10 N.E.3d 612
Ind. T.C.2014Background
- McKeeman property in Pleasant Township, Steuben County was assessed at $489,000 for 2006 (land $292,800; improvements $196,200).
- McKeemans challenged the land assessment first with the Steuben County PATA and then with the Indiana Board of Tax Review, which upheld the assessment on March 11, 2011.
- McKeemans filed this original tax appeal on April 22, 2011; the Court held oral argument on October 13, 2011.
- Standard of review requires the taxpayer to prove the Indiana Board’s final determination is invalid (arbitrary, capricious, abuse of discretion, not in accordance with law, or unsupported by substantial evidence).
- Indiana assesses real property on market value-in-use, per Manual guidelines, which may be rebutted by market-based evidence such as sales data.
- McKeemans challenged three aspects: neighborhood establishment, base rate application, and the probative value of their sales-comparison analysis.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Neighborhood establishment validity | McKeeman claim assesses neighborhood improperly varied inappropriately. | Board allowed variability within neighborhoods per guidelines; differences do not prove error. | No reversible error; neighborhood properly established under guidelines. |
| Base rate proper application | Base rate derived from non-comparable properties; base rate evidence flawed. | Record shows land assessed at established base rate; lack of detail on which properties used does not prove error. | No reversible error; base rate applied consistent with guidelines. |
| Sales comparison analysis probative value | Comps 1–7/9–10 should inform value; some comps reliable and show overassessment. | Board found several comps unreliable; remaining comps and adjustments did not demonstrate overassessment. | No reversible error; Board properly deemed analysis lacking probative value. |
Key Cases Cited
- Hubler Realty Co. v. Hendricks Cnty. Assessor, 938 N.E.2d 311 (Ind.Tax Ct.2010) (burden to show invalidity of final determination)
- Kooshtard Prop. VI, LLC v. White River Twp. Assessor, 836 N.E.2d 501 (Ind.Tax Ct.2005) (market value-in-use appraisal as effective rebuttal method)
- O'Donnell v. Dep't of Local Gov’t Fin., 854 N.E.2d 90 (Ind.Tax Ct.2006) (taxpayer bears burden to prove invalidity of assessment)