Fleet Supply, Inc. v. STATE BD. OF TAX COM'RS
Decision Date | 13 March 2001 |
Docket Number | No. 49T10-9806-TA-58.,49T10-9806-TA-58. |
Parties | FLEET SUPPLY, INC., Petitioner, v. STATE BOARD OF TAX COMMISSIONERS, Respondent. |
Court | Indiana Tax Court |
David L. Pippen, Attorney at Law, Indianapolis, IN, Attorney for Petitioner.
Steve Carter, Attorney General of Indiana, Joel Schiff, Deputy Attorney General, Indianapolis, IN, Attorneys for Respondent.
The Petitioner, Fleet Supply, Inc. (Fleet Supply), appeals the Final Determination of the State Board of Tax Commissioners (State Board) establishing the assessed value of its property as of March 1, 1995. Fleet Supply presents the following issues for the Court's consideration:
Fleet Supply owns the subject property, a "discount retail facility," in Cass County, Indiana. (Oral Argument Tr. at 3.) Improvements on the parcel include a Main Building and two smaller, pole barns. Fleet Supply filed a Form 131 Petition for Review of Assessment with the Cass County Auditor on July 2, 1996. The petition challenged the Cass County Board of Review's (BOR) assessment of Fleet Supply's land at $48,330 and its improvements at $333,400. The State Board conducted an administrative hearing on Fleet Supply's petition on January 8, 1998. On April 28, 1998, the State Board issued its Final Determination. In the Final Determination, the State Board did not alter the assessed value of Fleet Supply's land but did lower the assessed value of its improvements to $291,100.
Fleet Supply filed an original tax appeal on June 4, 1998. The Court conducted a trial in this matter on March 19, 1999. On April 12, 2000, the Court heard oral arguments from the parties and thereafter took the case under advisement. Additional facts will be supplied where necessary.
The Court gives great deference to the State Board's final determinations when the State Board acts within the scope of its authority. Wetzel Enters., Inc. v. State Bd. of Tax Comm'rs, 694 N.E.2d 1259, 1261 (Ind.Tax Ct.1998). Accordingly, this Court reverses final determinations of the State Board only when those decisions are unsupported by substantial evidence, are arbitrary or capricious, constitute an abuse of discretion, or exceed statutory authority. Id. The taxpayer bears the burden of demonstrating the invalidity of the State Board's final determination. Clark v. State Bd. of Tax Comm'rs, 694 N.E.2d 1230, 1233 (Ind.Tax Ct.1998).
Fleet Supply contends that the State Board applied the wrong life expectancy table in determining the physical depreciation of its Main Building. According to Fleet Supply, the State Board should have applied the thirty-year life expectancy table, not the forty-year life expectancy table. The regulations provide: IND.ADMIN.CODE tit. 50, r. 2.2-10-7(c) (1996). "To apply physical depreciation, the assessor must select the correct life expectancy table and identify the condition and age of the building." Id., r. 2.2-10-7(d). The regulations provide four different life expectancy tables for use in determining the physical depreciation of commercial and industrial buildings. Id., 2.2-10-7(c). These tables are located in the regulations at IND.ADMIN.CODE tit. 50, r. 2.2-11-7 (1996). Among other things, the thirty-year life expectancy table is used to assess "light pre-engineered buildings" and the forty-year life expectancy table is used to assess "all fire-resistant buildings not listed elsewhere." IND.ADMIN.CODE tit. 50, r. 2.2-11-7 (1996).
A fifteen percent physical depreciation adjustment was assigned to the Main Building. (Joint Ex. 1 at 10, 12.) The State Board's Final Determination states that (Joint Ex. 1 at 19.) To prove this decision incorrect, Fleet Supply was required to submit to the State Board probative evidence sufficient to establish a prima facie case as to the invalidity of the application of the forty-year life expectancy table. CDI, Inc. v. State Bd. of Tax Comm'rs, 725 N.E.2d 1015, 1022 (Ind. Tax Ct.2000).
Fleet Supply argues that its main structure was a light pre-engineered building, so its physical depreciation should have been determined via application of the thirty-year life expectancy table. Thus, Fleet Supply must have offered evidence showing that its building had construction characteristics typical of a light pre-engineered building. Damon Corp. v. State Bd. of Tax Comm'rs, 738 N.E.2d 1102, 1111 (Ind.Tax Ct.2000) ( ).
At the administrative hearing, Fleet Supply submitted an "Assessment Review and Analysis" (Review) addressing all of its challenges to the BOR's assessment. M. Drew Miller of Landmark Appraisals, Inc., Fleet Supply's taxpayer representative, prepared the Review. The Review stated that the "County Board failed to accurately apply the correct amount of physical depreciation based upon a 30 year life expectancy." (Joint Ex. 2 at 3.) The Review also contained blurred, black-and-white copies of two photographs of the Main Building. (Joint Ex. 2 at 2.) In addition, Miller submitted a copy of the State Board's Final Determination of an appeal challenging the subject property's assessment as of March 1, 1992. (Joint Ex. 4.) This Final Determination for 1992 concluded that the thirty-year life expectancy table should be used to calculate the Main Building's physical depreciation. (Joint Ex. 4 at 2.) At trial, Miller made the following statement: (Trial Tr. at 16.) The State Board's hearing officer, Mark A. Bisch, also testified at trial, saying that the subject improvement had metal construction and concrete floors with some tile. (Trial Tr. at 37.)
Fleet Supply has not submitted probative evidence sufficient to establish a prima facie case regarding which economic life table should be applied in determining the Main Building's physical depreciation. The Review's statement and Miller's remarks at trial are conclusory in nature and therefore non-probative. CDI, Inc.,725 N.E.2d at 1020-21. Miller's statement that neither heavy flooring nor framing is needed does not help the Court make a determination. That these features are not needed does not mean that they are not present. Further, Miller makes no effort to explain why, if these features are not present, the Main Building must then be viewed as a light, pre-engineered structure. Id. at 1020. The unclear photographs lack captions and Miller made no effort to explain what is depicted in them. Therefore, the pictures lack any probative value.2Heart City Chrysler v. State Bd. of Tax Comm'rs, 714 N.E.2d 329, 333 (Ind. Tax Ct.1999). The fact that the Main Building has metal construction and concrete floors may be probative as to whether it must be considered a light, pre-engineered building. However, Fleet Supply provides no analysis as to how these features are probative. The Court will not make the taxpayer's argument and analysis for it. CDI, Inc.,725 N.E.2d at 1020. Moreover, as this Court has said before, unsupported allegations remain just that— mere allegations that lack any probative value. CGC Enters. v. State Bd. of Tax Comm'rs, 714 N.E.2d 801, 804 (Ind.Tax Ct.1999) (citing Herb v. State Bd. of Tax Comm'rs, 656 N.E.2d 890, 893 (Ind.Tax Ct.1995)). Finally, the Court reminds Fleet Supply that each assessment and each tax year stands alone. Glass Wholesalers, Inc. v. State Bd. of Tax Comm'rs, 568 N.E.2d 1116, 1124 (Ind.Tax Ct.1991) (citation omitted). Thus, evidence as to the Main Building's assessment in 1992 is not probative as to its assessed value three years later. Fleet Supply has made no prima facie case as to its position that the thirty-year life expectancy table should have been applied to determine the Main Building's physical depreciation adjustment.
II. Condition
review denied.
As regards condition, the Review stated that the buildings have "received minimal maintenance over the...
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