
Chesapeake Exploration, LLC v. Buell
The parties in this case disputed who was the legal owner or holder of certain mineral rights. The United States District Court for the Southern District of Ohio, Eastern Division concluded that the interpretation of Ohio’s Dormant Mineral Act in the context of an oil and gas lease was determinative of the case and certified certain questions to the Supreme Court for answers. The questions were as follows: (1) whether a recorded lease of a severed subsurface mineral estate is a title transaction under the Act, and (2) whether the expiration of a recorded lease and the reversion of the rights granted under that lease is a title transaction that restarts the twenty-year forfeiture clock under the Act at the time of the reversion. The Supreme Court answered (1) a recorded lease of severed oil and gas rights is a title transaction under Ohio Rev. Code 5301.56(B)(3)(a) that constitutes a saving event to preclude the severed mineral rights from being deemed abandoned and reunited with the rights to the corresponding surface property; but (2) the unrecorded expiration of such a lease is not a title transaction that restarts the twenty-year clock under the Act. View "Chesapeake Exploration, LLC v. Buell" on Justia Law
Posted in:
Energy, Oil & Gas Law, Real Estate & Property Law
Sears, Roebuck & Co. v. Franklin Cty. Bd. of Revision
The Franklin County auditor valued property owned by Sears, Roebuck & Company at $8,323,000 for the tax year 2005 and for tax years 2006 through 2010. Sears filed a complaint seeking a reduction of value. The Franklin County Board of Revision (BOR) rejected Sears’s claims for reduction. Sears appealed to the Board of Tax Appeals (BTA), where Sears presented an appraisal determine the value to be $6,300,000 for 2005 and $6,550,000 for 2008. The Columbus City Schools Board of Education presented data as rebuttal evidence. The BTA adopted the Sears appraisal valuations. The Supreme Court affirmed the BTA’s decision, holding (1) the BTA’s decision was not unreasonably or unlawful on account of alleged formal inadequacies; and (2) the BTA was justified in concluding that the appraiser’s opinion was supported by a viable theory of property value. View "Sears, Roebuck & Co. v. Franklin Cty. Bd. of Revision" on Justia Law