STATE TAX COMMISSION OF MISSOURI

ASSESSOR MANUAL

CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE

REVISION DATE: 3/1/2009 Page 1 of 16

7.6 BILLBOARDS – COST APPROACH TO VALUE

Approaches to Value

Consideration is given to all three approaches to value billboards. The Cost Approach is the
easiest to perform and usually the most defensible approach. The Market Approach would be
applicable if comparable sales of similar billboards were to be found and validated or enough
information was obtained to develop an effective gross income multiplier. The Income
Approach could be used if sufficient market income and expense information were available and
a defensible cap rate developed.

Date of Implementation

Statewide information was researched in the last half of 2007 by the State Tax Commission for
the valuation of Missouri Billboards for use by the Ratio Study Section as of 1-1-09 using the
Cost Approach to value. It became available to all assessment jurisdictions in the last half of
2007 for use in the valuation of billboards for the tax year 1-1-09. The assessor has the choice to
use this information or develop other defensible methods.

Billboard Data & Valuation Form

The Billboard Data & Valuation Form (Billboard Exhibit 1) is a one page form to be used for the
valuation of billboards selected in the Ratio Study. It contains four sections; the first section is to
record the Ownership and Location Data, the second section is to record the Construction Data.
The third section is for Comments that may include description of billboard condition or any
comments relative to billboard data and valuation not covered elsewhere on the form. The
Valuation section has the actual cost approach.

Uniform Parcel Number (UPN)

Counties should assign each billboard a Uniform Parcel Number (UPN) that ties to the land
ownership UPN. If the billboard(s) has the same owner as the land, both the billboard(s) and the
land have the same UPN. If the billboard(s) and the land have different owners, the billboard is a
leasehold improvement and has the appropriate UPN. For example, the land is parcel number
9.000 so the leasehold improvement would be 9.001. If there are multiple billboards with
different owners on the same land tract, then each owner’s billboard(s) would have a different
parcel number. If one owner has one billboard and another owner has three billboards on the
same land tract, then the parcel numbers would be 9.001 for the one billboard and parcel number
9.002 for the three billboards which would have a combined value. If multiple billboards are
involved, it will be necessary to complete a form for each billboard then total the values.

VII-7.6-1
CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE

REVISION DATE: 3/1/2009 Page 2 of 16

Discovery and Identification

Not every billboard has a permit. Local zoning authorities allow billboards placed prior to the
enactment of restrictive zoning regulations to stay under “grandfather clauses” which generally
say that if and when they are removed, they cannot be replaced by another billboard. Without a
permit, the current use may be legal but nonconforming. The assessor/appraiser must determine
if the remaining tests for highest and best use are met.

The Missouri Department of Transportation (MoDOT) is responsible for the permitting of signs
and it maintains a Billboard Sign Inventory report. This printout is maintained on a monthly
basis and provides data on the sign location, ownership, type, size, illumination, height, shape,
material, and condition. This information may be obtained by visiting a district office and
requesting a printout. This report does not replace the need for on-site inspection.

Two web sites that are helpful in obtaining information: Missouri Outdoor Advertising Media
and Billboard Companies @ http://outdoorbillboard.com and Missouri Outdoor Advertising
Association @ http://members.aol.com/moaahomofc. These two sites contain contact
information for outdoor advertising companies that operate in Missouri. A directory of outdoor
advertising companies is included with this material (Billboard Exhibit 2).

Ownership and Location Data Section

On the Billboard & Valuation Form (Billboard Exhibit 1), the assessor/appraiser records the
name of the company that owns the sign, the company person that was contacted, their phone
number, and date of contact.

The MoDOT Permit Number is assigned by the Missouri Department of Transportation. Any
other permit number should be recorded and noted also as it may be helpful to determine
ownership and/or zoning permits. On-site inspection is the most reliable source for the permit
number or lack of one. If no permit number is to be found either in the MoDOT Billboard Sign
Inventory or from on-site inspection, it should be noted in the Comments section of the Billboard
Data and Valuation Form.

The assessor/appraiser must also record the UPN and a brief description of the sign’s location
such as highway with cross reference and direction billboard is facing.

Construction Data

The appraiser needs to determine the construction date of the sign to determine the age and
proper assignment of depreciation of the sign structure. It is necessary to contact the owner of
the sign for this information as actual age is used in the depreciation schedule. If actual age is
unknown, note in the Comments section that the age is estimated from on-site inspection with
effective date of January 1 of the odd year of the assessment cycle.

VII-7.6-2
CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE

REVISION DATE: 3/1/2009 Page 3 of 16

HAGL refers to the “height above ground level” and must be verified during the onsite
inspection. The HAGL is measured from ground level to the bottom of the sign’s display area.

There are three Sign Construction Types: Wood Pole (wood poles are the primary support),
Steel I – Beam (steel I – Beam or steel poles as the primary support), and Monopole (a single
large steel pole as the primary support).

The Class of sign is determined by the size of the single largest display area and described as
follows:
Class 1 (0 – 200 sq. ft.)
Class 2 (201 – 300 sq. ft.)
Class 3 (301 – 400 sq. ft.)
Class 4 (401 – 600 sq. ft.)
Class 5 (over 600 square feet)

The base structure cost will vary by the class of the sign.

To determine the replacement cost of a sign, information regarding type, size, number of sign
displays and illumination is necessary. The display area can be either wood or metal. The
number of faces (displays) is necessary to correctly determine the costs of the structure. The
appraiser must also note if the sign is illuminated or has any other electronic components.

The appraiser must indicate the Style of Display associated with the sign structure construction
type. The various construction types are Monopole and Wood or Steel. Types of displays for
Monopole are as follows: center mount, flag mount, “vee” faced, single faced, double faced,
back to back flag, “vee’ flag, and center mount “vee”, stacked, side by side and tri-surface.
Types of displays for wood or steel are as follows: single faced, double faced, back to back flag,
and “vee” faced display, side by side and tri-surfaced. The appraiser should check the type of
display based upon these construction types. Cost adjustments are made for the style of the
display. Multiple entries may be necessary to correctly identify the display style. For example a
center mount monopole may be double faced back to back, double faced stacked, or “vee faced”.
A double faced steel sign may be back to back or side by side. Illustrations and photographs of
construction and display types are included with this material (Billboard Exhibits 3)

Valuation

The Base Structure Cost is determined by the sign’s construction type (wood pole, steel I-beam
or monopole), the class (1 – 5), and the type of display (wood or metal). There are separate cost
pages for each of the three construction types (Exhibits 4, 4.1, 4.2). Each cost page contains a
separate column of costs for each class of sign. The base cost is determined by multiplying the
total square feet of the largest single display area by the appropriate price per square foot.

VII-7.6-3
CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE

REVISION DATE: 3/1/2009 Page 4 of 16

One display surface is included in the base per square foot cost. An additional cost per face
(display area) over one is added to the base structure cost. Multiply the additional number of
faces by the cost per face based upon the type of face (wood or metal). The Basic Structure Cost
is determined by adding the total base structure cost and the costs of any additional surfaces.

The Basic Structure Cost is then adjusted for height (HAGL), type of monopole display and style
of display (stacks). The type of monopole displays that require an adjustment include: back to
back, center mount “vee”, and “vee” flag. Stack adjustments are required for stacked displays,
“vee” displays, side by side displays and tri-surface displays. Therefore, a wood pole or steel I-
Beam constructed sign might require the use of only two of the adjustments, and a monopole sign
could have adjustments in all three categories. These Construction Adjustments are percentage
adjustments which are applied to the Basic Structure Cost subtotal. The percentage adjustments
for these items vary by construction type and class. Each percentage adjustment is multiplied by
the basic structure cost and then added to the Basic Structure Cost subtotal to provide an
Adjusted Basic Structure Cost.

Additional Improvement Costs include adding for the cost of illumination or electronic displays.
The cost of illumination is determined by multiplying the number of illuminated surfaces by the
cost per surface by class and adding to the adjusted basic structure cost. Electronic display costs
are added to the adjusted basic structure cost and a display face deduction is required since the
electronic display has replaced the normal display face. This deduction is made in the basic
structure cost in the additional surfaces section.

The total structure cost is the sum of the basic structure cost, construction adjustments and
additional improvement cost. The county location adjustment is a factor of 1.00. This is not the
same factor as the county index or local multiplier.

The depreciation is expressed as a percent good, and is taken from the Billboard Depreciation
Schedule (Billboard Exhibit 5) which is included in this material. The actual age should be
based upon the first year of the appraisal cycle (example 2009). Therefore, appraisals completed
in the second year (2010) will still use the first year (2009) to calculate the age. The depreciation
schedule reflects a straight-line depreciation rate with a residual depreciation of thirty percent and
ten percent. The applied percent good should be based upon the actual age of the signboard as
indicated in the Billboard Depreciation Schedule. The ten (10) year life table is for electrical
items such as illumination and electronic displays; the twenty (20) year life table is used on all
wood structures; and the forty (40) year life table is to be applied on all steel structures.

The replacement cost new less depreciation value is rounded. The billboard value is then
recorded to the improvement section of the property record card and totaled if the billboard is on
leased land. Land value is added if the billboard is on company owned land and the values are
totaled. Business signs are often the property of the tenant and are not usually valued as
billboards.

VII-7.6-4
CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE

REVISION DATE: 3/1/2009 Page 5 of 16

This Billboard Cost Manual is used by the STC Ratio Appraisers and made available to all
Assessors through handouts and the STC website in the updated Assessor Manual.

VII-7.6-5
REVISION DATE: 3/1/2009

CHAPTER:
BILLBOARD DATA VALUATION FORM
County-Sample No.:

Ownership and Location Data Comments

Company Name:
Person Contacted:
Date Contacted:
Telephone Number:
MHTD Permit Number:
Parcel Number:
Location of Structure:

BILLBOARDS – COST APPROACH TO VALUE

Construction Data Valuation
Date Built: Basic Structure Cost
Age: Base Cost /Sq.Ft. x Sq.Ft. =
Height Above Ground Additional Surfaces /Surface x Surfaces =
Largest Display Surface: Height: x Width:
Number of Faces: Basic Structure Subtotal =
VII-7.6-6

Displays Illuminated: Yes No

Construction Type Sign Class Construction Adjustments

Wood Pole Based on Sign Area Height Above Ground x =
Steel I-Beam 1 - 0-200 Square Feet Back to Back Flag x =
Monopole 2 - 201-300 Square Feet "Vee" Flag x =
Display Type 3 - 301-400 Square Feet "Vee" Center Mount x =
Wood Face 4 - 401-600 Square Feet Stacked, Side by Side,Tri-Surface x =
Metal Face 5 - Over 600 Square Feet
Style of Display Adjusted Structure Cost =
Wood or Steel Monopole
Single Faced Center Mount Electronic Improvement Cost
Double Faced Flag Mount Illumination /Surface x Surfaces 0
Stacked Displays Vee Faced Electronic Display /Surface x Surfaces 0
Vee Faced Single Faced Total Structure Cost =
Side by Side Double Faced Location Adjustment 1.00
Tri-surface Back to Back Replacement Cost New
Electronic Display Stacked Percent Good =
Side by Side Percent Good (Electronic Display)

Page 6 of 16
=
Tri-Surface RCNLD =
Electronic Display Rounded Value =
REVISION DATE: 3/1/2009

CHAPTER:
BILLBOARD COMPANY DIRECTORY

Company Name Phone Web Site Mailing Address City State Zip

AD One Media, Inc. 636-236-2863 618 Spirit Dr #100 Chesterfield MO 65605-1438

Ad Trend Inc 816-283-0600 www.ad-trend.com 14450 S Hwy 40 Kansas City MO 64147
Ayres Sign Co 417-272-3327 18787 Hwy 13 Reeds Springs MO 65737-9654
Branson Outdoor 417-336-3402 1510Sapling Dr Branson MO 63305
Budget Billboards 314-854-1370 10644 Conway Rd St. Louis MO 63131-2812
CarMac Outdoor Advertising 816-525-0528 24160 E Hwy 50 Lee's Summit MO 64063-9500

BILLBOARDS – COST APPROACH TO VALUE

CBS Outdoor 816-421-5720 www.cbsoutdoor.com 2459 Summit Kansas City MO 64108
Craig Outdoor Advertising P.O. Box 3171 Independence MO 64055-3171
DDI Media 314-423-5040 www.ddimedia.cc 8315 Drury Ind. Pky St. Louis MO 63114
Drury Displays 314-423-5040 www.ddimedia.cc 8315 Drury Ind. Pky St. Louis MO 63114
Drury Southwest Inc 573-335-3134 www.drurysouthwest.com PO Box 1214 Cape Girardeau MO 63701
DSW Signs Outdoor Advertising 573-334-3114 www.cswsigns.com 826 Fox Ln Cape Girardeau MO 63701
www.dyniamicdisplaysbillboar
Dynamic Displays LLC 816-478-4395 217 NW Hemlock St Lee's Summit MO 64064
ds.com
Gateway Outdoor Advertising 372 Fee Fee Rd Hazelwood MO 63043-3214
VII-7. 6-7

Janso Outdoor Advertising 573-651-4024 www.jascooutdoor.com PO Box 65 Gordonville MO 63752-0065

Joplin Signs & Billboards 417-623-6622 11413 Cedar Dr Joplin MO 64804-8323
Lamar Outdoor Advertising 573-248-1803 www.lamar.com 7010 A Hilltop Lane Hannibal MO 63401
Lamar Outdoor Advertising 573-317-1559 www.lamar.com PO Box 1089 Osage Beach MO 65065
Lamar Outdoor Advertising 816-924-5900 www.lamar.com PO Box 300440 Kansas City MO 64130
Lamar Outdoor Advertising 573-431-4414 www.lamar.com PO Box O Park Hills MO 63601
Lamar Outdoor Advertising 417-623-8124 www.lamar.com 200N Range Line Joplin MO 64801
Magic Media Inc 816-977-2009 www.magicmediainc.net PO Box 415015 Kansas City MO 64141
Mid America Advertising 618-365-8888 www.midamericaoutdoor.com 904 Fournie Lane Collinsville IL 62234
Missouri Neo 417-862-1778 www.moneonoutdoor.com 3160 W Kearney Springfield MO 65803
MPC Billboard Inc 816-324-2700 17500 StateRoute DD Savannah MO 64485-8204
Next Media Outdoor Inc 660-826-7700 www.nextmediagroup.com 23443Hall Rd Sedalia MO 65301
Olympus Media LLC 573-365-4387 www.olympusmediallc.com 2221 Bagnell Dam Lake Ozarks MO 65049
Osage Billboard 573-480-4254 2417 Highway 42 Brumley MO 65107-3214
Porlier Outdoor Advertising Co 636-463-2100 www.porlier.biz 1027 N Service Rd West Foristell MO 63348
Premier Signs Inc 314-524-6835 www.premiersignsinc.com 6767 N Hanley Rd St. Louis MO 63136-3622
Premiere Outdoor Advertising 816-461-5656 301 E Lexington Ave Independence MO 64050-3004

Page 7 of 16
Sintec 417-678-0180 17 W Pleasant St Aurora MO
Southwest Outdoor Advertising 417-335-3063 Branson MO 65616
Tri-Star Advertising 573-374-5429 91 Tristar Rd Sunrise Beach MO 65079-6834
CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE

REVISION DATE: 3/1/2009 Page 8 of 16

VII–7.6-8
REVISION DATE: 3/1/2009

CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE
WOOD POLE SINGLE DISPLAY WOOD POLE BACK TO BACK
VII-7.6-9

Page 9 of 16
WOOD POLE STACKED BACK TO BACK WOOD POLE "VEE"
REVISION DATE: 3/1/2009

CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE
STEEL POLE SINGLE DISPLAY STEEL POLE BACK TO BACK
VII-7.6-10

Page 10 of 16
STEEL POLE STACKED BACK TO BACK MONOPOLE SINGLE DISPLAY
REVISION DATE: 3/1/2009

CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE
MONOPOLE CENTER MOUNT SIDE TO SIDE MONOPOLE CENTER MOUNT "VEE"
VII-7.6-11

Page 11 of 16
MONOPOLE CENTER MOUNT"VEE" STACKED MONOPOLE FLAG "VEE"
REVISION DATE: 3/1/2009

CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE
MONOPOLE TRI-SURFACE DISPLAYS MONOPOLE BACK TO BACK STACKED
VII-7.6-12

Page 12 of 16
MONOPOLE "VEE" ELECTRONIC DISPLAY MONOPOLE "VEE" ELECTRONIC DISPLAY
CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE
REVISION DATE: 3/1/2009 Page 13 of 16

Wood Pole Construction

Base price does not include illumination costs

Class 1 Class 2 Class 3 Class 4 Class 5

Base Structure Costs 0-200 201-300 301-400 401-600 >600
Sq. Ft. Sq. Ft. Sq. Ft. Sq. Ft. Sq. Ft.

Base Price (per square foot)

Wood Face 10.35 11.20 14.10 15.05 15.05

Metal Face 12.50 13.10 16.40 17.25 17.25

Additional Display Surfaces

(Cost per Face)

Wood Face 220 780 940 1,100 1,310

Metal Face 750 1,050 1,575 2,500 2,650

Construction Adjustments

Height Above Ground Level

0 - 20 feet N/A -10% -10% -15% -15%

21 - 35 feet 0% 0% 0% 0% 0%

Over 36 feet 15% 15% 20% 20% 20%

Stacked Displays 15% 15% 20% 20% 25%

" Vee " Displays (Includes 2 Displays) 15% 15% 20% 20% 25%
Tri-Surface Displays 15% 15% 20% 20% 25%

Illumination ( per surface ) 460 700 850 1,700 2,300

VII-7.6-13
CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE
REVISION DATE: 3/1/2009 Page 14 of 16

Steel Monopole Construction

Base price does not include illumination costs

Class 1 Class 2 Class 3 Class 4 Class 5

Base Structure Costs 0-200 201-300 301-400 401-600 >600
Sq. Ft. Sq. Ft. Sq. Ft. Sq. Ft. Sq. Ft.

Base Price (per square foot)

Metal Face 20.50 26.10 45.05 47.10 48.00

Additional Display Surfaces

(Cost per Face)

Metal Face 260 1,050 1,575 2,500 2,650

Construction Adjustments

Height Above Ground Level

0 - 20 feet N/A -15% -15% -15% -15%
21 - 30 feet N/A -10% -10% -15% -15%
31 - 35 feet N/A 0% 0% -10% -10%
36 - 40 feet N/A 10% 10% -10% -10%
41 - 45 feet N/A 10% 10% 0% 0%
46 - 50 feet N/A 10% 10% 0% 0%
51 - 55 feet N/A 15% 15% 10% 10%
56 - 60 feet N/A 15% 15% 10% 10%
Over 60 feet N/A 20% 20% 15% 15%

Flag Back to Back N/A 15% 15% 15% 15%

Center Mount " Vee " (Includes 2 Displays) N/A 10% 10% 10% 10%

Flag " Vee "(Includes 2 Displays) N/A 15% 20% 20% 20%

Stacked; Side by Side; Tri-Surface Displays N/A 15% 20% 25% 30%

Illumination ( per surface ) 460 700 850 1,700 2,300

Electronic Display N/A 151,800 170,000 270,250 308,200

VII - 6 -14
CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE
REVISION DATE: 3/1/2009 Page 15 of 16

Steel I Beam Construction

Base price does not include illumination costs

Class 1 Class 2 Class 3 Class 4 Class 5

Base Structure Costs 0-200 201-300 301-400 401-400 >600
Sq. Ft. Sq. Ft. Sq. Ft. Sq. Ft. Sq. Ft.

Base Price (per square foot)

Wood Face 12.50 14.75 23.25 27.05 28.00

Metal Face 14.12 21.05 31.01 32.22 33.08

Additional Display Surfaces

(Cost per Face)

Wood Face 220 780 940 1,110 1,310

Metal Face 750 1,050 1,575 2,500 2,650

Construction Adjustments

Height Above Ground Level

0 - 20 feet N/A -10% -10% -15% -15%

21 - 35 feet N/A 0% 0% 0% 0%

Over 36 feet N/A 15% 20% 20% 25%

Stacked Displays & Tri-Surface Displays N/A 15% 20% 20% 25%

Illumination ( per surface ) 460 700 850 1,700 2,300

Electronic Display N/A 151,800 170,000 270,250 308,200

VII - 6- 15
CHAPTER:
BILLBOARDS – COST APPROACH TO VALUE
REVISION DATE: 3/1/2009 Page 16 of 16

Billboard Depreciation Schedule

Age Percent Good Factors Percent Good Factors Percent Good Factors
10 year life 20 year life 40 year life
(Electronic items) (Wood Structure) (Steel Structure)
1 90.00 95.00 97.50
2 80.00 90.00 95.00
3 70.00 85.00 92.50
4 60.00 80.00 90.00
5 50.00 75.00 87.50
6 40.00 70.00 85.00
7 30.00 65.00 82.50
8 20.00 60.00 80.00
9 10.00 55.00 77.50
10 10.00 50.00 75.00
11 45.00 72.50
12 40.00 70.00
13 35.00 67.50
14 30.00 65.00
15 30.00 62.50
16 30.00 60.00
17 30.00 57.50
18 30.00 55.00
19 30.00 52.50
20 30.00 50.00
21 47.50
22 45.00
23 42.50
24 40.00
25 37.50
26 35.00
27 32.50
28 30.00
29 30.00
30 30.00
31 30.00
32 30.00
33 30.00
34 30.00
35 30.00
36 30.00
37 30.00
38 30.00
39 30.00
40 30.00

VII - 6 - 16