What’s a Billboard Worth?

We still can’t figure it out, apparently, as we lose another lawsuit. Yes, they are worth more, especially given how much we are expected to pay when they are blocking a development. One billboard alone they wanted nearly $1M (of course they wanted TIF for that). So all of them in the city must be worth at least $6M, right?

From: May, Michael
Sent: Thursday, July 08, 2010 2:24 PM
To: Cieslewicz, Dave; ALL ALDERS
Cc: Hanson, Mark; Kurth, Mike; Brasser, Dean; Staffaroni, Jaime; Piraino, Janet; Harmon, Ray
Subject: City Loses Adams Billboard Tax Appeal

Attached to this email is a copy of the Court of Appeals decision in the Adams Advertising tax case. The City lost.

In essence, the Court of Appeals ruled that while there may be a method to tax the value of the permits associated with the billboards, the method the City used is barred by the first Adams ruling.

We will be meeting with the Assessor’s office to examine the City’s options. Any request for the Supreme Court to hear the case must be filed within 30 days.

When we last estimated the amount at stake in these cases, we believed it was around $1 million for all jurisdictions; the City’s share of that is usually around 30%. That figure likely has increased because the taxpayer is entitled to interest on any refund. The ruling will also impact other pending billboard tax cases.

Please call me, ACA Jaime Staffaroni, or assessor Mark Hanson if you have questions.

Michael P. May
City Attorney

This one seems like it shouldn’t be so hard. I think the city is right they are worth more, I just wish we could figure out how to convince the courts of that. Here’s the decision.

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