Preview:

IN THE OREGON TAX COURT MAGISTRATE DIVISION Property Tax TODD L. BURTON, Plaintiff, v. MULTNOMAH COUNTY ASSESSOR, Defendant. ) ) ) ) ) ) ) ) )

TC-MD 040236F

DECISION

This appeal concerns the value of Plaintiff's single family residence for the 2003-2004 tax year. The property is shown in Defendant's records as Account R327347. A telephone trial was held July 19, 2004. Plaintiff appeared for himself. Bob Alcantara appeared for Defendant. I. STATEMENT OF FACTS Plaintiff purchased the subject property in November 2003 for $383,000. He purchased the property from his father-in-law. The property was listed with a real estate broker for $489,000. After 20 days the listing was terminated. Plaintiff testified that he asked his father-inlaw what he wanted to receive for the property; his father-in-law told him he wanted to receive $425,000. From the base price of $425,000, Plaintiff negotiated a further reduction to $383,000. The reduction was based on the estimated cost of repairing numerous items. An independent fee appraisal, commissioned by Plaintiff in April 2004, indicated a value of $500,000. Defendant valued the property at $503,710. Plaintiff appealed to the local board of property tax appeals (the board). Based on Defendant's recommendation, the board lowered the real market value to $426,000. Plaintiff believes the property's real market value should be lowered to his purchase price of $383,000. He points to his 2004 appraisal as showing appraisals may indicate a range of values. The best indication of value, he argues, is his actual purchase price. DECISION TC-MD 040236F 1

Defendant disagrees, arguing that Plaintiff's purchase of the property was not an arms length transaction and not the best indication of value. II. ANALYSIS Plaintiff has the burden to show by a preponderance of the evidence that his "approach to valuation best reflects the property's `real market value.'" STC Submarine, Inc. v. Dept. of Rev., 320 Or 589, 597, 890 P2d 1370, 1374 (1995) (citations omitted); see also ORS 305.427 (2003). Plaintiff introduced no evidence,1 insisting his purchase price is the best indication of value. Given the circumstances of Plaintiff's purchase, the court disagrees. Plaintiff purchased the property from a related party, his father-in-law. At the time of his purchase, the property was not listed with a real estate broker. Indeed, the property had been listed with a broker for less than three weeks. It appears the listing was terminated so Plaintiff's father-in-law could sell the property to Plaintiff. Plaintiff paid more than $100,000 less than the listing price. Plaintiff's 2004 appraisal of $500,000 is consistent with his father-in-law's initial listing price of $489,000. After being told by his father-in-law that his father-in-law would like to receive $425,000 for the property, Plaintiff negotiated a further reduction based on the cost of a number of repairs. The court finds it unlikely that an unrelated party would have been able to negotiate the same price. III. CONCLUSION Plaintiff got a deal. Plaintiff's purchase of the property was not an arms length transaction; thus it is not the best indication of value. Plaintiff did not meet his burden of proof. Now, therefore, ///

Plaintiff's exhibits were not time ly received b y D efenda nt. The court exclude d the exhibits o n D efenda nt's motio n. See TCR-MD 10 C.

1

DECISION TC-MD 040236F

2

IT IS THE DECISION OF THIS COURT that Plaintiff's appeal is denied. Dated this _____ day of August 2004.

_________________________________ SALLY L. KIMSEY MAGISTRATE

THIS DOCUMENT WAS SIGNED BY MAGISTRATE SALLY L. KIMSEY ON AUGUST 23, 2004. THE COURT FILED THIS DOCUMENT ON AUGUST 23, 2004.

IF YOU WANT TO APPEAL THIS DECISION, FILE A COMPLAINT IN THE REGULAR DIVISION OF THE OREGON TAX COURT, BY MAILING TO: 1163 STATE STREET, SALEM, OR 97301-2563; OR BY HAND DELIVERY TO: FOURTH FLOOR, 1241 STATE STREET, SALEM, OR. YOUR COMPLAINT MUST BE SUBMITTED WITHIN 60 DAYS AFTER THE DATE OF THE DECISION OR THIS DECISION BECOMES FINAL AND CANNOT BE CHANGED.

DECISION TC-MD 040236F

3



Download 040236F_Burton.pdf

Oregon Law