Our Successes

The Minnesota firm of Robert Hill Law, Ltd. represents large and small businesses in all aspects of property tax appeals, from the initial discussion with the tax assessor through to the state Supreme Court.  Our work on behalf of overtaxed clients has helped them save millions and has resulted in several important and precedent-setting decisions.  The following reported cases are examples of our work. 

Walgreen Co. v. City of Madison

752 N.W.2d 687 (Wisc. 2008)
In this case, the Wisconsin Supreme Court held that a property tax assessment must be based on fair market rental rates and not on above-market rental contract values.  Walgreens leased two properties located in Madison, Wisconsin from a developer who built the properties according to Walgreens's specifications.  The lease terms provided for higher than fair market rental prices in order to compensate the developer for financing, land acquisition, construction, and development costs plus profit.  In 2003 and 2004, Walgreens appealed their tax assessments to the City of Madison Board of Review, which denied their claim for excessive assessment.  Walgreens then appealed through to the Wisconsin Supreme Court.  The Court held that a correct assessment requires use of the proper methodology for assessing leased retail property per Wisconsin Statute Section 70.31(1), which requires real property to be valuated based on procedures found in the Wisconsin Property Assessment Manual and the Appraisal of Real Estate.  Thus the court held that assessments must be based on market rent and not the rent agreed to in the lease.

Southern Minnesota Beet Sugar Coop v. County of Renville

737 N.W. 2d 545 (Minn. 2007)
The Southern Minnesota Beet Sugar Coop (SMBSC) petitioned the court for relief from Renville County's real property tax assessment of its sugar beet processing plant on the basis that the estimated market value used by the county was greater than the property's actual market value.  The court found that there were three approaches to determining the value of real estate: the market comparison approach, which is based on comparable sales; the cost approach, which is based on what a buyer would pay for constructing a new version of the same property; and the income approach, which is based on the income the property is expected to generate.  In this case, SMBSC's tax assessor used both the cost and market comparison approaches but rejected evidence of the comparable sales.  The state Supreme Court held that that the tax court was required to use its independent judgment in evaluating all offered testimony and evidence and ordered the court to consider the evidence of the comparison sales.

McNeilus Truck & Mfg., Inc. v. County of Dodge

705 N.W.2d 410 (Minn. 2005)
McNeilus Truck & Manufacturing, Inc. owned and operated a large cement drum and refuse container manufacturing plant in Dodge County.  In valuating McNeilus's property, Dodge County's certified appraiser used the sales comparison approach and selected ten comparable industrial property sales out of fifty which were of dissimilar uses and sizes.  McNeilus's expert appraiser used a sales comparison and cost approach to valuation, but with comparable sales of properties having similar uses from a much larger market.  The two valuations resulted in drastically different property values.  The tax court refused to accept out-of-state sales comparables.  The Minnesota Supreme Court held that ruling against the admission of out-of-state comparable sales violated the tax court's obligation to use its independent judgment in evaluating testimony and evidence.  The court held that the tax court is required to follow Minn.Stat. § 273.11, subd. 1 (2004), which provides that "all property shall be valued at its market value."  It further held that "fair market value for property assessment purposes is the compensation which a willing purchaser [would] pay to an owner - taking into consideration the highest and best use of the property."

Seek Qualified Representation

For over twenty years, Robert A. Hill has represented industrial, commercial, and retail businesses of all sizes in property tax appeals.  For representation from a skilled attorney with proven results, contact Robert Hill Law, Ltd. today to schedule a consultation.