(1) For property that contains no new construction, destruction, land use changes, land splits, or other changes to the property, the current year VBR will be the same as the prior year VBR.

(2) The reappraisal value of new construction will be trended back to a VBR. The trend used to arrive at the VBR shall be calculated using cost indices from "Marshall Valuation Service." The trend used shall be called the new construction trend factor. The new construction trend factor for industrial properties is .84. The VBR will be adjusted to reflect the new construction as if it were in place in 2002. The same method will be used in subsequent tax years.

 

For purposes of illustration, assume the following:

 

Reappraisal New Construction Value =           $100,000

New Construction Trend Factor =                          .84

 

(a) Given these assigned values, the trend factor is applied as follows:

 

New construction VBR =

REAP new construction value x new construction trend factor

 

Example:                       $84,000 = $100,000 x .84

 

(3) Property destroyed after January 1, 2002, will be removed from the VBR of the industrial site. The destroyed property also will be deducted from the reappraised value at its reappraised cost.

(4) Land which has been reclassified as industrial land after January 1, 2002, will have the VBR determined by comparing other 2002 market values of similar industrial land, and determining a comparable VBR for the new industrial land.