Real Estate Taxes

LOCAL TAXATION METHODOLOGY

According to West Virginia Code Chapter 11 Taxation, Article 3: 11-3-1, all property, except public service businesses assessed pursuant to article six of this chapter, shall be assessed annually as of July 1 at sixty percent of its true and actual value; that is to say, at the price for which the property would sell if voluntarily offered for sale by the owner thereof, upon the terms as the property, the value of which is sought to be ascertained, is usually sold, and not the price which might be realized if the property were sold at a forced sale. First-half taxes are payable the second half of the year and second-half taxes are due the following year in the first quarter. It is understood that a sale in this jurisdiction does not typically trigger a reassessment, and although there may be a discrepancy between the indicated government-appraised and market value, the subject’s per-unit assessment relative to comparable properties is generally supported. Therefore, it is not likely that a substantial reassessment would occur immediately following a sale.

TAX PROJECTION

Due to the preliminary nature of the subject development, forecasting the properties likely assessed value and real estate tax payments is difficult. Therefore, to project the likely tax costs on a going-forward basis following completion of construction, we considered a variety of factors including actual real estate taxes paid as a percentage of total revenue by comparable resorts throughout the region and country and the expected quality of the property. we estimated real estate tax equal to 3% total revenue throughout each year of the projection. The actual assessed value and resultant taxes levied on the subject will differ from this estimate and may have an impact on the project’s financial viability and market value.

CONCLUSION

The following table summarizes our tax projection as measured against house profit over the first five projection years following inception.

T AX P R O JE C T IO N - FIR S T FIVE YE AR S

Pe r io d T ax Pr o je ct io n Pc t . Ch an g e Y ear 1 - 2024 $87,463 Y ear 2 - 2025 $116,988 33.8 % Y ear 3 - 2026 $131,646 12.5 % Y ear 4 - 2027 $466,593 254.4 % Y ear 5 - 2028 $552,887 18.5 %