SEPTEMBER 1, 2017
Pinpoint CEO, and former tax assessor, Michael Wedl was recently featured in a Baraboo, Wisconsin news article discussing two bills introduced in the Wisconsin legistature to address lawsuits filed by big-box chains over annual property tax assessments.
In support of uniformity in property taxation, Wedl said that big-box buildings should be assessed at their sales value, taking into account the value of other stores in the area including those that are empty. "If Menards were to leave its Baraboo store, the building would lose much of its value. They’re not building them to sell. As soon as they build it, it’s obsolete," said Wedl.
AUGUST 18, 2017
In November 2016, Lincoln County, South Dakota used a cost approach—the cost of rebuilding the property minus any depreciation—to value a 189,169 square foot Walmart location in their county at $14,405,600, or approximately $76 per square foot.
Using Pinpoint’s data, Walmart estimated the value of the property to be $40–$42 per square foot and appealed the assessment, requesting that the County use a market approach based on recent sales of other Walmart and Sam’s Club stores outside the Sioux Falls area.
The judge agreed with Walmart’s rationale for a market approach and, presented with a chart of comparables generated by Pinpoint, averaged Walmart’s estimate with the County’s market-based comparables to reach a final assessed value of $50 per square foot or $9,458,450—a $4.9 million reduction in the property’s assessed value!