4 ms·
I have to disagree that the town's have been breaking the law. You can criticize their choice of comparable properties but it doesn't strike me as illegal or ne
by cmiles74 8y ago
I have to disagree that the town's have been breaking the law. You can criticize their choice of comparable properties but it doesn't strike me as illegal or necessarily dishonest. However it seems like maybe we need an entirely new way to valuate these properties...
When a home is assessed we look at similar houses (similar in size, number of bathrooms, garage, etc.) These are features that have teal and tangible value for people in the market for a home. People agree these are valuable things.
It sounds like much of the value of these properties isn't really part of the properties themselves. Instead we're seeing the value in the I improvements to the property _around_ the store: what was once empty land now has a four lane road, electric lines and other utilities constructed solely to support these stores. Is it fair to turn around and argue that this value isn't enjoyed by these big box stores?
That seems to be their logic: the Home Depot has value, but not much: it's a shoddy square box full of shelves. Yet the municipality spent a lot of money on infrastructure to support this store that they can't afford without these taxes.
- 0xffff2 8y agoSurely the resale value of the property takes into account the level of infrastructure surrounding the property, which would mean that a valuation based on resale value prices in those improvements at their market value.
- cmiles74 8y agoAfter reading the article, the impression I came away with was that they were choosing "comparable properties" that were recently re-sold big box sites. It seems that the municipality's appraisers take the infrastructure around the site into account whereas the appraisers for the big box stores are not.
- ams6110 8y agoEach party's appraiser comes up with a value favorable to its customer? You don't say!
- cmiles74 8y agoI think it's weird in this case that the methodology on each side is so drastically different. IMHO, the missing piece is clear rules on how to compare large crappy properties that only warehouse stores are interested in... Everyone used to agree on methodology but now the large chains are changing their minds. Similar to the Amazon HQ2 saga, providing tax breaks to these companies isn't worth it in the long run; that practice should probably cease.
- chrisdhoover 8y agoThe cost of the increased infrastructure should be charged during construction and capitalized by the owner. The on-going operational costs by the city should be covered by service rates. Property taxes should go into the general fund to support police, fire, schools