Case Study #3:

An office building located within a large metropolitan area was purchased for a premium price during the height of the real estate market. The building was purchased as an office condominium conversion. The assessment increased proportionately with the inflated sales price indicating the County may have based its assessment increase the on the sales price.

The parcel located adjacent to the subject was also included in the sale as it was necessary to provide the required additional parking for the planned office condominium. This parcel had no independent economic value and is considered in the overall value of the property. It was discovered that the County mistakenly assessed this parcel in addition to the building, resulting in double taxation. The owners retained Architects and engineers at additional cost for plans with the conversion. Then the economy tanked and the conversion was not feasible.

Though a Market Analysis, Income Analysis and the utilization of sound economic principles, MJ Stone submitted an Ad Valorem Analysis linking together the subject parcel as well as the value of the adjacent parcel. Additionally, since the income to the property could not support any other line item other than the real estate taxes, it could be considered to have no contributory value to the land.

The Special Magistrate granted the petition and the taxpayer saved approximately $50,000.