ID H0590

The cost approach appraisal method shall establish the maximum market value for assessment purposes of property.

All improvements must be valued based on actual and functional use as if vacant and unoccupied, with depreciated cost as the upper limit.

Excluded costs include entrepreneurial or developer profit incentive, marketing costs, lease-up costs, off-site costs, and other costs not representing actual acquisition, design, engineering, permitting, and construction costs.

No value increment shall be included in any valuation approach for leases, franchises, or contracts.

The act takes effect immediately upon passage and approval, with retroactive application to January 1, 2020.