Depreciation
Depreciation as Percent Good converts your home’s Replacement Cost New (RCN) to market value. My
home is 23 years old. Per AAM 8-29 the ADOR Residential Depreciation Guide my house should be 30%
depreciated. Instead based on a drive by "observe depreciation" done up to four years ago the JCBOE
considers by house only 15% depreciated. This is based on "judgement" with no reasons given.
For now the only way to protest low depreciation is to provide the JCBOE with an estimate of the cost
to return your improvements to new. AAM 4-56 "this zone of error can be narrowed considerably by the
use of detailed estimates of cost to cure, that is to say expenditures required to bring the subject
structure in all of its elements to a condition equivalent to new."
12-10-2008. I am happy to report as a result of using this method my depreciation has been
significantly increased.
Find your depreciation
Now look at construction units
More on Depreciation follows
Observed depreciation is determined by the appraiser from the outside of the home. His judgment
must be supported by reasons! These reasons should be documented and fully shared with the
taxpayer.
I would like to suggest a better way. Let the computer assign depreciation based on the ADOR's table
8-29 (by age). Then when the appraiser goes to the site they can agree with that number or correct it.
If they correct it, reasons must be given for the change and digital pictures provided to support these
reasons. These reasons and pictures would become part of the parcel's file available for all to see. This
supports the concept of “Openness only path to trust” per Mr. Tom Scarritt’s commentary in the
January 27, 2008 edition of the Birmingham News.
An objective of this website is to collect all training material used by both the JCBOE and the ADOR. The
JCBOE claims it has none. Mr. Bass of the ADOR property tax division was told by his superior to comply
with the open records law on 4/4/2008. So far nothing.
For each neighborhood the JCBOE has a Depreciation Guide
Example of how depreciation can be manipulated
AAM 8-28 describes this process in more detail
Functional and Economic obsolescence
Depreciation as Percent Good converts your home’s Replacement Cost New (RCN) to market value. My
home is 23 years old. Per AAM 8-29 the ADOR Residential Depreciation Guide my house should be 30%
depreciated. Instead based on a drive by "observe depreciation" done up to four years ago the JCBOE
considers by house only 15% depreciated. This is based on "judgement" with no reasons given.
For now the only way to protest low depreciation is to provide the JCBOE with an estimate of the cost
to return your improvements to new. AAM 4-56 "this zone of error can be narrowed considerably by the
use of detailed estimates of cost to cure, that is to say expenditures required to bring the subject
structure in all of its elements to a condition equivalent to new."
12-10-2008. I am happy to report as a result of using this method my depreciation has been
significantly increased.
Find your depreciation
Now look at construction units
More on Depreciation follows
Observed depreciation is determined by the appraiser from the outside of the home. His judgment
must be supported by reasons! These reasons should be documented and fully shared with the
taxpayer.
I would like to suggest a better way. Let the computer assign depreciation based on the ADOR's table
8-29 (by age). Then when the appraiser goes to the site they can agree with that number or correct it.
If they correct it, reasons must be given for the change and digital pictures provided to support these
reasons. These reasons and pictures would become part of the parcel's file available for all to see. This
supports the concept of “Openness only path to trust” per Mr. Tom Scarritt’s commentary in the
January 27, 2008 edition of the Birmingham News.
An objective of this website is to collect all training material used by both the JCBOE and the ADOR. The
JCBOE claims it has none. Mr. Bass of the ADOR property tax division was told by his superior to comply
with the open records law on 4/4/2008. So far nothing.
For each neighborhood the JCBOE has a Depreciation Guide
Example of how depreciation can be manipulated
AAM 8-28 describes this process in more detail
Functional and Economic obsolescence
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