Two Mountain Home businesses are at odds with the Baxter County Equalization Board over the value of their property assessments. Mountain Home Hospitality LLC, doing business as the Ramada Inn, and The Grand Apartments are disputing their assessed values and the amount of taxes they must pay on those values.
Arkansas Business reports court documents filed by the owners of the Ramada Inn indicate in a recent 12-month period, the hotel had an occupancy rate of 32%, about half of what a healthy occupancy rate should be. The company says the hotel was assessed at $1.88 million, but the market value is $1.5 million.
When Mountain Home Hospitality purchased the hotel in 2016, it paid $1.8 million. In 2017, the business generated $720,500 in revenue with a net income of $167,485. But in 2018, revenue was virtually unchanged at $720,000, while the franchise fee jumped nearly $40,000, and the net income was just $2,235.
The owner of The Grand Apartments did not include as many financial details in its appeal. The owner said the assessed value for 2019 was $3.1 million. Earlier this year, following an appeal, the appraisal was dropped to $2.5 million. The latest court filings by The Grand Apartments say the value should be $2 million.
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