Billboard structures valuation guide

              Billboard Structures
Valuation Guide
2013
(Effective for Tax Year 2013)
North Carolina Department of Revenue
Local Government Division
Property Tax Section
2
Overview
Based on the experience gained with the implementation of the first Billboard Structures
Valuation Guide, we have made revisions to the current manual to reflect the changes in
costs associated with the construction of billboards. We feel these changes will simplify
the valuation process used by the local taxing jurisdictions and enhance the uniformity
and accuracy in the valuation of outdoor advertising for mass appraisal purposes. In this
manual, the base cost has already been determined with the additional improvements
included in square foot base cost. This cost per square foot has been extended out to a
total value for each specific class with the billboard structure categorized by type of
construction, size, and height above ground level. In addition, a current depreciation
schedule has been provided at the back of the manual. The appraiser will locate the type
and size of each billboard, make any necessary construction adjustments, and then apply
the appropriate depreciation to come up with the billboard value for assessment purposes.
The Billboard Structures Valuation Guide is effective for January 1, 2013. The
methodology is based on current data and is not applicable to prior years. Counties
adopting these schedules should also consider this as a guide for the mass appraisal of
billboards, understanding that it will not cover every possible sign type and configuration.
The appraiser may need to make additional adjustments for location, conditions, and
other structures not covered by these schedules.
The values provided in the classification tables on pages 11 through 16 reflect the cost
conversion factor as determined from the data made available in the Producer Price
Indexes prepared by the Bureau of Labor Statistics. This factor will take into
consideration any changes in the cost to construct billboards and will keep the manual
updated on a yearly basis.
An Introduction to Billboards
An outdoor advertising sign in the form of a billboard consists of at least one display
panel and the supporting framework. Billboards may be freestanding, mounted to
buildings, or attached to other structures. Modern billboards conform to engineering
standards and are constructed of steel, while older billboard structures are made of wood
or angle iron frames. A billboard may be smaller than the permitted size. This allows for
the addition of a cutout or extension within the square foot envelope of the permitted
area. Billboards vary in display position and size, but the industry standard display faces
include:
6 ft. x 12 ft. = 72 square feet 10.5 ft. x 36 ft. = 378 square feet
8 ft. x 12 ft. = 96 square feet 12 ft. x 40 ft. = 480 square feet
10 ft. x 22 ft. = 220 square feet 14 ft. x 48 ft. = 672 square feet
10 ft. x 24 ft. = 240 square feet 16 ft. x 60 ft. = 960 square feet
12 ft. x 25 ft. = 300 square feet 20 ft. x 50 ft. = 1,000 square feet
3
The typical arrangements of display faces include: single face, back-to-back, or V-build,
side-by-side, stacked, and tri-build configurations.
Billboard companies enter into sales contracts for advertising space on their billboards.
Advertisements are designed and/or produced by a billboard company or an advertising
agency in response to client specifications. Advertising space is often marketed for a
group of billboards rather than for a single billboard. Group sales are called “showings.”
Showings are based on demographic information and are designed to target a market with
a specified level of advertising exposure. The client has no interest in the real property.
Billboard sites are typically leased from an unrelated third party who owns the land or
structure to which the billboard is affixed. The owner of the site generally has no interest
in the billboard structure. A billboard site, the land or structure upon which a billboard is
situated, is generally limited to an area large enough to accommodate the billboard
structure and foundation, as well as enough space to provide for service and maintenance
work.
Valuation of Billboard Structures
As with the appraisal of other property for local tax purposes, the three accepted
approaches to value (income, sales comparison, and replacement cost less depreciation)
should be considered when valuing billboard structures.
The sales comparison approach requires verifiable accurate sales information of
individual billboards. Outdoor advertising structures are generally sold in bulk, and the
transfers include ongoing concern and host agreements. These transfers typically are not
recorded on filed deeds; therefore, it may be difficult to obtain information on the sale of
billboards. When information becomes available, an allocation of the sales price for
billboard structures may be necessary.
The income approach requires net operating income to be capitalized into a value for a
specific property. The income realized from the sale of advertising space is business
income that may be difficult to obtain and may include income components that should
not be considered when determining property tax valuation in North Carolina.
Additionally, if the income approach is used, economic rent must be applied. Therefore,
careful consideration and accurate income analysis must be made or the income approach
will not yield reliable results.
Due to the many difficulties inherent in the appraisal of billboards when applying the
sales comparison and the income approach to value, our office recommends that, for
assessment purposes in North Carolina, these structures should be treated as personal
property and appraised using the cost approach. The cost approach provides an efficient
methodology to uniformly value billboard structures. The replacement cost less
depreciation avoids the complicated allocation process and other issues associated with
the income and sales comparison approaches. The data contained in this manual is based
4
on information extracted from material costs, labor, and other integral components of
billboard construction. The valuation of each sign will be determined by calculating the
replacement cost new (RCN) and then deducting depreciation based on an effective age
depreciation schedule. The effective age schedule is provided to assist appraisers in
estimating loss in value due to physical depreciation, functional obsolescence, and
economic obsolescence. The depreciation schedule is based on a 25-year life for wooden
structures and a 50-year life for steel structures. It is recommended that the depreciation
not be lowered more than 35 percent remaining good on wood structures and 35 percent
remaining good on steel structures as long as the structure is continuing to produce a
viable income stream. For the vast majority of billboards, no negative or positive
adjustment is appropriate for physical condition. As long as a billboard structure can
support a sign face, the physical condition most likely has little effect on the income
stream, and therefore the physical condition may not be particularly important. Only the
worst structures and perhaps the very best billboards will fall outside of the
recommended schedules.
WORKS CITED
“Guidelines for the Assessment of Billboard Properties.” State of California, Board of Equalizatiton: 2002
International Association of Assessing Officers. “The Valuation of Outdoor Advertising Structures.” Assessment Digest, Volume 13,
Number 4, 1991
State of New Jersey, Department of the Treasury, Division of Taxation, Real Property Appraisal Manual of New Jersey Assessor’s, “
Assessment of Billboards.”
Oregon Department of Revenue, Billboard Cost Factors (Off Premise Outdoor Advertising) Revised 2007
Wright, Jeffrey and Paul Wright. Billboard Appraisal: The Valuation of Off-Premise Advertising Signs. United State of America,
2001
This manual is a publication of the North Carolina Department of Revenue, Local
Government Division, Property Tax Section, P.O. Box 871, Raleigh, N.C. 27602. Phone:
919-733-7711, Fax: 919-715-3107.
5
Billboard Categories and Definitions
For assessment purposes, billboards are grouped into 4 structural categories based on the
building materials used and the underlying support system. The four categories include
wood, steel frame, multi-mast steel, and monopole.
CLASS 1 WOOD STRUCTURE
This class of billboards is constructed with wood post or pole supports with dimensional
lumber as the secondary support (A frame) with a wood or metal catwalk and a single
display panel. Supports may be imbedded in the ground. There may be a foundation of
concrete or gravel. Lighting, if present, is either fluorescent or mercury vapor.
CLASS 2 STEEL A-FRAME CONSTRUCTION
This class of billboards is constructed with angle iron or steel supports with metal
framing, catwalk, and a single display panel. Supports may be imbedded in the ground.
There may be a foundation of concrete or gravel. Lighting, if present, is either
fluorescent or mercury vapor.
CLASS 3 MULTI-MAST STRUCTURE
This class of billboards is constructed with steel poles, I-beam or equivalent as primary
support, with a catwalk, and a single display panel. Lighting is fluorescent or mercury
vapor.
CLASS 4 MONOPOLE
This class of billboards is constructed with tubular steel support (of various
circumferences), tubular steel framing, metal catwalk and a single display panel. The
foundation is concrete. Lighting is fluorescent or mercury vapor.
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7
8
9
10
V Built Double Face Back-to-Back Double Face
12' x 25' Triangle / Tri-Built
CLASS 1-WOOD POLE A FRAME CONSTRUCTION
BASE SPECIFICATIONS
1. STRUCTURE - Wood support poles or posts.
2. FOUNDATION - Embedded in ground or equivilent.
3. PLATFORM OR CATWALK -Included in Base.
4. PANELS - Included in Base.
5. APRON - Included in Base.
6. LIGHTING - Included in Base.
7. ADDITIONAL PANELS - None.
TOTAL BASE COST PER STRUCTURE
1A- SINGLE FACE WOOD A FRAME
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 6,840 $ 7,600 $ 9,110 $ 9,930
378' $ 8,010 $ 8,920 $ 10,730 $ 11,550
480' $ 9,470 $ 11,150 $ 14,490 $ 15,080
672' $ 12,810 $ 15,080 $ 19,650 $ 20,360
1B- DOUBLE FACE WOOD A FRAME
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 8,920 $ 9,930 $ 11,940 $ 12,860
378' $ 10,380 $ 11,550 $ 13,880 $ 14,980
480' $ 12,760 $ 14,980 $ 19,440 $ 20,260
672' $ 17,320 $ 20,360 $ 26,430 $ 27,450
1C- V BUILT AND SIDE BY SIDE WOOD A FRAME
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 13,670 $ 15,190 $ 18,240 $ 19,750
378' $ 16,050 $ 17,820 $ 21,370 $ 23,190
480' $ 18,950 $ 22,280 $ 28,970 $ 30,080
672' $ 25,690 $ 30,180 $ 39,200 $ 40,720
CONSTRUCTION ADJUSTMENTS
See worksheet for construction adjustments
11
CLASS 2- STEEL A FRAME CONSTRUCTION
BASE SPECIFICATIONS
1. STRUCTURE - Steel pole, angle iron, I beam or equivalent as primary support.
2. FOUNDATION - Concrete gravel or equivalent.
3. PLATFORM OR CATWALK -Included in Base.
4. PANELS - Included in Base.
5. APRON - Included in Base.
6. LIGHTING - Included in Base.
7. ADDITIONAL PANELS - None.
TOTAL BASE COST PER STRUCTURE
2A- SINGLE FACE A FRAME STEEL
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 17,600 $ 19,560 $ 23,290
378' $ 18,400 $ 21,650 $ 27,750
2B- DOUBLE FACE A FRAME STEEL
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 23,740 $ 26,380 $ 31,410
378' $ 25,860 $ 30,420 $ 38,990
2C- V BUILT A FRAME STEEL
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 35,140 $ 39,050 $ 46,500
378' $ 36,790 $ 43,300 $ 55,500
CONSTRUCTION ADJUSTMENTS
See worksheet for construction adjustments
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CLASS 3- MULTI MAST STEEL
BASE SPECIFICATIONS
1. STRUCTURE - Steel pole, angle iron, I beam or equivalent as primary support.
2. FOUNDATION - Concrete gravel or equivalent.
3. PLATFORM OR CATWALK -Included in Base.
4. PANELS - Included in Base.
5. APRON - Included in Base.
6. LIGHTING - Included in Base.
7. ADDITIONAL PANELS - None.
TOTAL BASE COST PER STRUCTURE
3A- SINGLE FACE MULTI MAST STEEL
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 20,960 $ 23,290 $ 27,730
378' $ 24,970 $ 27,750 $ 33,040
480' $ 28,990 $ 32,200 $ 38,350
672' $ 34,450 $ 38,290 $ 45,580
3B- DOUBLE FACE MULTI MAST STEEL
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 28,330 $ 31,480 $ 37,480 $ 44,620
378' $ 34,070 $ 37,860 $ 45,070 $ 53,650
480' $ 38,600 $ 42,880 $ 51,050 $ 60,770
672' $ 45,330 $ 50,370 $ 59,960 $ 71,390
3C- V BUILT MULTI MAST STEEL
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 34,070 $ 37,860 $ 45,070 $ 53,650
378' $ 41,970 $ 46,630 $ 55,500 $ 66,070
480' $ 47,630 $ 52,920 $ 63,000 $ 75,010
672' $ 56,670 $ 62,950 $ 74,960 $ 89,220
CONSTRUCTION ADJUSTMENTS
See worksheet for construction adjustments
13
CLASS 4- STEEL MONOPOLE CONSTRUCTION
BASE SPECIFICATIONS
1. STRUCTURE - Tubular Steel Supports.
2. FOUNDATION - Poured concrete.
3. PLATFORM OR CATWALK -Included in Base.
4. PANELS - Included in Base.
5. APRON - Included in Base.
6. LIGHTING - Included in Base.
7. ADDITIONAL PANELS - None.
TOTAL BASE COST PER STRUCTURE
4A- SINGLE POLE SINGLE FACE CENTER MOUNTED MONOPOLE
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 22,840 $ 25,210 $ 29,990 $ 34,740 $ 44,260
378' $ 23,950 $ 27,940 $ 35,960 $ 43,960 $ 59,960
480' $ 35,000 $ 38,600 $ 45,780 $ 52,970 $ 67,450
672' $ 46,650 $ 50,340 $ 57,740 $ 65,130 $ 80,010 $ 93,180
960' $ 55,860 $ 59,560 $ 66,950 $ 74,340 $ 89,230 $ 109,590
1000' $ 61,730 $ 65,430 $ 72,820 $ 80,210 $ 95,100 $ 115,460
4B- SINGLE POLE SINGLE FACE PARTIAL FLAG MONOPOLE
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 23,750 $ 26,240 $ 31,190 $ 36,160 $ 45,980
378' $ 25,010 $ 29,180 $ 37,480 $ 45,780 $ 62,400
480' $ 36,370 $ 40,120 $ 47,610 $ 55,100 $ 70,180
672' $ 48,260 $ 52,170 $ 59,960 $ 67,760 $ 83,260 $ 96,830
960' $ 57,890 $ 61,780 $ 69,590 $ 77,380 $ 92,880 $ 114,040
1000' $ 63,970 $ 67,860 $ 75,650 $ 83,460 $ 98,860 $ 120,130
4C- SINGLE POLE SINGLE FACE FULL FLAG MONOPOLE
Size 25' HAGL 40' HAGL 50' HAGL 70' HAGL 100' HAGL
300' $ 35,620 $ 37,360 $ 43,550
378' $ 37,530 $ 41,530 $ 49,530 $ 57,530 $ 73,530
480' $ 51,200 $ 54,390 $ 60,770 $ 67,150 $ 80,110
672' $ 55,200 $ 58,960 $ 66,440 $ 73,940 $ 88,830 $ 102,810
960' $ 64,570 $ 68,270 $ 75,650 $ 83,050 $ 97,950 $ 119,320
1000' $ 71,660 $ 75,260 $ 82,450 $ 89,650 $ 103,820 $ 126,210
CONSTRUCTION ADJUSTMENTS
See worksheet for construction adjustments
14
CLASS 4- STEEL MONOPOLE CONSTRUCTION (CONTINUED)
BASE SPECIFICATIONS
1. STRUCTURE - Tubular Steel Supports.
2. FOUNDATION - Poured concrete.
3. PLATFORM OR CATWALK -Included in Base.
4. PANELS - Included in Base.
5. APRON - Included in Base.
6. LIGHTING - Included in Base.
7. ADDITIONAL PANELS - None.
TOTAL BASE COST PER STRUCTURE
4D- SINGLE POLE DOUBLE & V FACE CENTER MOUNTED MONOPOLE
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 33,410 $ 35,270 $ 38,990
378' $ 36,370 $ 38,390 $ 42,430 $ 46,500 $ 54,700
480' $ 42,240 $ 45,890 $ 53,190 $ 60,470 $ 74,960
672' $ 50,690 $ 54,600 $ 62,400 $ 70,180 $ 85,880 $ 103,310
960' $ 59,200 $ 63,410 $ 71,810 $ 80,210 $ 97,040 $ 119,320
1000' $ 64,980 $ 69,180 $ 77,580 $ 85,990 $ 102,810 $ 125,190
4E- SINGLE POLE DOUBLE & V FACE PARTIAL FLAG MONOPOLE
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 34,660 $ 36,610 $ 40,510
378' $ 37,780 $ 39,900 $ 44,160 $ 48,410 $ 56,920
480' $ 43,900 $ 47,710 $ 55,300 $ 62,890 $ 77,990
672' $ 52,510 $ 56,630 $ 64,830 $ 73,020 $ 89,330 $ 123,460
960' $ 61,580 $ 65,940 $ 74,640 $ 83,360 $ 100,880 $ 142,710
1000' $ 67,660 $ 72,010 $ 80,730 $ 89,420 $ 106,960 $ 149,600
4F- SINGLE POLE DOUBLE & V FACE FULL FLAG MONOPOLE
Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300'
378' $ 51,100 $ 53,080 $ 57,020 $ 60,970 $ 68,970
480' $ 51,450 $ 55,810 $ 64,520 $ 73,230 $ 90,760
672' $ 56,070 $ 60,770 $ 70,180 $ 79,620 $ 98,550 $ 112,940
960' $ 69,090 $ 73,230 $ 81,530 $ 89,850 $ 106,750 $ 131,070
1000' $ 74,240 $ 78,600 $ 87,300 $ 96,010 $ 113,540 $ 137,850
CONSTRUCTION ADJUSTMENTS
See worksheet for construction adjustments
15
CLASS 4- STEEL MONOPOLE CONSTRUCTION (CONTINUED)
BASE SPECIFICATIONS
1. STRUCTURE - Tubular Steel Supports.
2. FOUNDATION - Poured concrete.
3. PLATFORM OR CATWALK -Included in Base.
4. PANELS - Included in Base.
5. APRON - Included in Base.
6. LIGHTING - Included in Base.
7. ADDITIONAL PANELS - None.
TOTAL BASE COST PER STRUCTURE
4G- TRI-SIDED CENTER MOUNTED
Size 25' HAGL 40' HAGL 50' HAGL 70' HAGL 100' HAGL
300'
378'
480'
672' $ 106,750 $ 137,850 $ 194,980
960'
1000'
4H- TRI-SIDED STACKED CENTER MOUNTED
Size 25' HAGL 40' HAGL 50' HAGL 70' HAGL 100' HAGL
300'
378'
480'
672' $ 99,770
960'
1000'
CONSTRUCTION ADJUSTMENTS
See worksheet for construction adjustments
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Billboard Valuation Worksheet
Total Base Cost of Structure ____________________
Construction Adjustments
Stacked Displays—Add 25% +___________________
No Illumination—Deduct 5% -____________________
Replacement Cost New (RCN) =___________________
Less Depreciation (100% - Percent Good from
Depreciation Schedule) -____________________
Less Additional Adjustments (if needed)
Physical Depreciation -____________________
Functional Obsolescence -____________________
Economic Obsolescence -____________________
BILLBOARD VALUE =___________________
Special Information
Stacked Displays – Up to two display panels are included in the base cost per structure
as indicated in the tables. For billboard structures with more than 2 display panels, where
the panels are stacked one on top of the other, add 25% of the indicated value back into
that value to account for the additional construction costs.
Side-by-Side Displays – Where the billboard structure configuration is indicated to be
horizontally side-by-side and of steel construction, appraise this constructed arrangement
as one billboard structure. Add the square footage of the faces together to determine the
size of the structure.
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Electronic/Digital, Tri-Fold, and Tri-Vision Sign Appraisal
Methodology
County appraisers should utilize a three-part process when
appraising Electronic/Digital, Tri-Fold, and Tri-Vision billboard
sign structures.
1. Take the descriptive information about the sign from the I-1
listing form schedule and then determine the base cost using the
cost tables in this manual. Then apply the percent good factor
from the depreciation schedule on page 31 to the base cost to arrive
at the value of the sign structure itself.
2. Take the cost of the display face equipment from the I-1 listing
form schedule and apply the I-8 depreciation schedule (found on
page 30) percent good factor to that cost figure. This action
provides the value of the sign face equipment.
3. Add together the sign structure value and the sign face
equipment value to obtain the grand total value of the billboard
sign.
See Example #3 given on page 20 which utilizes the above
methodology for valuing these types of billboard signs.
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Examples of How to Appraise a Billboard Structure
Refer to sample schedule I-1 on page 22 for data needed for the
understanding of the examples which follow:
Example #1
Using Page 11 in the manual, the description shows a 1-C Side-
By-Side Wood “A” Frame Structure at a 25’ HAGL with the
largest panel face at 300 square feet. The structure has 4 panel
faces and is in a side-by-side configuration. The panel faces are
not illuminated (lighted) and the structure was originally built in
2005.
The base cost using the data provided indicates an amount of
$15,190. Because there are 2 additional panel faces, the appraiser
must add 25% to the base cost. So, $15,190 + $3,798 (25% of
$15,190 = $3,798 rounded) = $18,988. Because the structure is not
illuminated, the appraiser must subtract 5% from the total cost of
$18,988. So, $18,988 - $950 (5% of $18,988 = $950 rounded) =
$18,038. The year of original construction was 2005, so the sign is
8 years old for the 2013 listing of this asset. From the depreciation
table on page 31 of the manual, a wood constructed billboard
structure that is 8 years old, has a 68% good factor of value
remaining, or 32% depreciation applied to the adjusted base cost.
So, the appraiser applies 32% depreciation to $18,038 (32% of
$18,038 = $5,772) by subtracting $5,772 for a final appraised
value of $12,266.
Example #2
Using page 13 in the manual, the description shows a 3-B Double
Face Multi Mast Steel Structure at a 40’ HAGL with the largest
panel face at 378 square feet. The structure has 4 panel faces and
is in a stacked configuration. The panel faces are illuminated
(lighted) and the structure was originally built in 2008.
20
The base cost for the data provided indicates an amount of
$45,070. Because there are 2 additional faces and the structure is
in a stacked configuration, the appraiser must add 25% to the base
cost. So, $45,070 + $11,268 (25% of $45,070 = $11,268) =
$56,338. The cost for illumination (lighting) has already been
included in the base cost so no additional reduction in cost is
necessary. The year of original construction was 2008, so the sign
is 5 years old for the 2013 listing of this asset. From the
depreciation table on page 31 of the manual, a steel constructed
billboard structure that is 5 years old, has a 90% good factor of
value remaining, or 10% depreciation applied to the adjusted base
cost. So, the appraiser applies 10% depreciation to $56,338 (8% of
$56,338 = $5,634) by subtracting $5,634 for a final appraised
value of $50,704.
Example #3
This is an example of how to appraise a billboard structure that has
either a digital sign face or a tri-vision/tri-fold sign face:
Using page 14 in the manual, the description shows a 4-A Single
Pole Single Face Center Mounted Monopole Structure at a 40’
HAGL with the panel face at 378 square feet. The panel face has a
cost of $150,000 due to being a digital or tri-vision constructed
component and the panel face is illuminated (lighted).
The base cost for the data provided indicates an amount of
$35,960. The cost for illumination (lighting) has already been
included in the base cost so no additional reduction in cost is
necessary. The year of original construction was 2009, so the sign
is 4 years old for the 2013 listing of this asset. From the
depreciation table on page 31 of the manual, a steel constructed
billboard structure that is 4 years old, has a 92% good factor of
value remaining, or 8% depreciation applied to the adjusted base
cost. So, the appraiser applies 8% depreciation to $35,960 (8% of
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$35,960 = $2,877) by subtracting $2,877 for an adjusted value
attributable to the structure of $38,837.
Next, the $150,000 cost reported by the sign owner is depreciated
using the I-8 Schedule from the 2013 North Carolina Department
of Revenue Cost Index & Depreciation Schedules. This
depreciation schedule is listed on page 30 in this guide book and
on page 21 of the 2013 Cost Index & Depreciation Schedules
document and it has a 50% good factor of value remaining in the
fourth year. Therefore, 50% depreciation is applied to the sign
face cost reported by the owner. So, the appraiser applies 50%
depreciation to $150,000 (50% of $150,000 = $75,000) by
subtracting $75,000 for an adjusted value attributable to the sign
face of $75,000.
The last step is to combine the adjusted value of the sign structure
with the adjusted value of the sign face. So, by adding the
structure value of $38,837 to the sign face value of $75,000 gives a
final appraised value of $113,837.
Business Name ________________________________________Account_________________County___________________Year_________
SCHEDULE I-1 BILLBOARDS - OUTDOOR ADVERTISING STRUCTURES
Panel Numbers
DOT
Permit
Number Location City/District/None
Build
Date
Class
and
Type
HAGL
Feet
Display
Face Sq.
Ft.
Stacked
Display?
(Y or N)
Side-By-Side
Display?
(Y or N)
Illuminated?
(Y or N)
Original Display
Face Equipment
Cost for
Electronic/Digital
or Tri-Vision
County
Identification
Number
EXAMPLE
#1 306, 307, 308, 309 078-368 US 701 Bypass, 300' N/O Hwy 130 Holly Springs 2005 1C 25 300 N Y N
#2 510, 511, 512, 513 078-229 1302 S. Madison St. Apex 2008 3B 40 378 Y N Y
#3 4402 078-520 SR 130, 1 mile E/O US 64 Knightdale 2009 4A 40 378 N N Y 150,000
22
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Billboard Structures Definitions
Additional Panels: For purposes of appraisal in the Billboard
Structures Valuation Guide, up to two sign panels are included in
the base cost per structure as indicated in the tables. More than
two sign panels (additional panels) on one structure would require
a positive adjustment in the valuation of the total structure.
Apron: Decorative trim at the bottom of the billboard sign where
a billboard company logo is typically displayed.
Back-To-Back: A billboard structure configuration where two
display panel faces are parallel to one another such that the backs
of the advertising (back view) face each other. The advertising on
each panel of the billboard structure faces in opposite directions.
Base Cost Per Structure: All of the component costs related to
the construction of the billboard structure itself such as material
costs, labor, permit fees, freight costs, engineering costs, and
installation costs. This is not a conclusive list, but it is provided to
indicate that all costs whether direct or indirect are included in the
base cost amount unless specifically noted.
Base Index Year: For purposes of appraisal in the Billboard
Structures Valuation Guide, the year 2009 has been established as
the base index year from which all increases or decreases to the
construction costs of erecting a billboard is determined.
Billboard: A large panel or flat surface that is intended for
viewing an advertisement or notice from extended distances and is
typically constructed of wooden posts or steel beams.
Catwalk: The platform located underneath the sign face, either in
front or in back of the billboard sign, used as support for the
maintenance crew.
24
Center Mount: A steel monopole structure in which the
supporting column is affixed to the center of the display panel.
Cost Conversion Factor: A factor that represents the percentage
price increase or decrease of a cost amount over a previous 12-
month period after establishing a base index year.
Cut Outs: The portions of the panel display which are attached to
or cut out from the face in order to emphasize a certain figure and
draw the attention of the sign reader.
Depreciation Schedule: A valuation table that calculates the
product of a trending factor and a straight-line depreciation factor
to arrive at the replacement cost new less depreciation. The
percentage amounts are also known as the percent good factors.
Digital Display: Light emitting diode panel faces that are
internally illuminated matrix displays constructed with tiny silicon
chips that are capable of producing light in a variety of colors.
Display Face (Panel): The flat area normally rectangular in shape
where the advertisement is displayed.
Double Face: A billboard structure that has two display panels,
also known as back-to-back configuration, which are parallel to
each other and facing in opposite directions.
Economic Obsolescence: A loss in remaining value due to
reasons external to the property.
Extension: A part of the advertisement display that extends
beyond the typical rectangular face in order to create better visual
impact.
25
Flag Mount: A steel monopole structure in which the supporting
column is affixed to the left or the right of the center of the display
panel.
Footings: The concrete pad sunk into the ground which is used to
solidify the structure keeping it in an upright position.
Foundation: The material used at the base of a billboard structure
to keep the structure in an upright position. The foundation could
be the natural soil composition, poured in gravel, or poured in
concrete.
Functional Obsolescence: A reduction in functional capacity or
efficiency that impacts the value of the property which is caused
by factors inherent in the property itself.
Height Above Ground Level (HAGL): The distance in feet from
the ground level to the lowest edge of the bottom molding of the
billboard display face (panel).
Illumination: Light fixtures attached to a sign so that the message
is visible in hours of darkness.
Leased Billboard Site: The location where a billboard structure is
erected which is typically owned by an unrelated third party who
receives rental income through a contract with the billboard owner.
Lighting: Fixtures attached to the billboard structure that provide
illumination during hours of darkness.
Molding: Decorative frame surrounding the printed message on
the display face.
Multi-Mast Steel: A billboard structure that is constructed with
several steel poles or I-beam steel supports.
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Panel (Display Face): The flat area normally rectangular in shape
where the advertisement is displayed.
Physical Depreciation: The loss in value due to physical wear
and tear.
Replacement Cost New (RCN): The cost to replace the utility of
a property with new construction using the best available materials
and construction methodology.
Side-By-Side: A type of billboard configuration where two faces
are arranged together in a horizontal line, one beside the other,
with both display panels facing in the same direction.
Single Face: A billboard structure that has one display panel
facing in one direction.
Stacked Display: A billboard structure in which multiple display
panels are set above one another in a vertical configuration.
Steel A-Frame: A billboard structure that is constructed with
angle iron or steel supports with metal framing and a single display
panel. The supports are imbedded in the ground at an angle that
resembles the letter “A”.
Steel Monopole: A billboard structure that is constructed with a
single tubular steel support imbedded in a concrete footing pad.
Stringers: Wooden or steel braces attached to the back of a
billboard panel that function to support the display face. Also
known as cross-members.
Triangle or Tri-Built: A billboard structure having three display
panels arranged in the shape of a triangle with each panel facing in
a different direction.
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Tri-Vision or Tri-Fold: A type of billboard structure where the
panel display face is made with triangular louvered narrow vertical
panels that periodically rotate to display three different advertising
messages in a predetermined sequence.
Uprights (Supports): Vertical posts, pipes or beams, mounted
into the ground that keep a billboard structure in an erect position.
V-Built: A billboard structure having two or more display panels
that are not parallel to each other, facing in opposite directions
where the configuration resembles the letter “V”.
Wood Pole A-Frame: A billboard structure that is constructed
with wooden post supports and a single display panel. The
supports are imbedded in the ground at an angle that resembles the
letter “A”.
Business Name ________________________________________Account_________________County___________________Year_________
SCHEDULE I-1 BILLBOARDS - OUTDOOR ADVERTISING STRUCTURES
Panel Numbers
DOT
Permit
Number Location City/District/None
Build
Date
Class
and
Type
HAGL
Feet
Display
Face Sq.
Ft.
Stacked
Display?
(Y or N)
Side-By-Side
Display?
(Y or N)
Illuminated?
(Y or N)
Original Display
Face Equipment
Cost for
Electronic/Digital
or Tri-Vision
County
Identification
Number
28
Follow these instructions when filing information related to Schedule I – 1:
Complete the top section of the Schedule I-1 form by providing your
company name, the county account number, the name of the county
where the asset is located and the year of listing. See area “1” on diagram
below.
Provide your company’s billboard panel identification number. If there are
multiple panels/faces on one structure, indicate all the panel numbers that
are associated with that one structure. See area “2” on diagram below.
Fill in the NC Department of Transportation Permit Number assigned to
this specific billboard if applicable. Refer to DOT form OA-1, “Application
for Outdoor Advertising Permit” for permit number. Write “N/A” in column
if DOT permitting is not required. See area “3” on diagram below.
Give a brief description of the sign location by using street names and
mileage distances from nearby intersections. Please record the county
parcel identification number (PIN) for this site if available. See area “4” in
diagram below.
Indicate what jurisdiction the billboard sign is located in. Record city
name, fire or special district name, or “none” if the billboard sign is in the
county jurisdiction only. See area “5” in diagram below.
Provide the year the billboard sign was originally constructed and
completed. For situations where a digital face is added to an established
billboard structure, populate the cell with the original year of construction
first, and then show the year the digital face was added. See area “6” in
diagram below.
From the NC Department of Revenue’s “Billboard Structures Valuation
Guide”, show the Class and Type of Billboard construction indicated in the
description pages. See area “7” in diagram below.
Indicate the HAGL in feet (HAGL is the distance from the ground level to
the bottom edge of the billboard face). HAGL is the acronym for “Height
Above Ground Level”. See area “8” in diagram below.
Calculate the total square footage of the display panel face and record the
data. For structures with more than one (1) panel face, populate the cell
with the square footage amount of the largest panel face on the structure.
Do not add all the panel face square footages together. Just show the
square footage amount of the largest panel face on the structure. See
area “9” in diagram below.
Billboards and Outdoor Advertising Structures
Instructional Page
1
2
3
4
5
6
7
8
9
Indicate whether the billboard faces are stacked one on top of the other in
a vertical configuration. Record a “Y” for Yes or an “N” for No. See area
“10” in diagram below.
Indicate whether the billboard faces are side by side in a horizontal
configuration. Record a “Y” for Yes or an “N” for No. See area “11” in
diagram below.
Indicate whether the billboard sign is illuminated (lighted) or not. Record a
“Y” for Yes or an “N” for No. See area “12” in diagram below.
Provide all costs related to the construction of the Digital billboard face.
Include the cost of any partial Digital sign face superimposed over a typical
billboard display. Also, list all costs related to the construction of any
Tri-Vision or Tri-Fold billboard face. If the guide is followed, the county
appraiser will value these sign faces on an I-8 depreciation schedule.
Then the county appraiser will use the additional information in columns
“2” through “12” to appraise the billboard structure itself minus the billboard
face. The calculated value of the face will be added to the calculated value
of the structure for a total valuation for digital and tri-vision/tri-fold billboard
signs. Area “13” on the diagram below is the place for listing the cost of the
face of the Digital and Tri-Vision/Tri-Fold signs.
The last column is reserved for county use to assign a county identification
number for internal tracking purposes. See area “14” in diagram below.
The “Billboard Structures Valuation Guide” can be viewed by going to:
www.dor.state.nc.us
Click on “Information for Local Government ”.
Click on the word, “Publications” under the heading “Property Tax Section ”.
Scroll down the page to “Billboard Structures Valuation Guide” under the
heading, “Valuation and Technical Manuals ”.
A printable blank copy of the “Billboard Listing Form” (Schedule I-1) may be
retrieved by clicking on the word, “Forms” under the heading, “Property Tax
Section ”. Scroll down to the bottom of this page and click on the words, “Listing
Forms” under the heading “Other Forms”.
Note: Report any “Construction In Progress” expenditures on Page 1 under
the Group 2 section of the Business Personal Property Listing Form .
10
11
12
14
13
1
2 3 4 5 6 7 8 9 10 11 12
13
14
29
2013 Cost Index and Depreciation Schedules
State of North Carolina Page 21
Department of Revenue Effective 1/1/2013
Property Tax Section
Schedules H, I, Valuation Table
Historical (Original) Cost
Percent Good Factors
Schedule H Schedule I
Year Trend Life Trend Life
Acq'd Age Factor 4 5 10 20 Factor 5 8 10 12
2012 1 1.00 75 80 90 95 1.00 80 87 90 92
2011 2 1.01 51 61 81 91 0.99 59 74 79 82
2010 3 1.04 26 42 73 88 0.99 40 62 69 74
2009 4 1.05 25 25 63 84 0.99 25 50 59 66
2008 5 1.06 53 80 0.97 36 49 56
2007 6 1.10 44 77 0.96 25 38 48
2006 7 1.11 33 72 0.95 29 40
2005 8 1.15 25 69 0.95 25 31
2004 9 1.17 64 0.95 25
2003 10 1.19 60 0.93
2002 11 1.19 54 0.94
2001 12 1.19 48 0.94
2000 13 1.19 42 0.95
1999 14 1.19 36 0.96
1998 15 1.19 30 0.97
1997 16 1.22 25 0.99
1996 17 1.24 1.01
1995 18 1.26 1.02
Do not apply the trend factors to the percent good factors. The
percent good factors already have the trend factors incorporated.
This is true for all schedules in this manual.
30
31
BILLBOARD DEPRECIATION SCHEDULE
EFFECTIVE AGE 25 YEAR LIFE 50 YEAR LIFE
(in years) (wood) (steel)
1 96% 98%
2 92% 96%
3 88% 94%
4 84% 92%
5 80% 90%
6 76% 88%
7 72% 86%
8 68% 84%
9 64% 82%
10 60% 80%
11 56% 78%
12 52% 76%
13 48% 74%
14 44% 72%
15 40% 70%
16 36% 68%
17 35% 66%
18 35% 64%
19 35% 62%
20 35% 60%
21 35% 58%
22 35% 56%
23 35% 54%
24 35% 52%
25 35% 50%
26 48%
27 46%
28 44%
29 42%
30 40%
31 38%
32 36%
33 35%
34 35%
35 35%
36 35%
37 35%
38 35%
39 35%
40 35%
41 35%
42 35%
43 35%
44 35%
45 35%
46 35%
47 35%
48 35%
49 35%
50 35%