How do Possessory Assessments Differ from other Assessments?
The valuation of Possessory Interests (PIs) differs significantly from other forms of property tax appraisal in that it is the appraiser’s job to value only those rights held by the private possessor. The appraiser must not include the value of any rights retained by the public owner or any rights that will revert back to the public owner (the “reversionary interest”) at the end of a reasonable term of possession. As a result, Possessory Interest assessments are normally less, and often significantly less, than fee simple assessments of similar, privately-owned property.
