Valuation of Real Property
I own a NNN leased property and received a real property form from the county asking what the purchase price was if property was purchased within 3 years. My question is: do I put what I paid for the property, because that includes a great 20 year lease, so I know that inflates the value. TIA
[{"id": "elok2po", "text": "Purchase price is purchase price. That said, depending on your location you're very likely under no obligation to respond.", "replies": [], "depth": 1}, {"id": "eloso77", "text": "Depends on the rules of your state. Some states assess based on the fee simple value so market rent not in-place contract rent would be the primary focus. Other states (KY for example) have expressly stated that long-term, built-to-suit leases add significant value and must be considered.  Most state have an assessment handbook that lays out how property is to be valued for taxation purposes.", "replies": [{"id": "elpqacv", "text": "This. Follow your local laws. Don\u2019t get cute either. But that said, I would personally use the most tax advantageous method of valuation.", "replies": [], "depth": 2}], "depth": 1}]