Split Code Assessments Coming

The Assessor is instituting a split code valuation for mixed-use, class 3-18 properties.?See below:

??????????????3-18 Mixed-use commercial/residential building with apartment and commercial area totaling 7 units or more or between 20,000 to 99,999 square feet of building area, with the commercial component of the property consisting of no more than 35% of the total rentable square footage

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This means that any property that has a commercial component exceeding 35%, will see that portion (the entire % of the property used for commercial purposes) assessed at 25%, while the remaining residential will remain at 10%.?So, for example, a property having a market value of $500,000, of which 40% is used for commercial purposes, could see its assessment increase from $50,000 to $80,000.?Based upon the current city tax rate and state multiplier, this could result in an increase in the tax bill from $10,055 to about $16,100. So far this only applies to Class 3-18 properties. It is clear that this could have a major impact on current or future transactions for this type of property.

Stay tuned.