Zhao v. Montoya

OPINION

MAES, Justice.

{1} In these consolidated cases, Pinghua Zhao, Gregg Fallick, and Janet Fallick (Homeowners) appeal the valuation of their residences for property tax purposes as a result of what they allege is “tax lightning,” also known as acquisition-value taxation. Under acquisition-value taxation, a real estate owner’s property tax liability is determined by the value of the property when acquired, not by the traditional practice of taxing real property on its current fair market value. In periods of rising real estate prices such a system compels later buyers to shoulder a higher…