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Based on the facts and exhibits presented, the Property Tax
Appeal Board hereby finds a reduction in the assessment of the
property as established by the Henry County Board of Review is
warranted. The correct assessed valuation of the property is:
LAND: $ 16,880
IMPR.: $ 156,770
TOTAL: $ 173,650
Subject only to the State multiplier as applicable.
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PROPERTY TAX APPEAL BOARD'S DECISION
APPELLANT: JK Land, Ltd.
DOCKET NO.: 05-00369.001-C-1
PARCEL NO.: 24-28-479-012
The parties of record before the Property Tax Appeal Board are JK
Land, Ltd., the appellant; and the Henry County Board of Review.
The subject property consists of a commercial parcel containing
approximately 0.92 acre that is improved with two, three year-old,
one-story masonry and frame buildings. Building #1 contains
7,200 square feet and is currently used as a Dollar General
Store. Building #2 contains 1,500 square feet and is currently
used as a Subway Sandwich shop.
The appellant submitted evidence to the Property Tax Appeal Board
claiming overvaluation as the basis of the appeal. In support of
this argument, the appellant submitted various statements and a
cost summary indicating the subject's total construction costs as
of December 2002 were $338,413. The appellant's evidence
acknowledged the subject's land was deeded by the City of Galva
to the appellant at no cost. The appellant claimed the subject's
land value was $32,100, based on two assessment comparables
located in the subject's immediate area. The appellant reported
the comparables had land assessments of $4,080 and $17,301. No
detail regarding the size of these comparables was submitted.
The appellant averaged the two comparables' assessments and then
estimated a value for the subject by converting the comparables'
assessments to estimated market values.
In further support of the overvaluation contention, the appellant
submitted a rent capitalization analysis based on the subject's
actual rents. The analysis indicated the rental income for the
Dollar General store and the Subway totaled $45,000. Expense
reimbursements totaling $14,999 were added to the rental income,
resulting in gross income of $59,999. The appellant reported
expenses for property taxes, insurance, grounds maintenance,
repairs, management fees and miscellaneous totaled $24,330,