“Assessor’s Formula” for Determining Property Tax Assessment for Golf Course Approved

In a full-fledged opinion by Justice Dickerson, the Second Department affirmed Supreme Court’s approach to the determination of real property tax assessments for a private, not-for-profit golf course.  The country club challenged the tax assessment imposed by the respondents (the board of assessors, et al). After a trial, Supreme Court adopted the assessment method used by the country club’s expert, called the “assessor’s formula,” rather than the respondents’ “triple net lease” method (which had previously been approved by the Second Department).  The opinion has an extensive description and discussion of the valuation techniques used by both experts and ultimately determined there is no reason to rigidly mandate that a particular valuation technique be used in all cases:

Contrary to the appellants’ contentions, we conclude that there is no basis to categorically preclude the application of this approach [the “assessor’s method] to the valuation of golf courses. Further, under the circumstances of this case, we conclude that the methodology employed by the Country Club yielded a fair market value, and we discern no reason to disturb the Supreme Court’s determination on appeal. Matter of Hempstead Country Club v Board of Assessors, 2013 NY Slip Op 07178, 2nd Dept 11-6-13