Commercial Appraisal

Responsibilities


The commercial appraisal department is responsible for placing market value on properties used for business purposes. The department also estimates market value on vacant land that is zoned for commercial usage. Examples of commercial property are retail stores, office buildings, shopping centers, etc. There are commercial properties that have "special uses," such as golf courses, hospitals, and nursing homes. Warehouses and manufacturing facilities are industrial properties.

Property Inspections


The properties are required by Oklahoma law to be inspected on a four year cycle. An inspection calls for all building features, components, and characteristics to be identified, measured and listed. Examples would be the size of the building, occupancy, age, paving, fencing, pools, tennis courts, elevators, canopies, etc.

Computer Assisted Mass Appraisal


All the information is entered on field cards and field units (pen tablet PC's). Computer Assisted Mass Appraisal (CAMA) techniques are used to analyze sales and estimate values for many properties at once.

Estimating Value


Commercial property value is estimated by using all three approaches to value: cost, market analysis, and income. Sometimes one approach is more appropriate to use than the others.

Market Approach


The market approach is the method where sales of similar properties are reviewed and compared to the subject. The sales used are "arms length transactions," where the buyer and seller both acted without undue pressure.

Cost Approach


Another method is to calculate what it would cost, using today's labor and material prices, to replace the structure with a similar one. If the structure is not new, the appraiser determines how much it has depreciated since it was built. The resulting value is then added to the estimated market value of the land. This method is the cost approach.

Income Approach


The third method is the income approach. This method uses analysis of the income stream, operating expenses, and vacancy rates of the market and the subject property to estimate a net operating income. The net income is capitalized with a market rate to estimate value.

Forms


Below are forms that can be downloaded, filled out and sent to the Commercial department. They will analyze the data to determine a value estimate using the income approach. Supporting documentation (such as actual income / expense or profit and loss reports) concerning the subject property should also be submitted.

Submitting Forms


The above forms may be faxed 405-713-1178 or emailed. They may also be mailed:
Oklahoma County Assessor's Office
Attn: Commercial Department
320 Robert S Kerr Number 313
Oklahoma City, OK 73102

5% Increase Limitation


Due to 1996 legislation, a 5% cap (Taxable Market Value) is placed on property value increases after a revaluation. However, if the title to the property is transferred, changed, or conveyed to another person or entity, the cap limit is removed the following year and the taxable value and market value are set at the same amount. The 5% cap is reapplied the succeeding year.

Improvements


If a property has newly constructed improvements, those items are placed on the tax roll at full market value. Previously existing improvements on the same property are subject to the 5% cap increase limitation unless the title is transferred, etc.