Ingles-owned former Kmart and Sears locations tax appraised at $0?
Today’s burning question is about tax appraisals and how the owners of a vacant 126,000-square-foot building may not pay any taxes on it.
Questioning Tax Appraisals
I was poking around Buncombe County’s records on some of the big pieces of land Ingles owns in the area and saw that the 1001 Patton Ave. Kmart is only appraised at $0. Why?
Exploring the Situation
There are two certainties in Asheville: Beer and Ingles. The 1001 Patton Ave. Kmart closed in 2019 and was subsequently bought by Ingles in 2019 for $8.5 million.
Insight into Appraisal
The former Kmart saw conditional rezoning to be converted into an Ingles supermarket as an important development in the community. The building is set to be torn down for redevelopment.
The Appraisal Explanation
In a 2021 appraisal, the building was valued at $0 due to being at the “end of its useful life.” The land value, however, increased significantly.
Common Practice
Setting building values at $0 is common in commercial reappraisal for buildings nearing the end of their life. A new owner intending to renovate the building would impact its appraised value.
Land Value Increase
The 2021 reappraisal also saw a substantial increase in land value, indicating taxes are paid on the land but not on the building.
Other Ingles Properties
Ingles owns a significant amount of commercial property in Buncombe County valued at over $270 million.
Redevelopment Update
The new Ingles project is still under review by the city of Asheville, showing ongoing development plans.
Assessment of Building Condition
The evaluation of the building as “poor” contributes to its $0 appraisal, indicating it is unsound to occupy.
Similar Evaluations
Other vacant buildings like the former Sears and Stein Mart locations have $0 appraisals based on their conditions and evaluation methods.
Perspective on Property Assessments
There are varying opinions on property appraisals, with some advocating for higher evaluations based on location, viability, age, and replacement cost.
Varying Building Values
Not all vacant buildings receive $0 appraisals, highlighting the diversity in building assessments in Asheville.
Final Thoughts
While the tax appraisal of Ingles-owned former Kmart and Sears locations may raise eyebrows, the complexities of commercial property evaluation shed light on the reasons for these $0 values. The evolving financial landscape of Asheville continues to shape the fate of these properties.
