Tax court rules in favor of property's market value over its value-in-use.
The state tax court properly determined that the tax assessments of one of a bank's branch locations were based on market value, rather than focusing on the property's value-in-use (the property's value to its present owner), according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the Supreme Court of Minnesota.
The Marquette Bank National Association challenged the 1994-96 property tax assessments of one of its branch bank facilities located in the City of Brooklyn Center Brooklyn Center, city (1990 pop. 28,887), Hennepin co., SE Minn., a residential suburb of Minneapolis; inc. 1911. It has light industry and has been marked by suburban and economic growth since the 1970s. . The property includes a single-tenant, owner-occupied building of 17,920 square feet after improvements were made in 1991. Those renovations cost $1 million and added 5770 square feet to the building. The property's market value was assessed in 1994 and 1995 at $1.5 million and approximately $1.6 million in 1996. The bank challenged the assessments. The bank's appraisal expert testified that the property's value was diminished di·min·ish
v. di·min·ished, di·min·ish·ing, di·min·ish·es
a. To make smaller or less or to cause to appear so.
b. because its physical attributes did not correspond with the smaller, less elaborate branch bank designs preferred by many banks today. The tax court determined that the market value of the property for all three years in question was $1.1 million, a reduction of more than $400,000 per year. The county appealed.
On appeal, the county argued that the tax court's reliance on the bank's expert witness's testimony led the court to improperly im·prop·er
1. Not suited to circumstances or needs; unsuitable: improper shoes for a hike; improper medical treatment.
2. concentrate on the property's potential "value-in-use" to that portion of the market that preferred smaller, less ornate or·nate
1. Elaborately, heavily, and often excessively ornamented.
2. Flashy, showy, or florid in style or manner; flowery. branch bank facilities, rather than in considering the bank's value in the overall marketplace. But the court concluded that this argument was without merit because the tax court's adoption of the appraiser's opinion was simply an attempt to determine the property's value to the typical purchaser, rather than an attempt to consider the subject property's intrinsic value Intrinsic Value
1. The value of a company or an asset based on an underlying perception of the value.
2. For call options, this is the difference between the underlying stock's price and the strike price. to the bank. The tax court decision was affirmed af·firm
v. af·firmed, af·firm·ing, af·firms
1. To declare positively or firmly; maintain to be true.
2. To support or uphold the validity of; confirm.
Marquette Bank Nat. v. County of Hennepin
Supreme Court of Minnesota
March 4, 1999