Court Opinion

ID: 9727435
Source: CourtListenerOpinion
Date Created: 2023-08-26 13:37:01.029291+00
Date Added: 2024-06-11T18:25:37.777917
License: Public Domain

JESSEN, RICHARD T„ Acting Justice
(concurring).
I concur with the' decision of the majority. ’ However, I write to emphasize that there is no legal or economic basis to automatically exclude out-of-state compa-rables whether they are offered by either *416or both parties. The phrase “out-of-state” should be omitted from footnote one of the court’s opinion. There is no automatic distinction between in-state and out-of-state comparables.
The tax court’s de facto rule does not automatically exclude out-of-state compa-rables, but it sets up a presumption against their use. In SPX Corp. v. County of Steele, No. C1-00-350, 2003 WL 21729580 (Minn. T.C. July 23, 2003), the tax court recognized that there may be exceptions to its exclusionary rule if the proponent of the out-of-state comparable can show that “the circumstances warrant such an exception and * * * differences in the markets and tax rates are explained.” Id. at *5.
Here, on the one hand, the tax court cited its de facto rule to exclude McNeilus’ out-of-state comparables, and, on the other hand, again citing its de facto rule, it admitted the evidence into the record, and then, using its rule as a presumption against out-of-state comparables but not in-state comparables, found that relator had not met its burden to show that circumstances warrant an exception and to explain the differences in the markets and tax rates. Further, the tax court did not hold respondent to the same standard when it presented evidence of an out-of-state comparable.
When utilizing the comparable sales approach to valuation, all factors relevant to determining market value should be considered and weighed and appropriate adjustments should be made for the differences in the comparable sales whether instate or out-of-state. See Minn.Stat. § 273.12 (2004).