Start Date
10-12-2015 4:00 PM
End Date
10-12-2015 4:45 PM
Description
The concept of fair market value implies a hypothetical sale of the property as of the lien date. Many property tax disputes involve either special purpose properties or owner-occupied properties that are not sold until the utility of the building has diminished due to a changing market. Thus, when these properties sell, they are often vacant and/or may no longer have the same highest and best use. The question with regard to these properties is whether the sales of or income from these properties are reasonable to use when valuing a currently occupied property. This presentation will look at court cases from across the nation and attempt to address this issue. Often, these cases look at this questions in terms of the hypothetical sale criteria mandated by appraisal theory. This issue is frequently a central part of the debate in cases involving freestanding drug stores, large industrial properties, corporate office centers, luxury mansions, etc. The seminar will also highlight how focusing on this issue resulted in successful litigation against CVS in recent litigation in Florida.
Recommended Citation
Shepherd, William D. Esq., "Fair market value and the hypothetical sale" (2015). IAAO Annual Legal Seminar. 8.
https://researchexchange.iaao.org/legal/legal15/sessions/8
Fair market value and the hypothetical sale
The concept of fair market value implies a hypothetical sale of the property as of the lien date. Many property tax disputes involve either special purpose properties or owner-occupied properties that are not sold until the utility of the building has diminished due to a changing market. Thus, when these properties sell, they are often vacant and/or may no longer have the same highest and best use. The question with regard to these properties is whether the sales of or income from these properties are reasonable to use when valuing a currently occupied property. This presentation will look at court cases from across the nation and attempt to address this issue. Often, these cases look at this questions in terms of the hypothetical sale criteria mandated by appraisal theory. This issue is frequently a central part of the debate in cases involving freestanding drug stores, large industrial properties, corporate office centers, luxury mansions, etc. The seminar will also highlight how focusing on this issue resulted in successful litigation against CVS in recent litigation in Florida.