(1) The reappraisal of commercial property consists of:

(a) field reviews;

(b) collection, verification, and analysis of sales and income information;

(c) data entry of sales and income information;

(d) development and review of CALP models;

(e) development of income models/benchmarking;

(f) generation and review of property record sheets; and

(g) final determinations of market value.

(2) Multiple field reviews will be kept to an absolute minimum.

(3) The reappraisal plan provides for field reviews. A field review of commercial property consists of an internal or external observation to:

(a) generation and review of property record sheets (PRS) and comparable sales sheets; and

(b) observe condition;

(c) review depreciation assignment; and

(d) collect additional data.

(4) No return visits will be made to the property unless the taxpayer specifically requests an on-site visit be made by department to review property characteristics or perform an internal inspection of the property, or if the department determines that a return visit is necessary to review or correct information about the property.

(5) Commercial property data consists of correcting, updating, and adding commercial property data on PVAS.

(6) The collection, verification, analysis, and data entry of sales information and income and expense information is an important component of PVAS. The department shall formulate procedures for collection, verification, and validation of sales information and income and expense information. Accuracy of sales information and income and expense information is critical to:

(a) accurate land valuation;

(b) benchmarking;

(c) development of accurate income models and sales comparison models;

(d) individual property final value determinations; and

(e) defense of final value estimates.

(7) Commercial lots and tracts are valued through the use of CALP models. Homogeneous areas within each county are geographically defined as neighborhoods. The CALP models reflect January 1, 2008, land market values.

(8) The development of income models using PVAS is a component for property valuation during the reappraisal cycle. Staff may develop separate income models for each neighborhood.

(9) Property record sheets (PRS) and cost and income reports are generated and reviewed by appraisal staff. These sheets include:

(a) physical characteristics and component information;

(b) income information;

(c) sales information; and

(d) valuation information.

(10) The review consists of analyzing and collecting component information. This review allows the appraiser to review and compare property information to an estimate of value. Discrepancies in data or the collection of additional information required by the review results in updating PVAS data.

(11) Final determinations of value are conducted once all required field and program needs of PVAS are met. The appraisal value for commercial property may include indicators of value using the:

(a) cost approach;

(b) income approach; and

(c) when possible, sales comparison approach.

(12) The appraisal value supported by the most defensible valuation information serves as the value for ad valorem tax purposes.

(13) This rule applies to tax years January 1, 2009, through December 31, 2014.