Category D includes both acreage at market value (Category D) and farm and ranch improvements (Category E).Descriptive codesAcreage
The PTD does not provide cost schedules for acreage. The sales comparison approach is the most common technique for valuing acreage and is the preferred method when comparable sales are available. 1 When sales data are limited, users may have to resort to one or a combination of the following:
- expand the time frame from which sales are drawn, keeping in mind that time adjustments may be required;
- expand the area from which comparable sales are drawn, taking care to ensure that the area is similar in geography, type, and mix of farming/ranching activity, economic well-being, etc.;
- thoroughly review current asking prices in an effort to establish upper bounds for appraised values;
- evaluate production budgets and cash lease information in an effort to establish lower bounds on appraised values.
PTD field appraisers are responsible for estimating the market value of acreage not qualified for productivity valuation. The productivity value of qualified acres is estimated by Austin-based staff. Theoretically, PTD samples should include only non-qualified acres. However, it is difficult to ignore sales data for qualified acres when developing market value estimates for non-qualified acres.
First, the overwhelming majority of available sales data pertain to acreage qualified for productivity valuation. Second, the time required to identify and locate only non-qualified acres is prohibitive. Finally, to ignore acreage sales simply because they involve land qualified for productivity valuation would result in the loss of a valuable data base.
PTD staff are permitted to appraise both qualified and non-qualified acreage in developing market value estimates for non-qualified acres. In doing so, they must consider that general characteristics associated with non-qualified parcels may differ significantly from those associated with qualified parcels. If assessment levels are not consistent, PTD samples may not provide a true reflection of market value for non-qualified acres.
It is not uncommon for a single parcel to involve multiple land types and uses. Thus, parts of a particular parcel may be more valuable than others. Market value is calculated as follows:
MKT VALUE = (ACSPT1 * VALUE/ACPT1) + PT2 + PT3 where:
- ACSPT1 = Number of acres in PART 1
- VALUE/ACPT1 = Value per acre for PART 1
- PT2 = Same calculations as PART 1 (if relevant)
- PT3 = Same calculations as PART 1 (if relevant)
The Sale/Appraisal System includes a two-character ACCESS/LOCATION code for each Category D parcel. Also included are five-character TYPE codes for as many as three parts of each parcel. Both codes are described below.Descriptive Codes
Access/Location Code --- Category D
Character Attribute Code/Description First Access 1 - Major highway 2 - Farm-to-market highway 3 - All-weather road 4 - Dirt road 5 - Easement 6 - Landlocked Second Location 1 - Good 2 - Average 3 - Poor 4 - Undeveloped
Type Code --- Category D
Character Attribute Code/Description First Use 1 - Irrigated cropland 2 - Dry cropland 3 - Native pasture 4 - Improved pasture 5 - Timber 6 - Orchard 7 - Barren 8 - Commercial/industrial 9 - Other (comments) Second Productivity 0 - No Production 1 - Good Production 2 - Average Production 3 - Poor Production Third
Fourth
FifthThree most
important
characteristicsA - River/stream frontage B - No river/stream frontage C - Homesite D - Scenic view E - Restricted view F - Wooded H - Impounded water I - No impounded water J - Irrigation possible K - Commercial timber L - Brushy M - Limited & useable area N - Unusual easement O - Game-proof fence P - Gullied Q - In flood plain R - Wildlife/Recreationa S - Other (comments) The ACCESS/LOCATION code is essential information for every acreage tract. Users should make every effort to include this code for each data record. Thus, for example, a tract located on a farm-to-market highway within driving distance of a thriving community is coded 21.
In the first three characters of each TYPE code, provide information important in the valuation of any acreage tract. The last two characters are optional but should be included when additional characteristics significantly affect a property's value.
For example, consider a single parcel of 2,000 acres, 500 acres of which are good dry cropland situated on a plateau with a scenic view of the valley below. The remaining acreage is poor native pasture with limited usable area and no impounded water. Assuming that the parcel is valued in two parts, the 500 acres of dry cropland is coded 21D and the native pasture 33I.
Farm and Ranch Improvements
Methods used to develop market value indicators for farm and ranch improvements are identical to those outlined in "Category A--Single Family Residential Properties.Farm and ranch improvements (and the land directly associated with those improvements) often sell as part of larger tracts of land. Ideally, users should compare sales of improved and unimproved acreage in order to estimate the contributory value of the land. Practically, PTD field appraisers must use common sense and knowledge of local market conditions in determining appropriate adjustments for market value estimates.
When appraising non-residential improvements such as barns, sheds, and pens, the Comptroller's Property Tax Division is now using Marshall and Swift's Commercial Estimator software program and the Marshall Valuation Service Cost Guide. For more information, please contact the Property Tax Division's Field Studies Section at 1-800-252-9121.
Descriptive codes for farm and ranch improvements are identical to those discussed in "Category A--Single-Family Residential Properties."
1A discussion of the sales comparison approach is beyond the scope of the Guide. However, users may wish to refer to The Appraisal of Real Estate published by the American Institute of Real Estate Appraisers.
Category L - Commercial Personal Property