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How to Overcome ‘Special Purpose’ Property Classification in Ad Valorem Valuation: In re Appeal of Corning Inc.

January 31, 2017
Reed J. Hollander , Charles H. Mercer, Jr.

This post originally appeared on the North Carolina Bar Association’s Tax Section Blog.

County tax assessors sometimes contend a commercial or industrial property is a “special purpose” property and, on that basis, determine there is no market evidence that bears on the ad valorem value of the property. Such a position often leads the assessor to value the property without use of a comparable sales approach, resulting in values substantially in excess of actual market sales. How can a property owner successfully challenge a county tax office’s classification of commercial or industrial property as a special purpose property and win the resulting valuation challenge? A recent decision from the North Carolina Court of Appeals provides a detailed look at one successful effort.

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