not agree that it is correct.

It is the duty of the assessor to value all taxable tracts and lots listed in the assessment books and all taxable

buildings and improvements. True and full value or market value is the standard of value to be used by the assessor

for residential and commercial property.

Lots and tracts are valued separately from buildings and improvements, and the values are entered into the

assessment book in the appropriate column opposite the description of the property. The value of build ings and

improvements must be entered into the assessment book in the appropriate column opposite the description of the

property.

It is important for the assessor to complete a thorough inspection of the interior and exterior of buildings in order

A dwelling used for seasonal recreation and having living quarters for less than four separate family units is

Buildings not located on the same parcel as a residence and not used in connection with a residence should be

Care should be taken to enter the assessment of buildings into the correct column of the assessment sheet. County

and state boards equalize commercial and residential property separately, and an improper entry may result in an

unjust equaliza tion.

A building under construction on February 1 is subject to assessment at its actual value on that date.

* The location of a vacant lot is probably the most important factor to take into consideration in estimating value for

It has been said that “to make a fair assessment without a tax map is either impossible or the work of a superlative

genius.” This is particularly true in cities. It is important that city assessors have tax maps showing the dimensions

of every assessed parcel of property. Tax maps show the valuation estimated for each lot either on the basis of a

front foot valuation or a lump sum valuation.

The cost approach to value is one of the three approaches to value used in the appraisal process. The other methods

are sales comparison and income capitalization. The value obtained by use of the cost approach may be reconciled

with the values indicated by the other two approaches.

The procedures in the cost approach are as follows: (1) estimate the value of the site or land as if vacant; (2)

estimate current replacement cost new of the structures; (3) estimate the amount of accrued depreciation on the

(5) add the estimated site value to the total depreciated replacement cost of all of the improvements to provide an

by using sales of comparable property and allocating the sale price between the land and the structures, then

deducting the contributory value of the structures from the RCN of the structures sold. If the price allocation is less

than the RCN, there is accrued depreciation. By applying the cost approach to similar properties that have sold,

depreciation can be calculated as a percentage factor, which may then be used to calculate the accrued depreciation

for the subject property or the property being appraised. For example:

The causes of accrued depreciation fall into three general categories: physical deterioration, functional obsolescence

and external obsolescence. Accrued depreciation is the loss in value from all causes. Physical deteriora tion and

factors outside the property itself.

Physical deterioration is the loss in value due to wear and tear and disintegration of the structures from the forces

of nature and man. The two most common methods of estimating physical deterioration are depreciation tables and

professional cost services.

similar properties that have recent ly sold. The RCN of the comparable property minus the contributory value of the

structures (sale price minus land value) equals the accrued deprecia tion. Accrued depreciation minus depreciation

due to physical deterioration and functional obsolescence results in depreciation attributable to external obsolescence

of the comparable property and should be expressed as a percentage of the structure value after physical and

functional depreciation. For example:

valuable have, because of city growth, lost much of their former value. The lots upon which they are located have,

as a rule, increased in value. While it is proper to increase the lot values, it is necessary to reduce the valuation of

of depreciation from the current replacement cost new of the structures. The assessor adds the value of land to this

amount to estimate the market value of the property.

To use the sales comparison method to estimate market value, the assessor must have information about an adequate

number of properties that have recently sold. The properties must be reasonably similar in physical characteristics

and location. The county director of tax equalization can help the assessor obtain information about sales

is cautioned to comply with the secrecy provisions which require that the names of the grantee (buyer) and grantor

the property that is being valued (the subject). The three main comparison points to adjust are: (1) time (How recent

is the sale?); (2) location (How close is the comparable to the subject property?); and (3) physical characteristics

The monthly or annual rental of real property, if properly used, is a guide to market value. In considering rental

value, the assessor should be careful that rental value does not become the only measure of value. Rental value

is the economic or income value and, under normal conditions, the rental value of improved property should be

reasonably close to the cost or sales comparison value, provided the property is being used properly. It is essential

that the assessor consider the potential or prospective earnings of the property when using rental information.

price of a property that sold recently by the monthly rent. It is important to examine a number of similar properties

that have sold recently to determine a valid GRM. The assessor estimates the value of the subject property by

multiplying the monthly rent by the GRM.

A similar method is use of a gross income multiplier (GIM). The GIM is calculated by dividing the sale price of a