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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, ...
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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.
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,
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,
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,
See worksheet for construction adjustments
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,
See worksheet for construction adjustments
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,
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,
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,
See worksheet for construction adjustments
Size 25' HAGL 40' HAGL 50' HAGL 70' HAGL 100' HAGL 300' 378' 480' 672' $ 106,750 $ 137 , 850 $ 194, 960' 1000'
Size 25' HAGL 40' HAGL 50' HAGL 70' HAGL 100' HAGL 300' 378' 480' 672' $ 99, 960' 1000'
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