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Judge affirms assessment of theater

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The Indiana Tax Court affirmed the 2006 assessment of a Marion movie theater, finding the Grant County assessor is essentially asking the court to reweigh the evidence, which it cannot do.

The Grant County assessor appealed the determination by the Indiana Board of Tax Review that the 2006 assessment for Kerasotes Showplace Theatres’ Grant County location is $4.2 million. Kerasotes had the theater built, and several years later the company sold the Marion property and sixteen others in the Midwest in a portfolio transaction. Kerasotes agreed to lease back the properties it sold to Crest Net Lease Inc. and paid $17.70 per square foot for the Marion property.

Originally, the 2006 assessment was $7,821,000. Kerasotes appealed to the Board of Tax Review. Both Kerasotes and the Grant County assessor presented appraisals that greatly varied in their value. Kerasotes’ appraisal determined that the market value-in-use of the subject property was $4.2 million. In arriving at that value, Kerasotes’ appraiser gave the subject property’s allocated sales price and contract rent little weight. He used the market rent of $11 per square foot instead of the actual contract rent of $17.70. The assessor’s appraisal estimated the market value-in-use of the property at $7.45 million, relying heavily on the allocated sales price and contractual rent.

The issue presented to the Indiana Board of Tax Review to decide was whether, under Indiana’s market value-in-use standard, the subject property should be valued according to the terms of its lease – such as the contract rent – or according to what other similar properties would garner in rent – the market rent. The Board of Tax Review based its conclusion on the fact that the evidence did show that the theater’s contract rent was significantly higher than the industry’s market standard. It also found that the evidence didn’t show how Crest Net actually came up with the allocated sale price. It found Kerasotes’ appraisal to be more probative as to the theater’s market value-in-use than the assessor’s appraisal.

The Grant County assessor argued that because a property’s market-in-value use reflects the “ask price by its owner,” Kerasotes wouldn’t have taken less for the sale of its property than the price equal to the utility it gained, which was the $7,821,835 sale price.

In Grant County Assessor v. Kerasotes Showplace Theatres, LLC, No. 49T10-0908-TA-47, Senior Tax Judge Thomas Fisher found the assessor’s argument to miss the mark.

The tax board relied on a Wisconsin Supreme Court case for its decision because it couldn’t find any Indiana cases to provide guidance. That Wisconsin case found that under the income approach, leased properties were to be valued in accordance with market rents despite the fact that their contract rents were much higher.

Fisher agreed with the tax board’s decision and noted that the Grant County assessor has essentially asked the Tax Court to reweigh the evidence.
 

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  1. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

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