1. Data Collection – The Department gathers data on all property. The Property Record Card shows ownership, size, and influencing factors. It details the age, condition and size of improvements (structures). Department appraisers review and record changes that affect value.
2. Land Value – Sales of vacant parcels are used to land values. The Computer Assisted Land Pricing (CALP) program assists Department Appraisers in applying land values to all parcels.
3. COST APPROACH to Value – Each property has a value based on the cost to replace the structures, less depreciation, plus land value. The replacement cost is affected by items such as size, quality and location.
4. SALES COMPARISON APPROACH – Value can be based on sales of similar properties. Comparable sales are selected and differences are adjusted to match your property.
5. The INCOME APPROACH – Income and expenses for rental or business property may determine a property’s value.
6. Final Determination of Value – Department Appraisers must analyze the values from each approach to determine the most appropriate final market value.
Source: How do I prepare for My Real Estate Tax Appeal, http://stab.mt.gov/
