Special Board of Aldermen 11-15-2021 Page 10
look at the elderly exemption and that's an exemption on value. Just for the public to understand that, it's not a credit.
Unlike the Veterans who get a credit, it's X amount of dollars off their taxes. Exemptions are X amount of dollars off the
value of their property and just like the last time when we had the increase, we changed the exemption to exempt more
value and thereby bringing down their tax burden. But we have to remember that when we do this, there are criteria so
there's a means test of what they have for income, and what they have for property, and so on.
But when we do this, we push the burden onto another body or group of people. If we did this too soon before we really
know what the values are, we may have to do it again or we may have to bring it back down and we tend not to do that.
Once you exempt value, you tend not to bring that down. So that was kind of the point that | was trying to make about
could this go down if we jumped the gun and try doing these elderly exemptions. We don't know what the property
values are going to change. | think we really should wait for the disabled, the blind, the elderly exemption. We should be
waiting until we actually know what the values are and | understand people say, you know, get ahead of it but getting
ahead of it could hurt another group of people. So that's what | did want to reiterate kind of what something that
Alderman Lopez had touched on and that is my fear if we go too fast.
Richard Vincent, Chief Assessor
You're correct in your statement and we will look at the exemption amounts. We will be more toward the end of the
revaluation project when we have a better idea where values will be.
Alderman Klee
Thank you.
Alderwoman Lu
When | went into the Assessing office at one point | spoke with someone about commercial valuation and this was since
| started my term. So it was within the last two years and | was told that the way they're valued is identical to the way
residential is valued. Now it sounds like something that Alderman Klee may have mentioned that we had considered
changing it and going on an income approach. So I'm not clear at this point are we using an income approach for
anything? So residential is on a rebuild one of those other approaches.
Mike Tarello, Vice President
Sales approach or if it’s brand new with the cost.
Alderwoman Lu
Right. Do any of the categories get valued using an income approach?
Mike Tarello, Vice President
Yes. Many of the categories do. The majority of them that get used for the income approach are the apartments. Mixed
use properties if they're large enough. The smaller ones with just a little bit like an office or something in the house is
more of a sales oriented but if it’s apartment with retail space or office, that's considered the income approach. Industrial
properties, and office retail, and other types of commercial properties are all looked at based on the income approach.
Also the cost and sales but | would say the stronger approach for those properties is the income approach and the
stronger approach for the residential properties is (inaudible).
Alderwoman Lu
Okay. Thank you. | may have misunderstood.
Richard Vincent, Chief Assessor
| want to add that the income approach looks at the income that the property generates not the business.
Alderwoman Lu
Correct.
