Restaurant real estate typically includes valuations on both land and improvements that are used for the purpose of serving food to customers either at the establishment or by providing take home service.
For appraisal purposes, a county appraisal district (CAD) typically subdivides Restaurant real estate into the categories shown above based on their highest and best use. A CAD will derive two different values when appraising a property: Market Value and Equity Value.
Due to the nature of Restaurant real estate, the Market Valuation 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.
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Contact Bettencourt Tax Advisors, LLC for more information on how BTA can help you lower your property tax values.