This month, Tony’s Tip addresses non value added costs – and ensuring they are not included in your assessment.
June 11, 2018
NON-VALUE ADDED COSTS
It is required that you take out a permit before you build new or add on to your facility. These permits often include costs that misrepresent the value that would be attributed to the market place.
It is also necessary that you note the “total” costs when filling out an abatement application relating to constructing a new facility or building addition. The assessor often considers these costs prior to setting a value for the abated property.
Many costs do not add value and should be considered non-value added, even though they may be necessary to the construction project. Costs for relocating utilities and parking are a couple examples of non-value added costs.
We have found that assessors are more amenable to setting a fair value (without an appeal being filed) when you inform the assessor of these costs on the onset of the project.
Please check out our web site for other costs that should NOT be considered by the assessor when setting the property value.