Introduction
This article is a transcript of the video titled “Louisiana Tax Commission – 10/16/2019 Test 2” that was uploaded on the Louisiana Tax Commission’s YouTube channel. The video features a testimony from Mr. Fredericksen, a consultant, who relied on data provided by experts in the appraisal field, Mr. Calvin Echo and Mr. Emory. The conversation revolves around the topic of obsolescence and its impact on property value for the Assessor for Beauregard Parish in Louisiana.
Understanding Obsolescence
Obsolescence refers to a reduction in the value of a property due to factors such as functional or economic obsolescence. In the case discussed in the video, the Assessor for Beauregard Parish requested a reduction in value based on obsolescence. Mr. Fredericksen, the consultant, stated that the basis for the request was the appraisal provided by Mr. Calvin Echo and the calculations made using the schedule for obsolescence. However, when asked about the specific information provided to the Assessor for Beauregard Calcasieu of Burning Parish to support the reduction in value, Mr. Fredericksen mentioned that he did not have access to that information as he was not involved in the appraisal process.
Lack of Documentation for Obsolescence
One of the main points of contention in the discussion is the lack of supporting documentation for the obsolescence calculations. Mr. Fredericksen admitted that he only relied on the appraisal document provided to him by Mr. Calvin Echo. When asked whether any other information was provided to support functional obsolescence or economic obsolescence, Mr. Fredericksen mentioned that no additional documentation was given to him. This raised concerns about the validity of the obsolescence claim and its impact on the property value.
Examination of the Appraisal Document
To further examine the appraisal document and its contents, the video refers to Schedule 5, which contains information about functional obsolescence. Mr. Fredericksen reviewed the document and confirmed that the only discussion of obsolescence he found was on that page. He acknowledged that he did not prepare the document himself and could not provide any additional information about obsolescence calculations.
Functional Obsolescence Calculation
The video then delves into the calculation of functional obsolescence. Mr. Fredericksen explains that functional obsolescence is calculated using the maximum operating pressure divided by the original pressure, as listed in the appraisal document. However, when asked about the source of these numbers, Mr. Fredericksen stated that they were provided by the Tax Commission and were based on data from 2017.
Economic Obsolescence and Throughput
The conversation then shifts to economic obsolescence and the concept of throughput. Throughput refers to the percentage of utilization of a specific line, which is a common factor in determining economic obsolescence. However, Mr. Fredericksen acknowledged that his office no longer uses throughput as a factor for calculating economic obsolescence since it is no longer included in the rules and regulations of the Tax Commission. When asked if financial statements were provided to support the economic obsolescence claim, Mr. Fredericksen stated that he did not receive any such documentation.
Assessment Process and Conclusion
Assessor Wendy Aguilar, who is present at the hearing, is asked about the assessment process for the property belonging to Imagefield Services. She confirms that the assessment was conducted in accordance with the rules and regulations of the Tax Commission. When questioned about the sufficiency of the documentation provided for obsolescence calculations, she confirms that she did not receive any additional documentation or financial statements to support the claim.
In conclusion, the video testimony highlights the lack of supporting documentation for the obsolescence claim made by Imagefield Services. The discussion raises concerns about the validity of the claim and its impact on the property value. The Assessor for Beauregard Parish states that their office relies on the appraisal documents and the publicly available decisions of the Tax Commission for guidance in determining obsolescence.
Overall, this video provides insights into the appraisal process and the importance of documentation in supporting claims for obsolescence. It illustrates the need for transparency and proper documentation to ensure a fair and accurate assessment of property values.
This article is a transcription of a video titled “Louisiana Tax Commission – 10/16/2019 Test 2” that was uploaded on the Louisiana Tax Commission’s YouTube channel.