Assessing Info -- APRIL 6 2023

Kentucky’s bourbon war brewing as local leaders bemoan barrel tax break for $9 billion industry
In the years it takes Kentucky bourbon to mature in new oak barrels, producers have faced two certainties: They lose a portion of the aging whiskey to evaporation — known as the angel’s share — and they pay a tax on the containers. Now they’re going to get relief from one of them.

Kentucky’s legislature voted to completely phase out the property tax on the value of barrels of aging spirits. The action was toasted by the booming bourbon industry but left a bitter taste among some local leaders whose communities rely on the tax money. Read more

Do solar farms really hurt property values?
A new study finds that houses within a half-mile of a utility-scale solar farm have resale prices that are, on average, 1.5 percent less than houses that are just a little farther away.
The research from Lawrence Berkeley National Laboratory (LBNL) helps to refute some of the assertions of solar opponents who stoke resistance to projects with talk of huge drops in property values.

But it also drives a hole through the argument made by people in the solar industry who say there is no clear connection between solar and a drop in values. Read more

Think Texas has a cheaper tax burden than California? Think again.
Much was made of the so-called tech exodus from California to lower-tax Texas during the COVID-19 pandemic. But a new report finds it's not quite as good of a deal as many think.
Though Texas has no state-level personal income tax, it does levy relatively high consumption and property taxes to make up the difference. Ultimately, it has a higher effective state and local tax rate for a median household at 12.73% than California's 8.97%, according to a report from WalletHub. Read more

IAAO NEWS

April webinar: Income approach techniques
in small jurisdictions
In small jurisdictions (20,000 parcels or less) using the income approach can be a challenge. IAAO’s April webinar, “You’re Never Too Small: Income Approach Techniques in Small Jurisdictions,” will review techniques and strategies for gathering income and expense information, establishing cap rates, and building income models to value commercial properties.

The webinar, set for noon Central on Wednesday, April 26, will be presented by Ryan Janzen, CAE, and is eligible for 1.5 CEU hours. The cost is $55 for IAAO members and $77 for nonmembers. Register here.

West Virginia assessor appointed to state property commission
West Virginia Gov. Jim Justice recently appointed Wetzel County Assessor Scott Lemley, CAE, to the state Property Valuation Training and Procedures Commission (PVC).

Lemley, an IAAO member and instructor, also represents the state of West Virginia on the following National Association of Counties Committees: 1) Rural Action Caucus; 2) Geographic Information Subcommittee; and 3) Community, Economic and Workforce Development Steering Committee. He is also the subcommittee vice chair for the Housing Subcommittee. Read more

Wyoming assessor appointed to job with state revenue department

IAAO member Kenneth Guille, the Laramie County assessor, said in a statement that he has been appointed to the position of property tax administrator with the Wyoming Department of Revenue and has submitted his resignation to the county.

“Ken would like to thank the voters of Laramie County for their support during his terms as assessor. He would like to especially thank all of the elected officials, department heads, and county staff for personal and professional help throughout the nearly 25 years with the county,” Guille said in the statement.

Member Madness winner announced
Shelia Hulin of King County, Washington, won the 2023 IAAO Membership Madness contest for helping refer new members, and she gets a FREE IAAO Self-Study Course and a bundle of IAAO swag.

During the March Membership Madness event, bracket entries were awarded to the first 32 IAAO members who referred a new member, as well as to the new member. Membership Madness matchups were decided by a coin flip and all coin flips were revealed Monday, April 3, on YouTube.

Building high-performing teams focus of Emerging Leaders’ Summit; registration now open
Registration is open for the 2023 Emerging Leaders' Summit, “Building High-Performing Teams.” The ELS is designed to provide a powerful professional development opportunity for emerging leaders in the assessment industry. The program will be presented in three parts: webinars on July 18 and Aug. 15, and an in-person session at the IAAO Annual Conference in Salt Lake City. The third session will be recorded for those unable to attend. More information is at www.iaao.org/els.

Conference registration opens next week; financial aid is available
Registration for the IAAO Annual Conference, which will take place at the Salt Palace Convention Center, Aug. 27-30, opens April 10. Reservations at conference hotels can now be made now.
Attendees needing financial support to attend the conference can apply for a scholarship from the Barbara Brunner Memorial Fund. Available for IAAO members, the fund awards $1,500 toward conference registration. Contact Kimberly Wollman at 816-701-8132 or wollman@iaao.org to learn more.

Register for Mass Appraisal Valuation Symposium
Registration is open for the virtual Mass Appraisal Valuation Symposium, set for June 21-22. The International Property Tax Institute (IPTI) and IAAO will present the virtual symposium covering “Valuing Properties in Uncertain Times.” Registration information is available at www.iaao.org/mavs23.

Deadline for IAAO Awards, Fellows is May 1
IAAO is accepting nominations for its Awards Program and Fellows Program through May 1. The Awards Program boasts numerous categories recognizing individual and organizational achievements in several areas, including publications, technical expertise, and service to IAAO. Award winners and Fellow selections will be recognized at the IAAO Annual Conference in Salt Lake City.

Fellow nominees are brought forth by the IAAO membership each year and submitted during the awards nominations period. Read more on the Fellows program, and also all IAAO awards.

PCS can help you bridge the gap
Have you ever wondered if your computer system meets IAAO Standards? If so, you may want to consider having an analysis done to review not only your information system, but your overall processes and procedures to ensure your office adheres to the IAAO Standards. PCS offers a comprehensive Gap Analysis that covers the key areas of your jurisdiction. See the IAAO PCS website at www.iaao.org/pcs.

USPAP exposure draft ready for review, comment
The Fifth Exposure Draft of USPAP is now available for review and public comment. The comment deadline is April 29, and the ASB will hold a webinar reviewing their proposed changes to USPAP at 1 p.m. Eastern on Thursday, April 13. The ASB would appreciate any comments on these proposed changes, and all comments will be carefully reviewed by board members. The next ASB Public Meeting is May 5.

MEMBER CONNECT CORNER

Hot topic: Assessing land used for carbon credits

IAAO Connect members are talking about valuing land used for carbon credits. Read more

AROUND THE INDUSTRY

Nebraska lawmakers back property tax relief package worth more than $3 billion
Gov. Jim Pillen’s school aid and tax cut plan kept on rolling this week as lawmakers gave a strong thumbs up to a package of property tax changes worth more than $3 billion over the next six years.
The bill would increase Nebraska’s two property tax credit programs, cap school property tax growth and eliminate almost all community college property taxes. Read more

Opinion: Fannie Mae squeezing out appraisers
with new automated program
Homeowners and buyers, come April 15, mortgage giant Fannie Mae will have you and appraisers by the throat when it launches a new home valuation program.

The launch of “Value Acceptance + Property Data” means someone with handheld technology is going to stroll through your house and around the property. It could be a real estate agent, a home inspector or even a part-time Uber driver looking for some easy money. What it won’t need to be is a state-licensed appraiser. Read more

Ontario Divisional Court decision provides progress towards more equitable taxation
A recent decision by the Ontario Divisional Court represents significant progress towards increasingly equitable and fair taxation in Ontario municipalities. The decision comes after the Top Aggregate Producing Municipalities of Ontario (TAPMO), with leadership from the County of Wellington, advocated for changes in how aggregate producing sites are taxed.

Aggregate producers in Ontario have benefitted from a property assessment approach that favorably classifies their land since 2008.

These land classifications have resulted in lower tax rates for aggregate sites, sometimes resulting in active gravel pits incurring less property tax than single-family homes. Read more

UK film studios hit by property tax hikes
British film and TV studios have been hit by potentially existential increases in property tax bills, as industry representatives continue to plead their case with a government agency. The Valuation Office Agency (VOA) officially introduced a so-called “studio tax” from the start of the month, which some independent facilities have argued could force them out of business. Read more