[Cite as Colerain Capital, L.L.C. v. Hamilton Cty. Aud., 2023-Ohio-56.]
IN THE COURT OF APPEALS FIRST APPELLATE DISTRICT OF OHIO HAMILTON COUNTY, OHIO
COLERAIN CAPITAL, LLC, : APPEAL NO. C-220098 TRIAL NO. A-2003794 Plaintiff-Appellant, :
: O P I N I O N. vs. :
HAMILTON COUNTY AUDITOR, :
and : NORTHWEST LOCAL SCHOOL DISTRICT BOARD OF EDUCATION, :
Defendants-Appellees. :
Civil Appeal From: Hamilton County Court of Common Pleas
Judgment Appealed From Is: Affirmed
Date of Judgment Entry on Appeal: January 11, 2023
Stagnaro, Saba & Patterson Co., L.P.A., and Paul T. Saba, for Plaintiff-Appellant,
Joseph T. Deters, Hamilton County Prosecuting Attorney, and Eric A. Munas, Assistant Prosecuting Attorney, for Defendant-Appellee Hamilton County Auditor,
Finney Law Firm, LLC, Christopher P. Finney and Casey A. Jones, for Defendant- Appellee Northwest Local School District Board of Education. OHIO FIRST DISTRICT COURT OF APPEALS
CROUSE, Presiding Judge.
{¶1} Plaintiff-appellant Colerain Capital, LLC, (“Colerain Capital”) appeals
from the judgment of the Hamilton County Court of Common Pleas, exercising
appellate review of a decision by the Hamilton County Board of Revision (“BOR”) on
the tax valuation of property owned by Colerain Capital in Colerain Township and
within the Northwest Local School District. The trial court affirmed the decision of the
BOR to retain the valuation of the property previously determined by the Hamilton
County Auditor (“Auditor”). Colerain Capital appeals the decision, arguing for a lower
valuation. The Auditor and the Northwest Local School District Board of Education
(“school board”) argue to retain the existing valuation. For the reasons set forth below,
we affirm the decision of the trial court.
I. Procedural and Factual History
{¶2} Colerain Capital purchased the subject property in December 2014 for
$1,916,145. The property is located near the Northgate Mall and consists of a single
commercial building on a 1.97-acre lot. At all relevant times, the building has been
leased to a home-improvement store. For tax years 2014 and 2017, the Auditor valued
the property at $1,916,150.
{¶3} Colerain Capital filed its complaint against the valuation of real property
for the tax year 2019 with the BOR in March 2020. Colerain Capital sought a reduction
in the valuation to $1,200,000. The Auditor responded with a request for no change
in valuation, arguing that Colerain Capital had not supplied any relevant
documentation supporting its claim for a reduction. Colerain Capital subsequently
submitted an appraisal of the property. Based on the appraised value, Colerain Capital
further reduced its requested valuation to $1,130,000. The school board, as permitted
2 OHIO FIRST DISTRICT COURT OF APPEALS
by R.C. 5715.19(B), filed a countercomplaint seeking retention of the Auditor’s
valuation. After a hearing, the BOR voted unanimously to retain the Auditor’s
valuation. Colerain Capital timely appealed the BOR’s decision to the Hamilton
County Court of Common Pleas under R.C. 5717.05.
{¶4} On motion from the school board, the trial court permitted the school
board to submit its own appraisal and allowed all parties to depose the school board’s
appraiser. After a hearing and briefing from the parties, the court found that Colerain
Capital had not met its burden of proof to be entitled to a reduction in valuation.
Accordingly, the court affirmed the BOR’s valuation of $1,916,150. This appeal
followed.
{¶5} As presented to the court below, the Auditor’s assessment reflects a total
value of $1,916,150. The Auditor’s record shows a “cost approach” valuation of
$1,847,220 and a “trended approach” valuation of $1,916,150. The “cost approach”
reflects the computer-assisted mass appraisal (“CAMA”) performed for the required
sexennial reappraisal for the 2017 tax year. The “trended approach” reflects a 2015
BOR decision of the property’s value, which reflected the then-recent sale of the
property to Colerain Capital. The Auditor explains that the resulting valuation “is
based on the most recent sale of the property and the BOR’s scrutiny of the property’s
value after that sale in 2015, combined with a 2017 CAMA appraisal.”
{¶6} Colerain Capital submitted an appraisal by R. Matt Nobles (the “Nobles
appraisal”) to the BOR. The Nobles appraisal valued the property at $1,130,000 as of
the tax lien date of January 1, 2019. The appraisal consisted of a “sales comparison”
valuation of $1,110,000 and an “income capitalization” value of $1,150,000.
{¶7} The school board submitted an appraisal by Raymond A. Jackson (the
3 OHIO FIRST DISTRICT COURT OF APPEALS
“Jackson appraisal”) to the trial court. The Jackson appraisal valued the property at
$1,900,000 as of the tax lien date. The appraisal consisted of a “sales comparison”
valuation of $1,903,358, which was rounded down to $1,900,000, and a “direct
capitalization” or “income approach” value of $1,904,579, which was also rounded
down to $1,900,000.
II. Analysis
{¶8} In its sole assignment of error, Colerain Capital claims that the court of
common pleas erred by retaining the Auditor’s assessed value, “although all the
evidence in the record contradicted it, and no evidence supported it.”
{¶9} When we review the judgment of the court of common pleas on a BOR
tax appeal, “we will not disturb the factual issue of valuation absent an abuse of
discretion.” OTR Hous. Assocs. v. Cincinnati School Dist. Bd. of Edn., 1st Dist.
Hamilton No. C-200321, 2021-Ohio-3231, ¶ 25, citing Rancho Cincinnati Rivers,
L.L.C. v. Warren Cty. Bd. of Revision, 165 Ohio St.3d 227, 2021-Ohio-2798, 177
N.E.3d 256, ¶ 10-11. “Abuse of discretion occurs when ‘a court exercis[es] its judgment,
in an unwarranted way, in regard to a matter over which it has discretionary
authority.’ ” State v. Austin, 1st Dist. Hamilton Nos. C-210140 and C-210141,
2021-Ohio-3608, ¶ 5, quoting Johnson v. Abdullah, 166 Ohio St.3d 427,
2021-Ohio-3304, 187 N.E.3d 463, ¶ 35. As in other matters, we review questions of
law de novo. OTR Hous. Assocs. at ¶ 25.
{¶10} In a tax appeal, the Board of Tax Appeals (“BTA”) and the court of
common pleas serve the same function, and the same case law governs that function
whether carried out by the BTA or the court of common pleas. Id. at ¶ 24.
{¶11} Ordinarily, the party challenging the BOR’s decision has the burden of
4 OHIO FIRST DISTRICT COURT OF APPEALS
proof to establish its proposed value for the property. Colonial Village, Ltd. v.
Washington Cty. Bd. of Revision, 123 Ohio St.3d 268, 2009-Ohio-4975, 915 N.E.2d
1196, ¶ 23, citing Dayton-Montgomery Cty. Port Auth. v. Montgomery Cty. Bd. of
Revision, 113 Ohio St.3d 281, 2007-Ohio-1948, 865 N.E.2d 22, ¶ 15. Consequently,
neither the BOR nor the Auditor need offer proof of the county’s valuation. Id. Thus,
the trial court is justified in retaining the county’s valuation of the property when the
party challenging the valuation has not carried its burden of proof. Colonial Village at
¶ 23, citing Dayton-Montgomery at ¶ 15; Simmons v. Cuyahoga Cty. Bd. of Revision,
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[Cite as Colerain Capital, L.L.C. v. Hamilton Cty. Aud., 2023-Ohio-56.]
IN THE COURT OF APPEALS FIRST APPELLATE DISTRICT OF OHIO HAMILTON COUNTY, OHIO
COLERAIN CAPITAL, LLC, : APPEAL NO. C-220098 TRIAL NO. A-2003794 Plaintiff-Appellant, :
: O P I N I O N. vs. :
HAMILTON COUNTY AUDITOR, :
and : NORTHWEST LOCAL SCHOOL DISTRICT BOARD OF EDUCATION, :
Defendants-Appellees. :
Civil Appeal From: Hamilton County Court of Common Pleas
Judgment Appealed From Is: Affirmed
Date of Judgment Entry on Appeal: January 11, 2023
Stagnaro, Saba & Patterson Co., L.P.A., and Paul T. Saba, for Plaintiff-Appellant,
Joseph T. Deters, Hamilton County Prosecuting Attorney, and Eric A. Munas, Assistant Prosecuting Attorney, for Defendant-Appellee Hamilton County Auditor,
Finney Law Firm, LLC, Christopher P. Finney and Casey A. Jones, for Defendant- Appellee Northwest Local School District Board of Education. OHIO FIRST DISTRICT COURT OF APPEALS
CROUSE, Presiding Judge.
{¶1} Plaintiff-appellant Colerain Capital, LLC, (“Colerain Capital”) appeals
from the judgment of the Hamilton County Court of Common Pleas, exercising
appellate review of a decision by the Hamilton County Board of Revision (“BOR”) on
the tax valuation of property owned by Colerain Capital in Colerain Township and
within the Northwest Local School District. The trial court affirmed the decision of the
BOR to retain the valuation of the property previously determined by the Hamilton
County Auditor (“Auditor”). Colerain Capital appeals the decision, arguing for a lower
valuation. The Auditor and the Northwest Local School District Board of Education
(“school board”) argue to retain the existing valuation. For the reasons set forth below,
we affirm the decision of the trial court.
I. Procedural and Factual History
{¶2} Colerain Capital purchased the subject property in December 2014 for
$1,916,145. The property is located near the Northgate Mall and consists of a single
commercial building on a 1.97-acre lot. At all relevant times, the building has been
leased to a home-improvement store. For tax years 2014 and 2017, the Auditor valued
the property at $1,916,150.
{¶3} Colerain Capital filed its complaint against the valuation of real property
for the tax year 2019 with the BOR in March 2020. Colerain Capital sought a reduction
in the valuation to $1,200,000. The Auditor responded with a request for no change
in valuation, arguing that Colerain Capital had not supplied any relevant
documentation supporting its claim for a reduction. Colerain Capital subsequently
submitted an appraisal of the property. Based on the appraised value, Colerain Capital
further reduced its requested valuation to $1,130,000. The school board, as permitted
2 OHIO FIRST DISTRICT COURT OF APPEALS
by R.C. 5715.19(B), filed a countercomplaint seeking retention of the Auditor’s
valuation. After a hearing, the BOR voted unanimously to retain the Auditor’s
valuation. Colerain Capital timely appealed the BOR’s decision to the Hamilton
County Court of Common Pleas under R.C. 5717.05.
{¶4} On motion from the school board, the trial court permitted the school
board to submit its own appraisal and allowed all parties to depose the school board’s
appraiser. After a hearing and briefing from the parties, the court found that Colerain
Capital had not met its burden of proof to be entitled to a reduction in valuation.
Accordingly, the court affirmed the BOR’s valuation of $1,916,150. This appeal
followed.
{¶5} As presented to the court below, the Auditor’s assessment reflects a total
value of $1,916,150. The Auditor’s record shows a “cost approach” valuation of
$1,847,220 and a “trended approach” valuation of $1,916,150. The “cost approach”
reflects the computer-assisted mass appraisal (“CAMA”) performed for the required
sexennial reappraisal for the 2017 tax year. The “trended approach” reflects a 2015
BOR decision of the property’s value, which reflected the then-recent sale of the
property to Colerain Capital. The Auditor explains that the resulting valuation “is
based on the most recent sale of the property and the BOR’s scrutiny of the property’s
value after that sale in 2015, combined with a 2017 CAMA appraisal.”
{¶6} Colerain Capital submitted an appraisal by R. Matt Nobles (the “Nobles
appraisal”) to the BOR. The Nobles appraisal valued the property at $1,130,000 as of
the tax lien date of January 1, 2019. The appraisal consisted of a “sales comparison”
valuation of $1,110,000 and an “income capitalization” value of $1,150,000.
{¶7} The school board submitted an appraisal by Raymond A. Jackson (the
3 OHIO FIRST DISTRICT COURT OF APPEALS
“Jackson appraisal”) to the trial court. The Jackson appraisal valued the property at
$1,900,000 as of the tax lien date. The appraisal consisted of a “sales comparison”
valuation of $1,903,358, which was rounded down to $1,900,000, and a “direct
capitalization” or “income approach” value of $1,904,579, which was also rounded
down to $1,900,000.
II. Analysis
{¶8} In its sole assignment of error, Colerain Capital claims that the court of
common pleas erred by retaining the Auditor’s assessed value, “although all the
evidence in the record contradicted it, and no evidence supported it.”
{¶9} When we review the judgment of the court of common pleas on a BOR
tax appeal, “we will not disturb the factual issue of valuation absent an abuse of
discretion.” OTR Hous. Assocs. v. Cincinnati School Dist. Bd. of Edn., 1st Dist.
Hamilton No. C-200321, 2021-Ohio-3231, ¶ 25, citing Rancho Cincinnati Rivers,
L.L.C. v. Warren Cty. Bd. of Revision, 165 Ohio St.3d 227, 2021-Ohio-2798, 177
N.E.3d 256, ¶ 10-11. “Abuse of discretion occurs when ‘a court exercis[es] its judgment,
in an unwarranted way, in regard to a matter over which it has discretionary
authority.’ ” State v. Austin, 1st Dist. Hamilton Nos. C-210140 and C-210141,
2021-Ohio-3608, ¶ 5, quoting Johnson v. Abdullah, 166 Ohio St.3d 427,
2021-Ohio-3304, 187 N.E.3d 463, ¶ 35. As in other matters, we review questions of
law de novo. OTR Hous. Assocs. at ¶ 25.
{¶10} In a tax appeal, the Board of Tax Appeals (“BTA”) and the court of
common pleas serve the same function, and the same case law governs that function
whether carried out by the BTA or the court of common pleas. Id. at ¶ 24.
{¶11} Ordinarily, the party challenging the BOR’s decision has the burden of
4 OHIO FIRST DISTRICT COURT OF APPEALS
proof to establish its proposed value for the property. Colonial Village, Ltd. v.
Washington Cty. Bd. of Revision, 123 Ohio St.3d 268, 2009-Ohio-4975, 915 N.E.2d
1196, ¶ 23, citing Dayton-Montgomery Cty. Port Auth. v. Montgomery Cty. Bd. of
Revision, 113 Ohio St.3d 281, 2007-Ohio-1948, 865 N.E.2d 22, ¶ 15. Consequently,
neither the BOR nor the Auditor need offer proof of the county’s valuation. Id. Thus,
the trial court is justified in retaining the county’s valuation of the property when the
party challenging the valuation has not carried its burden of proof. Colonial Village at
¶ 23, citing Dayton-Montgomery at ¶ 15; Simmons v. Cuyahoga Cty. Bd. of Revision,
81 Ohio St.3d 47, 48, 689 N.E.2d 22 (1998).
{¶12} There is a “narrow exception” that derives from these general rules.
Colonial Village at ¶ 24. Although the BOR and Auditor need not offer any proof to
sustain the county’s valuation, if the record affirmatively negates the county’s claimed
valuation, the trial court may not retain the county’s valuation. Id.; Dayton-
Montgomery at ¶ 27. Specifically, “when the evidence presented to the board of
revision or the BTA contradicts the auditor’s determination in whole or in part, and
when no evidence has been adduced to support the auditor’s valuation, the BTA may
not simply revert to the auditor’s determination.” (Emphasis added.) Dayton-
Montgomery at ¶ 27.
{¶13} Colerain Capital complains that the trial court erred in retaining the
Auditor’s valuation, as upheld by the BOR, because the “narrow exception” applies.
Colerain Capital claims that “there is literally no evidence in the record” to support the
Auditor’s or the BOR’s valuation of the property. (Emphasis sic.) Colerain Capital
characterizes the Jackson appraisal of $1,900,000 as evidence supporting a valuation
lower than the Auditor’s valuation of $1,916,150. Colerain Capital emphasizes that the
5 OHIO FIRST DISTRICT COURT OF APPEALS
relevance of this slight difference in valuation is not its magnitude, but rather its mere
existence.
{¶14} We find that the “narrow exception” is inapplicable here. While we note
that Colerain Capital has submitted evidence tending to contradict the Auditor’s
valuation in the form of the Nobles appraisal, that is not the only evidence in the
record. There is ample, competent evidence to support the Auditor’s valuation: the
Auditor’s calculation using the CAMA data, the most recent sale price, and the Jackson
appraisal. Although the Jackson appraisal does not precisely equal the Auditor’s
valuation to the dollar, we cannot say that an appraised value that is 99.1 percent of
the Auditor’s valuation does not support that valuation. Without the benefit of the
“narrow exception,” the burden remains on Colerain Capital to prove its proposed
value for the subject property.
{¶15} Colerain Capital further claims that it was unreasonable for the trial
court to retain the 2014 sale price as the assessed value because, as a matter of law, a
sale older than 24 months is not accorded a presumption of recency. Akron City School
Dist. Bd. of Edn. v. Summit Cty. Bd. of Revision, 139 Ohio St.3d 92, 2014-Ohio-1588,
9 N.E.3d 1004, ¶ 26. However, Akron City merely establishes that an older sale is not
presumed to be recent for purposes of valuation. A sale that is not afforded a
presumption of recency may still be considered by the fact-finder, along with other
competent evidence. Othman v. Bd. of Edn., 1st Dist. Hamilton Nos. C-160878 and
C-170187, 2017-Ohio-9115, ¶ 22.
{¶16} The trial court had the opportunity to review the parties’ competing
appraisals and evaluate their credibility, as well as to weigh the other evidence in the
record. In reaching its conclusion, the trial court found that Colerain Capital had not
6 OHIO FIRST DISTRICT COURT OF APPEALS
met its burden to prove its claimed value for the property. Because there is adequate
evidence in the record to support its conclusion, we cannot say that the trial court acted
in an “unwarranted way” by affirming the BOR’s valuation of the subject property.
III. Conclusion
{¶17} For the foregoing reasons, we overrule Colerain Capital’s assignment of
error and affirm the judgment of the trial court.
Judgment affirmed.
WINKLER and BOCK, JJ., concur.
Please note:
The court has recorded its entry on the date of the release of this opinion.