Hotels and Motels are structures subdivided into individual rooms or living spaces which are rented out on a daily or extended stay basis. Owners of this class of properties are required to submit Quarterly Revenue Reports to the Texas State Comptroller’s office. This information is available to the county appraisal districts (CAD).
A county appraisal district (CAD) will typically categorize Hotels and Motels as shown above for appraisal purposes based on their highest and best use. A CAD will derive two different values when appraising a property: Market Value and Equity Value.
The most common strategies used to determine Market Value for Hotels and Motels are Income Approach and Cost Approach, if there is evidence of new construction or remodeling.
Smaller properties are valued on the Cost Approach, and the Sales Approach.
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.
Contact Bettencourt Tax Advisors, LLC to learn more about how BTA’s experienced team can lower your property tax values.