Thomas & Nancy Crandall v. Bartholomew County Assessor

CourtIndiana Tax Court
DecidedSeptember 30, 2024
Docket23T-TA-00004
StatusPublished

This text of Thomas & Nancy Crandall v. Bartholomew County Assessor (Thomas & Nancy Crandall v. Bartholomew County Assessor) is published on Counsel Stack Legal Research, covering Indiana Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas & Nancy Crandall v. Bartholomew County Assessor, (Ind. Super. Ct. 2024).

Opinion

ATTORNEYS FOR PETITIONERS ATTORNEYS FOR RESPONDENT: and FOR AMICI CURIAE INDIANA MARILYN S. MEIGHEN RETAIL COUNCIL, INC. and ATTORNEY AT LAW INDIANA APARTMENT Carmel, IN ASSOCIATION, INC.: 1 MELISSA G. MICHIE BRIAN A. CUSIMANO BRENT A. AUBERRY ATTORNEY AT LAW BENJAMIN A. BLAIR Indianapolis, IN ABRAHAM M. BENSON FAEGRE DRINKER RIDDLE & REATH LLP FILED Indianapolis, IN Sep 30 2024, 4:03 pm

CLERK Indiana Supreme Court Court of Appeals and Tax Court

IN THE INDIANA TAX COURT

THOMAS & NANCY CRANDALL, ) ) Petitioners, ) ) v. ) Case No. 23T-TA-00004 ) BARTHOLOMEW COUNTY ASSESSOR, ) ) Respondent. )

ON APPEAL FROM A FINAL DETERMINATION OF THE INDIANA BOARD OF TAX REVIEW

FOR PUBLICATION September 30, 2024

MCADAM, J.

1 After the appeal was filed and all briefing was completed, the Petitioners’ original counsel, Melissa G. Michie, joined the law firm representing the Amici. Following this, Ms. Michie entered an appearance on behalf of the Amici Curiae and attorneys from that firm entered appearances on behalf of the Petitioners. See Crandall v. Bartholomew Cnty. Assessor, Case No. 23T-TA- 00004 (Ind. Tax Ct. June 21, 2024) (order granting the Petitioners’ and the Amici’s unopposed request to have their chosen firm represent them during the oral argument).) Since 2009, Indiana’s burden-shifting statute has required assessors to bear the

burden of proof in property tax appeals when a property’s assessed value increases by

more than 5% over the prior year. The Legislature revisited this statute in 2022,

repealing it and replacing it with a revised version applicable to appeals filed after March

21, 2022. This case concerns the limited set of cases subject to the repealed version of

the burden-shifting statute that were pending at the time the repeal took effect. Last

year, this Court determined that the repealed version continued to apply to

administrative appeals pending before the Indiana Board of Tax Review when the

legislative enactment took effect. The parties in this case disagree whether that earlier

decision should be applied to appeals, like those in this case, that were pending but not

yet heard on the merits by the Board before the effective date of the legislative

enactment. After review, the Court reaffirms the earlier opinion and holds that it fully

resolves this case.

FACTS AND PROCEDURAL HISTORY

Thomas and Nancy Crandall own a home situated on nearly an acre of lakefront

property on Grandview Lake in Columbus, Indiana. The Bartholomew County Assessor

initially assigned an assessed value of $1,608,900 to their property for 2020. Later, after

a review of all Grandview Lake properties, the Assessor increased this assessment to

$1,888,800 for 2020 and assessed the property at $1,939,800 for 2021.

The Crandalls appealed each year’s assessment, first to the Bartholomew

County Property Tax Assessment Board of Appeals on June 15, 2021, and then to the

Indiana Board on January 6, 2022. The Board conducted a hearing on the merits on

October 6, 2022, after denying the Crandalls’ motion to vacate the hearing date due to

2 uncertainty over which version of the burden-shifting statute applied to their appeals –

Indiana Code § 6-1.1-15-17.2 (“Section 17.2”), repealed on March 21, 2022, or Indiana

Code § 6-1.1-15-20 (“Section 20”), enacted on the same date.

At the hearing, the parties grappled with the question of which version of the

burden-shifting statute should govern, ultimately focusing on Section 17.2, agreeing that

Section 20 did not apply. The central point of contention then became whether Section

17.2 applied to the Crandalls’ case and, if so, its implications. The Crandalls argued that

Section 17.2 remained applicable despite its repeal, as their Indiana Board appeals

were filed months before the statute’s repeal, among other factors. The Crandalls chose

not to present any independent valuation evidence and instead argued that both

assessments should revert to the initial 2020 valuation of $1,608,900 because the

Assessor failed to meet her burden under Section 17.2.

The Assessor opposed the Crandalls’ position and argued that Section 17.2 did

not apply due to the timing of the Indiana Board hearing. She asserted that the hearing

on the merits was the procedural event that triggered Section 17.2’s application, a

principle previously advanced by the Indiana Board, and that because the hearing

occurred after the statute’s repeal, the statute no longer applied. She therefore

contended that the Crandalls’ assessments should remain unchanged because they

presented no evidence of value and her appraisal evidence supported the current

assessments.

The Indiana Board’s final determination largely aligned with the Assessor’s

position. It concluded that, because Section 17.2 had been repealed before the hearing

on the merits, it did not apply to the Crandalls’ appeals and the burden of proof rested

3 with the Crandalls, not the Assessor. The Board ultimately determined that the

appraisals supported the assessments and, accordingly valued the Crandalls’ property

at $1,830,000 for 2020 and $1,940,000 for 2021 to align with the appraisals.

The Crandalls then initiated this original tax appeal, arguing that the Board’s final

determination was contrary to law because the Assessor should have borne the burden

of proof during the administrative proceedings under Section 17.2. After the parties filed

their briefs addressing the merits, this Court issued a decision in a separate case,

holding that Section 17.2 continued to apply to administrative appeals pending before

the Board as of its repeal date of March 21, 2022. See Elkhart Cnty. Assessor v.

Lexington Square, LLC, 219 N.E.3d 236, 243-46 (Ind. Tax Ct. 2023). The Crandalls

subsequently sought leave to submit additional briefing on the impact of Lexington

Square on their case. The Court granted their request, established a supplemental

briefing schedule, and held oral argument.

STANDARD OF REVIEW

This Court’s review of Indiana Board decisions is governed by Indiana Code §

33-26-6-6, the provisions of which closely mirror those controlling judicial review of

administrative decisions governed by Indiana’s Administrative Orders and Procedures

Act (“AOPA”). Compare IND. CODE § 33-26-6-6(e) (2024) with IND. CODE § 4-21.5-5-

14(d) (2024). Under Indiana Code § 33-26-6-6, parties seeking to overturn a final

determination of the Indiana Board bear the burden of demonstrating its invalidity. I.C. §

33-26-6-6(b). Challengers must demonstrate that they have been prejudiced by a final

determination of the Indiana Board that is arbitrary, capricious, an abuse of discretion,

or otherwise not in accordance with law; contrary to constitutional right, power, privilege,

4 or immunity; in excess of or short of statutory jurisdiction, authority, or limitations;

without observance of the procedure required by law; or unsupported by substantial or

reliable evidence. I.C. § 33-26-6-6(e).

DISCUSSION

Prior to 2009, the burden of proof in property tax assessment challenges

invariably fell on the taxpayer. See, e.g., Orange Cnty. Assessor v. Stout, 996 N.E.2d

871, 873 (Ind. Tax Ct. 2013). Then, in 2009, the Legislature introduced a burden-shifting

provision, shifting the burden to an assessing official when an assessment increased by

more than 5% from the previous year. See Pub. L. No. 182-2009(ss), § 111, 2009 Ind.

Acts 2005, 2374-78.

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Thomas & Nancy Crandall v. Bartholomew County Assessor, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-nancy-crandall-v-bartholomew-county-assessor-indtc-2024.