Valuation Based on Zoning

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Valuation Based on Zoning
Paul D. Petersen ASSESSOR

• Presentation By
• Tom Rief
• Title/Mapping Manager
• David Beau Boisvert
• Chief Appraiser

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Subdivisions dont just happen
Paul D. Petersen ASSESSOR
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Subdivisions dont just happen
Paul D. Petersen ASSESSOR
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Subdivisions dont just happen
Paul D. Petersen ASSESSOR
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Subdivisions dont just happen
Paul D. Petersen ASSESSOR

• A lot of work energy go in to developing one
• Purchase land / assemble ownership / Survey
• Zoning Entitlements
• Entitlements Zoning
• Plat must include measurement dimensions.
• Lots, tracts, easements, common areas
• Number each lot, tract, etc.
• Dedicate roads, w/ acknowledgements
• Govt. approval (prior to recording)

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Recording the plat
Paul D. Petersen ASSESSOR

• Why? Law req. public notice of changes to real
  prop boundaries or ownership
• How? County Recorders Office satisfies law
• What? Recorder assigns to each plat (MCR)
• However? There are numerous subs in the county
  w/ same name but MCR is unique to each

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Assigning Parcel Numbers
Paul D. Petersen ASSESSOR

• Its an accounting function..
• County divided into several Books,
• Broken down into Maps
• Pages
• Each page contains several large parcels
• Further broken down into unique parcel numbers
  for taxation purposes

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Mapping.
Paul D. Petersen ASSESSOR

• Identify property via legal description
• Assign next available pre-set
• Unique identifier for Treasurer
• We generate maps showing all new parcels
  boundaries
• Simplified CAD process for subs
• Maintain Countys parcel fabric in a geospatial
  environment

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Mapping.
Paul D. Petersen ASSESSOR
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Mapping.
Paul D. Petersen ASSESSOR
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Whats next?
Paul D. Petersen ASSESSOR

• APNs permits construction
• Expedite?
• The better the plat (ownership, etc.) CAD
  submittal time APNs .
• (res. or comm.)
• Valuation

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Value Timing
Paul D. Petersen ASSESSOR
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Statutory vs. Typical Influence
Paul D. Petersen ASSESSOR

• Current Use The use to which property is put at
  the time of valuation by assessor or department.
• Highest and Best Use The most probable use of a
  property that is
• Physically possible
• Legally permissible
• Financially feasible

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A Picture of the Purchase
Paul D. Petersen ASSESSOR

• A snap shot at the time of the Sale Date
• What was the land size?
• What were the characteristics?
• Land
• Improvement(s)
• What is the Current Use?
• Supported by the zoning
• Contradicts the zoning

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The Valuation Process
Paul D. Petersen ASSESSOR

• Valuation Date January 1st of the current year.
• Valuation Year The future year proceeding the
  year in which taxes are levied.
• Calendar Year 2014 (Taxes Levied)
• Valuation Year 2015 (Valuation Notice mailed)
• Current use as of the Valuation Date

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General Groupings
Paul D. Petersen ASSESSOR

• Three primary groupings and secondary groupings
• Residential
• Single family
• Multi-Family
• Commercial
• General Commercial
• Industrial
• Office
• Vacant Land
• Based on what the zoning was at the time
• of the sale occurs

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The Influence on the Purchase Price
Paul D. Petersen ASSESSOR

• Location
• Amenities
• Able to change the zoning
• Purchase Rate Ranges in General
• General Commercial
• Office
• High Density Multi-Family
• Industrial
• Single Family/Multi-family (under 12 units)

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Example of Vacant Land The land size is 43,560
square feet
Paul D. Petersen ASSESSOR
Property Type Limited Property Value Ratio Taxable Value Tax Rate Estimated Taxes
Commercial 164,500 .16 26,320 .1731 4,555.99
Office 134,700 .16 21,552 .1731 3,730.65
High Density Multi-Family 95,100 .16 15,216 .1731 2,633.88
Industrial 91,500 .16 14,640 .1731 2,534.18
Single Family 53,700 .16 8,592 .1731 1,487.28
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Map of the Example
Paul D. Petersen ASSESSOR
I-17 Freeway
I-10 Freeway
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Example of Improved Property The land size is
108,900 square feet
Paul D. Petersen ASSESSOR
Property Type Limited Property Value Ratio Assessed Value Rate Estimated Taxes
Retail 3,819,900 .185 706,682 .1731 122,326.56
Office /2 story 2,868,700 .185 530,710 .1731 91,865.81
High Density Multi-Family 3,537,800 .10 353,780 .1731 61,239.32
Industrial 2,512,400 .185 464,794 .1731 80,455.84
Single Family 228,300 .10 22,830 .1731 3,951.87
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Conclusion
Paul D. Petersen ASSESSOR

• The Zoning does influence the full cash values of
  the properties
• If the current use does not support the zoning,
  there is no influence
• The current use as of January 1st of the current
  year establishes the full cash for the future
  year.

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Questions
Paul D. Petersen ASSESSOR
Thank You

• Contact Information
• Tom Rief 602-506-7219
• David Boisvert 602-371-1629