How to Calculate the Improvement Value Per Square Foot for Property Taxes
When appraising a piece of property for property tax purposes, the assessor who conducts the appraisal determines the value of any improvements of the property by improvement type and quality. These improvements, taken along with the value of the land itself, determine the appraised value of the land. The value is then adjusted to a percentage of its total according to property type, residential commercial or agricultural, to create an assessed value. For property tax purposes, tax agencies use the assessed value to determine the value per square foot for the improvements of the land, providing you with a much lower value than would result if based on the appraised value instead.
Other People Are Reading
Things You'll Need
- Current assessment report
- Sales price for the property
- Square footage of property structure
Instructions
-
-
1
Obtain a copy of the most recent assessment report for the property from the county clerk's office. There is likely to be a fee involved, but copies are readily available upon request and either mailed to you or given to you when you visit the office to make the request.
-
2
Read the assessor's report to find both the assessed value of the land and the unadjusted appraised value of the land, representing the fair market value of the property with all of its improvements at the time of the appraisal.
-
-
3
Subtract the assessed value from the appraised value to determine the sales price for the improvements on the property.
-
4
Divide the sales price for the improvements on the property by the total square footage of the building on the property to calculate the improvement value per square feet. You can find square footage of structures listed on structure blueprints or on property deeds if the structure was present at the time of purchase.
-
1
