LA Ritz, Marriott Assessment Upheld by California High Court (1)

Contractual rights of a Los Angeles hotel managed by Ritz-Carlton and Marriott may be included when determining its value for tax purposes, the California Supreme Court ruled Thursday.

Los Angeles County asked the justices to overturn a 2023 appellate decision that the county overvalued the hotel—currently called the JW Marriott Los Angeles LIVE and Ritz-Carlton Los Angeles —by $150 million, improperly accounting for a subsidy from the city and a payment from the hotel companies.

The payments constitute earnings from the use of the property that should be included in the valuation even though they flow through intangible contractual rights, ...