Industrial storage properties are used for the storage of equipment and material used in complex industries such as process manufacturing, petroleum and chemical facilities, metals and manufacturing. When valuing the property, the appraisal district will value the structure(s) and land as real property.
The appraisal district will also value any inventory, feedstock, & supplies; computers, fixtures & furniture; machinery & equipment not fixed to the building; and vehicles as Business Personal Property (BPP). BPP is any property you own that is used for business purposes that is not your real property.
For appraisal purposes, a county appraisal district (CAD) typically subdivides Industrial Storage properties into the categories shown above based on their highest and best use. A CAD will derive two different values when appraising real estate property: Market Value and Equity Value.
The most common strategy used by the CAD to determine Market Value for Industrial Storage real estate is the Cost Approach including any evidence of new construction or remodeling. Cost Approach can also be supported by the Sales Approach where market data and comparable sales in the area point to a lower value.
The Equity Value, also known as Uniform and Equal, is based on the CAD’s valuation of Comparable Properties and can also be used to fight for a lower value.
When appraising business personal property (BPP) as described above, the appraisal district uses one or a combination of one of the following methodologies: Year of Acquisition, Book Value to Market Value Conversion, Net Book Value and New Age Mix, plus the use of standardized depreciation tables to determine the property tax value of BPP property.
Bettencourt Tax Advisors, LLC has an experienced industrial team which can provide property tax services on complex industrial properties. These types of properties may be valued on the real estate and business personal property. Exemptions may also be applicable.
Contact BTA for more information on how our property tax consultants can help you lower your property tax values.