In the case of Orange City Schools Bd. of Edn. v. Cuyahoga Cty. Bd. of Revision, 2019-Ohio-634, an Ohio appellate court held that the sale of a holding company whose only asset is real property will be considered a sale of real property for property tax valuation purposes.
In this case, a business purchased a holding company whose sole asset was a parcel of real property. The school board where the real property was located wanted to increase the property’s valuation based upon the purchase price of the holding company based upon the argument that the purchase of the holding company was essentially an arms-length purchase of the property.
The Ohio appellate court agreed with the school board stating that where “the transfer of membership interest described in the sale and purchase agreement was done solely for the purpose of transferring title to the property,” the purchase was a “sale of real property and not” the purchase of a company. Orange City at 32.
To read this case, click here.
School districts derive substantial revenue from property taxes. As a result, McGown & Markling recommends that all school districts actively take steps to protect their property valuation – especially when property owners are seeking to reduce property values.
McGown & Markling has experience representing school districts in a variety of property tax valuation disputes, and we are prepared to provide your school district with a free cost-benefit analysis to determine whether it is in your school district’s best interest to challenge one or more decrease complaints. For example, it makes absolutely no sense to waste scarce resources on legal fees if the potential tax decrease is of nominal value, there are political and policy ramifications in challenging the valuation of certain residential and commercial properties, and there are circumstances when certain property valuations actually should be decreased.
Please contact either Matthew John Markling or Patrick Vrobel to schedule your free property valuation cost-benefit analysis today.
Authors: Matthew John Markling and the McGown & Markling Team.
Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.