42-13152

42-13152. Computing valuation of golf
courses

A. In recognition of the importance of the open space and economic benefits of golf
courses, county assessors shall value all golf courses uniformly based on guidelines
prescribed by the department.

B. Subject to section 42-13154, values shall be made on the assumption that no
other property use is possible.

C. Land shall be valued at five hundred dollars per acre.

D. The improvement value of the golf course is established by the department's 1988
per hole cost, as prescribed in subsection E of this section for the grade of the golf
course as described in the department's assessment practices manual for golf course
assessment effective January 1, 1986. The per hole cost shall be multiplied by the
number of holes included. The value shall be adjusted to reflect the application of
economic obsolescence, which shall be uniformly determined as follows:

1. Determine the number of actual rounds of golf played during the most recent
twelve months ending on July 31.

2. Multiply the rounds played during the peak month by twelve to determine the
number of rounds of play the course would have had under optimum conditions.

3. Divide the actual number of rounds played during the year by the optimum rounds
played.

4. The quotient is the relationship between the actual rounds played and projected
play under optimum conditions or the per cent good after the economic obsolescence has
been deducted.

5. Apply the obsolescence by multiplying the total per hole cost by the per cent
good.

6. The obsolescence factors developed by applying the procedures prescribed by
paragraphs 1 through 5 shall be applied to the data submitted to the county assessor
annually by golf course owners or managers on a form prescribed by the
department. The assessor shall mail the form to the last known mailing address of each
golf course owner or manager on or before August 1 of each year. The form shall reflect
the number of rounds played by month for the most recent twelve months ending on July
31. The form shall be returned to the county assessor not later than September 30 to
receive the economic obsolescence adjustment.

7. Add the replacement cost new less the depreciation for the structures and
additional items to determine the full cash value of the facility improvements.

8. To determine the full cash value of the golf course, add the per acre value as
reflected in this section, the valuation of the golf course improvements, adjusted for
obsolescence pursuant to paragraphs 1 through 6, and the valuation of the structures and
additional items pursuant to paragraph 7.

E. For tax year 1995, the 1988 per hole improvement cost described in subsection D
of this section shall be used to value golf courses. In each subsequent tax year the per
hole improvement costs shall be adjusted using the change in the GDP price deflator as
defined in section 41-563. For purposes of this subsection, the per hole improvement
cost values include landscaping, bridges, lakes, lake liners, practice ranges, irrigation
systems, paths, golf greens and tees.