Updated june 2021
Recent Case Law in Property Valuation
The court, in the recent case of Sleepy Hollow County Club against The Town of Ossining, held that the Income Capitalization Method is the appropriate method to value the subject property of Sleepy Hollow Country Club, a Westchester golf course. Sleepy Hollow argued that the assessment should be reduced using the estimated daily fee rate, rejecting the Town’s argument that the club’s exclusivity and trophy-esqe qualities should be taken into account in assessing the property.
An important hotel valuation case won by Joel Marcus and Philip Azarian of Marcus & Pollack LLP, held that the Marriott Courtyard near LaGuardia Airport was overvalued by the city. The challenge, which is for the fiscal years 2014-2015 through 2018-2019, reduced the hotel’s tax bill by more than $11 million. According to Joel, the city overvalued the hotel because, rather than rely on the property’s actual expenses, it calculated what the hotel’s expenses would have been using a market average. The city also used comps for hotels in Washington and Boston, cities that Joel believes have little relevance to the New York market. Cross examination of the City’s appraiser revealed that his report failed to adequately detail the methodology and data used from comparable properties. (GCP Realty II, LLC, against The Tax Commission of the City of New York and the Commissioner of Finance of the City of New York.)
Joel R. Marcus
Marcus & Pollack LLP
American Property Tax Counsel (APTC)