Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Taxation topic
No spam. Unsubscribe anytime.
York County assessor seeks state OK to use different valuation method for Section 42 rentals
Summary
York County assessor Kurt Bolger told the Board of Equalization that rent-restricted (Section 42) properties at York County Estates would be valued at $0 under the state income approach and recommended petitioning the state for permission to use a different method; the board authorized a letter to be sent to the state.
York County assessor Kurt Bolger told the Board of Equalization that the county’s review of Section 42 rent-restricted properties produced results that would set the assessed value for 18 units at $0 under the income approach used by the state.
Bolger said the York County Estates developments — two similarly designed complexes built in 2007 and 2009 — returned negative or zero net operating income figures in the state’s income-based calculation. "I just don't feel comfortable putting a 0 value on these properties," Bolger told the board, and recommended petitioning the state to allow use of a different valuation method. (Kurt Bolger, York County assessor.)
Board action: Bolger said he will draft a letter, coordinated with the county attorney’s office, for the board to send; he identified a Jan. 31 deadline to submit the petition. The Board of Equalization moved to authorize the chair to sign the assessor’s draft letter and to proceed with filing a petition to the state (as named in the transcript, "Turg"). The motion was seconded and approved by roll call.
Context and rationale: Bolger explained that owners of Section 42 properties submit income and expense data to the state Department of Revenue, which returns calculated values to the counties; because some projects report low or negative net operating income, the income approach can yield very low or zero assessed values. Bolger said state law permits the Board of Equalization to petition the state for a different valuation method if the assessor and board conclude the income approach produces anomalous results. He also referenced a recent county (Lancaster) that pursued the same issue and said a court case may clarify statewide practice.
Next steps: The assessor will draft the petition letter for the board and county attorney to review; if the state rejects the petition, the board will determine valuation methodology and next procedural steps as provided by state guidance.
