The County Appraiser’s only function is
the assessment of property. The appraiser’s office does not set your tax rate or
collect taxes.
The tax rates are calculated by the County
Clerk’s
Office and are dependant on the financial needs and budgets submitted and approved by your
City, County Government, and school Districts.
The County Treasurer’s Office is responsible for the collection of all
taxes.
The Three Approaches to Value
One of the duties of the County Appraiser’s Office is to place value on all
taxable property within Sedgwick County. There are three approaches or ways to place value
on assessable property. The three approaches are Cost, Income and Sales.
Not every approach is pertinent to the property being assessed. In real estate the type
and use of the property determines which approach is best suited to help the Appraiser
arrive at fair market value.
Cost
The cost approach to value is based on the concept that the value of a property can be
estimated or appraised by adding the value of the land (as if vacant) to the value of the
improvement.
The cost approach is a way to value your property based on how much money it would
take, at current material and labor costs, to replace your property with one similar. If
your property is not new, the appraisal office must also determine how much it has
depreciated. In addition, the appraisal office must estimate how much a lot like yours
would be worth if vacant.
The cost approach is primarily used when sales or income data for properties is not
available or scarce.
Income
The income approach to value is the appraisal concept that the value of a property is
related to how much income the property will produce over a duration of time. Also the
certainty of the income is taken into consideration. This approach is best used for
properties that produce income, such as, apartment complexes, office buildings and other
rent producing property. Within the income approach are several different ways or
techniques that appraisers use to value property.
For the income approach to be valid the Appraiser must have accurate and current
information on market rents/leases, vacancy rates, interest rates on mortgages, expenses
that the property accrues, investor expectations, and other economic factors and trends
that affect income generating property.
Market
The market approach to value, also referred to as comparative sales approach, compares
the property being appraised (subject) with other properties with similar characteristics
(comparables) which have been sold within certain time limitations. The comparable sales
must be valid sales: that is, they are arms-length transactions, with a willing and
knowledgeable buyer/seller, sold on an open and competitive market with sufficient time
for sale.
The market approach involves making adjustments to the comparable properties. These
adjustments allow the differences between the subject and the comparable to be accounted
for. The value for the adjustments or components (bedrooms, fireplaces, living area, and
other characteristics) come from the local market. Through research and collection of
sales data the Appraiser tracks and updates what buyers/sellers (the market) are saying
the component is worth.
The use of computers has made the selection of comparables and the use of valid sales
more systematic and accurate. The sales comparison method is the most reliable method for
the Appraiser’s Office to use in the mass appraisal of residential property.
Why do Appraised Values change for year to year?
A property’s value can change for many reasons. The most obvious is that the
property changes. A bedroom, garage, or swimming pool is added, or part of the property is
destroyed by flood or fire. A change in market can also cause a change in the property
values.
Why have a Property Tax?
Properties are appraised so those of us who want the advantages of having schools, fire
and police protection, can absorb our fair share of the cost, in proportion to the amount
of money our individual properties are worth.
The property tax is part of a well-balanced revenue system. It is more stable than
sales and income taxes because it rarely fluctuates.
How is Property Appraised?
To find the value of any piece of property, the appraisal office must first know what
properties similar to it are selling for, what it would cost today to replace it, how much
it takes to operate or keep it in repair, what rent it may earn, and many other factors
affecting its value.
Re-inspections
The Sedgwick County Appraiser’s
Office is mandated by
K.S.A.79-1476 to re-inspect real property in Sedgwick County every
six years. The purpose of this inspection
is to verify our data is current and represents the property
accurately. The Appraiser’s Office physically inspects
approximately 17% of the real property located in Sedgwick County
each year. The inspection areas are done by property type.
BLG FAQ
What is a BLG?
- A BLG is a building on leased ground. In other
words, it is a building owned by a different party than that which
owns the ground beneath it.
Does my building on leased ground have to be listed separately
from the land parcel?
- No. The building and land can be listed
together on a single parcel. In fact, Kansas law mandates that the
building and land must be listed together unless specific requirements
are met.
Is there a law that governs buildings on leased ground?
- Yes. KSA 79-412 states: It shall be the duty
of the county or district appraiser to value the land and
improvements; but the value of the land and improvements shall be
entered on the assessment roll in a single aggregate, except as
hereinafter provided. Improvements owned by entities other than the
owner of the land shall be assessed to the owners of such
improvements, if the lease agreement has been recorded or filed in the
office of the register of deeds. Delinquent taxes imposed on such
improvements may be collected by levy and sale of the interests of
such owners the same as in cases of the collection of taxes on
personal property.
What do I do if I want my BLG listed separately from the land
parcel?
- First, you must file a full lease between
yourself and the owner of the land with the Register of Deeds.
(Before filing the lease you should consult the Register of Deeds
office for their filing requirements. You may contact the
Register of Deeds by phone at (316) 660-9400, or visit their
web page. Then,
you must provide the appraiser’s office with a file stamped copy of
the lease, and let us know your desire to list the land and
improvement separately, preferably in writing.
Can I file a memorandum of lease for this purpose?
- No. Memoranda and assignments of lease are not
sufficient to meet the requirements of KSA 79-412.
What benefit is there to listing the land and building separately?
- The primary benefit is that the value notices,
tax bills and any other correspondence pertaining to the land and
building are mailed out separately. In other words, the land owner
receives correspondence pertaining only to the land and the building
owner receives correspondence pertaining only to the building. Also,
property taxes for the land and building are calculated individually,
eliminating the need to apportion taxes after the fact.
Where can I go to get more information on BLGs?
- You can call the Appraiser’s Information and
Assistance line at (316) 660-9250, or you can e-mail us at
appria@sedgwick.gov.
©, Copyright, 2004 Sedgwick County Appraiser's Office
last update:
03/02/04
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