Dentons Prevails at Iowa Supreme Court

This spring, litigation associate Jenna Wheeler led a Dentons team representing agricultural cooperative Growmark in a property tax dispute before the Iowa Supreme Court. Jenna presented oral arguments before the court, with support from senior attorney Deb Tharnish and shareholder Sarah Franklin. The court recently issued a decision in Growmark's favor, with significant implications for Iowa's fuel distribution industry.

About the Case

The case centered on whether aboveground fuel tanks should be classified as taxable improvements or as equipment for property tax purposes. The Chickasaw County Board of Review appealed a summary judgment ruling issued by the Property Assessment Appeal Board (PAAB) in favor of Growmark. The District Court affirmed the PAAB's decision on judicial review. The Board of Review then appealed to the Iowa Supreme Court, which retained the case and heard oral arguments this spring.

Oral Arguments

Jenna argued that aboveground fuel tanks in Iowa should be classified as equipment rather than improvements, excluding them from taxation under Iowa Code section 427A.1. In support, she relied in large part on McDermott Propane, an unpublished Iowa Court of Appeals decision involving similar facts, in which the court held that fuel tanks should be treated as equipment rather than improvements.

Ruling

The Iowa Supreme Court's ruling in favor of Growmark is a significant win for fuel distributors and agricultural operations across Iowa. Assessors place multimillion-dollar valuations on fuel tanks, creating substantial tax exposure for businesses in the fuel distribution industry. This decision provides meaningful tax relief for similarly situated entities throughout the state.

About Dentons Davis Brown PC

Dentons Davis Brown is a full-service Iowa law firm providing uniquely global and deeply local legal solutions to help clients. Founded in 1929, the firm operates three offices in Iowa and is part of Dentons, the world's largest law firm with a presence in over 80 countries. Learn more at https://www.dentons.com/Iowa.