Court Opinion

ID: 9544021
Source: CourtListenerOpinion
Date Created: 2023-08-07 16:51:28.183712+00
Date Added: 2024-06-11T15:11:48.473726
License: Public Domain

*562ZLAKET, Justice,
specially concurring.
The majority and the dissent may not be as far apart as they first appear. Like the dissent, I cannot ignore that while the statute makes specific reference to the income and the cost-less-depreciation methods of evaluation, it says nothing about the comparable sales approach. Furthermore, the legislature seems to deliberately have recognized a distinction between “methods” to be used and “factors” to be considered. Therefore, I lean initially toward the construction placed on the statute by the dissent.
I do not, however, perceive that this interpretation prevents relevant market data from being included in the “other factors” to be weighed under A.R.S. § 42-147(D). Even those authorities cited by the dissent acknowledge that market components such as trends in local and national activity, changes in construction costs and financing, and “economic supply and demand in the real estate market for the type of property under ap-praisement,” are important to any meaningful shopping center appraisal. 892 P.2d at 1353 (emphasis added). Consideration of these factors, along with additional items referred to in the dissenting opinion, would seem to be consistent with sound appraisal principles. Indeed, as the dissent notes, “a market survey must be prepared” even under an income approach, of which the SLBR is but one variation. 892 P.2d at 1353. Thus, while the traditional comparable sales method of appraisal may be considered by some experts as inapplicable to the evaluation of shopping centers, and even assuming arguendo that this explains why the method was not specifically designated by the statute, it does not necessarily follow that identifiable market indicators are useless when the income method is the required approach.
Moreover, the disagreement here seems largely illusory. It is difficult to understand how evidence of other sales could ever be considered if, as the dissent claims, experts do not accept it as having significance in the appraisal of shopping centers. There would never be an adequate foundation for its admission. Even if erroneously allowed, this proof would likely carry little weight, assuming it has such slight relevance. If, however, other sales are recognized as market factors that deserve consideration, no logical reason has been shown why the legislature would not want evidence of them included in the final analysis of value.
I agree with the majority that fair market value is the ultimate goal of each and every appraisal method that has been discussed. I also concur that the statute, when adopted, sought to provide an analytical framework for reaching fair market value and should still be construed with that end in mind. Nothing in this record persuades me that shopping centers are entitled to be taxed on any other basis, and I would have serious constitutional concerns were it otherwise.