Mark A. Musick, in his capacity as the Monongalia County Assessor v. University Park at Evansdale, LLC

Summary

The Supreme Court of Appeals of West Virginia affirmed the circuit court’s determination that University Park at Evansdale, LLC’s leasehold interest had a taxable value of $0 for tax year 2015. The court held that the assessor failed to comply with applicable procedures and precedent governing valuation of leasehold interests, including the requirements concerning independent value, bargain leases, and assignability. The court declined to overrule Maplewood Community, Inc. v. Craig.

Holdings

1. The court declined to overrule Maplewood and held that the separate value of a leasehold depends on whether the leasehold is economically advantageous to the lessee, meaning a bargain lease, and freely assignable so that the lessee can realize the bargain in the marketplace.
2. University Park's leasehold had no separate and independent taxable value because the evidence showed that it was not freely assignable and was not a bargain lease; the proper 2015 assessment was therefore zero.
3. The circuit court did not abuse its discretion by refusing to remand the matter to the Board of Equalization and Review because the record was adequate and the assessor had a full and fair opportunity to present evidence.
4. A tax assessment fixed by an assessing officer is presumed correct, and the taxpayer bears the burden of proving by clear and convincing evidence that the assessment is erroneous.

Questions Presented

1. Whether the court should overrule or abandon the Maplewood framework requiring consideration of whether a leasehold is an economically advantageous bargain lease and freely assignable before it may have separate and independent taxable value.
2. Whether University Park's leasehold had separate and independent value for purposes of the 2015 ad valorem property-tax assessment.
3. Whether the circuit court abused its discretion by refusing to remand the case to the Board of Equalization and Review for additional evidence.
4. Whether University Park proved by clear and convincing evidence that the assessor's 2015 valuation was erroneous.

Disposition

affirmed