Property's total value must be allocated appropriately between land and improvements.(Recent Court Decisions)

The Supreme Court of Ohio ruled that a board of tax appeals could not arbitrarily allocate value between land and improvements, even when the property's total value was properly assessed.

Polaris Amphitheater Concerts, Inc. (Polaris) owns five parcels collectively known as the Germain Amphitheater, a music venue located in the city of Columbus and the Olentangy school district. The county auditor assessed the land value of Polaris's property at $13,799,100 and the property's total value at $20,734,000. The school district's appraiser concluded that the total property was worth $21 million but that the land was worth only $8.6 million; Polaris's appraiser valued the land at $7.2 million. Despite the discrepancy in land valuations, the board of tax appeals (BTA) adopted both of the auditors' assessments. Polaris appealed.

Polaris's primary argument on appeal was that the BTA had no grounds for adopting the $13,799,100 land valuation. The state supreme court agreed. The court found that although the BTA's assessment of total value was supported by the school district's appraisal, its allocation of value to land was not.

The court emphasized that the auditor and the BTA cannot allocate value between land and improvements arbitrarily. Auditors, the court stated, must calculate total value by assessing land and improvements separately and must follow different valuation rules for each. The court concluded that because the record contradicted the BTA's decision, its determination of land value was invalid. The board of tax appeals decision was reversed.

Polaris Amphitheater Concerts, Inc. v. Delaware County Board of Revision

Supreme Court of Ohio

May 29, 2008

889 N.E.2d 103 (Ohio 2008)

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