Miller & Rhoads Bldg., LLC v. City of RichmondAnnotate this Case
Miller & Rhoads Building, LLC (MRB) purchased a building that was subject to a city-wide real estate tax and an annual special district tax. MRB sought a partial exemption from real estate taxes for the property under the City of Richmond’s Tax Abatement for Rehabilitated Real Estate Program (the Partial Exemption). The City applied the Partial Exemption to the base real estate tax but refused to apply it to the special district tax. MRB paid the special district taxes under protest and brought an action to correct the alleged erroneous assessments. At issue at trial was whether the Partial Exemption also applied to the City’s computation of the special district tax. The trial court ruled in favor of the City, concluding that the Partial Exemption did not apply to the special district tax. The Supreme Court affirmed, holding that the special district tax, while a real estate tax, is a different type of real estate tax that is not subject to the Partial Exemption.