Minneapolis Hilton’s Market Value Reduced by State Tax Court

Hennepin County overstated the value of the downtown Minneapolis Hilton Hotel for four tax years using an unreliable appraisal method, the Minnesota Tax Court ruled.

The county and the owner disputed how to distinguish the value of the upscale convention hotel’s taxable real estate assets from the nontaxable management agreement with Hilton and the property’s food and beverage operations.

The county’s approach “fails to effectively separate the value of taxable real estate from non-taxable intangible assets,” Judge Bradford S. Delapena ruled Oct. 17. He reduced the assessed value of the hotel for each tax year to a range of $83.1 ...