Country Club appeals Tax Court's valuation of golf course. (Government Watch).

Alpine Country Club has appealed the New Jersey Tax Court's determination of value of its eighteen-hole golf course that had improvements for the tax years 1992 through 1996. The land under appeal consisted of one lot in one borough and three lots in another. After a lengthy trial in which Alpine Country Club and the boroughs each presented their own valuation of the 16 tax assessments in question, the Tax Court reduced five property tax assessments and affirmed 11.

However, on appeal, the State Court found that the Tax Court erred, both procedurally and substantively, in adopting the "rule of thumb" formula espoused by the fact that a sole witness was the basis for determining the value of the subject property which resulted in erroneous fair market values. The court reversed the decision and remanded the case to the Tax Court for a determination of value without consideration of witness testimony as to the "rule of thumb" formula.

For additional information and the decision, please visit this article at www.cmaa.org/legislat/reports/nov021.htm, or contact Henry Wallmeyer.