Tax Court – Remands

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In this appeal, the Supreme Court considered whether the Minnesota Tax Court followed its remand instructions in 444 Lafayette, LLC v. County of Ramsey, 811 N.W.2d 106 (Minn. 2012). Originally, relators sought certiorari review of the tax court’s market value determinations for the subject property for the assessment dates January 2, 2007; January 2, 2008; and January 2, 2009. After trial, the tax court adopted the market values proposed by respondent Ramsey County in its post-trial brief, which were higher than the value opinions presented by either party’s appraiser at trial. Relators appealed, and the Supreme Court reversed and remanded with instructions for the tax court to carefully explain its reasoning for rejecting the appraisal testimony and describe the factual support in the record for its determinations. On remand, the tax court again adopted market values that exceeded the parties’ appraisal opinions. The Supreme Court held that appellate review of the Minnesota Tax Court’s decision on remand is for an abuse of discretion. Although that review is deferential, the tax court must execute a remand order according to its instructions and has no power to modify those instructions. Furthermore, the tax court abused its discretion in determining the market values for the subject property on remand when it failed to explain its reasoning and describe the factual support in the record for its calculation of parking income and expenses. Reversed and remanded.

A12-0963 444 Lafayette, LLC v. County of Ramsey (Tax Court)

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