Start Date
13-12-2018 1:00 PM
End Date
13-12-2018 1:45 PM
Description
Wind farm appraisal on Maui, Hawai'i is the subject of pending appellate court review. Recent rulings from Hawai'i's courts have determined that wind turbine generators, alleged by the taxpayer to be "personal property," are not necessary to the utility of land they are erected on, and not assessable as "improvements to the realty for purposes of real property tax appraisal. Ancillary to this legal determination is a finding that because the 327 ft. tall turbines can theoretically be removed from their permanent 46 ft. sq. concrete foundations, they are not "fixtures," pursuant to a common law definition of the term. Missing from the legal discussion is consideration of any added value to the leasehold interest in land by the presence of the wind turbine generators. Notably, no competing appraisals have been presented by the taxpayers, who have relied exclusively on the common law legal definition of "fixtures," and their contention that the wind turbine generators are "personal property." The pending legal appeal clashes legal definitions with appraisal principles, presenting fundamental questions regarding the concepts of "utility" and "value" to the county's appraiser and lawyer.
Recommended Citation
Bilberry, Brian Esq. and Martin, Marcy, "Wind farm improvements and asset appraisal on Maui" (2018). IAAO Annual Legal Seminar. 5.
https://researchexchange.iaao.org/legal/legal18/sessions/5
Wind farm improvements and asset appraisal on Maui
Wind farm appraisal on Maui, Hawai'i is the subject of pending appellate court review. Recent rulings from Hawai'i's courts have determined that wind turbine generators, alleged by the taxpayer to be "personal property," are not necessary to the utility of land they are erected on, and not assessable as "improvements to the realty for purposes of real property tax appraisal. Ancillary to this legal determination is a finding that because the 327 ft. tall turbines can theoretically be removed from their permanent 46 ft. sq. concrete foundations, they are not "fixtures," pursuant to a common law definition of the term. Missing from the legal discussion is consideration of any added value to the leasehold interest in land by the presence of the wind turbine generators. Notably, no competing appraisals have been presented by the taxpayers, who have relied exclusively on the common law legal definition of "fixtures," and their contention that the wind turbine generators are "personal property." The pending legal appeal clashes legal definitions with appraisal principles, presenting fundamental questions regarding the concepts of "utility" and "value" to the county's appraiser and lawyer.