HomeMy WebLinkAboutM081908�1
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_� EQIId.� j' 1820 Jefferson Street
P.O. Box 1220
Port Townsend, WA 98368
William S. Marlow Richard A. Broders Dave Garing
William S. Marlow
Richard A. Broders
Dave Garing
MINUTES
August 19, 2008
Chairman
Vice - Chairman
Member
Chairman William S. Marlow called the meeting to order at 9:30 a.m. in the presence of Vice - Chairman
Richard A. Broders. Member Dave Gating arrived shortly after the meeting began.
Duane & Jean Kastrup
30 Mockingbird Lane
Port Ludlow, WA 98365
HEARINGS
BOE: 08 -07 -R PN: 990 500 062
Mr. and Mrs. Kastrup were not present. Appraiser Maryn Gossell represented the Assessor's office and
was swom in by Chairman Marlow. Under appeal is a residence situated on a lot located at 30
Mockingbird Lane, Port Ludlow.
The appellants' reason for appealing the assessed value is written on their petition form as follows:
"Homes are over valued and aren't selling. Revalued our property 78 %, property tax up 37% in 4 years."
In an attached letter the appellants state: "My wife, Jean and I have been handicapped most or our lives.
We have managed to fend for ourselves without aid of our governments. We have managed to save and
build a very small nest egg with the hope that we can take care of ourselves until we are called away by
our higher being. We are proud of the fact that we have not had to ask for assistance from anyone.
Government is eating away at that PRIDE. This year the County Assessor has revalued our modest home
78% and our property tax has gone up 37 %. I do believe these figures are completely out of line
considering the fact that you cannot give Real Estate away at the present time. I believe property tax
should be valued at the price we paid for it until such time that it is sold. I am appealing to you to
reconsider this enormous increase in our property tax. Don't gouge us just because you can."
Currently, the property is assessed at $238,760 ($75,000 for the land and $163,760 for the improvements).
The appellants estimate the value is $133,830 ($27,800 for the land and $106,030 for the improvements).
Phone (360)385 -9100 Fax (360)385 -9382 jeftbocc&o.jefferson.wa.us
Board of Equalization Minutes - August 19, 2008 Page: 2
Ms. Gossell presented comparable property sales information and a map of the area outlining the location
of the appellant's property in proximity to those sales. The home was built in 1990 and is 1,532 square
feet in size with a 576 square foot garage. She noted that the land value of the appellant's property and
the three comparable properties are all valued the same using a base rate of $100,000 with a reduction of
35% given for site quality. With the addition of the $10,000 utility charge, the total land value for each
parcel is $75,000.
Comparable property 41 is located directly behind the appellant's property at 31 Warbler Lane, Port
Ludlow. The house on this parcel was built in 1991. It is 1,339 square feet in size with a 448 square foot
garage. It sold twice between January 1, 2003 and January 1, 2007. Those sales occurred in March 2005
for $190,000 and in July 2005 for $244,000. That is a 28% increase in value over a four month period of
time. It is currently valued at $251,680 ($75,000 for the land and $176,680 for the improvements).
Comparable property #2 has a house that was built in 1993 and is located at 75 Warbler Lane, Port
Ludlow (two parcels down from comparable property 41). This house is 1,452 square feet in size with a
396 square foot garage. It sold in July 2005 for $228,000. It is currently assessed at $241,450 ($75,000
for the land and $166,450 for the improvements).
Comparable property #3 is also located on the same street at 102 Warbler Lane, Port Ludlow. The house
on this parcel was built in 1994 and consist of 1,592 square feet with a 484 square foot garage. She noted
that the house has inferior LP siding which is known for deteriorating prematurely, so it is receiving a
reduction in value of $8,000. It sold in January 2006 for $258,500. It is currently valued at $258,795
($75,000 for the and $183,795 for the improvements).
Ms. Gossell stated that based on a cost per square foot, the appellant's property is being valued the least.
This information supports the valuation of the appellant's property as of the assessment date of January 1,
2007. However, she presented `Exhibit #1" and read the following statement: "It is the Assessor's
concern that there may be inequity between the Master Planned Resort (MPR) North Bay properties and
similar properties outside of that area as of January 1, 2008. It likewise is the determination of the
Assessor that the discrepancies lie solely in the improvement values. The Assessor has suggested that an
appropriate adjustment to the improvements would be 85% of their present values. Exhibit 41 is the sales
data that brackets 3 months either side of January 1, 2008."
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
James & Margaret Gormly BOE: 08 -08 -R PN: 990 600 255
114 Resolute Lane
Port Ludlow, WA 98365
Mr. and Mrs. Gormly were present. Appraiser Maryn Gossell represented the Assessor's office. After
explaining the hearing process Chairman Marlow swore in both parties. Under appeal is a residence
situated on a lot located at 114 Resolute Lane, Port Ludlow.
Currently, the property is assessed at $320,215 ($85,000 for the land and $235,215 for the improvements).
The appellants estimate the value is $272,250 ($72,250 for the land and $200,000 for the improvements).
Board of Equalization Minutes - August 19, 2008 Page: 3
Mr. Gormly stated that they purchased this property three years ago at the peak of the market. He
discussed sales which have occurred in the area within the last six months and compared the sales prices
to the current assessed value of the properties as follows:
Address
31 Resolute Lane
142 Resolute Lane
154 Resolute Lane
180 Goliah Lane
71 Rainier Lane
Assessed Value Sale Price
$347,665
$315,000
$243,595
$224,000
$390,290
$380,000
$240,160
$200,000
$347,810
$305,000
This is clear indication that the market has decreased and that property values have declined.
Ms. Gossell explained that this property was revalued as of January 1, 2007. At that time sales indicated
the value was fair. She presented a map outlining the appellant's property and five (5) comparable
property sales. Comparable properties 41, #2 and #3 are sales of improved properties with residences.
Comparable properties #4 and #5 are bare land sales. Two (2) of the improved property sales were
"double sales ", which means that they sold twice within the four -year revaluation cycle.
She noted that the appellants purchased this property in May 2005 for $290,000. The house was built in
1994 and is 2,114 square feet in size with a 400 square foot garage. The land is receiving a reduction in
value of 25% for site quality because it has a very steep and narrow driveway.
Comparable property #1 is located adjacent to the appellant's property at 106 Resolute Lane, Port Ludlow.
The house was built in 1996 and is 1,614 square feet in size with a 441 square foot garage. This property
also has a steep driveway and is receiving a 20% reduction in the land value for site quality. This property
sold in July 2006 for $286,000. It is currently assessed at $283,505 ($90,000 for the land and $193,505
for the improvements).
Comparable property #2 is located at 11 Resolute Lane, Port Ludlow. It has a smaller, but, newer house
which was built in 2004 and consists of 1,597 square feet with a 572 square foot garage. The land value is
receiving a site quality reduction of 20% because it is located on a very busy comer and it is below road
grade. This property was a "double sale ". It sold in May 2005 for $289,000 and then sold again in
September 2006 for $332,000. It is currently assessed at $331,805 ($90,000 for the land and $241,805 for
the improvements).
Comparable property #3 is located at 142 Camano Lane, Port Ludlow. The house is also smaller and
newer than the appellant's house. It was built in 2004 and is 1,769 square feet in size with a 490 square
foot garage. The land value is receiving a reduction of 20% for site quality. This property is also a
"double sale ". It sold in January 2005 for $252,500 and sold again in December 2006 for $324,900. It is
currently assessed at $317,105 ($90,000 for the land and $227,105 for the improvements).
Comparable properties #4 and #5 are bare land sales that occurred in the area. Comparable property 44 is
located off of Camano Lane, Port Ludlow. It sold in May 2007 for $82,500 and is currently assessed at
$80,000 (land only) with a site quality value reduction of 20 %. Comparable property #5 is located off of
Resolute Lane, Port Ludlow. It sold in December 2005 for $87,500 and is currently assessed at $85,000
(land only) with a site quality value reduction of 15 %.
Board of Equalization Minutes - August 19, 2008 Page: 4
With approval from the Board and the appellants, Ms. Gossell presented additional evidence titled
"Exhibit #1" and read the following statement: "It is the Assessors concern that there may be inequity
between the Master Planned Resort (MPR) North Bay properties and similar properties outside of that
area as of January 1, 2008. It likewise is the determination of the Assessor that the discrepancies lie solely
in the improvement values. The Assessor has suggested that an appropriate adjustment to the
improvements would be 85% of their present values. Exhibit 41 is the sales data that brackets 3 months
either side of January 1, 2008." The 3 comparable property- sales presented by the appellant are included
in this exhibit. It is a fact that the assessed value of the 3 comparable properties which sold in February
2008 is higher than 100% of their sale prices.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Grant & Nancy Smith, Trustee BOE: 08 -23 -R PN: 990 600 256
Smith Family Trust
122 Resolute Lane
Port Ludlow, WA 98365
Grant Smith was present. Appraiser Maryn Gossell represented the Assessor's office. Chairman Marlow
explained the hearing process and swore in both parties. Under appeal is a residence situated on a lot
located at 122 Resolute Lane, Port Ludlow.
Currently, the property is assessed at $379,330 ($90,000 for the land and $289,330 for the improvements).
The appellants estimate the value is $330,000 ($80,000 for the land and $250,000 for the improvements).
Mr. Grant stated that he has no problem with the Assessor's revaluation of the property as of January 1,
2007 and he agrees with it 100 %. The whole basis of his appeal is that the property was assessed at the
peak of the market. Sale prices of property in the North Bay area have since decreased 15% - 25 %. Now
the assessments are not reflective of the current true market value. He added that he does not need to
review the Assessor's comparable sales. They are accurate as of January 1, 2007, however, they are not
accurate today.
Ms. Gossell explained that she prepared materials for this appeal and she must present it to the Board and
the appellant. Included in the materials she provided is a map outlining the appellants' property and four
comparable property sales. Comparable properties 41 and 42 are sales of improved properties with
residences. Comparable properties #3 and #4 are bare land sales.
The appellants' property has a two -story house with 1,897 square feet on the first floor and 544 square feet
on the second floor. There are 2 garages. One is 462 square feet in size and the other is 336 square feet.
The land value is receiving a reduction of 20% for site quality.
Comparable property #1 is located at 71 Olympic Lane, Port Ludlow. The house is similar in square
footage to the appellant's house. It is receiving a 45% reduction in the land value for site quality because
it has an extremely long steep and narrow driveway. It sold in August 2006 for $384,900 and is currently
assessed at $380,645 ($65,000 for the land and $315,645 for the improvements).
Board of Equalization Minutes - August 19, 2008 Page: 5
Comparable property #2 is located at 50 Cascade Lane, Port Ludlow. It was a "double sale ", meaning that
it sold twice within the four -year revaluation period. Again, the square footage is similar to the
appellant's house. No reduction to the land value was made. It sold in May 2005 for $267,000 and sold
again in April 2007 for $380,000. It is currently assessed at $377,525 ($110,000 for the land and
$267,525 for the improvements). She noted that the sales of this parcel indicate an increase in value of
42% over 23 months.
Comparable properties 43 and 44 are bare land sales. Comparable property 93 is located off of Goliah
Lane, Port Ludlow. It sold in June 2007 for $84,500 and is currently assessed for $80,000 (land only).
Comparable property 44 is located off of Resolute Lane, Port Ludlow. It sold in December 2005 for
$87,500 and is currently assessed for $85,000 (land only). Both properties are receiving a reduction in the
land value for site quality.
This information supports the value as of the assessment date of January 1, 2007.
With approval from the Board and the appellant, Ms. Gossell presented additional evidence titled "Exhibit
#1" and read the following statement: "It is the Assessor's concern that there may be inequity between the
Master Planned Resort (MPR) North Bay properties and similar properties outside of that area as of
January 1, 2008. It likewise is the determination of the Assessor that the discrepancies lie solely in the
improvement values. The Assessor has suggested that an appropriate adjustment to the improvements
would be 85% of their present values. Exhibit #1 is the sales data that brackets 3 months either side of
January 1, 2008." The 3 comparable property sales presented by the appellant are included in this exhibit.
It is a fact that the assessed value of the 3 comparable properties which sold in February 2008 is higher
than 100% of their sale prices.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Gary & Joanne Trumer BOE: 08 -10 -R PN: 998 500 051
94 Timber Ridge Drive
Port Ludlow, WA 98365
Gary and Joanne Trumer were present. Appraiser Maryn Gossell represented the Assessor's office. After
explaining the hearing process, Chairman Marlow swore in both parties. Under appeal is a residence
situated on a lot located at 94 Timber Ridge Drive, Port Ludlow.
Currently, the property is assessed at $411,135 ($130,000 for the land and $281,135 for the
improvements). The appellants estimate the value is $375,000 ($115,000 for the land and $260,000 for
the improvements).
Mr. Trumer stated that the houses on either side of them are in foreclosure. Their property was assessed at
the height of the market. Since the time of their assessment, properties have decreased in value by 25 %.
Many people are holding off selling their property in hopes that the market will go up again.
Board of Equalization Minutes - August 19, 2008 Page: 6
Mrs. Trumer added that one of the homes adjacent to their property was on the market for approximately 2
h years and then went into foreclosure 4 months ago. It was originally on the market for $470,000 and
continued to get lower and lower. It is currently for sale for $389,000. The owner of the house on the
other side of their property lost his business and is now losing his house. It was never for sale.
They understand that property is assessed once every four years. Their concern is that the current market
does not reflect the value that was assessed as of January 1, 2007. The market has significantly decreased
over the last year and a half. It would be more equitable for property owners if property could be assessed
more often in order reflect the true market value. In today's market they could never sell their property for
the amount it is currently assessed, and by the looks of things, they don't think the market is going to
improve next year.
One of the comparable property sales used by the Assessor's office has a finished basement. She noted
that their basement is not finished.
Mr. Trumer stated that they spoke with a Realtor about selling their property and they believe it could sell
for $375,000. They don't have comparable property sales to prove this, because, very few people are
selling property at this time.
Mr. and Mrs. Trumer stated that the Assessor came and spoke to residents of Port Ludlow last year and
suggested that they should wait until this year to file an appeal with the Board of Equalization. If the
Board were to lower the valuation of any property, then the valuations of all the properties in the area
could be equalized to reflect the same lower value.
Discussion ensued regarding annual and four -year assessment cycles. Chairman Marlow explained that
there are some counties that do assess property on an annual basis. Jefferson County just happens to be on
a four -year revaluation cycle.
Ms. Gossell presented a map outlining the appellant's property and three comparable property sales. The
appellant's house and all the comparable houses are the same plan/design. All the land values are
assessed using the same base rate of $200,000 with reductions being given for site /view quality. The
appellants purchased their property in May 2002 for $295,000. The land value is receiving a reduction of
40% for site /view quality. It is currently being assessed at $411,135 ($130,000 for the land and $281,135
for the improvements).
Comparable property #1 is located at 64 Heritage Lane, Port Ludlow. It is receiving a 30% reduction in
the land value for site /view quality. It sold in December 2005 for $469,000 and is currently assessed at
$488,035 ($150,000 for the land and $338,035 for the improvements).
Comparable property #2 is located at 64 Timber Meadow Drive, Port Ludlow. It is receiving a 40%
reduction in the land value for site /view quality. It sold in May 2005 for $444,500. In 2006 a permit was
issued to finish the basement which indicated a cost of $41,000. She noted that the Assessor's office is
aware that this property has a finished basement and that the appellant's property does not. This property
is currently assessed at $494,440 ($130,000 for the land and $364,440 for the improvements). That is
about $83,000 more than the appellant's assessment.
Board of Equalization Minutes - August 19, 2008 Page: 7
Comparable property #3 is located at 76 Timber Meadow Drive, Port Ludlow. It is also receiving a 40%
reduction in the land value for site /view quality. The property sold in May 2006 for $480,000 and is
currently assessed at $461,390 ($130,000 for the land and $331,390 for the improvements).
The difference in values among these properties is due to the different characteristics of each home. She
believes the property values are equitable.
She noted that as of this date, the Assessor's office has no affidavit or notification of the foreclosures that
the appellants discussed earlier. They may come, but there is no information at this time.
This property is located in South Port Ludlow. During the four -year revaluation cycle of January 1, 2003
through January 1, 2007 there were 332 sales of property within the Master Planned Resort (MPR) which
includes both North and South Bay. Of the 332 sales, 105 were "double sales ", meaning they sold twice
within the four -year revaluation cycle. This shows that property increased dramatically during those four
years which happens to be the revaluation cycle for this area.
Between January and July 2007 there were 13 sales of improved property showing an annual average
increase in value of 17.4 %. She also received information from the Northwest Multiple List Service
which shows that in the month of November 2007 the volume of sales were down 37 %, but, the median
price of property was up 12% in Jefferson County.
The information provided supports the assessed value as of January 1, 2007.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Vice - Chairman Broders moved to adjourn the meeting until 9:30 a.m. Friday, August 22, 2008. Member
Gating seconded the motion which carried by a unanimous vote.
Meeting adjourned.
Atte5t:
Erin Lundgren, Clerk of th oard
JEFFERSON COUNTY
BOARD OF EQUALIZATION
William ¢S. Mar Ch
� e��/` 1
chard A. Br ers, Vice - Chairman
Dave Garing, Me ber