Opinion ID: 1868480
Heading Depth: 2
Heading Rank: 4

Heading: The Property Valued in a Personal Property Tax Assessment Is More Limited Than the Property Valued for Eminent Domain

Text: ¶ 87 There are three recognized valuation methods for billboards: cost approach, income approach and market approach. Vivid, 219 Wis.2d at 783, 580 N.W.2d 644 (citing 8A Nichols on Eminent Domain § 23.04[4], at 23-51 to 23-59). These three methods are equally applicable to establish fair market value in eminent domain cases, id., and to establish true cash value for personal property tax assessments. Mitchell Aero, 74 Wis.2d at 279, 246 N.W.2d 521; I.B.M., 231 Wis. at 311-12, 285 N.W. 784; see also O'Neall & Marsh, supra at 7. ¶ 88 Although the same appraisal methods may be used to establish fair market value for condemnation purposes as may be used to establish true cash value for purposes of personal property tax assessments, the property valued differs depending upon the purpose. See 8A Nichols on Eminent Domain § 23.04[3], at 23-50 n. 7 (3d ed.2005). In eminent domain, fair market value of a billboard is the price the aggregate assetthe lease, permit and signwould bring in the marketplace[.] Vivid, 219 Wis.2d at 780, 580 N.W.2d 644 (Bablitch, J., with two justices joining). Necessarily, this includes the value attributable to the location of the billboard. Id. at 803-04, 580 N.W.2d 644 (Bradley, J., with three justices joining) (noting the value of the location is included in the value of the leasehold). ¶ 89 In contrast, an appraisal for personal property tax assessment purposes includes only the value of personal property, and therefore excludes the value of the leasehold and billboard permit. See Wis. Stat. §§ 70.04 and 70.34. Because Adams' experts, Donald Sutte and Mark Ulmer, and the City's chief assessor, Michael Kurth, all testified that income attributable to the billboard structures could be isolated, we conclude that a per se rule against the use of the income approach to appraise billboards for property tax assessment is not necessary. [19] In fact, once it is shown that a market approach is not available, the income approach is always a proper element to consider [.] I.B.M., 231 Wis. at 312, 285 N.W. 784 (emphasis added). ¶ 90 Therefore, we conclude the same methods of appraisal may be used in eminent domain as are used in appraising personal property for tax purposes, provided care is taken to exclude from a personal property tax assessment any value attributable to elements other than tangible personal property.