How does the assessor’s office determine the value of real property?  The initial phase is a site visit when a new structure is being built, or a change has been made to the existing building.  When a change is made to an existing structure, a site visit is performed to update the county record with the new information.  This information is gathered to ensure that the county records are as accurate as possible.  The valuation stage comes after the initial collection segment. 
There are three approaches to value. 

• Sales Comparison: The most common approach is the sales comparison approach.  In the sales comparison approach, the appraiser compares the property being appraised to similar properties that have recently sold.  The appraiser makes adjustments to the sale prices of the comparables for different variables including, but not limited to:      
• Location
• Size
• Quality
• Condition
• Amenities

The sales must be carefully analyzed to determine if they were arms length transactions.  An arm’s length transaction is defined as “A sale between a willing buyer and a willing seller that are unrelated and are not acting under duress, abnormal pressure or undue influences, both seeking to maximize their positions from the transaction.”

• Cost Approach: Another method is the cost approach to value.  The basic formula for the cost approach is the depreciated cost of the improvements plus the value of the land.  The cost approach starts with determining how much it would cost, at current material and labor costs, to replace the property with one similar.  This is referred to as Replacement Cost New (RCN).  Then the appraiser needs to determine how much value has been lost through various forms of depreciation. 
• Physical depreciation is the loss in value through wear and other damage.  In many instances, these repairs can be made as necessary. 
• Functional obsolescence is the loss in value due to changes in market tastes, such as having one bathroom when the market prefers two bathrooms.  There can also be functional obsolescence from having a super-adequacy, or having too much of a feature.  An example of a super-adequacy would be having five fireplaces when the market only expects two.  These three extra fireplaces may add little to no market value in relation to the associated costs. 
• External obsolescence is the loss in value from a source outside of the property.  Two examples are traffic noise or living close to an oil refinery.  While sometimes you can cure physical (replacing worn out shingles) or functional depreciation (adding a bathroom), external depreciation can almost never be cured. 
• Income Approach:  The third method is the income approach to value.  The income approach is where anticipated income is converted into property value.  For instance, if the market rent for a property is $2,000 per month, a prospective buyer may pay $200,000 for the property; as they are anticipating the income the property generates plus any appreciation will be greater than their investment. 

Computer Assisted Mass Appraisal (CAMA):  The Weber County Assessor’s office often uses a CAMA system to appraise residential properties.  Essentially, a valuation model is a statistical technique that analyzes the characteristics of sold properties and applies the information derived from the analysis to determine the value for similar properties.  This method is not as exact as a qualified appraiser valuing each property individually.  However, it provides the taxpayers of Weber County the most effective and economical process available.
Factor:  Factoring is a method of updating property values without performing reappraisal.  Each year, the Weber County Assessor’s Office and the Utah State Tax Commission perform an assessment/sales ratio study.  This study is performed by taking the assessed value and dividing it by the cash equivalent sale price of a property to find the sales ratio.  The ratios are then compiled in a list using several different stratifications.  The typical stratifications used are property use, political boundaries (cities), property age, or property region.  These studies are performed to ensure the county is within the legal level of assessment. Currently in Utah, the legal level of assessment is 100% of market value.  The measure of central tendency (either average or median) must be within 10% of the legal level of assessment.  If the measure of central tendency for a group of properties is outside of the legal level of assessment, the county has to either reappraise or institute a factor. 
The formula for a factor is assessed value / ratio.  So, if the sales ratio shows that a group of properties is at 85% of market value, then all properties in this group must be factored to 100%.  For instance, a home’s total assessed value is $150,000, take $150,000/85% = $176,000 (rounded).  This is the least preferred method of valuation as it tends to aggravate inequities in property assessments.  
What is Level of Assessment?  Level of assessment is the ratio of assessed value to the actual market value, typically measured to net sale price.  On a micro level, it would be the ratio of the assessed value divided by the net sale price of that property.  On a larger scale, it would be measured as the mean or median ratio for a group of properties.   Hide

What are some of the things to look for when measuring equity?  When studying equity on a micro level, you would want to compare the subject property to other properties that are as similar as possible in at least the following:

• Use
• Location
• Size
• Quality
• Condition
• Amenities

For example, the subject property is a 1,500 square foot rambler style home of average quality in good condition built in 1990, located in Roy.  You would want to perform an equity comparison in the following manner:

• Size ± 100 square feet
• Similar quality
• Similar condition
• Age ± 5 years
• Located within a few block radius

Even after making comparisons on the above criteria, there can still be sizeable differences in the assessed value.  The subject home may have a completely finished basement, a third car garage and a larger lot.  The other homes used in the comparison may have an unfinished or partially finished basement, a two car garage or smaller lot.  Hence, they would have a lower assessed value. 
How is equity in assessment measured?  Each year, the Weber County Assessor’s Office and the Utah State Tax Commission perform an assessment/sale ratio study.  This study is performed by taking assessed value and dividing it by the cash equivalent sale price of a property to find a ratio as compared to the sale price.  The ratios are then compiled in a list by several different stratifications.  The typical stratifications are use, political boundaries (cities), age or region.   Then the study is analyzed for equity between stratifications.   Hide

In Utah, certain items of property are treated as personal property that would otherwise be classified as real estate; i.e., bank vaults, pneumatic tubing at bank drive up windows, safety deposit boxes, night deposit boxes at banks, floor safes, drive-up teller windows, carpet, overhead cranes, brick kilns and ovens, underground gasoline tanks, walk-in coolers, signs and flagpoles.

How is personal property valued?  There are several different ways of valuing personal property depending on the property type.    
Business Personal Property:  Business assets such as: computers, telephones, copiers, trade fixtures, furniture, equipment, machinery and other like personal property owned and/or used in connection with your business as of January 1st, is subject to taxation.  Business personal property is a self reporting value subject to audit.  A signed statement of personal property (need a link to the pp self reporting form) is sent to the business owner who reports the value of their personal property assets based on acquisition costs.  There are several different classes in the valuation schedules, supplied by the Utah State Tax Commission, depending on the class of property.  The schedules provided are percent good schedules developed by the Utah State Tax Commission.  These valuation schedules and guides are reviewed and updated annually by the Property Tax Division.  Analysis of new market data forms the basis for revising or updating schedules.  The schedules are developed using the Internal Revenue Service (IRS) Class Life or an economic life developed from other research to establish average economic life, which is trended to replacement cost new using the Marshall and Swift’s Personal Property Cost Index.  Class 4, Short Life Expensed Personal Property Schedule, was established by statute. 

Manufactured Homes:  Manufactured homes are appraised according to their market value.  Market value is estimated using either the sales comparison or cost approach to value.  

Motor Vehicles:  Motor vehicle fees are either an age based fee or state wide uniform fee, depending on the classification.    Schedules for vehicles subject to uniform fees are developed from samples of sales published in valuation guides such as N.A.D.A., Primedia, ABOS Marine Blue Book, etc.   Hide