Opinion
No. 29497
Decided June 30, 1943.
Taxation — Valuation of real estate — Board of Tax Appeals — Board not required to adopt valuation fixed by expert or witness — Taxpayer to prove right to deduction — Actual and not estimated operating expenses considered in determining true value — Liquidation or distress sales of neighboring properties not persuasive.
APPEAL from the Board of Tax Appeals.
Appellant is the owner of a parcel of land and a building thereon located in the city of Cleveland. The building is an eight-suite brick apartment consisting of two stories and a basement. A separate eight-car brick garage is also upon the premises. The land and building were appraised for the purposes of taxation for the tax year 1941 as follows: Land $1750, and building $19,630, or a total of $21,380.
Appellant admitted the land was appraised at its true value, but contended that the reasonable market value of the building was only $15,000 and that the total true value of the land and building was $16,750. Claiming a reduction of $4,630 in valuation, she filed a complaint with the Board of Revision of Cuyahoga county, which dismissed the complaint and found the true value to be as assessed. The record contains a memorandum to the effect that certain documentary evidence and an appraisal would be submitted to that board, but the record does not show that such evidence and appraisal were presented.
Upon appeal to the Board of Tax Appeals the finding and decision of the board of revision were affirmed after a hearing at which the appellant offered the testimony of only one witness and the board of revision presented no testimony but rested after cross-examination of appellant's witness.
This proceeding is in this court under favor of Section 5611-2, General Code, on appeal from the decision of the Board of Tax Appeals.
Mr. Ben P. Rabb, for appellant.
Mr. Frank T. Cullitan, prosecuting attorney, and Mr. A.M. Braun, for appellees.
The Board of Tax Appeals is not required to adopt the valuation fixed by any expert or witness. Citizens Building Co. of Cleveland v. Board of Revision of Cuyahoga County, 141 Ohio St. 47, 51, 46 N.E.2d 413; American Steel Wire Co. of New Jersey v. Board of Revision of Cuyahoga County, 139 Ohio St. 388, 393, 40 N.E.2d 426.
"The burden is upon a taxpayer to prove his right to a deduction and he is not entitled to the full amount of deduction claimed merely because no evidence is adduced contra his claim." Higbee Co. v. Evatt, Tax Commr., 140 Ohio St. 325, 332, 43 N.E.2d 273.
When considering net income as a factor in establishing the true value of income producing property, operating expenses estimated by a witness need not be given the same weight as actual expenses. Liquidation or distress sales of neighboring and comparable properties are not persuasive in fixing the true value in money.
The decision of the Board of Tax Appeals is not unlawful or unreasonable.
Decision affirmed.
WEYGANDT, C.J., MATTHIAS, HART, ZIMMERMAN, BELL and TURNER, JJ., concur.
WILLIAMS, J., not participating.