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• Appraisers have limitations and difficulty with appeals when <br /> other parties use the income approach to argue values leaving <br /> the appraisers to fight against that approach <br /> Ms Wille opened the matter up for discussion as to its pros and cons <br /> and for any recommendations <br /> c Mr Hussey stated <br /> • Mr Sitko provided a good summary of the three approaches <br /> and the importance of the income approach in properties <br /> • Commented that the County seems to be at a disadvantage at <br /> appeals not being able to use the income approach. <br /> • Strongly supports having the County have that tool as a critical <br /> component of its tax assessing capability together with <br /> COSTAR and other data sources <br /> Mr Inoue <br /> • Agreed with Mr Hussey and that if it is a tool to look at value <br /> that it should be a part of the system of appraising properties <br /> • Questioned if there is a conflict of values between the <br /> comparison approach versus income approach, how is it <br /> decided which approach was appropriate for a particular <br /> property? <br /> c Mr Sitko responded <br /> • Process at the end of the appraisal process called reconciliation <br /> where all three methodologies are considered -- the cost, the <br /> comparison and the income <br /> • All three are used, reconciled and weighs the income approach <br /> most heavily on commercial properties unless there are good <br /> sales. <br /> Mr Onishi commented <br /> • When the economy is good then the income is really good to <br /> use as assessment Should the economy go down. that is when <br /> the appeals come in as then they are going to look at income <br /> being much less <br /> • Questioned if there would be another way to be consistent <br /> during those times <br /> Mr Sitko responded <br /> • Problem is the requirement to appraise annually based on the <br /> market <br /> • That approach is reflecting the market for that particular <br /> property <br /> • Once they are able to use the income approach and the data <br /> set up then their database would have enough data to say this <br /> is good practice for this particular income producing property <br /> That would give them a stronger argument <br /> Mr Onishi stated. <br /> • Property owners were requesting adjustments a year or two ago <br /> to lower their values due to the economy <br /> • Right now the tourism industry is doing well. <br /> • When would the department go back to adjust these values? <br /> - -4 - <br />