D.C. Mun. Regs. tit. 9, r. 9-307

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 9-307 - DETERMINATION OF ASSESSED VALUE

307.1

In determining the assessed value of property the Deputy Chief Financial Officer shall take into account all available information which may have a bearing on the market value of the real property including, but not limited to, the following:

(a) Government imposed restrictions;

(b) Sales information for similar types of real property;

(c) Mortgage or other financial considerations;

(d) Replacement costs, less accrued depreciation because of age, condition, and other factors;

(e) Income earning potential (if any);

(f) Zoning;

(g) The highest and best use to which the property can be put; and

(h) The present use and condition of the property and its location.

307.2

In considering the factors set forth in § 307.1, the Deputy Chief Financial Officer may apply, when appropriate, one or more of the generally recognized approaches to valuation set forth in this section or any other method the Deputy Chief Financial Officer deems necessary to arrive at estimated market values.

307.3

The Deputy Chief Financial Officer may utilize the comparable sales approach to valuation, which bases assessed value on the price or prices at which reasonably comparable properties have recently sold, in accordance with the following guidelines:

(a) Sales which represent arm's length transactions between buyer and seller shall be used in analyzing market values. Sales which do not represent arm's length transactions shall either be adjusted for differences or disregarded; and

(b) Sales comparisons should be made by property type within an assessment area; Provided, that if sufficient sales data for an assessment area is not available, sales data from other similar areas may be used.

307.4

The Deputy Chief Financial Officer may utilize the replacement cost approach to valuation, which bases assessed value on the cost of replacing property with new property of similar utility at present price levels, in accordance with the following guidelines:

(a) The replacement cost of a property may be estimated by either of the following methods:

(1) Adjusting the property's original cost for price level changes; or

(2) Applying current prices to the property's labor and materials components and taking into account any other costs typically incurred in bringing the property to a finished state.

(b) Replacement cost shall be reduced by the amount of depreciation or estimated loss of value because of age, condition, or other factors.

307.5

The Deputy Chief Financial Officer may utilize the income approach to valuation, which bases assessed value on the amount that investors would be willing to pay to receive the income that the property could be expected to yield, in accordance with the following guidelines:

(a) An indication of the value of an income producing property may be estimated by computing the present worth of a future income stream;

(b) The income stream shall be capitalized or converted into an indicated value; and

(c) The amount to be capitalized may be either the gross return or the net return.

D.C. Mun. Regs. tit. 9, r. 9-307

Regulation No. 74-35 effective December 12, 1974, 21 DCR 1643 (January 20, 1975), 16 DCRR §§ 101108