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Mobile home park's occupancy rate not enough to reduce property assessment

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A low occupancy rate alone did not provide the owner of a mobile home community with the evidence it needed to get its property assessment reduced.  

The Indiana Tax Court affirmed the final determination by the Indiana Board of Tax Review in Indiana MHC, LLC v. Scott County Assessor, 39T10-1009-TZ-52. The high court ruled because Indiana MHC’s income capitalization approach lacked probative value, the Indiana Board of Tax Review was correct in determining that the property owner failed to prove its 2007 real property assessment was incorrect.

Indiana MHC, owner of Amberly Pointe, a manufactured home community, was successful in getting the Scott County Property Tax Assessment Board of Appeals to lower the original assessment of $5.4 million. However, believing the reduced assessment of $3.38 million was still too high, the property owner appealed to the Indiana board.

At an administrative hearing, Indiana MHC asserted that because only 85 pads of Amberly Pointe’s 205 pads were rented and generating income between 2005 and 2008, only the rented pads had value for purpose of the 2007 assessment. In addition, the property owner also claimed that about 2.6 acres of the community’s 33 acres had no value because the land, as green space, could not generate any income.

Using the income capitalization approach, Indiana MHC contended its property had a value of $1,075,692.  

The Indiana board concluded that because the property owner’s income capitalization approach failed to take into account any market data whatsoever, it lacked probative value.

In affirming the board’s determination, the Tax Court explained the requirements for applying the income capitalization approach. Namely, the property owner must not only examine the historical and current income, expenses, and occupancy rates for the subject property but the income, expenses and occupancy rates of comparable properties in the market as well.

The court found that Indiana MHC failed to comply with generally accepted appraisal principle because it did not consider the occupancy rates of comparable properties in the market. In fact, the evidence indicates that Amberly Pointe’s low occupancy rate of 40 percent was actually the anomaly in the market place.

Consequently, the Tax Court ruled that based on Indiana MHC’s failure to examine, analyze and reconcile its low occupancy rate in light of the much higher occupancy rates prevalent in the market place, the Indiana board did not err in finding that the property owner’s income capitalization approach lacked probative value.

 


 

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  1. I will continue to pray that God keeps giving you the strength and courage to keep fighting for what is right and just so you are aware, you are an inspiration to those that are feeling weak and helpless as they are trying to figure out why evil keeps winning. God Bless.....

  2. Some are above the law in Indiana. Some lined up with Lodges have controlled power in the state since the 1920s when the Klan ruled Indiana. Consider the comments at this post and note the international h.q. in Indianapolis. http://www.theindianalawyer.com/human-trafficking-rising-in-indiana/PARAMS/article/42468. Brave journalists need to take this child torturing, above the law and antimarriage cult on just like The Globe courageously took on Cardinal Law. Are there any brave Hoosier journalists?

  3. I am nearing 66 years old..... I have no interest in contacting anyone. All I need to have is a nationality....a REAL Birthday...... the place U was born...... my soul will never be at peace. I have lived my life without identity.... if anyone can help me please contact me.

  4. This is the dissent discussed in the comment below. See comments on that story for an amazing discussion of likely judicial corruption of some kind, the rejection of the rule of law at the very least. http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774#comment

  5. That means much to me, thank you. My own communion, to which I came in my 30's from a protestant evangelical background, refuses to so affirm me, the Bishop's courtiers all saying, when it matters, that they defer to the state, and trust that the state would not be wrong as to me. (LIttle did I know that is the most common modernist catholic position on the state -- at least when the state acts consistent with the philosophy of the democrat party). I asked my RCC pastor to stand with me before the Examiners after they demanded that I disavow God's law on the record .... he refused, saying the Bishop would not allow it. I filed all of my file in the open in federal court so the Bishop's men could see what had been done ... they refused to look. (But the 7th Cir and federal judge Theresa Springmann gave me the honor of admission after so reading, even though ISC had denied me, rendering me a very rare bird). Such affirmation from a fellow believer as you have done here has been rare for me, and that dearth of solidarity, and the economic pain visited upon my wife and five children, have been the hardest part of the struggle. They did indeed banish me, for life, and so, in substance did the the Diocese, which treated me like a pariah, but thanks to this ezine ... and this is simply amazing to me .... because of this ezine I am not silenced. This ezine allowing us to speak to the corruption that the former chief "justice" left behind, yet embedded in his systems when he retired ... the openness to discuss that corruption (like that revealed in the recent whistleblowing dissent by courageous Justice David and fresh breath of air Chief Justice Rush,) is a great example of the First Amendment at work. I will not be silenced as long as this tree falling in the wood can be heard. The Hoosier Judiciary has deep seated problems, generational corruption, ideological corruption. Many cases demonstrate this. It must be spotlighted. The corrupted system has no hold on me now, none. I have survived their best shots. It is now my time to not be silent. To the Glory of God, and for the good of man's law. (It almost always works that way as to the true law, as I explained the bar examiners -- who refused to follow even their own statutory law and violated core organic law when banishing me for life -- actually revealing themselves to be lawless.)

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