Billboard Structures

Valuation Guide

2018
(Effective for Tax Year 2018)

North Carolina Department of Revenue

Local Government Division
Property Tax Section
 Overview
Based on the experience gained with the implementation of the first Billboard Structures
Valuation Guide, we have made revisions to the current guide to reflect the changes in
costs associated with the construction of billboards. We feel these changes will simplify
the valuation process used by the local taxing jurisdictions and enhance the uniformity and
accuracy in the valuation of outdoor advertising for mass appraisal purposes. In this guide,
the base cost has already been determined with the additional improvements included in
the square foot base cost. This cost per square foot has been extended out to a total value
for each specific class with the billboard structure categorized by type of construction, size,
and height above ground level. In addition, a current depreciation schedule has been
provided at the back of the guide. The appraiser will locate the type and size of each
billboard, make any necessary construction adjustments, and then apply the appropriate
depreciation to come up with the billboard value for assessment purposes.

The Billboard Structures Valuation Guide is effective for January 1, 2018. The
methodology is based on current data and is not applicable to prior years. Counties
adopting these schedules should also consider this as a guide for the mass appraisal of
billboards, understanding that it will not cover every possible sign type and configuration.
The appraiser may need to make additional adjustments for location, conditions, and other
structures not covered by these schedules.

The values provided in the classification tables include the cost conversion factor, derived
from data made available in the Producer Price Indexes prepared by the Bureau of Labor
Statistics. This factor will take into consideration any changes in the cost to construct
billboards and will keep the guide updated on a yearly basis.

Introduction to Billboards
An outdoor advertising sign in the form of a billboard consists of at least one display panel
and the supporting framework. Billboards may be freestanding, mounted to buildings, or
attached to other structures. Modern billboards conform to engineering standards and are
constructed of steel, while older billboard structures are made of wood or angle iron frames.
A billboard may be smaller than the permitted size. This allows for the addition of a cutout
or extension within the square foot envelope of the permitted area. Billboards vary in
display position and size, but the industry standard display faces include:

6 ft. x 12 ft. = 72 square feet 10.5 ft. x 36 ft. = 378 square feet
8 ft. x 12 ft. = 96 square feet 12 ft. x 40 ft. = 480 square feet
10 ft. x 22 ft. = 220 square feet 14 ft. x 48 ft. = 672 square feet
10 ft. x 24 ft. = 240 square feet 16 ft. x 60 ft. = 960 square feet
12 ft. x 25 ft. = 300 square feet 20 ft. x 50 ft. = 1,000 square feet

The typical arrangements of display faces include: single face, double face, V-built, side-
by-side, stacked, and tri-build configurations.

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 Billboard companies enter into sales contracts for advertising space on their billboards.
Advertisements are designed and/or produced by a billboard company or an advertising
agency in response to client specifications. Advertising space is often marketed for a group
of billboards rather than for a single billboard. Group sales are called “showings.”
Showings are based on demographic information and are designed to target a market with
a specified level of advertising exposure. The client has no interest in the real property.

Billboard sites are typically leased from an unrelated third party who owns the land or
structure to which the billboard is affixed. The owner of the site generally has no interest
in the billboard structure. A billboard site, the land or structure upon which a billboard is
situated, is generally limited to an area large enough to accommodate the billboard
structure and foundation, as well as enough space to provide for service and maintenance
work.

Valuation of Billboard Structures

As with the appraisal of other property for local tax purposes, the three accepted approaches
to value (income, sales comparison, and replacement cost less depreciation) should be
considered when valuing billboard structures.

The sales comparison approach requires verifiable accurate sales information of individual
billboards. Outdoor advertising structures are generally sold in bulk and the transfers
include ongoing concern and host agreements. These transfers typically are not recorded
on filed deeds; therefore, it may be difficult to obtain information on the sale of billboards.
When information becomes available, an allocation of the sales price for billboard
structures may be necessary.

The income approach requires net operating income to be capitalized into a value for a
specific property. The income realized from the sale of advertising space is business
income that may be difficult to obtain and may include income components that should not
be considered when determining property tax valuation in North Carolina. Additionally,
if the income approach is used, economic rent must be applied. Therefore, careful
consideration and accurate income analysis must be made or the income approach will not
yield reliable results.

There are many difficulties inherent in the appraisal of billboards when applying the sales
comparison and the income approach to value. For assessment purposes in North Carolina,
our office recommends these structures to be treated as personal property and appraised
using the cost approach. The cost approach provides an efficient methodology to uniformly
value billboard structures. In fact, the use of this guide to value billboard structures has
been supported and affirmed by the North Carolina Court of Appeals in the Interstate
Outdoor Incorporated vs. Johnston County case filed on September 16, 2014. The
replacement cost less depreciation avoids the complicated allocation process and other
issues associated with the income and sales comparison approaches. The data contained

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 in this guide is based on information extracted from material costs, labor, and other integral
components of billboard construction. The valuation of each sign will be determined by
calculating the replacement cost new (RCN) and then deducting depreciation based on an
effective age depreciation schedule. The effective age schedule is provided to assist
appraisers in estimating loss in value due to physical depreciation, functional obsolescence,
and economic obsolescence. The depreciation schedule is based on a 25-year life for
wooden structures and a 50-year life for steel structures. It is recommended that the
depreciation not be lowered more than 35 percent remaining good on both wood and steel
structures, as long as the structures are continuing to produce a viable income stream. For
the vast majority of billboards, no negative or positive adjustment is appropriate for
physical condition. As long as a billboard structure can support a sign face, the physical
condition most likely has little effect on the income stream, and therefore, the physical
condition may not be particularly important. Only the worst structures, and perhaps the
very best billboards, will fall outside of the recommended schedules.

This guide is a publication of:

North Carolina Department of Revenue
Local Government Division
Property Tax Section
PO Box 871
Raleigh, NC 27602
Phone (919) 814-1129  Fax (919) 715-3107

WORKS CITED

“Guidelines for the Assessment of Billboard Properties.” State of California, Board of Equalization: 2002
International Association of Assessing Officers. “The Valuation of Outdoor Advertising Structures.” Assessment Digest, Volume 13,
Number 4, 1991
State of New Jersey, Department of the Treasury, Division of Taxation, Real Property Appraisal Manual of New Jersey Assessor’s,
“Assessment of Billboards.”
Oregon Department of Revenue, Billboard Cost Factors (Off Premise Outdoor Advertising) Revised 2007
Wright, Jeffrey and Paul Wright. Billboard Appraisal: The Valuation of Off-Premise Advertising Signs. United State of America, 2001

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 Billboard Categories and Definitions
For assessment purposes, billboards are grouped into four structural categories based on
the building materials used and the underlying support system. The four categories, or
classifications, include: wood, steel frame, multi-mast steel, and monopole.

CLASS 1 WOOD STRUCTURE

This class of billboards is constructed with wood posts or pole supports with dimensional
lumber as the secondary support (A-frame) with a wood or metal catwalk and a single
display panel. Supports may be imbedded in the ground. There may be a foundation of
concrete or gravel. Lighting, if present, is either fluorescent or mercury vapor.

WOOD SINGLE FACE WOOD V-BUILT

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CLASS 1: WOOD POLE A-FRAME CONSTRUCTION

BASE SPECIFICATIONS

1. STRUCTURE - Wood support poles or posts.

2. FOUNDATION - Embedded in ground or equivilent.

3. PLATFORM OR CATWALK -Included in Base.

4. PANELS - Included in Base.

5. APRON - Included in Base.

6. LIGHTING - Included in Base.

7. ADDITIONAL PANELS - None.

TOTAL BASE COST PER STRUCTURE

1A- SINGLE FACE WOOD A FRAME

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 7,170 $ 7,960 $ 9,540 $ 10,400
378' $ 8,400 $ 9,350 $ 11,250 $ 12,090
480' $ 9,930 $ 11,680 $ 15,180 $ 15,790
672' $ 13,410 $ 15,790 $ 20,580 $ 21,340

1B- DOUBLE FACE WOOD A FRAME

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 9,350 $ 10,400 $ 12,510 $ 13,480
378' $ 10,870 $ 12,090 $ 14,530 $ 15,680
480' $ 13,360 $ 15,680 $ 20,370 $ 21,230
672' $ 18,140 $ 21,340 $ 27,700 $ 28,760

1C- V BUILT AND SIDE BY SIDE WOOD A FRAME

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 14,320 $ 15,910 $ 19,110 $ 20,690
378' $ 16,810 $ 18,660 $ 22,380 $ 24,310
480' $ 19,840 $ 23,340 $ 30,360 $ 31,520
672' $ 26,910 $ 31,620 $ 41,070 $ 42,660

CONSTRUCTION ADJUSTMENTS

See worksheet for construction adjustments

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 CLASS 2 STEEL A-FRAME CONSTRUCTION

This class of billboards is constructed with angle iron or steel supports with metal framing,
catwalk, and a single display panel. Supports may be imbedded in the ground. There may
be a foundation of concrete or gravel. Lighting, if present, is either fluorescent or mercury
vapor.

STEEL A-FRAME DOUBLE FACE STEEL A-FRAME V-BUILT

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CLASS 2: STEEL A-FRAME CONSTRUCTION

BASE SPECIFICATIONS

1. STRUCTURE - Steel pole, angle iron, I beam or equivalent as primary support.

2. FOUNDATION - Concrete gravel or equivalent.

3. PLATFORM OR CATWALK -Included in Base.

4. PANELS - Included in Base.

5. APRON - Included in Base.

6. LIGHTING - Included in Base.

7. ADDITIONAL PANELS - None.

TOTAL BASE COST PER STRUCTURE

2A- SINGLE FACE A FRAME STEEL

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 18,440 $ 20,490 $ 24,400
378' $ 19,280 $ 22,680 $ 29,070

2B- DOUBLE FACE A FRAME STEEL

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 24,870 $ 27,640 $ 32,910
378' $ 27,080 $ 31,870 $ 40,850

2C- V BUILT A FRAME STEEL

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 36,820 $ 40,910 $ 48,710
378' $ 38,540 $ 45,360 $ 58,150

CONSTRUCTION ADJUSTMENTS

See worksheet for construction adjustments

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 CLASS 3 MULTI-MAST STRUCTURE

This class of billboards is constructed with steel poles, I-beam or equivalent as primary
support, with a catwalk, and a single display panel. Lighting is fluorescent or mercury
vapor.

STEEL MULTI-MAST DOUBLE FACE STACKED DISPLAYS STEEL MULTI-MAST DOUBLE FACE

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CLASS 3: MULTI-MAST STRUCTURE

BASE SPECIFICATIONS

1. STRUCTURE - Steel pole, angle iron, I beam or equivalent as primary support.

2. FOUNDATION - Concrete gravel or equivalent.

3. PLATFORM OR CATWALK -Included in Base.

4. PANELS - Included in Base.

5. APRON - Included in Base.

6. LIGHTING - Included in Base.

7. ADDITIONAL PANELS - None.

TOTAL BASE COST PER STRUCTURE

3A- SINGLE FACE MULTI MAST STEEL

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 21,960 $ 24,400 $ 29,050
378' $ 26,150 $ 29,070 $ 34,610
480' $ 30,380 $ 33,730 $ 40,170
672' $ 36,080 $ 40,110 $ 47,750

3B- DOUBLE FACE MULTI MAST STEEL

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 29,680 $ 32,980 $ 39,270 $ 46,750
378' $ 35,700 $ 39,670 $ 47,220 $ 56,210
480' $ 40,440 $ 44,920 $ 53,480 $ 63,670
672' $ 47,480 $ 52,760 $ 62,810 $ 74,790

3C- V BUILT MULTI MAST STEEL

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 35,700 $ 39,670 $ 47,220 $ 56,210
378' $ 43,960 $ 48,860 $ 58,150 $ 69,220
480' $ 49,900 $ 55,440 $ 65,990 $ 78,590
672' $ 59,370 $ 65,940 $ 78,520 $ 93,460

CONSTRUCTION ADJUSTMENTS

See worksheet for construction adjustments

10
 CLASS 4 MONOPOLE STRUCTURE

This class of billboards is constructed with tubular steel support (of various
circumferences), tubular steel framing, metal catwalk and a single display panel. The
foundation is concrete. Lighting is fluorescent or mercury vapor.

FLAG MONOPOLE DOUBLE FACE CENTER MONOPOLE DOUBLE FACE

CENTER MONOPOLE V FACE CENTER MONOPOLE TRI-SIDED

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CLASS 4: MONOPOLE STRUCTURE

BASE SPECIFICATIONS

1. STRUCTURE - Tubular Steel Supports.

2. FOUNDATION - Poured concrete.

3. PLATFORM OR CATWALK -Included in Base.

4. PANELS - Included in Base.

5. APRON - Included in Base.

6. LIGHTING - Included in Base.

7. ADDITIONAL PANELS - None.

TOTAL BASE COST PER STRUCTURE

4A- SINGLE POLE SINGLE FACE CENTER MOUNTED MONOPOLE

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 23,930 $ 26,420 $ 31,420 $ 36,390 $ 46,370 $ -
378' $ 25,090 $ 29,280 $ 37,680 $ 46,050 $ 62,810 $ -
480' $ 36,680 $ 40,440 $ 47,960 $ 55,490 $ 70,670 $ -
672' $ 48,880 $ 52,730 $ 60,490 $ 68,230 $ 83,820 $ 97,620
960' $ 58,520 $ 62,400 $ 70,140 $ 77,880 $ 93,470 $ 114,810
1000' $ 64,670 $ 68,540 $ 76,290 $ 84,030 $ 99,640 $ 120,950

4B- SINGLE POLE SINGLE FACE PARTIAL FLAG MONOPOLE

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 24,880 $ 27,490 $ 32,670 $ 37,890 $ 48,180 $ -
378' $ 26,210 $ 30,570 $ 39,270 $ 47,960 $ 65,370 $ -
480' $ 38,100 $ 42,030 $ 49,880 $ 57,720 $ 73,520 $ -
672' $ 50,540 $ 54,660 $ 62,810 $ 70,980 $ 87,230 $ 101,440
960' $ 60,640 $ 64,720 $ 72,910 $ 81,050 $ 97,310 $ 119,460
1000' $ 67,010 $ 71,090 $ 79,250 $ 87,430 $ 103,570 $ 125,850

4C- SINGLE POLE SINGLE FACE FULL FLAG MONOPOLE

Size 25' HAGL 40' HAGL 50' HAGL 70' HAGL 100' HAGL
300' $ 37,310 $ 39,130 $ 45,620 $ - $ - $ -
378' $ 39,320 $ 43,510 $ 51,890 $ 60,280 $ 77,030 $ -
480' $ 53,650 $ 56,970 $ 63,670 $ 70,350 $ 83,920 $ -
672' $ 57,830 $ 61,760 $ 69,600 $ 77,450 $ 93,080 $ 107,710
960' $ 67,650 $ 71,530 $ 79,250 $ 87,000 $ 102,620 $ 125,000
1000' $ 75,070 $ 78,840 $ 86,370 $ 93,910 $ 108,770 $ 132,220

CONSTRUCTION ADJUSTMENTS

See worksheet for construction adjustments

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CLASS 4: MONOPOLE STRUCTURE (CONTINUED)

BASE SPECIFICATIONS

1. STRUCTURE - Tubular Steel Supports.

2. FOUNDATION - Poured concrete.

3. PLATFORM OR CATWALK -Included in Base.

4. PANELS - Included in Base.

5. APRON - Included in Base.

6. LIGHTING - Included in Base.

7. ADDITIONAL PANELS - None.

TOTAL BASE COST PER STRUCTURE

4D- SINGLE POLE DOUBLE & V FACE CENTER MOUNTED MONOPOLE

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 34,990 $ 36,950 $ 40,850 $ - $ - $ -
378' $ 38,100 $ 40,210 $ 44,450 $ 48,710 $ 57,310 $ -
480' $ 44,260 $ 48,070 $ 55,720 $ 63,350 $ 78,520 $ -
672' $ 53,100 $ 57,210 $ 65,370 $ 73,520 $ 89,960 $ 108,220
960' $ 62,010 $ 66,430 $ 75,230 $ 84,030 $ 101,660 $ 125,000
1000' $ 68,070 $ 72,480 $ 81,270 $ 90,090 $ 107,710 $ 131,150

4E- SINGLE POLE DOUBLE & V FACE PARTIAL FLAG MONOPOLE

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 36,310 $ 38,350 $ 42,430 $ - $ - $ -
378' $ 39,580 $ 41,810 $ 46,260 $ 50,720 $ 59,630 $ -
480' $ 45,990 $ 49,990 $ 57,930 $ 65,880 $ 81,720 $ -
672' $ 55,010 $ 59,330 $ 67,920 $ 76,490 $ 93,580 $ 129,340
960' $ 64,510 $ 69,070 $ 78,200 $ 87,330 $ 105,690 $ 149,520
1000' $ 70,870 $ 75,430 $ 84,570 $ 93,680 $ 112,050 $ 156,720

4F- SINGLE POLE DOUBLE & V FACE FULL FLAG MONOPOLE

Size 0-20' HAGL 21-30' HAGL 31-40' HAGL 41-55' HAGL 56-80' HAGL 80+' HAGL
300' $ 49,120 $ 51,020 $ 54,800 $ - $ - $ -
378' $ 53,530 $ 55,600 $ 59,740 $ 63,880 $ 72,250 $ -
480' $ 53,890 $ 58,470 $ 67,590 $ 76,720 $ 95,090 $ -
672' $ 58,740 $ 63,670 $ 73,520 $ 83,400 $ 103,250 $ 118,310
960' $ 72,370 $ 76,720 $ 85,410 $ 94,130 $ 111,830 $ 137,320
1000' $ 77,780 $ 82,340 $ 91,450 $ 100,580 $ 118,950 $ 144,410

CONSTRUCTION ADJUSTMENTS

See worksheet for construction adjustments

13
CLASS 4: MONOPOLE STRUCTURE (CONTINUED)

BASE SPECIFICATIONS

1. STRUCTURE - Tubular Steel Supports.

2. FOUNDATION - Poured concrete.

3. PLATFORM OR CATWALK -Included in Base.

4. PANELS - Included in Base.

5. APRON - Included in Base.

6. LIGHTING - Included in Base.

7. ADDITIONAL PANELS - None.

TOTAL BASE COST PER STRUCTURE

4G- TRI-SIDED CENTER MOUNTED

Size 25' HAGL 40' HAGL 50' HAGL 70' HAGL 100' HAGL
300'
378'
480'
672' $ 111,830 $ - $ 144,410 $ 204,250
960'
1000'

4H- TRI-SIDED STACKED CENTER MOUNTED

Size 25' HAGL 40' HAGL 50' HAGL 70' HAGL 100' HAGL
300'
378'
480'
672' $ 104,530
960'
1000'

CONSTRUCTION ADJUSTMENTS

See worksheet for construction adjustments

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 Billboard Valuation Worksheet

Total Base Cost of Structure ____________________

Construction Adjustments

Stacked Displays: Add 25% +___________________

No Illumination: Deduct 5% -____________________

Replacement Cost New (RCN) =___________________

Less Depreciation (100% - Percent Good from

Depreciation Schedule) -____________________

Less Additional Adjustments (if needed)

Physical Depreciation -____________________

Functional Obsolescence -____________________

Economic Obsolescence -____________________

BILLBOARD VALUE =___________________

Special Information

Stacked Displays – Up to two display panels are included in the base cost per structure as
indicated in the tables. For billboard structures with more than 2 display panels, where the
panels are stacked one on top of the other, add 25% of the indicated value back into that
value to account for the additional construction costs.

Side-by-Side Displays – Where the billboard structure configuration is indicated to be

horizontally side-by-side and of steel construction, appraise this constructed arrangement
as one billboard structure. Add the square footage of the faces together to determine the
size of the structure.

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 Billboard Structure Appraisal Examples

Refer to sample schedule I-1 on page 18 for data used in the following examples.

Example #1

Using Page 6 in the guide, the description shows a 1-C Side-By-Side Wood A-Frame
Structure at a 25’ HAGL with the largest panel face at 300 square feet. The structure has
4 panel faces and is in a side-by-side configuration. The panel faces are not illuminated
(lighted) and the structure was originally built in 2005.

The base cost using the data provided indicates an amount of $15,910. Because there are
2 additional panel faces, the appraiser must add 25% to the base cost. So, $15,910 + $3,978
(25% of $15,910 = $3,978) = $19,888. Because the structure is not illuminated, the
appraiser must subtract 5% from the total cost of $19,888. So, $19,888 - $994 (5% of
$19,888 = $994 rounded) = $18,894. The year of original construction was 2005, so the
sign is 13 years old for the 2018 listing of this asset. From the depreciation table on page
25 of the guide, a wood constructed billboard structure that is 13 years old, has a 48% good
factor of value remaining, or 52% depreciation applied to the adjusted base cost. So, the
appraiser applies 52% depreciation to $18,894 (52% of $18,894 = $9,825 rounded) by
subtracting $9,825 for a final appraised value of $9,069.

Example #2

Using page 10 in the guide, the description shows a 3-B Double Face Multi-Mast Steel
Structure at a 40’ HAGL with the largest panel face at 378 square feet. The structure has
4 panel faces and is in a stacked configuration. The panel faces are illuminated (lighted)
and the structure was originally built in 2008.

The base cost for the data provided indicates an amount of $47,220. Because there are 2
additional faces and the structure is in a stacked configuration, the appraiser must add 25%
to the base cost. So, $47,220 + $11,805 (25% of $47,220 = $11,805 rounded) = $59,025.
The cost for illumination (lighting) has already been included in the base cost so no
additional reduction in cost is necessary. The year of original construction was 2008, so
the sign is 10 years old for the 2018 listing of this asset. From the depreciation table on
page 25 of the guide, a steel constructed billboard structure that is 10 years old, has an 80%
good factor of value remaining, or 20% depreciation applied to the adjusted base cost. So,
the appraiser applies 20% depreciation to $59,025 (20% of $59,025 = $11,805 rounded)
by subtracting $11,805 for a final appraised value of $47,220.

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 Example #3

This is an example of how to appraise a billboard structure that has digital sign face, a tri-
vision/tri-fold sign face, or an LED sign face.

Using page 12 in the guide, the description shows a 4-A Single Pole Single Face Center
Mounted Monopole Structure at a 40’ HAGL with the panel face at 378 square feet. The
panel face has a cost of $150,000 due to being a digital, tri-vision, or LED constructed
component and the panel face is illuminated (lighted).

The base cost for the data provided indicates an amount of $37,680. The cost for
illumination (lighting) has already been included in the base cost so no additional reduction
in cost is necessary. The year of original construction was 2009, so the sign is 9 years old
for the 2018 listing of this asset. From the depreciation table on page 25 of the guide, a
steel constructed billboard structure that is 9 years old, has an 82% good factor of value
remaining, or 18% depreciation applied to the adjusted base cost. So, the appraiser applies
18% depreciation to $37,680 (18% of $37,680 = $6,782) by subtracting $6,782 for an
adjusted value attributable to the structure of $30,898.

Next, the $150,000 cost reported by the sign owner is depreciated using the I-8 Schedule
from the 2018 North Carolina Department of Revenue Cost Index & Depreciation
Schedules. This depreciation schedule is listed on page 24 in this guide book and on page
21 of the 2018 Cost Index & Depreciation Schedules document and it has a 25% good
factor of value remaining in the 9th year. Therefore, 75% depreciation is applied to the
sign face cost reported by the owner. So, the appraiser applies 75% depreciation to
$150,000 (75% of $150,000 = $112,500) by subtracting $112,500 for an adjusted value
attributable to the sign face of $37,500.

The last step is to combine the adjusted value of the sign structure with the adjusted value
of the sign face. So, by adding the structure value of $30,898 to the sign face value of
$37,500 gives a final appraised value of $68,398.

17
 Billboard Structure Appraisal Example Schedule I-1

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 Billboard Structure Definitions

Additional Panels: For purposes of appraisal in the Billboard Structures Valuation Guide,
up to two sign panels are included in the base cost per structure as indicated in the tables.
More than two sign panels (additional panels) on one structure would require a positive
adjustment in the valuation of the total structure.

Apron: Decorative trim at the bottom of the billboard sign where a billboard company
logo is typically displayed.

Back-To-Back: Billboard structure configurations where two display panel faces are
parallel to one another such that the backs of the advertising (back view) face each other.
The advertising on each panel of the billboard structure faces in opposite directions.

Base Cost Per Structure: All of the component costs related to the construction of the
billboard structure itself such as material costs, labor, permit fees, freight costs, engineering
costs, and installation costs. This is not a conclusive list, but it is provided to indicate that
all costs whether direct or indirect are included in the base cost amount unless specifically
noted.

Base Index Year: For purposes of appraisal in the Billboard Structures Valuation Guide,
the year 2009 has been established as the base index year from which all increases or
decreases to the construction costs of erecting a billboard is determined.

Billboard: A large panel or flat surface that is intended for viewing an advertisement or
notice from extended distances and is typically constructed of wooden posts or steel beams.

Catwalk: The platform located underneath the sign face, either in front or in back of the
billboard sign, used as support for the maintenance crew.

Center Mount: Steel monopole structure in which the supporting column is affixed to the
center of the display panel.

Cost Conversion Factor: A factor that represents the percentage price increase or
decrease of a cost amount over a previous 12-month period after establishing a base index
year.

Cut Outs: The portions of the panel display which are attached to or cut out from the face
in order to emphasize a certain figure and draw the attention of the sign reader.

Depreciation Schedule: A valuation table that calculates the product of a trending factor
and a straight-line depreciation factor to arrive at the replacement cost new less
depreciation. The percentage amounts are also known as the percent good factors.

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 Digital Display: Light emitting diode panel faces that are internally illuminated matrix
displays constructed with tiny silicon chips that are capable of producing light in a variety
of colors.

Display Face (Panel): The flat area normally rectangular in shape where the
advertisement is displayed.

Double Face: A billboard structure that has two display panels, also known as back-to-
back configuration, which are parallel to each other and facing in opposite directions.

Economic Obsolescence: A loss in remaining value due to reasons external to the

property.

Extension: A part of the advertisement display that extends beyond the typical rectangular
face in order to create better visual impact.

Flag Mount: A steel monopole structure in which the supporting column is affixed to the
left or the right of the center of the display panel.

Footings: The concrete pad sunk into the ground which is used to solidify the structure
keeping it in an upright position.

Foundation: The material used at the base of a billboard structure to keep the structure in
an upright position. The foundation could be the natural soil composition, poured in gravel,
or poured in concrete.

Functional Obsolescence: A reduction in functional capacity or efficiency that impacts

the value of the property which is caused by factors inherent in the property itself.

Height Above Ground Level (HAGL): The distance in feet from the ground level to the
lowest edge of the bottom molding of the billboard display face (panel).

Illumination: Light fixtures attached to a sign so that the message is visible in hours of
darkness.

Leased Billboard Site: The location where a billboard structure is erected that is typically
owned by an unrelated third party who receives rental income through a contract with the
billboard owner.

Lighting: Fixtures attached to the billboard structure that provides illumination during
hours of darkness.

Molding: Decorative frame surrounding the printed message on the display face.

Multi-Mast Steel: A billboard structure that is constructed with several steel poles or I-
beam steel supports.

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 Panel (Display Face): The flat area normally rectangular in shape where the
advertisement is displayed.

Physical Depreciation: The loss in value due to physical wear and tear.

Replacement Cost New (RCN): The cost to replace the utility of a property with new
construction using the best available materials and construction methodology.

Side-By-Side: A type of billboard configuration where two faces are arranged together in
a horizontal line, one beside the other, with both display panels facing in the same direction.

Single Face: A billboard structure that has one display panel facing in one direction.

Stacked Display: Billboard structure that contains multiple display panels which are set
above one another in a vertical configuration.

Steel A-Frame: A billboard structure that is constructed with angle iron or steel supports
with metal framing and a single display panel. The supports are imbedded in the ground
at an angle that resembles the letter “A”.

Steel Monopole: A billboard structure that is constructed with a single tubular steel
support imbedded in a concrete footing pad.

Stringers: Wooden or steel braces attached to the back of a billboard panel that functions
to support the display face. These are also known as cross-members.

Triangle or Tri-Built: A billboard structure having three display panels arranged in the
shape of a triangle with each panel facing in a different direction.

Tri-Vision or Tri-Fold: A type of billboard structure where the panel display face is made
with triangular louvered narrow vertical panels that periodically rotate to display three
different advertising messages in a predetermined sequence.

Uprights (Supports): Vertical posts, pipes or beams, mounted into the ground that keep
a billboard structure in an erect position.

V-Built: A billboard structure having two or more display panels that are not parallel to
each other, facing in opposite directions where the configuration resembles the letter “V”.

Wood Pole A-Frame: A billboard structure that is constructed with wooden post supports
and a single display panel. The supports are imbedded in the ground at an angle that
resembles the letter “A”.

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 Schedule I-1

22
 Billboards and Outdoor Advertising Structures
Instructional Page
Follow these instructions when filing information related to Schedule I – 1:

1 Complete the top section of the Schedule I-1 form by providing your 10 Indicate whether the billboard faces are stacked one on top of the other in
company name, the county account number, the name of the county a vertical configuration. Record a “Y” for Yes or an “N” for No. See area
where the asset is located and the year of listing. See area “1” on diagram “10” in diagram below.
below.
11 Indicate whether the billboard faces are side by side in a horizontal
Provide your company’s billboard panel identification number. If there are configuration. Record a “Y” for Yes or an “N” for No. See area “11” in
2
multiple panels/faces on one structure, indicate all the panel numbers that diagram below.
are associated with that one structure. See area “2” on diagram below.
12 Indicate whether the billboard sign is illuminated (lighted) or not. Record a
Fill in the NC Department of Transportation Permit Number assigned to “Y” for Yes or an “N” for No. See area “12” in diagram below.
3
this specific billboard if applicable. Refer to DOT form OA-1, “Application
for Outdoor Advertising Permit” for permit number. Write “N/A” in column 13 Provide all costs related to the construction of the Digital billboard face.
if DOT permitting is not required. See area “3” on diagram below. Include the cost of any partial Digital sign face superimposed over a typical
billboard display. Also, list all costs related to the construction of any
Give a brief description of the sign location by using street names and Tri-Vision or Tri-Fold billboard face. If the guide is followed, the county
4
mileage distances from nearby intersections. Please record the county appraiser will value these sign faces on an I-8 depreciation schedule.
parcel identification number (PIN) for this site if available. See area “4” in Then the county appraiser will use the additional information in columns
diagram below. “2” through “12” to appraise the billboard structure itself minus the billboard
face. The calculated value of the face will be added to the calculated value
of the structure for a total valuation for digital and tri-vision/tri-fold billboard
5 Indicate what jurisdiction the billboard sign is located in. Record city
signs. Area “13” on the diagram below is the place for listing the cost of the
name, fire or special district name, or “none” if the billboard sign is in the
face of the Digital and Tri-Vision/Tri-Fold signs.
county jurisdiction only. See area “5” in diagram below.

6 Provide the year the billboard sign was originally constructed and 14 The last column is reserved for county use to assign a county identification
number for internal tracking purposes. See area “14” in diagram below.
completed. For situations where a digital face is added to an established
billboard structure, populate the cell with the original year of construction
first, and then show the year the digital face was added. See area “6” in The “Billboard Structures Valuation Guide” can be viewed by going to:
diagram below. www.ncdor.gov/reports-and-statistics/billboard-structures-valuation-guide.

From the NC Department of Revenue’s “Billboard Structures Valuation You may also obtain a printable blank copy of the “Billboard Listing Form”
7
Guide”, show the Class and Type of Billboard construction indicated in the (Schedule I-1) using the link above.
description pages. See area “7” in diagram below.

8 Indicate the HAGL in feet (HAGL is the distance from the ground level to Note: Report any “Construction In Progress” expenditures on Page 1 under the
the bottom edge of the billboard face). HAGL is the acronym for “Height Group 2 section of the annual business personal property listing form.
Above Ground Level”. See area “8” in diagram below.

9 Calculate the total square footage of the display panel face and record the
data. For structures with more than one (1) panel face, populate the cell
with the square footage amount of the largest panel face on the structure.
Do not add all the panel face square footages together. Just show the
square footage amount of the largest panel face on the structure. See
area “9” in diagram below.

13

2 3 4 5 6 7 8 9 10 11 12 14

23
24
 BILLBOARD DEPRECIATION SCHEDULE
EFFECTIVE AGE 25 YEAR LIFE 50 YEAR LIFE
(in years) (wood) (steel)
1 96% 98%
2 92% 96%
3 88% 94%
4 84% 92%
5 80% 90%
6 76% 88%
7 72% 86%
8 68% 84%
9 64% 82%
10 60% 80%
11 56% 78%
12 52% 76%
13 48% 74%
14 44% 72%
15 40% 70%
16 36% 68%
17 35% 66%
18 35% 64%
19 35% 62%
20 35% 60%
21 35% 58%
22 35% 56%
23 35% 54%
24 35% 52%
25 35% 50%
26 48%
27 46%
28 44%
29 42%
30 40%
31 38%
32 36%
33 35%
34 35%
35 35%
36 35%
37 35%
38 35%
39 35%
40 35%
41 35%
42 35%
43 35%
44 35%
45 35%
46 35%
47 35%
48 35%
49 35%
50 35%

25