November 24, 2017

Commercial Assessment Methods

When doing Commercial Mass Appraisal, there are three approaches to value we can use:

  1. The Cost Approach: valuing the property at replacement cost new LESS depreciation (age).
  2. The Sales Approach: comparing to other like properties that have sold on the open market.
  3. The Income Approach: reviewing the profit and loss statements provided by the business owner.

The values indicated on the preliminary notice have been calculated using the first two methods.  Owners who would like to have their property evaluated using the income approach (#3) will need to provide financial information to the Director of Equalization.  Please contact the DOE before February 10th to obtain the necessary form for providing financial information.

 

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