The Porter County
Property Tax Assessment Board of Appeals voted 2-0 Thursday to deny Porter
Regional Hospitalís appeal of its $244.5 million assessment in 2013 based on
lack of prima facie market evidence on the hospitalís part.
Joe Wszolek said the hospital had the burden of proof to challenge the
County Assessorís value because its physical property had increased by more
than five percent. The hospital construction was only 90 percent complete at
its last assessment date in 2012, he said.
To overcome that
burden, the hospital had to provide market data for evidence.
The 430,000 sq. ft.
hospital is located at 85 E. U.S. 6 in Liberty Twp.
from the hospital argued that County Assessor Jon Snyderís assessment should
be thrown out because he did not follow the stateís assessment cost model
Donald Feicht Jr.
of Uzelac & Associates said that the assessment manual clearly points out
that full line hospitals are to be assessed as general office space.
Snyder used an
appraisal done by Jack Poteet of the Kansas-based Hospital Appraisal
Services to come up with the $244.5 million value which includes the
hospital building improvements and the land.
believes the value should be closer to $39 million based on the stateís
PTABOA member Vicki
Urbanik agreed with Snyderís argument that the stateís manual states that
assessing officials may consider other types of information relevant to
applying the cost-approach method if they are applicable and relevant to the
type of property being assessed.
if the board should consider giving the hospital a new value by cutting out
the attached 60,000 sq. ft. office building that is owned not by the
hospital but by The Sanders Trust of Birmingham, Ala.
Wszolek and PTABOA
attorney Christopher Buckley said the hospital had not made that request
when it made its case for the appeal and therefore it cannot be considered
With no market data
presented on the hospitalís part, Urbanik and Wszolek approved a motion to
deny. The assessment will now revert back to Snyderís $244.5 million value.
ď(The hospital) did
not make a prima facie case,Ē Wszolek said.
The PTABOAís third
member, Valparaiso realtor Nick Sommers, recused himself from voting due to
a business relationship he has with Porter Hospital.
The hospital can
appeal to the Indiana Tax Board of Review, Wszolek said, where it will again
have the burden of proof.
The PTABOA in
December voted to deny Porterís 2012 assessment of $34 million because a tax
abatement compliance form filled out by Porterís CEO indicated construction
costs of the hospital were estimated to be $130 million. The PTABOA ruled
that assessment should be $117 million because the construction was 90
The hospital has
since appealed the ruling to the Indiana Board of Tax Review.