872 P.2d 204 (Ariz.Tax 1994), TX 92-00619, SMP II Ltd. Partnership v. Arizona Dept. of Revenue
|Docket Nº:||TX 92-00619.|
|Citation:||872 P.2d 204, 178 Ariz. 249|
|Party Name:||SMP II LIMITED PARTNERSHIP v. ARIZONA DEPARTMENT OF REVENUE; Maricopa County.|
|Case Date:||March 30, 1994|
|Court:||Tax Court of Arizona|
Donald P. Roelke and Paul J. Mooney, Phoenix, for plaintiff.
Helm & Kyle by John D. Helm, Tempe, for defendant.
The issue in this case is the valuation of the Sheraton San Marcos Resort.
The San Marcos is a 295-room full-service resort hotel, including a golf course, located
[178 Ariz. 250] in Chandler, Arizona. It opened in 1913 with 35 guest rooms and operated until 1979. It re-opened in 1987 after extensive renovations and expansion. Even with the expansion and renovations the hotel continues to perform below area averages for average daily room rates and occupancy rates.
For tax year 1992, Maricopa County set the full cash value of the San Marcos at $15,649,535. SMP II Limited Partnership (SMP II), the owner of the hotel, filed an administrative appeal and the State Board of Tax Appeals reduced the full cash value to $11,110,457. It is that valuation which has been appealed. 1
SMP II contends that the full cash value of $11 k million is excessive and should be lowered to $6,780,000. The County concedes that $11 k million is excessive, but asserts that the value should be lowered only to $8.4 million. 2
When a valuation is appealed to the Tax Court, there is a presumption that the government's valuation is correct and lawful. A.R.S. § 42-178(B). The presumption is one of fact and may be overcome by competent evidence. Department of Property Valuation v. Trico Electric Cooperative, Inc., 113 Ariz. 68, 70, 546 P.2d 804, 806 (1976). To overcome the presumption, a taxpayer must present sufficient " 'evidence contradicting the presumption ... from which the trial court can determine the full cash value of the property in question.' " Department of Property Valuation v. Trico Electric Cooperative, Inc., supra, 113 Ariz. at 69 and 70, 546 P.2d at 805 and 806 (quoting Graham County v. Graham County Electric Coop., Inc., 109 Ariz. 468, 512 P.2d 11 (1973)).
The Tax Court may make its own determination of full cash value only after two conditions are met. First, evidence must be presented to rebut the presumption. A.R.S. § 42-178(C); Department of Property Valuation v. Trico Electric Cooperative, Inc., supra, 113...
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