Valuation Based on Zoning Paul D. Petersen ASSESSOR Presentation By Tom Rief Title/Mapping Manager David “Beau” Boisvert Chief Appraiser

Subdivisions don’t just happen Paul D. Petersen ASSESSOR

Subdivisions don’t just happen Paul D. Petersen ASSESSOR

Subdivisions don’t just happen Paul D. Petersen ASSESSOR

Subdivisions don’t 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)

Recording the plat Paul D. Petersen ASSESSOR Why? Law req. public notice of changes to real prop boundaries or ownership How? County Recorder’s 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

Assigning Parcel Numbers Paul D. Petersen ASSESSOR It’s 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

Mapping……. Identify property via legal description 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 County’s parcel fabric in a geospatial environment

Mapping……. Paul D. Petersen ASSESSOR

Mapping……. Paul D. Petersen ASSESSOR

What’s next? Valuation APN’s = permits = construction = $$$ Expedite? Paul D. Petersen ASSESSOR APN’s = permits = construction = $$$ Expedite? The better the plat (ownership, etc.) & CAD submittal = time = APN’s = …………. (res. or comm.) Valuation

Value & Timing Paul D. Petersen ASSESSOR

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

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

The Valuation Process Valuation Date: January 1st of the current year. 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

General Groupings Three primary groupings and secondary 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

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)

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 $21,552 $3,730.65 High Density Multi-Family $95,100 $15,216 $2,633.88 Industrial $91,500 $14,640 $2,534.18 Single Family $53,700 $8,592 $1,487.28

Map of the Example Paul D. Petersen ASSESSOR I-17 Freeway I-10 Freeway

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 $530,710 $91,865.81 High Density Multi-Family $3,537,800 .10 $353,780 $61,239.32 Industrial $2,512,400 $464,794 $80,455.84 Single Family $228,300 $22,830 $3,951.87

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.

Questions Paul D. Petersen ASSESSOR Thank You Contact Information: Tom Rief #602-506-7219 David Boisvert #602-371-1629