Additional info required in some appeals of commercial property values

Compromise legislation regarding commercial property valuations is now law.

Act No. 2018 – 265 requires additional information if a comparable sale or lease transaction is the evidence being offered in a challenge to the value tax assessors and boards of equalization place on commercial or industrial property. Sen. Phil Williams, R-Rainbow City, and Rep. Corley Ellis, R-Columbiana, sponsored the new law.

(Owners) must reveal if the building is subject to deed restrictions,” Williams said.

Under the new law, valuation protests and appeals of currently operating commercial or industrial property that use a sale or lease transaction as evidence, must disclose whether:

  • The comparable property was occupied or unoccupied at the time of sale/lease; plus if
  • There is a restriction that prohibits the property from being used for the purpose for which it was built or designed.

If the property owner protesting the valuation fails to disclose those two pieces of information when the evidence is offered, the evidence will be inadmissible in court.

The revised legislation was arrived at after weeks of negotiations between business groups and the counties.

The Alabama Retail Association worked with the Association of County Commissions of Alabama and other interested parties to develop the compromise legislation.

This article is part of the Alabama Retail Report, a communication for Alabama Retail Association members. Not a member? Join us!

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