Tax Assessment Question

[Tiffany Gibbons]

It was my experience on the BOE and seeing over 500 appeals, (out of 3,000) I think I saw 2 properties that the assessor applied a functional adjustment. Probably 20 or 30 should have. None applied it to the improvements but to the overall property when land is not impacted by functional obsolescence. And I don't think I saw any adjustment for quarries, land fills etc.

It is built into the model. You would not see that part at the BOE. We built the land model using benchmark sales and you are constantly adjusting it, based in informal appeals, inquiries, field reviews. I was at Shelby County, which had maybe 35,000 commercial industrial parcels. And if the owner submitted actual income on an appeal, the obsolescence should be built into the income (lower) rent for the total parcel. Commercial Landfills make money, so do quarries, but they can impact values around them. Powerlines on farmland can impact value, etc. Whew, you reminded me why I went back to fee appraisal, lol.

 

[Terrel L. Shields]

We built the land model using benchmark sales

Arkansas treats land and improvements separately. The state actually does the land element and the twain never meet. The county or the CAMA they employ (varies from in house to outsourced) values the improvements. They meld the two with a "Neighborhood Factor" - the land components may not be valued in the same year as the building components.

 

[Tiffany Gibbons]

Arkansas treats land and improvements separately. The state actually does the land element and the twain never meet. The county or the CAMA they employ (varies from in house to outsourced) values the improvements. They meld the two with a "Neighborhood Factor" - the land components may not be valued in the same year as the building components.

Yes, it is the same in Tennessee except all the bigger counties like Shelby, Davidson, Knox, Hamilton, etc. are VERY ndependent of the state system and employ certified appraisers. The little counties, like 5000 parcels, the state does most all of the work. Some of the small counties have only 1 employee and it is the Assessor. We did their appeals too when I was at DPA.

 

[Amy Perkins]

Amy, that is backwards, excess land can be subdivided and sold off, surplus land is not necessary to support the improvements and can't be subdivided or have a separate Highest & Best use. The way I remember is Surplus land starts with an "S" for s ucks.

Interesting, because I looked it up online to make sure I got it straight... Maybe I got them mixed up because it seems counter-intuitive (A surplus seems better than an excess). Surplus land sucks is easy to remember. Thanks, now I will have a reason to remember the word "sucks."

 

[Tiffany Gibbons]

Interesting, because I looked it up online to make sure I got it straight... Maybe I got them mixed up because it seems counter-intuitive (A surplus seems better than an excess). Surplus land sucks is easy to remember. Thanks, now I will have a reason to remember the word "sucks."

Yeah, Terrell said excellent excess, sucky surplus, which is even better. I used to have to look it up every time too. Always seemed counterintuitive to me too.