2008AP322 Nestle USA, Inc., v. DOR

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Tax
Property taxes; highest and best use

Even if there are no sales of comparable properties anywhere in the country, the property tax assessor can still value the property’s highest and best use based on its current use.

“We find the Commission’s conclusion that the Gateway Plant’s highest and best use is as its continued use as a powdered infant formula production facility is supported by substantial evidence. Stepanek, the DOR’s assessor, relied primarily on three pieces of evidence in reaching this conclusion. First, Stepanek testified there were competitors in the infant formula industry —— Mead Johnson, Abbott Laboratories, and Wyeth — —that could be potential buyers of the Gateway Plant. Second, Stepanek noted the infant food industry was strong and expanding its capacity. Third, Stepanek found no evidence that powdered infant formula production facilities had ever been converted to other uses.”

“The only evidence that Nestlé presented was its expert’s testimony that no powdered infant formula production facility had ever been sold in Wisconsin for its continued use as a powdered infant formula production facility. Nestlé presented no evidence refuting Stepanek’s findings or otherwise suggesting there is no market for the Gateway Plant in its existing use as a powdered infant formula production facility.”
“Based on the record before it, the Commission reasonably concluded that the Gateway Plant’s highest and best use is as a powdered infant formula production facility. Nestlé, relying exclusively on the fact that no actual sales of powdered infant formula production facilities had been found in Wisconsin, failed to present sufficient contrary evidence to overcome the presumption of correctness given to Stepanek’s testimony and report.” Affirmed.

2008AP322 Nestle USA, Inc., v. DOR

Gableman, J.

Attorneys: For Appellant: Gordon, Robert L., Milwaukee; For Respondent: Creeron, F. Thomas , III, Madison

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