California Court of Appeal

In a dispute regarding the property tax assessment of plaintiff-hotel, the assessment conducted by defendant's Assessor and approved by defendant's Assessment Appeals Board is reversed and remanded, where: 1) the income approach used by the Assessor and approved by the Board to assess plaintiff-hotel violated California law because it failed to attribute a portion of plaintiff-hotel's income stream to the enterprise activity that was directly attributable to the value of intangible assets and deduct that value prior to assessment; and 2) the income method at issue here violated Revenue and Tax Code section 110(d) by failing to remove the value of plaintiff-hotel's workforce, plaintiff-hotel's leasehold interest in the employee parking lot, and plaintiff-hotel's agreement with the golf course operator prior to the assessment.

Appellate Information

• Decided 05/22/2014
• Published 05/22/2014

Judges

• JONES

Court

• California Court of Appeal

Counsel