Obtain a private Market Value property appraisal from a local property appraisal company, also known as an Actual Cash Value (ACV). Note: appraisals based upon Replacement Cost Values may not be used for this purpose, unless they properly account for depreciation; which most don’t.
Typically, in this locality, a private appraisal usually shows buildings at significantly higher values. With a private appraisal, the 50% threshold will be based upon the value of this building shown on the private appraisal; not the overall value of the property, just the building’s value. This is the property value minus land, site improvements and values for other buildings on the lot. On a private appraisal, the value of the building utilized is the labeled "Depreciated Cost of Improvements," which is often found on page 3 of a six-page Uniform Residential Appraisal Report. Submitting a private appraisal to the City doesn’t affect your property tax rate.
Appraisal Value Recorded
Whatever appraisal value you end up using, you’ll have to keep using that value for the next five years. Because the percent of improvement is determined by the value of the building prior to improvements, you can’t keep obtaining appraisals to include the new work you’ve done to increase the 50% threshold. Nor can you use one appraisal method at the beginning, and another later during this five-year window.