Tuesday, September 18, 2012

Board Finds Respondent Failed to Support Assessed Value with Evidence of Trending Method and County's Ratio Study


Because the law applies to all pending appeals and because the property’s assessed value for 2006 increased by more than 5% over the property’s assessed value in 2005, the Board finds that the Respondent has the burden of proof in this proceeding.

Here, the Respondent’s witness offered little evidence to prove the subject property’s market value-in-use for 2006. According to Mr. Surface, the Monroe County Equalization Study, conducted after the 2002 general reassessment, showed commercial and industrial properties were undervalued by approximately 30%. Surface testimony. Mr. Surface testified that, as a result of the Equalization Study, instead of applying a trending factor, Monroe County opted to reevaluate all land values and land base rates. Id. Thus, the Respondent’s witness contends, the large increase in the Petitioner’s property’s assessed value between 2005 and 2006 was a result of the county reviewing sales data, appraisal information, evidence provided in previous appeals and multiple listing sheets and establishing a new land base rate for the neighborhood. Id. The Respondent’s witness, however, failed to present any probative evidence to show how the land base rate was calculated or that applying the base rate to the Petitioner’s property reflected the property’s market value-in-use in 2006. Statements that are unsupported by probative evidence are conclusory and of little value to the Board in making its determination. Whitley Products, Inc. v. State Board of Tax Commissioners, 704 N.E.2d 1113, 1118 (Ind. Tax Ct. 1998); and Herb v. State Board of Tax Commissioners, 656 N.E.2d 890, 893 (Ind. Tax Ct. 1995).

The Respondent’s witness also argues that the Petitioner’s property’s assessment was valid because the sales ratio study for 2006 fell within the state requirements for a proper assessment and the DLGF approved the Respondent’s ratio study. Surface testimony. In addition, the Respondent argues, other commercial properties in the neighborhood were assessed with the same land base rate as the Petitioner’s property; thus showing land was uniformly assessed. Id. The Respondent, however, offered no evidence or support for the premise that an assessment is correct if properties are assessed uniformly or that an individual assessment is deemed “correct” so long as assessments in general are within acceptable statistical ranges for measuring the overall uniformity, equality, and accuracy of mass appraisals. See also Canal Square v. State Board of Tax Commissioners, 694 N.E.2d 801, 808 (Ind. Tax Ct. Apr. 24, 1998) (in order to carry its burden, the assessor must do more than merely assert that it assessed the property correctly).

Because the assessor failed to meet its burden of proof, the subject property’s March 1, 2006, assessment must be reduced to its previous year’s level of $94,000 for the land and $72,400 for the improvements, for a total assessed value of $166,400.