What Is Severance Damages
Severance damages are the reduction in value to your remaining property when a government agency takes a portion of it through eminent domain. If the government acquires 2 acres of your 10-acre parcel for a highway expansion, severance damages compensate you for the diminished utility, access, or marketability of the remaining 8 acres. This is separate from the value of the land actually taken.
In property assessment appeals, severance damages occasionally surface when an assessor applies a blanket assessment ratio that doesn't account for how a partial taking (like a utility easement or road widening) has already degraded property value. You may need to challenge the assessment by demonstrating that comparable properties with similar partial takings command lower prices.
How Severance Damages Reduce Assessed Value
Severance damages operate through three practical mechanisms in assessment disputes:
- Market Evidence: Use comparable sales data showing properties with partial takings or easements sell for 8-15% below unrestricted comparables. If similar 5-acre parcels without easements averaged $150,000 in your jurisdiction last year, but easement-burdened parcels sold for $130,000, that $20,000 gap supports your severance damage claim at the board of review hearing.
- Appraisal Methodology: Professional appraisers apply the income approach or sales comparison approach to quantify severance impact. A commercial property losing direct road frontage due to a utility corridor may drop 12-20% in rental value or resale price. Document this loss with an independent appraisal submitted as evidence during your appeal.
- Assessment Ratio Adjustment: Your local assessor applies a uniform assessment ratio (typically 30-50% of fair market value depending on state law). If severance damages reduce your property's actual market value by $50,000, your assessed value should drop proportionally. For example, if your state assesses at 40%, a $50,000 severance loss means a $20,000 reduction in assessed value.
Severance Damages in Board of Review Appeals
When appealing to your county board of review, severance damages require concrete evidence. Bring documented examples of comparable properties that experienced similar partial takings. State agencies often publish recorded easement and taking documents; obtain these from the county recorder's office. Present them alongside recent sales data showing the price discount. Many boards of review expect 2-3 comparable sales with similar severance conditions to accept your valuation argument. If your board operates under state equalization standards, cite those statutes to show the assessor failed to apply uniform methodology across similar properties.
Key Documentation You Need
- Recorded easement or deed of taking showing the exact acreage or portion affected
- Comparable sales within 12 months from your jurisdiction showing prices for properties with and without similar encumbrances
- Independent appraisal report quantifying severance impact using recognized methods
- Survey or site plan clearly marking the affected area and remaining usable land
- Property tax assessment history showing when the severance condition was first imposed
Common Questions
- Do I need an appraisal to prove severance damages at a board of review hearing?
- Not always. Strong comparable sales evidence often suffices if you can show 2-3 recent, similar transactions. However, for commercial properties or complex partial takings, an appraisal ($1,500 to $5,000) strengthens your case significantly and may reduce assessment by enough to justify the cost.
- How long after a taking can I claim severance damages in my assessment?
- The next assessment cycle following the taking. If a utility easement was recorded in January and your assessment was completed in March, you may appeal immediately. If you discover a taking only after the assessment roll closes, file a late appeal under your state's provisions (typically 30-60 days grace), or wait for the next full reassessment cycle, usually every 3-5 years depending on jurisdiction.
- If the government compensates me for the taking itself, can I also appeal my assessed value for severance?
- Yes. Government compensation is a separate matter. You may receive just compensation for the land taken while also pursuing assessment reduction for severance damage to the remaining property. These are distinct legal claims.
Related Concepts
- Partial Taking - the actual government acquisition of a portion of your property
- Just Compensation - the legal requirement to pay fair market value for property taken through eminent domain