Commercial and Residential Vacant Land is real estate with no structures or improvements present. This type of real estate can be configured as a large piece of acreage or subdivided into individual lots.
Agricultural Land must have a minimum of 5 acres with no structures or improvements, with no more than one additional acre being used for improvements. Land in this category must meet the criterion for an Agricultural Exemption. Protest Agricultural Land annually to minimize Rollback Taxes when the property is sold.
These properties are valued based on their highest and best use which will produce the highest net return on the land. A county appraisal district (CAD) will derive two different values when appraising a property: Market Value and Equity Value.
Due to the nature of their business, the Market Value approach used by the CAD on these properties 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.
Contact Bettencourt Tax Advisors, LLC for more information on how BTA can help you lower your property tax values.