May a County Assessor use the extraction method when appraising the value of a parcel occupied by a mobilehome?

Fisher v. County of Orange

Facts: The owner of a mobilehome located on a parcel in a mobilehome park purchases a share in the cooperative ownership of the park, giving them the exclusive right to occupy the parcel. The County Assessor appraises the value of the parcel occupied by the owner’s mobilehome by using the extraction method to determine the parcel’s value as distinct from the mobilehome’s value. The parcel’s assessed value far exceeds the purchase price of the share. The owner pays the property taxes incurred on the reassessment of the parcel. The owner contests the Assessor’s use of the extraction method to set the property value and seeks a reduction in the property assessment and a refund for the overpayment in property taxes.

Claim: The owner claims the extraction method incorrectly determined the parcel’s value since the Assessor’s appraised value of the parcel exceeds the share price the owner paid to purchase the parcel.

Counterclaim: The County claims the extraction method accurately determined the parcel’s value since the share price is not representative of the parcel’s fair market value and the extraction method was the most reasonable means of determining the value.

Holding: A California appeals court holds the owner is not entitled to a reduction in the assessment nor a refund for property taxes since the County Assessor correctly appraised the parcel’s value by use of the extraction method approach to valuation rather than rely on the price paid to acquire the parcel. [Fisher v. County of Orange (2022) 82CA5th 39]

Read Fisher v. County of Orange here