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AN 0 3 N01 Wayne E IN THE SUPREME COURT OF OHIO Board of Education of the Canal Winchester City School District, Case No. 07-0478 Appellant, v. Appeal from the Ohio Board of Tax Appeals AP Hotels of Illinois, Inc., Franklin County Auditor, and the Franklin County Board of Revision, Board of Tax Appeals Case No. 2004-K-349 Appellees MERIT BRIEF OF APPELLANT THE BOARD OF EDUCATION OF THE CANAL WINCHESTER CITY SCHOOL DISTRICT Martin J. Hughes, III, Esq. (0008284) Jackie Lynn Hager, Esq. (0072400) Martin Hughes & Associates 150 E. Wilson Bridge Rd, Ste. 300 Worthington, Ohio 43085 (614) 410-1700 (614) 455-0480 (f) fF^ ^ Counsel for Appellant, The Board of Education ^ of the Canal Winchester School District F AN 0 3 N01 Wayne E. Petkovic, Esq. 840 Brittany Drive CLERK OF COUFdT Delaware, Ohio 43015 SUPREiU1E COUR`{"_OF nH10 (740) 362-7729 (740) 362-4136 (f) Counsel for Appellee, AP Hotels of Illinois, LLC Paul Stickel, Esq. 373 S. High Street, 20'h Floor Columbus, Ohio 43215 (614) 462- 7519 (614) 462-6252 (f) Counsel for County Appellee, Franklin County Board of Revision & Franklin County Auditor TABLE OF CONTENTS TABLE OF CONTENTS . .. ii TABLE OF AUTHORITIES . iv STATEMENT OF FACTS . I ARGUMENT .......................................................... 4 Proposition of Law No. I . 4 The BTA erred in determining that the report and opinion testimony of the property. owner's appraiser with respect to value of the subject property as of January 1, 2003 were competent and probative as to the value of the subject property on the tax lien date of January 1, 2002. A. Finding an appraisal report with an affective date twelve months .. 4 after the relevant tax lien date to be probative evidence constitrrtes an abuse of discretion by the Ohio Board of Tax Appeals. B. Sam Koon's appraisal report was incompetent and each of ........8 his aporoaches to value were flaw. C. The Board of Tax Appeals decision to overrule Appellant's .......11 Motion to Exclnde Sam Koon's appraisal report and thereby assign it probative weight was an abuse of discretion in that Apoellee AP Hotels of Blinois. Inc. failed to comply with the Ohio Board of Tax Appeals Rules 5717-1-11 and 5717-1-15. CONCLUSION ...... .................................................. 13 PROOF OF SERVICE . 14 APPENDIX Appendix Paee Appellant The Board of Education of the Canal Winchester City School ........ .... 1 District, Notice of Appeal to the Supreme Court of Ohio, dated March 16, 2007. Ohio Board of Tax Appeals Decision, dated Feb. 16, 2007 . 6 Cambridge Commons LP v. Guernsey Ciy. Bd. of Revision . .19 (2005), 106 Ohio St.3d 27, 830 N. E.2d 1147 ii Elyria City School District Board of Education v. Lorain Cty. Bd of Revision ....... 24 (August 4, 2004), B.T.A. Case No. 2003-J-1372, unreported 2004 Ohio Tax LEXIS 1234 Freshwater v. Belniont Cty. Bd of Revision . 30 (1997), 80 Ohio St.3d 26, 684 N.E.2d 304 Oln:sted Falls Village Association v. Cuyahoga Cty. Bd of Revision . .36 (1996), 75 Ohio St.3d 552, 664 N.E.2d 922 SFZ 7'ransportation, btc. v. Limbach, Tax Commissioner . 42 (1993), 66 Ohio St.3d 602, 613 N.E.2d 1037 Western Industries, Iric. v. Hantilton Cty. Bd of Revision . 47 (1960), 170 Ohio St. 340; 164 N.E.2d 741 Westhaven, Inc. v. Wood Cty. Bd. of Revision . 49 (1998), 81 Ohio St3d 67; 689 N.E.2d 38 Witt Conipany v. Hanailton Cty. Bd. of Revision, et al . 55 (1990), 61 Ohio St. 3d 155; 573 N.E.2d 661 Ohio Board of Tax Appeals Rule 5717-1-11 . 59 Ohio Board of Tax Appeals Rule 5717-1-15 . ... 61 Ohio Evidence Rule 201 . 63 Ohio Revised Code §323.11 ........................................... 64 Ohio Revised Code §5715.19 . 65 Ohio Revised Code §5717.04 . 70 iii TABLE OF AUTHORITIES Cases: Canibridge Commons LP v. Guernsey Cty. Bd ofRevision . 7 (2005), 106 Ohio St.3d 27, 830 N. E.2d 1147 Elyria City School District Board of Education v. Lorain Cty. Bd of Revision ..... (August 4, 2004), B.T.A. Case No. 2003-J-1372, unreported 2004 Ohio Tax LEXIS 1234 Freshwater v. Belmont Cty. Bd. ofRevision . 5-6 (1997), 80 Ohio St.3d 26, 684 N.E.2d 304 Olmsted Falls Village Association v. Cuyahoga Cty. Bd of Revision . .4-5 (1996), 75 Ohio St.3d 552, 664 N.E.2d 922 SFZ Transportation, Inc. v. Limbach, Tax Conmiissioner . .8 (1993), 66 Ohio St.3d 602, 613 N.E.2d 1.037 Western Industries, Inc. v. Hamilton Cty. Bd of Revision . 7-8 (1960), 170 Ohio St. 340; 164 N.E.2d 741 Westhaven, Inc. v. Wood Cty. Bd of Revision . 8 (1998), 81 Ohio St.3d 67; 689 N.E.2d 38 Witt Con:patzy v. Hamilton County Board o, f 'Revision, et al . 7 (1990), 61 Ohio St. 3d 155 CONSTITUTIONAL PROVISIONS: STATUTES: Ohio Board of Tax Appeals Rule 5717-1-11 . 11 Ohio Board of Tax Appeals Rule 5717-1-15 . 11 Ohio Evidence Rule 201 . 3 Ohio Revised Code §323.11 . 4-5 Ohio Revised Code §5715.19 ..............................................5 Ohio Revised Code §5717.04 . 4 iv STATEMENT OF FACTS The Property is a sixty room hotel, constructed in 1997, commonly referred to as the Amerihost Inn & Suites located at 6323 Prentiss School Road in Canal Winchester, Ohio. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg. 19]. The Franklin County Auditor has the Property listed as permanent parcel number 184-002076-00. The Property consists of one building containing a total of 28,484 square feet with 60 guest rooms, a 460 square foot meeting room, a heated indoor pool and exercise room. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg. 54- 55]. The Property sits on 1.79 acres of land. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg. 53]. Specifically, the Property consists of a mixture of double and king rooms with 3 handicap accessible single rooms. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg. 55]. Appellee AP Hotels of Illinois, Inc. filed a complaint with the Franklin County Board of Revision seeking a reduction in value to $1,500,000 for tax year 2002. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg. 119]. The Franklin County Board of Revision ordered the fair market value of the Property unchanged at $2,300,800 for tax year 2002 and carried forward. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg. 120]. Appellee AP Hotels of Illinois, Inc. then filed an appeal with the Ohio Board of Tax Appeals, seeking a reduction in value to $1,629,100. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg. 121]. At the Ohio Board of Tax Appeals, the Appellee AP Hotels of Illinois, Inc. relied solely upon the testimony and written report of Mr. Sam Koon, appraiser, According to Mr. Koon's written report and testimony before the Ohio Board of Tax Appeals, Mr. Koon's opinion of value of the Property, was $1,600,000 as of January 1, 2003. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg. 39]. The relevant tax lien date 'in this case, however is January 1, 2002, thus Mr. Koon's opinion of value was twelve months after the relevant tax lien date. Appellant The Board of Education of the Canal Winchester City School District filed a Motion to Exclude the testimony and written appraisal report introduced by Appellee AP Hotels of Illinois, Inc. as Mr. Koon's report does not express an opinion of true value for the subject property as of January 1, 2002, the relevant tax lien date. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg. 122]. The Ohio Board of Tax Appeals over-ruled Appellant The Board of Education of the Canal Winchester City School District's Motion and in its February 16, 2007 Decision and Order ruled in favor of the Appellee AP Hotels of Illinois, Inc., assigning a value of $1,600,000 to the Property as of January 1, 2002. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg. 1]. Appellant The Board of Education of the Canal Winchester City School District filed an appeal to this Honorable Supreme Court of Ohio on March 16, 2007 on the basis that the Ohio Board of Tax Appeals abused its discretion in finding that Mr. Sam Koon's appraisal report was competent and probative evidence for tax lien date January 1, 2002. [See Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, Appendix pg. 1]. Although not part of the statutory transcript or record before this Supreme Court of Ohio, pursuant to Ohio Evidence Rule 201, Appellant The Board of Education of the Canal Winchester City School District requests that this Supreme Court take Judicial Notice of a sale of the Property which took place on May 24, 2006, with a sale price of $2,375,000. [See Supplement to Merit Brief of Appellant The Board of Education of the Canal Winchester City School District, pg.
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