Kansas Appeals Court Upholds BTA’s Market Rent Valuation for City-Leased Land

The Kansas Court of Appeals affirmed the Board of Tax Appeals’ (BTA) valuation of city-owned land surrounding a lake that is subject to long-term residential leases. The court found that the appraiser and BTA adequately explained why they gave little weight to the below-market lease rent in determining the fair market value of the land. The dispute centered on whether the appraiser should have used the actual lease rent or market rent in valuing the property for tax purposes. The court held that Kansas law requires valuation of the fee simple estate, not the leased fee interest, and that the ...