[Download] "Grossman v. Westmoreland" by Arizona Supreme Court * Book PDF Kindle ePub Free
eBook details
- Title: Grossman v. Westmoreland
- Author : Arizona Supreme Court
- Release Date : January 26, 1979
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 55 KB
Description
The facts necessary for a determination of this matter on appeal are as follows. All real property in the State of Arizona is required to be valued at "full cash value" or its "market value." A.R.S. § 42-227. See Burns v. Herberger, 17 Ariz. App. 462, 468 P.2d 536 (1972). In determining what is full cash or market value, three methods of assessment are used. First is the cost replacement method, that is, the initial value or cost of the property plus appreciation and less depreciation. Second is the market data method, that is, the value as determined from recent sales of comparable properties in the same market. Because there are not many sales of shopping centers and because of the many differences between shopping center size, age and location, the market value approach is not normally used for this kind of property. Third is the income approach method determined by the propertys net earning power based on the capitalization of the net income. See Burns v. Herberger, supra. In Maricopa County, the initial valuation of a new shopping center is done by the cost method. The third method, the income approach, is frequently used after a shopping center has been in operation long enough to make this method feasible. The information and data necessary to perform an income analysis is solely with the possession of the owner of the shopping center and this information must be provided by the owner to the assessor before the assessor can perform an income analysis and arrive at a market value based upon the income method. That this method can be advantageous for some shopping centers is indicated by respondents memorandum which states that one of the petitioners had its valuation reduced from $15.15 per square foot to $7.82 per square foot by use of the income method as opposed to the cost replacement method. Information concerning the gross income as well as the terms of a centers lease and rental agreements with its stores are of value to competitors. The Assessors Office represents to the owners that this information is presented to the assessor in confidence.