Background
Von Maur challenged Dallas County’s assessment of its 152,000-square-foot department store at Jordan Creek Town Center, a super-regional mall. The store, formerly occupied by Younkers, was leased to Von Maur in 2019, renovated, and opened in 2022. The assessor valued the property at $16,046,520 for both 2023 and 2024.
After the county board of review upheld the assessments, Von Maur appealed. Its expert valued the property at $12.3 million for 2023 and $11.7 million for 2024; the board’s expert valued it at $17.8 million and $18 million, respectively. The district court found the board’s expert more credible and affirmed the assessments.
The Court’s Holding
The Iowa Court of Appeals affirmed following de novo review, holding that the $16,046,520 assessments were not excessive. It rejected Von Maur’s claim that the district court had improperly presumed the assessor’s valuation correct, concluding that the court considered the full record and permissibly credited the board expert’s appraisal.
Von Maur’s competent appraisal evidence shifted the burden to the board to support the assessments, but the board met that burden. The court held that the board expert could adjust comparable sale-leaseback transactions to reflect fee-simple value, could use similar retail properties that were not identical department stores, and properly accounted for market conditions. It also found that Von Maur’s renovations added value to the real estate.
Key Takeaways
- A taxpayer’s contrary appraisal may shift the burden of proof, but the assessing authority can still prevail with a more persuasive valuation analysis.
- Comparable properties need only be similar, not identical in retail use.
- Sale-leaseback comparables may be considered if adjusted to reflect the fee-simple interest and market conditions.
Why It Matters
The decision confirms that Iowa property-tax appeals turn on the persuasiveness of competing appraisal evidence, not merely on whether a taxpayer offers a lower valuation. It also supports use of adjusted sale-leaseback transactions and varied retail comparables when valuing a large anchor-store property.