If an individual taxpayer or an industrial/commercial taxpayer owns an undivided interest, that interest may impact the value of the underlying real estate subject to state and local property tax. The valuation analyst can consider the approaches and methods described herein when estimating the value impact of a fractional interest on the real estate subject to assessment. The two methods summarized in this discussion are (1) the market approach sale transaction analysis method and 92) the income approach partition analysis method.
Reilly, R. F. (2010). The impact of an undivided interest on real estate value. Journal of Property Tax Assessment & Administration, 7(2), 27-34. Retrieved from https://researchexchange.iaao.org/jptaa/vol7/iss2/3