This matter is before the Court upon the consent of the parties evidenced by the signature
of their counsel on this Order.
Sumter Mall, LLC (“Petitioner”) instituted this action by filing an appeal from an order
of the Sumter County Tax Board of Appeals dated June 3, 2004, which affirmed the valuation
and assessment of certain real estate owned by Petitioner in Sumter County, South Carolina.
Petitioner challenges the Sumter County Assessor’s (“Respondent”) valuation of the real estate,
and seeks an adjustment in the tax assessed.
Petitioner is represented by Timothy E. Madden of the firm, Wilkins & Madden, P.A.,
and Respondent is represented by Terrell T. Horne of Bryan, Horne & Griffin, LLC.
Based upon the pleadings, and consent of the parties (as evidenced by the signatures of
counsel below), the parties agree to the following stipulations of fact and legal conclusions.
The real estate which is the subject of this appeal and which is addressed by this Order is
a collection of parcels collectively known as the “Sumter Mall Properties.” The Sumter Mall
Properties are further described on Exhibit A to this Consent Order. The Petitioner owns the
Sumter Mall Properties.
For the 2003 tax year, Respondent valued the Sumter Mall Properties collectively at
$17,040,776.00. Respondent also placed a value on the property for the 2004 tax year.
Petitioner appeals these valuations.
Subsequent to the filing of this appeal, both parties obtained independent appraisals of
the Sumter Mall Properties from certified real estate appraisers.
S.C. Code Ann. § 12-43-220(3) requires that the property be taxed based on the fair
market value of the property. Appraisers employ three basic approaches used to estimate market
value of property—(i) Cost Approach, (ii) Sales Comparison Approach, and (iii) Income
Capitalization Approach.
The cost approach to value includes the valuation of the property’s site by comparing it
to similar sites in the area. Using the cost approach method, the parties’ appraisers valued the
Sumter Mall parcels as described in Exhibit A between $14,760,000.00 and $16,100,000.00.
The appraisers noted using the cost approach was difficult based on the age of the property and
the depreciation applicable to such property.
The sales comparison approach directly compares the subject property with the recent
sales of similar properties. Reliance Ins. Co. v. Smith, 327 S.C. 528, 489 S.E.2d 674 (Ct. App.
1997). Using the sales comparison approach, the parties’ appraisers compared the Sumter Mall
parcels to dozens of other malls located in similar markets for 2002 and 2003. Based on this
data, the appraisers valued the Sumter Mall parcels between $12,415,000.00 and
$14,990,000.00.
The income capitalization approach “looks at the property value through the eyes of the
typical investor. In this approach, typical rental income and its relationship to sales price is
analyzed by using a capitalization rate which represents the ratio of sales price to net rental
income obtained.” Id. at 531, 489 S.E.2d at 675. Using the income capitalization approach, the
parties’ appraisers valued the Sumter Mall parcels between $12,000,000.00 and $13,555,000.00.
After detailed analysis, the parties’ appraisers ultimately emphasized the income
capitalization approach and the sales comparison approach, and jointly concluded the fair market
value for the Sumter Mall parcels is $13,000,000.00 for the years 2002 and 2003.
Relying on the independent assessment of value from these neutral appraisers, the parties
have reached an agreement regarding the fair market value of the Sumter Mall parcels and all
Sumter Mall Properties, which agreement is fully set forth in the ordering clause of this
document below. Recognizing the consent of the parties, indicated through their signatures
below, this Court adopts the parties’ agreement as the Order of this Court.
NOW, THEREFORE, IT IS ORDERED as follows:
1.For tax year 2003, the value of the Sumter Mall parcels (tax parcels 203-16-01-004, 230-16-01-005, 230-16-01-002, 203-13-03-011, 229-01-01-016, 229-01-01-017, 230-16-01-001, and 229-01-01-020) shall be $13,000,000.00.
2.For tax year 2003, the value of Parcel #1 and Parcel #2 (tax parcels 229-01-01-020 and 203-13-03-009) shall be $78,220 and $228,566, respectively.
3.For tax year 2004, the value of the Sumter Mall parcels (tax parcels 203-16-01-004, 230-16-01-005, 230-16-01-002, 203-13-03-011, 229-01-01-016, 229-01-01-017, 230-16-01-001, and 229-01-01-020) shall be $13,500,000.00.
4.For tax year 2004, the value of Parcel #1 and Parcel #2 (tax parcels 229-01-01-020 and 203-13-03-009) shall be $78,220 and $228,566, respectively.
5.Any refund due to Petitioner shall be made within ten days of the date of this
Order, with applicable interest.
AND IT IS SO ORDERED.
______________________________
JOHN D. GEATHERS
Administrative Law Judge
Columbia, South Carolina
Date: May 18, 2005_____
EXHIBIT A
PropertyTax Map Number
1.Sumter Mall(8 parcels)
2.Parcel #1—190 Bultman Dr.229-01-01-020
3.Parcel #2—Broad St.203-13-03-009
The eight parcels for Sumter Mall consist of the following tax map parcels: 203-16-01-004, 230-16-01-005, 230-16-01-002, 203-13-03-011, 229-01-01-016, 229-01-01-017, 230-16-01-001, and
229-01-01-020.