BC 2011 10 17 Regular Meeting - Laserfiche WebLink

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October 17, 2011 (Regular Meeting) Page 757 Less: $30 /space x 12 $360.00 /space Vacancy rate as a % of gross @ 100 36.00 Operating Expenses as a % of gross @ 55% $198.00 Net Operating Revenue $126.00 /space Capitalized at the Discount Rate (11 %) $1145.00 /space Appraisal of Cemeteries for Tax Purposes In appraising cemeteries the first concern is determining the total number of acres in the ownership. This total should appear in the legal description and in the total acreage of the land lines. In other words just because lots are sold off and become exempt, you still need to account for all the acreage within that tract. Cemeteries are generally divided into four categories: 1. Developed acreage 2. Undeveloped acreage (future gravesites) 3. Waste land acreage (roads, gullies, etc.) 4. Deeded acreage (Exempt deeded lots) These four categories should always total to the original acreage in the ownership or legal description. Definitions: DEVELOPED ACREAGE - Land prepared for immediate use of cemetery plots. This is generally two to five acres depending on the sale record of the cemetery. The acreage would generally remain the same because as soon as lots are sold they prepare the undeveloped acreage. The cost to prepare the land increases the market value of the developed acreage, generally between $8,000 to $20,000 per acre. UNDEVELOPED ACREAGE - That land in its natural state and appraised comparable to surrounding land with the same zoning. When making your annual adjustments for deeded lots, adjust this acreage down and the deeded acreage up. By doing this you are assuming that developed acreage will remain the same simply because they have to keep developed acreage available for immediate use. WASTE LAND ACREAGE - That land not plotted or surveyed for graves due to it being a road, gully or building site. The waste land should be appraised comparable to surrounding waste lands and remain the same size and acreage unless a new survey is made adding roads or they have filled gullies and areas that can be utilized at a later date. DEEDED ACREAGE - That acreage sold off into plots to individuals and recorded in the Registrar of Deeds. Plots sold on contract are not exempt until paid and recorded. Generally a well designed cemetery will get 900 to 1,100 graves per acre. The owner of the cemetery should verify the number of grave sites planned for the cemetery. Take the total graves and divide by the total usable acreage to determine the average graves per acre. If the information is not available, use approximately 1,000 graves per acre. Put this in the note lines of the appraisal card. Each year you can make your adjustments when the owner sends the number of graves sold and recorded. Example: Sold 625 graves reduces the number of undeveloped acreage by .625 acres or .63 acres and increases the deeded acres by .625 or .63 acres. Private cemeteries are income producing with a profit. To establish market value the appraiser must consider those factors which are involved in purchasing this type of property: (Developed) 1. How many grave sites are available for sale? 2. How many grave sites sell per year (absorption rate)? (Undeveloped) 3. How much usable land is available that has not been surveyed and landscaped. Once these facts have been obtained the appraiser can estimate market value and the assessor can determine how much of the cemetery is exempt. Typical ratios would be 900 to 1,000 sites per acre with 2 to 5 acres surveyed and landscaped for sale. The developed acreage should be appraised higher per acre due to the cost of surveying, landscaping and permits. The absorption