Laws, Regulations & Annotations

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610.0000 NEWLY CONSTRUCTED PROPERTY

Annotation 610.0115

610.0115 Valuation. A taxpayer purchased a vacant residential lot and had a home constructed by a licensed general contractor. None of the construction was done by the taxpayer. Upon completion of construction, the assessor properly considered two methods, the replacement cost and the comparable sales approaches, to estimate the fair market value of the new construction. The costs of construction may not equal the fair market value of a new residence. Therefore, county assessors should employ the valuation approach(es) that best estimates the value of new construction, not merely its cost. C 7/05/2005.