Bannock County board upholds assessors value for federal building after income-approach appeal

The Bannock County Board of Equalization on Wednesday upheld the county assessors assessed value for a federal office building after hearing competing appraisals.

Greg LeBlanc, a tax advisor representing the property owner, told the board the 43,162-square-foot building built in 1999 is leased by the federal government and currently rents at $25.53 per square foot, triple net. LeBlanc said his income-based valuation, using a 5% vacancy allowance, 14—9% to 15% expenses and a 7% capitalization rate, produced a market value of $12,709,600 (about $295 per square foot). He also said the property sold in April 2022 with an allocated purchase price of $15,010,000 but argued that national interest-rate increases since that sale reduced market values by roughly 12.5% for the valuation date of Jan. 1, 2025.

The countys commercial appraiser reviewed the appellants materials and said the assessors office also ran an income approach and arrived at a similar figure. The assessors representative recommended retaining the current assessed value after balancing income and sales approaches.

The board asked questions but received no substantive challenges to the appraisal methods during its discussion. A commissioner moved to uphold the assessors valuation for the parcel identified in the hearing record. The motion carried after a voice vote; the chair announced the board had upheld the assessors value. The board said the appellant may appeal the decision to district court or the Idaho State Board of Tax Appeals and that a written decision would follow by mail.

The hearing record shows the board limited its review to whether the assessor properly determined market value as of the statutory assessment date. The board noted it does not adjudicate tax rates and that appellants carry the burden of proof.