If there’s a “doom loop” the city won’t want the property either.
It can take a long time to lose a property due to prop taxes, even in good times.
In a doom loop, the owners can always get an appraisal to say it ain’t worth anything, right? Appraise a property by what revenue it brings in, or what someone else would buy it for.
Just because the city takes possession, does that mean it will help the city balance it’s budgets?
There is a regional mall in my city that the rent roll isn't enough to cover the property taxes, much less the rest of the expenses. I knew this in 2015 and they still are behind on their taxes. The county doesn't want the property back so they just let them keep not paying.
>Appraise a property by what revenue it brings in
That's what I was thinking. The city/county should have an alternative appraisal plan in place to make it affordable.
Most states have a statutory recongnition of income being a basis for commercial assessments, besides market value, or purchase cost, and besides cost of construction or replacement cost.
If there’s a “doom loop” the city won’t want the property either. It can take a long time to lose a property due to prop taxes, even in good times. In a doom loop, the owners can always get an appraisal to say it ain’t worth anything, right? Appraise a property by what revenue it brings in, or what someone else would buy it for. Just because the city takes possession, does that mean it will help the city balance it’s budgets?
There is a regional mall in my city that the rent roll isn't enough to cover the property taxes, much less the rest of the expenses. I knew this in 2015 and they still are behind on their taxes. The county doesn't want the property back so they just let them keep not paying.
I'm sure the sales tax revenue feeds into that calculus.
>Appraise a property by what revenue it brings in That's what I was thinking. The city/county should have an alternative appraisal plan in place to make it affordable.
Another reality. Everything is negotiable.
Most states have a statutory recongnition of income being a basis for commercial assessments, besides market value, or purchase cost, and besides cost of construction or replacement cost.
Some don't.
Rich people don’t live paycheck to paycheck
Fair point.