PROPERTY TAXES SHOULD REFLECT RETAIL’S APOCALYPTIC TIMES Instead, assessors continue to ignore the clear fact that brick-and-mortar retail is in massive decline. By Daniel R. Smith, Esq. and James Johnson &RUSRUDWH:HOIDUHµDQG´+RZ%LJ UHWDLOVSDFHJURZV3UHIHUHQFHVIRURQ- Daniel R. Smith James Johnson %R[5HWDLOHUV:HDSRQL]H2OG6WRUHVµ OLQHVKRSSLQJDQGFRQVXPHUSXUFKDV- 7KLVKDVIXHOHGDQRQJRLQJGHEDWH LQJSDWWHUQVDUHKHUHWRVWD\ Principal, General Tax Analyst FRQFHUQLQJKRZWRSURSHUO\YDOXHWKH :HDUHUHDFKLQJDSRLQWZKHUHWKH Counsel Popp Hutcheson PLLC IHHVLPSOHLQWHUHVWLQLQFRPHSURGXF- ´GDUNVWRUHµLVWKHQRUP 7KHPDU- Popp Hutcheson PLLC LQJSURSHUW\ ZKLFKLQPRVWMXULVGLF- NHWKDVWXUQHGSUHYLRXVDVVXPSWLRQV WLRQVLVWKHWD[DEOHYDOXH DERXWYDULDEOHVVXFKDVPDUNHWH[SR- ,QHVVHQFHWD[DVVHVVRUVFODLPWKDW VXUHYDFDQF\FDSLWDOL]DWLRQUDWHVDQG UHWDLOSURSHUW\RZQHUVDUHWU\LQJWR PDUNHWUHQWVRQWKHLUKHDGVUHVXOWLQJ KHUHWDLOVHFWRULVH[SHULHQFLQJLWV WRDWWUDFWVKRSSHUV7RVXUYLYHVRPH HVFDSHWD[DWLRQE\FDOFXODWLQJWD[DEOH LQDUHWDLOPHOWGRZQ GDUNHVWSHULRGHYHU DQGWD[LQJ PDOOVKDYHWDNHQGHVSHUDWHPHDVXUHV YDOXHEDVHGRQWKHDVNLQJUHQWVDQG ,WPD\EHGL￿FXOWIRUPDQ\REVHUY- THQWLWLHVPXVWFRPHWRJULSVZLWK WRVWHHUFXVWRPHUVWRWKHLUVWRUHVVXFK VDOHVRIYDFDQWUHWDLOORFDWLRQVUDWKHU HUVWRZDWFK$PHULFDQLQVWLWXWLRQV GHFOLQLQJVKRSSLQJFHQWHUYDOXHV DVKRVWLQJDPXVHPHQWSDUNVDQGFRQ- WKDQRQDFWXDOUHQWVDQGVDOHVRIRFFX- OLNHWKHVKRSSLQJPDOODQGIUHHVWDQG- 1HZVUHSRUWVFRQÀUPWKDWQDWLRQDO FHUWV6DGO\DQDO\VWVSUHGLFWWR SLHGSURSHUWLHV7D[DVVHVVRUVFRQWHQG LQJUHWDLOFHQWHUVOLGHLQWRREVROHV- UHWDLOHUVDUHFORVLQJVWRUHVDWDUHFRUG SHUFHQWRI86 VKRSSLQJPDOOVZLOO WKDWSURSHUW\RZQHUVDUHFRPSDULQJ FHQFH%XWWRPDLQWDLQWKHLQWHJULW\RI SDFH ,Q  DORQH UHWDLOPDLQVWD\V FORVHZLWKLQWKHQH[WÀYH\HDUV7KH  DSSOHVWRRUDQJHV RXUSURSHUW\WD[V\VWHPWD[DVVHVVRUV VXFKDV-&3HQQH\6HDUVDQG0DF\·V PDUNHWLVVLPSO\RYHUVDWXUDWHG 3URSHUW\RZQHUVFRXQWHUWKDWDVVHV- PXVWDFFHSWWKLVQHZUHDOLW\ KDYHVKXWWHUHGKXQGUHGVRIVWRUHV VRUVDUHRYHUVWDWLQJUHDOHVWDWHYDOXH /HDGLQJPDUNHWDQDO\VWVLQFOXGLQJ Value Questions E\FDSWXULQJWKHDGGLWLRQDOYDOXHRI Daniel R. Smith is a principal with and &UHGLW6XLVVHDQG&XVKPDQ :DNH- &RQVHTXHQWO\UHWDLOSURSHUW\YDOXH QRQWD[DEOHDVVHWVVXFKDVORQJWHUP general counsel for Austin, Texas law firm ÀHOGKDYHSUHGLFWHGWKHFORVLQJRI KDVSOXPPHWHG:KDWRQFHZDVVHHQ OHDVHVZLWKEUDQGQDPHUHWDLOHUV Popp Hutcheson PLLC, the Texas member of VRPHEULFNDQGPRUWDUVWRUHV DVDVDIHLQYHVWPHQWLVQRZIUDXJKW 'HVSLWHWKLVGHEDWHWKHUHLVQRKLG- American Property Tax Counsel, the national (YHQZRUVHPDQ\QDWLRQDOUHWDLOHUV ZLWKULVN 6X￿HULQJQDWLRQDOUHWDLOHUV LQJWKHIDFWWKDWUHWDLOLVJRLQJGDUN affiliation of property tax attorneys. James DUHÀOLQJIRUEDQNUXSWF\SURWHFWLRQ KDYHPDGHUHWDLOUHDOHVWDWHULVNLHU 6KRSSLQJPDOOVDQGRYHUVL]HGELJ Johnson is a graduate student at Texas A&M ZLWKVHYHUDORWKHUVRQDQDO\VWV·ZDWFK DVWKHFKDQFHVRIVWRUHFORVXUHVDQG ER[VWRUHVKDYHEHFRPHODUJHO\REVR- University’s Real Estate Center and tax ana- OLVWV 7KHPRUHWKDQ UHWDLOHUV UH- WHQDQWEDQNUXSWFLHVKDYHLQFUHDVHG OHWH EDQNUXSWFLHVDQGVWRUHFORVXUHV lyst for Popp Hutcheson. 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