Shopping Center – The Appraisal Districts classification of the grade of the property was incorrect.  We never assume that the appraisal district is utilizing the correct information in their analysis, we question every component.

The subject was a 93,000 sq. ft. Power Center constructed in 2001, and classified by the appraisal district as a Class “A” grade property.  The appraisal district had assessed the property based on an Income Analysis.  However, we had determined it to be a Class “B” property, based on our initial site visit, as well as, in depth study of current rent, vacancy rates, and tenant mix in the area as compared to the subject property.  Our analysis, determined the strongest argument to be the Income approach.  We were successful in proving the classification discrepancy with our evidence of photos of the property as well as the rent roll reflecting the tenants of the property, with that we were able to utilize a more favorable cap rate and stabilization rate; therefore, achieving a reduction from $13,000,126, down to $11,704,000.  This reflected a reduction in value of $1,363,000 and a tax savings of approximately $37,700. 

A ten (10%) percent reduction of the assessed value.

Restaurant – Square Footage of Parking Lot Listed Incorrectly by Appraisal District since Account Origination in 2007

Although this account had been represented by a reputable Property Tax Firm since origination, we made no assumptions and verified the accuracy of the appraisal record details.

The subject property was a restaurant owned by a National Restaurant Chain, under former Property Tax Consultant representation. While conducting a cost analysis of the property, a measurement of asphalt was taken and utilized to determine the overall value.  While reviewing the appraisal district record of the account, it was determined that the appraisal district had been utilizing an overall paving area of 166,000 SQFT, versus the actual 144,000 square feet verified by our measurement of the site. This was overstating the asphalt value at $2.50 PSF by $300,000. We presented our evidence of the square footage, along with our Cost Analysis, which was readily accepted by the Appraisal District.  The preliminary value was $2,822,650, which was reduced to $2,588,900.  This reflected a value reduction of $233,750 and a tax savings of $5,236 for tax year 2010.  However, because this error was in place for the last two years as well, Tax Recourse LLC filed a 25.25C for the client and received a refund for tax years 2009 and 2008. The total tax savings from identifying this error was approximately $15,000.

An eight (8%) percent reduction of the assessed value.