Does a Property's Sale Price Really Equal the Taxable Market Value?
By Cynthia M. Fraser, Esq., as published by National Real Estate Investor - nreionline.com/viewpoints, September 2014
Typically, the basic principles of a real estate appraisal for commercial and industrial properties are based on market value—the price the buyer and seller agreed upon at the point of sale. In the current economy, as we emerge from the recent recession, many real estate assessors are questioning whether the purchase prices for commercial and industrial properties reflect their true market value. In today’s competitive real estate market, many real estate investors are faced with the following question: Is the recent sale price of a property the best evidence of the property's taxable value?
Please see the complete article published in National Real Estate Investor September 9, 2014.
Cynthia M. Fraser is a partner at the law firm Garvey Schubert Barer where she specializes in property tax and condemnation litigation. Ms. Fraser is the Oregon representative of American Property Tax Counsel, the national affiliation of property tax attorneys. Ms. Fraser can be reached at firstname.lastname@example.org.
Portland received another sign that the hospitality industry may be on its way to a full recovery late last month. On April 26th, Metro, Portland’s regional planning entity, voted to issue a request for proposal on a large hotel project that was brought to a halt in 2008 due to the economic downturn.
The vote brings back to life a plan to develop a large headquarters hotel project that will serve as the designated hotel space for the Oregon Convention Center, and provide an additional 500 rooms for tourists visiting the Rose City. Local revenue generated by attracting large conventions is big business for the hospitality industry and the region. Metro estimates that national events at the Oregon Convention Center, such as the Specialty Coffee Association of America’s Convention that took place in April and the 2012 World Brewing Congress scheduled for August of this year, result in millions of additional dollars flooding area businesses over just one weekend.
Petitioners appealed LCDC’s periodic review approval of an expansion of the urban growth boundary (UGB) of the City of McMinnville which redesignated previously rural lands for various types of urban uses. The primary issue in the case was the relationship between ORS 197.298, a statute that prioritizes the types of land that can be added to a UGB and the Goal 14 UGB factors as they existed in 2005, which the city was authorized to apply in this case.
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The legislature passed a handful of land use bills this session. This includes Senate Bill 766 related to Economic Recovery and expedited site reviews for proposed industrial development, as well as Senate Bill 960 and House Bill 3280, related to winery events. Read more for a quick snapshot.
The economic downturn has caused several “big box” retail stores, such as Circuit City and Linens n’ Things, to file for bankruptcy and close hundreds of stores. The downturn has also caused several other “big box” retailers, including national chains like Walmart, Sears and Target, to re-evaluate their markets and eliminate underperforming stores, which has caused the closure of hundreds of more stores.
We regularly update clients about changes in real estate law and on industry trends. This includes briefing clients on legislative proposals in the federal tax, housing and other legal areas affecting their businesses. Staying current enables you to anticipate and prevent legal problems as well as capitalize on new developments.