Opinion ID: 1349359
Heading Depth: 2
Heading Rank: 3

Heading: Case Number 34863Pine Haven, The Hamlets, and The Parks

Text: In Case Number 34863, the Taxpayers, Pine Haven Limited Partnership (hereinafter Pine Haven); The Hamlets Limited Partnership (hereinafter The Hamlets); and The Parks Limited Partnership (Parkview LP) (hereinafter The Parks), are the appellees herein and petitioners below. Each of these Taxpayers challenged its ad valorem property tax assessments for tax year 2008. The Assessor of Cabell County, Ottie Adkins, (hereinafter Cabell County Assessor), used the cost approach, and checked his calculations using the income approach, to value the Taxpayers' properties: Pine Haven's property was valued at $2,017,00.00; The Hamlets' property was valued at $3,015,000.00; and the Parks' property was valued at $2,952,100.00. The Taxpayers challenged these assessments, but, unlike in the Stone Brooke and Heathermoor cases, the Cabell County Assessor did not request a valuation by the Commissioner. On appeal to the Cabell County Board of Equalization and Review (hereinafter Cabell County Board), the Cabell County Assessor explained that he had checked his cost approach calculations by also computing the properties' values using the income approach; [4] however, the Assessor testified that he had not chosen the income approach valuations for appraisal purposes because those valuations were significantly greater than the valuations he obtained using the cost approach. The Taxpayers' appraiser utilized the income approach, excluding the tax credits allocated to the properties and utilizing the properties' actual, restricted rents; these valuations were $500,000.00 for Pine Haven; $900,000.00 for The Hamlets; and $750,000.00 for The Parks. Ultimately, the Cabell County Board adopted the Cabell County Assessor's property valuations for Pine Haven ($2,017,000.00); The Hamlets ($3,015,000.00); and The Parks ($2,952,100.00). Pine Haven, The Hamlets, and The Parks appealed these decisions to the Circuit Court of Cabell County at which juncture their separate appeals were consolidated. By order entered November 12, 2008, the circuit court reversed the Cabell County Board's decisions and adopted the Taxpayers' appraiser's valuations of their properties, valuing Pine Haven at $500,000.00; The Hamlets at $900,000.00; and the Parks at $750,000.00; these valuations used the properties' actual, restricted rents and did not include the value of their allocated tax credits. In so ruling, the circuit court recognized the broad discretion afforded to an Assessor in valuing property for ad valorem taxation purposes, but also observed that the Assessor has a duty to prove that his appraisals are correct when presented with evidence to the contrary. In re Tax Assessments Against Pocahontas Land Co., 172 W.Va. 53 at 61, 303 S.E.2d 691 at 699 (1983). Because the Cabell County Assessor had not explained how he had accounted for the properties' tax credits in his cost approach calculations, the circuit court determined that the Assessor had not sustained his burden of proving the correctness of his appraisals by substantial evidence. (Citing Killen v. Logan County Comm'n, 170 W.Va. 602, 295 S.E.2d 689 (1982), overruled on other grounds by In re Tax Assessment of Foster Found.'s Woodlands Ret. Cmty., 223 W.Va. 14, 672 S.E.2d 150 (2008)). From this ruling, the Cabell County Commission, which sat as the Board of Equalization and Review, and the Cabell County Assessor appeal to this Court.