Sign amortization

Definition

A city letting a nonconforming sign stand for a set period, then requiring it down unpaid.

Why It Matters

A nonconforming sign continues until something specific ends its status, and this is usually that something. The theory is that the owner has had long enough to earn the sign back, so nothing is paid when it comes down. Which signs are protected depends on the state and on whose message the sign carries. Nevada bars a city from running an amortization schedule against a nonconforming outdoor advertising structure at all. North Carolina requires monetary compensation before an off-premise sign is removed. California requires compensation too and then writes the exception into statute, with a table giving a display two to seven years by its fair market value. None of those protections reach on-premise signs, which is where most sign companies actually live, and California excludes them by name. Owned structures are a scheduled write-off with no payment behind them. For a shop that only fabricates and services, a jurisdiction's sunset dates are a dated replacement cycle a buyer can underwrite.