The improvement is added to the tax roll at the percent of completion it was on January 1st.

Property taxes are based on 100% of the market value of a property.

Yes, someone has reviewed your property. This review may not have been conducted this year. We utilize in-person visits and aerial photography to inspect properties.

An improvement is any structure, fixture, building, or fence that is attached to or erected on land. All of these are improvements to the land.

Improvements do not necessarily include updates, remodels, or additions but the improvement value may include these items.

Typically, the FBCAD reviews all sales information and properties every year.

Market value is the determining factor on deciding which properties are reappraised.

The appraisal district considers three appraisal approaches when valuing commercial property: cost, market, and income.

Information from a variety of sources is obtained and detailed analysis is conducted.

Maintaining current cost tables and accurately estimating depreciation are critical functions of the cost approach.

Obtaining adequate numbers of sales in the marketplace of similar commercial use properties is critical to accurate estimates used in the market approach.

Obtaining accurate income and expense information, and data from the marketplace to establish economic rents, and then developing market-reflected capitalization rates are important to estimating market value using the income approach.

There are a number of special exemptions available for properties that serve a very specific purpose.

This includes properties that offer affordable or low-income housing to a segment of the property, pollution controls, or organizations that perform charitable religious activities.

Learn more by visiting our forms page at https://www.fbcad.org/fbcad-forms/ and looking under Miscellaneous exemptions.

The income approach is based on the idea that the value of an income producing property is based on the quantity and the quality of the income stream.

The quantity of the income stream is most often represented by the net operating income.

The quality of the income stream is represented by the capitalization rate.

The net operating income, or NOI, is capitalized at an appropriate rate to arrive at an estimate of value.

The formula for this is V = I/R. In this equation V = Value, I = Income or NOI, and R = capitalization rate.

Direct capitalization is a method used to convert an estimate of a single year’s income expectancy into an indication of value in one direct step.

This is done either by dividing the net operating estimate by an appropriate capitalization rate or by multiplying the income estimate by the appropriate factor.

Direct capitalizations uses capitalization rates and multipliers extracted or developed from market data.

The direct capitalization approach only uses one year’s income.

Income producing property is property that is held or purchased for its income potential, or its future income stream potential collected through leasing or the collection of rent.

Gross Building Area refers to the total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls.

This includes both the superstructure floor area and the substructure or basement area.

Net rentable area is also known as rentable area, net rentable square feet or useable area.

It is the area or square footage for which rent can be charged.

Secondary income is also referred to an ancillary income.

It is the income that is produces by amenities or services or through creative strategies in either leasing or marketing.

Zoning refers to municipal or local law or regulations that dictate how real property can and cannot be used in certain geographic areas.

These laws and regulations can be modified or suspended if construction of the property will serve to help the community advance economically.

Please contact your local zoning department for more information.

The appraisal district does not assign zoning.