Valuation of Private Golf and Country Clubs for Ad Valorem Taxation

摘要

This article examines relevant issues in the valuation of private golf and country clubs, specifically for ad valorem tax assessment purposes. One of the more challenging elements of golf property valuation is the value of the business intangible property, and there are sometimes disputes as to what is golf club intangible personal property. Much of the focus is on the differences between daily-fee and private golf facilities and the issue of isolating (or allocating) real property value from the going concern, which is how most golf properties are traded. This article summarizes the widely known methods of estimating the value of intangible personal property. It also suggests an approach for valuing a golf club as a going concern and allocating the real and personal property for the purpose of developing a value conclusion for the real property to be assessed. The article examines some case law that relates to these properties and identifies multiple options for solving this unique appraisal problem.