Valuation Methodologies: The Income Approach

Three methodologies are normally used in the determination of the market value of a property. These methodologies include: the market sales, the cost, and the income approach.

Section 23.0101 of the Texas Tax Code provides: "In determining the market value of property, the chief appraiser shall consider the cost, income, and market data comparison methods of appraisal and use the most appropriate method."

Previously, we examined the market data comparison (or sales) approach and the cost approach to value determination. This month we look at the "income" approach. Read the article.

PROPERTY TAX TIP

Legislative session begins January 11

The Texas Legislature will convene for its 79th Regular Session at noon on January 11, 2005. Pre-filing of proposed legislation has already commenced. The GPD Tax website will attempt to keep its readers informed of legislation proposing changes in the Property Tax Code (as well as other selected tax issues) and the status of those bills. Read the summary of proposed legislation.

Upcoming deadlines

January 31, 2005
Deadline to file any late protests that are required to be filed prior to tax delinquency date (such as Section 25.25(d) value motion or Chapter 41.411 failure to receive notice protest)

January 31, 2005
Tax delinquency date (if taxes are not paid by this date, then interest and penalties will accrue)