WA Destroyed Property

Purpose

Use this procedure to process destroyed property applications and verify that the values reflect the correct percentage for the destruction on the property.

By using this procedure, the taxes due on a property affected by destruction are prorated. However, destroyed property does not affect the property’s calculated taxable values and is not reflected on the tax roll report. The tax roll report displays the market and taxable values. As a result, it may appear that values were not prorated.

PACS calculates the proration percentage–the fraction of the year during which the property was destroyed–and stores this with the Jan 1 pre-destruction value of the property. PACS later uses these to adjust the values when supplement bills are created.

• The “Destroyed Property” button in the Property Values panel is enabled in certified years.
• A property can have one destruction record per year. The records have supplement numbers because they’re supplement version controlled, like other property-associated records.
• If a property in a certified year is supplemented and editable:
  • A destruction record can be created for the year being viewed, if the year doesn’t have one already.
  • An existing destruction record for the year being viewed can be edited or deleted.
• To get the intended results, the destruction date needs to be in the Tax Year. For example, if a property is destroyed on 5/1/2011, then the destruction record should be created for the 2010-2011 year layer.

Prerequisites

• You have placed the property in supplement mode in the relevant certified year.
• You have entered the changes on the property record either for the land and improvement values or for the personal property values.

Procedure

1. In PACS 9.0, open the property record that for which you need to enter destruction values.
2. Make a note of original January 1 values for Land, total Improvement, and total taxable classified and non-classified values. Original January 1 values are needed later in this procedure.

   Note The property Land is currently classified for specific use. Classified value considers only the use to which the property is currently applied. Non-classified value describes the value if the property were put to “highest and best use”, aside from its current classification.

3. If needed, make any necessary adjustments to property Improvements and click Recalculate.
4. Open the Values panel and click Destroyed Property.
5. In the Destroyed Property dialog box, click Add.

   

6. In the Destroyed Property Details dialog box, complete or review the following fields as required:
   • Assessment Year
   • For Tax Year
   • Destruction Date

     The date that PACS will use to calculate the number of days to be used in the Days Prior to Destruction and Days After Destruction fields in this dialog box.

   • January 1 Value

     The value of the land as of January 1 of the year in question.

     • Land

       The value of the land as of January 1 of the year in question.

     • Improvement

       The value of the improvement as of January 1 of the year in question.

   • Value After Destruction

     The total corrected property value for the open assessment year.

     • Land

       The corrected value of the land for the open assessment year.

     • Improvement

       The corrected value of the improvement for the open assessment year.

   • Reduction in Value

     Calculated by taking the difference between the January 1 Value and the Value After Destruction.

     • Land

       Calculated by taking the difference between the January 1 land value and the land value after destruction.

     • Improvement

       Calculated by taking the difference between the January 1 improvement value and the improvement value after destruction.

   • Percent Destroyed

     The reduction in value divided by the January 1 value.

   • Date Approved

     The date the application was approved.

   • Days Prior to Destruction

     The number of days from January 1 to the destruction date.

   • Days After Destruction

     The number of days of the year in question less the days prior to the destruction date.

   • Appraiser

     The appraiser who processed the destroyed property application.

   • Jan 1 Taxable Classified

     The classified taxable value portion of the January 1 value.

   • Jan 1 Taxable Non Classified

     The taxable non-classified value portion of the January 1 value.

   • Cause

     The reason the property was destroyed. The text entered here is used for printed reports and forms.

7. Click OK or Apply.
8. Recalculate the property.

Next Steps

When the supplement is accepted, the math will be done to pro rate the values for the tax bills.