A Market Approach
The market approach to value is one tool used by the assessor to determine valuation and is most useful in the residential market were there are a lot of sales. Large apartment complexes, offices, and retail buildings do not have a large market so the assessor employs an income approach to value to help reach a fair assessment for these properties.

An Income Approach
The income approach takes the Net Operating Income (NOI), and divides it by a Capitalization Rate (CR), to provide a value. The NOI is the gross potential income generated by the rental of the property plus any miscellaneous income such as money from vending machines or leasing parking spots, less the vacancy of the property, less any reasonable expenses such as maintenance. The NOI is then divided by the CR which includes the tax rate, a depreciation amount and the interest rate, and it is expressed as a percentage. The assessor does not use each individual's information but prepares a table that is used for similar properties within the town.

For more information, contact the Assessors' Office at 508-543-1215.