California Court of Appeal Finds San Francisco’s Property Tax Assessment Method Erroneous for Luxury Hotel

The California Court of Appeal Sept. 13 found that San Francisco used an erroneous method to assess the value of Taxpayers’ luxury hotel. Taxpayers, two limited liability companies, challenged a property tax reassessment of their hotel. The San Francisco Assessment Appeals Board upheld the assessment. Taxpayers appealed. The trial court affirmed the board’s determination. Taxpayers appealed, contending that the assessed value of the hotel was high because it improperly included the value of four nontaxable intangible assets. The court of appeal noted: 1) the assessed value of the hotel improperly included the value of the management agreement, in-room movies, and ...