Gen. Motors Corp. v. Cuyahoga Cty. Bd. of Revision
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1 General Motors Corporation, Appellant, v. Cuyahoga County Board of 2 Revision et al., Appellees. 3 [Cite as Gen. Motors Corp. v. Cuyahoga Cty. Bd. of Revision (1996), _____ 4 Ohio St.3d _____.] 5 Taxation -- Real property valuation -- Board of Tax Appeals 6 decision affirmed by Supreme Court when decision is 7 reasonable and lawful -- Board of Tax Appeals decision 8 remanded by Supreme Court when Supreme Court unable to 9 find any evidence to support board s finding. 10 11 12 13 (No. 95-441--Submitted November 9, 1995--Decided February 14, 1996.) Appeal from the Board of Tax Appeals, Nos. 85-G-440, 85-A-441, 85-B-442 and 85-C-443. 14 This case is once again before us after our remand in Gen. Motors 15 Corp. v. Cuyahoga Cty. Bd. of Revision (1990), 53 Ohio St.3d 233, 559 16 N.E.2d 1328, and in Gen. Motors Corp. v. Cuyahoga Cty. Bd. of Revision 17 (1993), 67 Ohio St.3d 310, 617 N.E.2d 1102. We were unable to ascertain 18 how the Board of Tax Appeals ( BTA ) reached its decisions, and, in those 19 cases, we directed the BTA to set forth its findings and the basis therefor. 1 On this remand, the BTA, on January 27, 1995, issued a more detailed 2 decision, finding that the true value of the subject property was $41,500,000 3 for tax year 1982, $43,800,000 for tax year 1983, and $45,200,000 for tax 4 year 1984. We described the facility in our first opinion. 5 6 7 8 9 This cause is before this court upon General Motors Corporation s ( GM s ) appeal as of right. Jones, Day, Reavis & Pogue, Roger F. Day and John C. Duffy, Jr., for appellant. Stephanie Tubbs Jones, Cuyahoga County Prosecuting Attorney, and 10 William J. Day, Assistant Prosecuting Attorney, for appellees Cuyahoga 11 County Auditor and Cuyahoga County Board of Revision. 12 13 14 15 Armstrong, Mitchell & Damiani, Timothy J. Armstrong, Deborah J. Papushak and William Mitchell, for appellee Parma Board of Education. Per Curiam. In R.R.Z. Assoc. v. Cuyahoga Cty. Bd. of Revision (1988), 38 Ohio St.3d 198, 201, 527 N.E.2d 874, 877, we stated: 16 The BTA need not adopt any expert s valuation. It has wide 17 discretion to determine the weight given to evidence and the credibility of 18 witnesses before it. Its true value decision is a question of fact which will 2 1 be disturbed by this court only when it affirmatively appears from the record 2 that such decision is unreasonable or unlawful. Cardinal Federal S. & L. 3 Assn. v. Cuyahoga Cty. Bd. of Revision (1975), 44 Ohio St.2d 13, 73 O.O.2d 4 83, 336 N.E.2d 433, paragraphs two, three, and four of the syllabus. This 5 court is not a super Board of Tax Appeals. Youngstown Sheet & Tube 6 Co. v. Mahoning Cty. Bd. of Revision (1981), 66 Ohio St.2d 398, 400, 20 7 O.O.3d 349, 351, 422 N.E.2d 846, 848. We will not overrule BTA findings 8 of fact that are based upon sufficient probative evidence. Hawthorn 9 Mellody, Inc. v. Lindley (1981), 65 Ohio St.2d 47, 19 O.O.3d 234, 417 10 11 N.E.2d 1257, syllabus. GM, appellant, contests several specific BTA findings. Now that the 12 BTA has set forth its reasons for its findings, we may cogently address 13 GM s contentions. At the outset, we observe that GM claims that the 14 testimony of its appraisal expert, Bruce Pickering, should prevail over the 15 testimony of the competing appraisal expert, Robert J. Kocinski, presented 16 by the Parma Board of Education ( Parma ), appellee. However, such a 17 determination is precisely the kind of factual matter to be decided by the 18 BTA. It is clear from the record that the BTA s final determination 3 1 represented a compromise between the conflicting positions of the two 2 experts. Wolf v. Cuyahoga Cty. Bd. of Revision (1984), 11 Ohio St.3d 205, 3 207, 11 OBR 523, 524, 465 N.E.2d 50, 52. In any event, we will review 4 each major contention and measure the BTA findings in light of the BTA s 5 duty and our appellate role in these matters. 6 First, GM claims that the BTA erred in rejecting GM s greenfield 7 model to replace the facility under its cost approach. Pickering employed 8 an engineering firm to design and price an ideal manufacturing complex to 9 replace the plant. However, the BTA found that GM had failed to 10 demonstrate that its theoretical greenfield model is, in fact, an equal 11 substitute for this facility. Its characteristics vary substantially. It is much 12 smaller. This, in our view, limits its flexibility for adaptation to other uses. 13 It is less likely to be adaptable to shifts in future production requirements 14 because of this limited size. Less space is available for storage or other 15 ancillary needs. Its utility is not equivalent. Further, the greenfield model 16 is predicated upon a special hypothetical facility. It is far from evident this 17 hypothetical structure would ever actually be constructed. Thus, appellant s 4 1 greenfield model is predicated upon speculation. It may never become 2 reality. 3 The BTA, instead, adopted Kocinski s cost approach. Kocinski 4 selected amounts from the Marshall-Swift valuation manual, a tried and 5 true generally accepted technique often employed in the appraisal field. 6 The BTA may weigh evidence and grant credibility to some witnesses and 7 none to others. We find no abuse of discretion in how the BTA weighed 8 this evidence and credited the testimony. Webb Corp. v. Lucas Cty. Bd. of 9 Revision (1995), 72 Ohio St.3d 36, 647 N.E.2d 162. 10 Second, GM claims that under the cost approach the BTA should 11 have deducted from total replacement cost more than the one million dollars 12 depreciation that it did for additional deterioration for the roof of the 13 facility. GM claims that the BTA should have deducted Pickering s amount 14 ($9,382,215) to repair the roof. However, the BTA found that GM had not 15 demonstrated that an entire roof replacement was necessary as Pickering 16 had proposed. 17 18 Kocinski did not testify about any additional deduction for roof repair. Thus, the BTA could have selected no additional deduction or a 5 1 deduction up to the nine million dollar figure that Pickering proposed. The 2 BTA was well within its authority to select an amount in the range 3 supported by the testimony. Accordingly, the evidence supports the BTA s 4 finding of one million dollars as additional roof depreciation. See W. Bay 5 Manor Co. v. Cuyahoga Cty. Bd. of Revision (1995), 73 Ohio St.3d 568, 6 570, 653 N.E.2d 379, 380. 7 Third, GM claims that the BTA should have deducted from 8 replacement cost an amount for a stamping plant upgrade to accommodate 9 larger and more efficient transfer presses. Kocinski, to the contrary, 10 considered the stamping plant suitable for general industrial manufacturing 11 and did not allow any additional depreciation for upgrade. The BTA did not 12 grant a further deduction for this item. 13 The BTA was warranted in accepting Kocinski s testimony that the 14 stamping plant was satisfactory for general use for industrial manufacturing. 15 GM s argument borders on pursuing a current use valuation to transform 16 this plant into a special automotive stamping plant. Of course, we have 17 previously disapproved the current use method of valuation. State ex rel. 6 1 Park Invest. Co. v. Bd. of Tax Appeals (1972), 32 Ohio St.2d 28, 33, 61 2 O.O.2d 238, 241, 289 N.E.2d 579, 582. 3 Also, GM argues for an additional deduction for asbestos removal. 4 The BTA ruled that GM had not adequately established a diminution in 5 value due to the environmental contamination and asbestos. The BTA could 6 not find any evidence that these defects must be corrected at any given time 7 or that the cost here must be deducted on a dollar-for-dollar basis without 8 any supporting evidence on its effect on market value. Moreover, Kocinski 9 allowed no additional deduction for asbestos removal. Accordingly, the 10 record supports the BTA s finding. Hawthorn Mellody, Inc. v. Lindley, 11 supra. 12 Next, the BTA allowed extra physical deterioration for the heating, 13 ventilating, roof and miscellaneous repairs only for the 1982 valuation. It 14 did not deduct these amounts as additional depreciation from the 1983 or 15 1984 valuations because it deemed [them] repaired or replaced by that 16 expenditure in 1982. It concluded that deducting these amounts again 17 would be an improper double credit. 7 1 We are unable to find any evidence to support this finding. Neither 2 appraiser testified to the finding that the BTA made; both appraisers carried 3 these depreciation deductions through all three tax years. Since we do not 4 find any record support for this finding, we remand this case to the BTA to 5 deduct amounts for these defects, adjusting these deductions for the passage 6 of time if necessary, for 1983 and 1984. 7 When the BTA clarified its earlier decisions in its third decision, it 8 reached different amounts as the final value for each year. The BTA states 9 that it erred in its calculations in the earlier decisions. Since the BTA 10 explained its earlier decisions in its third decision, we accept its explanation 11 as to these different amounts. The BTA s final opinion satisfies our 12 directive. 13 Finally, GM claims that the BTA should not have placed so little 14 weight on the market data approach. The BTA thoroughly discussed the 15 comparable sales presented by both appraisers but did not give great weight 16 to this approach. This it may do, and, since we do not find that it abused its 17 discretion in so weighting this evidence, we affirm its decision. 8 1 Accordingly, we reverse only that portion of the BTA s decision in 2 which it did not deduct additional depreciation for heating, ventilating, roof 3 and miscellaneous repairs from the 1983 and 1984 valuations. We remand 4 this matter to the BTA to correct this failure and, if necessary, adjust these 5 repair amounts for such years. We affirm the remainder of the decision 6 because it is reasonable and lawful. 7 Decision affirmed in part, 8 reversed in part 9 and cause remanded. 10 11 12 MOYER, C.J., DOUGLAS, WRIGHT, RESNICK, PFEIFER and COOK, JJ., concur. F.E. SWEENEY, J., dissents. 13 9
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