In Duke Energy Fayette II, LLC v. Fayette County Board of Assessment Appeals, No. 1406 C.D. 2014 (May 28, 2015), the Court found that the Fayette County Board of Assessment Appeals conducted an impermissible spot reassessment when it decided to wait eight years to reassess a gas-fired electric generation station (“Station”). The Station was completed in 2003, after a subdivision of property in 2001 and 2002. Beginning in 2003, the Station was in a Keystone Opportunity Zone (“KOZ”) and was exempt from property taxes from 2001 to 2011. Because of the Station’s status in a KOZ, the County reasoned there would be no return on an investment to appraise and reassess the Station in 2003. Subsequently, after the Station came out of KOZ status in 2011, the County issued a new assessment, which the owner appealed as an improper “spot assessment.” The initial assessment in 2003 was $1,800,000 for the land. The new assessment in 2011 was $27,000,000 for land and $8,181,260 for improvements, or $35,181,260.

In finding for the owner, the Court held that the 2011 assessment was improper. The Court reasoned that assessment of improvements must take place when the improvements are made and not at an arbitrary time in the future.