Sapina v. Cuyahoga County Bd. of Revision

In 2006, Taxpayers acquired a two-story building pursuant to a contract by which they acquired a business on the first floor of the building. Thus, the asset purchase included personal property consisting of restaurant equipment and a covenant not to compete, as well as the realty. In 2007, the auditor used the entire aggregate price, $325,000, as the property value even though in 2006 the auditor had determined the value to be only $116,700. The county board of revision (BOR) reduced the value to $175,000. The board of tax appeals reinstated the $325,000 aggregate price as the value of the property. The Supreme Court ordered the value be modified to $160,000, a figure supported by the mortgage loan secured by the real property, holding that the adoption of the full sale price was unreasonable and unlawful. View "Sapina v. Cuyahoga County Bd. of Revision" on Justia Law