Billboard Structures Valuation Guide, Slides of Construction

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Billboard Structures

Valuation Guide

(Effective for Tax Year 2013)

North Carolina Department of Revenue

Local Government Division

Property Tax Section

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

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.

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.

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, 378' $ 8,010 $ 8,920 $ 10,730 $ 11, 480' $ 9,470 $ 11,150 $ 14,490 $ 15, 672' $ 12,810 $ 15,080 $ 19,650 $ 20,

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, 378' $ 10,380 $ 11,550 $ 13,880 $ 14, 480' $ 12,760 $ 14,980 $ 19,440 $ 20, 672' $ 17,320 $ 20,360 $ 26,430 $ 27,

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, 378' $ 16,050 $ 17,820 $ 21,370 $ 23, 480' $ 18,950 $ 22,280 $ 28,970 $ 30, 672' $ 25,690 $ 30,180 $ 39,200 $ 40,

CONSTRUCTION ADJUSTMENTS

See worksheet for construction adjustments

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, 378' $ 24,970 $ 27,750 $ 33, 480' $ 28,990 $ 32,200 $ 38, 672' $ 34,450 $ 38,290 $ 45,

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, 378' $ 34,070 $ 37,860 $ 45,070 $ 53, 480' $ 38,600 $ 42,880 $ 51,050 $ 60, 672' $ 45,330 $ 50,370 $ 59,960 $ 71,

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, 378' $ 41,970 $ 46,630 $ 55,500 $ 66, 480' $ 47,630 $ 52,920 $ 63,000 $ 75, 672' $ 56,670 $ 62,950 $ 74,960 $ 89,

CONSTRUCTION ADJUSTMENTS

See worksheet for construction adjustments

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, 378' $ 23,950 $ 27,940 $ 35,960 $ 43,960 $ 59, 480' $ 35,000 $ 38,600 $ 45,780 $ 52,970 $ 67, 672' $ 46,650 $ 50,340 $ 57,740 $ 65,130 $ 80,010 $ 93, 960' $ 55,860 $ 59,560 $ 66,950 $ 74,340 $ 89,230 $ 109, 1000' $ 61,730 $ 65,430 $ 72,820 $ 80,210 $ 95,100 $ 115,

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, 378' $ 25,010 $ 29,180 $ 37,480 $ 45,780 $ 62, 480' $ 36,370 $ 40,120 $ 47,610 $ 55,100 $ 70, 672' $ 48,260 $ 52,170 $ 59,960 $ 67,760 $ 83,260 $ 96, 960' $ 57,890 $ 61,780 $ 69,590 $ 77,380 $ 92,880 $ 114, 1000' $ 63,970 $ 67,860 $ 75,650 $ 83,460 $ 98,860 $ 120,

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, 378' $ 37,530 $ 41,530 $ 49,530 $ 57,530 $ 73, 480' $ 51,200 $ 54,390 $ 60,770 $ 67,150 $ 80, 672' $ 55,200 $ 58,960 $ 66,440 $ 73,940 $ 88,830 $ 102, 960' $ 64,570 $ 68,270 $ 75,650 $ 83,050 $ 97,950 $ 119, 1000' $ 71,660 $ 75,260 $ 82,450 $ 89,650 $ 103,820 $ 126,

CONSTRUCTION ADJUSTMENTS

See worksheet for construction adjustments

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, 960' 1000'

4H- TRI-SIDED STACKED CENTER MOUNTED

Size 25' HAGL 40' HAGL 50' HAGL 70' HAGL 100' HAGL 300' 378' 480' 672' $ 99, 960' 1000'

CONSTRUCTION ADJUSTMENTS

See worksheet for construction adjustments

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.

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 #

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

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,.

Example #

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.

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,.

Example #

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