Property Tax Alert: Vermont

November 2004

In this case, the state appraiser ignored the taxpayer's figures of expenses for repairs and utilities and replaced them with figures equaling 5% of income for repairs and 10% of income for utilities. The assessment of two apartment buildings for property tax purposes was not supported because the state appraiser could not explain why it was appropriate, in calculating the fair market value of real property under the income approach, to deduct a standard percentage of income for both repairs and utilities rather than the actual value of those repairs and utilities in any given year. When the state appraiser effectively relies on his expertise to produce evidence, he must explain the basis for presenting that evidence so that it may be reviewed. Therefore, he was required to reconsider his valuation of the taxpayer's property after addressing the appropriateness of submitting standard percentages of income for repairs and utilities.

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