Key 4 – Always get the Assessor’s worksheet
The Assessor’s worksheet is a document that shows how the Assessor arrived at the market value of a property. Many times, the addresses of the comparable sales are included and sometimes operating expense comparables and capitalization rate comparables are shown. It goes without saying that having this information makes taking the offense much easier.
There is another major reason why obtaining the Assessor’s worksheet is key. It is not uncommon for an Assessor to appraise a property at a different highest and best use than the current use. The most frequent occurrence of this is with old Central Business District properties that have the potential to be demolished and a different use constructed.
Example: We appraised an 80 year old hotel located in a prime Central Business District location. Although we made several requests for the Assessor’s worksheet, the client did not make the attempt to obtain it. The hotel was well maintained, very well known and prestigious with high rates and occupancy. The highest and best use of the property was its current use. During the discussion with the Board, the Assessor produced the worksheet showing his opinion that the highest and best use was as land only. Sales of approved office land were used to show an inflated assessment. Any market participant would not conclude the highest and best use was as vacant land because it would take several years to obtain approvals, the hotel would have to be demolished (and its income stream lost), it would take a year or more to construct a new building and then it would have to be leased, which would take several years. The return on investment would be negative and redevelopment would not be undertaken. Since the client did not obtain the Assessor’s worksheet, he had no way of knowing the property was appraised at a different highest and best use and we were hired to appraise it as a hotel. At the Board level the result was not favorable, although at the State Court the argument for highest and best use had much more weight.
John Simpson, MAI
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1 7 Keys To Successful Tax Assessment Appeals - Eight Part Series // Jun 30, 2008 at 2:34 pm
[...] Keys to Successful Tax Appeals - Part 5 - Key 4 – Always get the Assessor’s worksheet - The Assessor’s worksheet is a document that shows how the Assessor arrived at the market value a property. Many times, the addresses of the comparable sales are included and sometimes operating expense comparables and capitalization rate comparables are shown. [...]
2 9 Keys To Successful Tax Assessment Appeals - Ten Part Series // Jul 1, 2008 at 1:52 pm
[...] Keys to Successful Tax Appeals - Part 5 - Key 4 – Always get the Assessor’s worksheet - The Assessor’s worksheet is a document that shows how the Assessor arrived at the market value a property. Many times, the addresses of the comparable sales are included and sometimes operating expense comparables and capitalization rate comparables are shown. [...]
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