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HomeMy WebLinkAboutM102008ok EQU AL w4s °N co �;.;A I 9s+kING•s0 William S. Marlow Richard A. Broders Dave Garing William B. Marlow MINUTES October 20, 2008 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Richard A. Broders Dave Garing 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 Garing arrived shortly after the meeting began. John & Leona Long 630 Fort Gate Road Nordland, WA 98358 HEARINGS BOE: 08 -01 -R 08 -02 -R 08 -03 -LO 08 -04 -LO PN: 021 191 007 021 191 006 021202 009 021202 010 Mr. Long was present. Appraiser John Pray represented the Assessor's office. After explaining the hearing process Chairman Marlow swore in both parties. Under appeal are two waterfront parcels with a residence and garage and two bare land parcels consisting of 4.61 acres and 6.63 acres located on Marrowstone Island at 630 Fort Gate Road, Nordland. Following are the current assessments for the four parcels under appeal. The appellant feels the value should have only increased by 20% from the previous value. Parcel No. Current Assessed Value 021 191 007 $409,445 (land $304,480 /imps. $104,965) 021 191 006 $216,295 (land $185,000 /imps. $31,295) 021 202 009 $178,880 (bare land) 021 202 010 $145,040 (bare land) Mr. Long stated that local and national news are reporting that the Real Estate markets are down due to the economy. One report questioned how value can be placed on a house when credit is not available. His point is that the assessment process is very subjective and not a straight forward science. This property has been in his family since the 1940's. They used to take the 7 -car ferry over to visit the Phone (360)385 -9100 Fax (360)385 -9382 jeffbocc&o.jefferson.wa.us Board of Equalization Minutes - October 20, 2008 Page: 2 property on the island before the bridge was built in 1952. He has paid taxes on this property for many years and he is questioning this latest increase in value. With the approval of the Assessor's representative, Mr. Long presented a comparable sale which he feels supports a lower value. He discussed the documentation presented for the appeal. The comparable property sales presented by the Assessor's representative are not comparable to his property. Mr. Pray noted that the additional sales information presented by the Appellant at the hearing today show that the exchange of those properties were conducted through a Quit Claim Deed which is not considered the same as a Statutory Warranty Deed where there is a willing buyer and a willing seller. He explained that Jefferson County is on a four -year revaluation cycle where property is assessed once every four years. There were eight bare land sales on Marrowstone Island between January 1, 2006 and January 1, 2007 and yet, the appellant only mentioned the lowest sale for $135,000. There is a broad range of prices for those eight property sales. He has visited these properties. In his opinion, the property which sold for $135,000 is inferior to the appellant's property. As for the appellant's non - waterfront property under appeal, Mr. Pray presented one comparable property sale located off of Scwartz Road which sold in December 2005 for $182,000. Three sales of comparable property were presented for the waterfront parcels. Comparable No. 1 located at 67 Reef Road sold in January 2006 for 1.1 million dollars. It has 366' of high -bank waterfront with a 1,516 square foot house and a 699 square foot cabin and a shed. Comparable No. 2 located at 8533 Flagler Road sold in February 2007 for $370,000. It consists of 50' of low -bank waterfront. The house was built in 1970 with 660 square feet of living space with a 330 square foot garage. Comparable No. 3 located at 8273 Flagler Road sold in June 2006 for $515,000. It has 108' of low to medium bank waterfront with a 1,439 square foot house built in 1945. It also has a 308 square feet carport. Mr. Pray reviewed three "double sales" which occurred on the island. Double sales means properties which have sold twice within the four year revaluation period. Parcel 4021282 003 sold in October 2005 for $320,000 and then sold again in January 2007 for $485,000. That is a 51.6% increase in value between those two sale dates. The 2003 assessed value was $238,680. Parcel #021332 005 sold in May 2005 for $185,000 and then resold in July 2007 for $300,000 showing an increase in value of 62.2 %. It was previously assessed at $128,250. Parcel #921094 014 sold in December 2004 for $142,000 and resold in June 2006 for $289,000. A 103.5% increase in value between the two sale dates. Its 2003 assessed value was $84,500. This sales data shows a dramatic increase in property values over the four year revaluation period. Discussion ensued regarding comparable property sales. Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a determination at a later date. Board of Equalization Minutes - October 20, 2008 Page: 3 Thomas & Sharon Southworth BOE: 08 -24 -R PN: 921292 059 691 N. Bay Way Port Ludlow, WA 98365 Mr. and Mrs. Southworth were not present. Appraiser John Pray represented the Assessor's office and was sworn in by Chairman Marlow. Under appeal is a residence situated on a lot located at 691 N. Bay Way, Port Ludlow. The appellants' reason for appealing the assessed value is written on their petition form as follows: "The two houses that sold in this area have fresh water, have 3 bedrooms, are over 3,000 square feet and are on land over Yz acre. The higher priced house is waterfront. Our house does not have fresh water, has 1 bedroom and has less than 1,800 square feet. The lot is less than %2 acre and is not on a waterfront." Photographs of the property and a letter were submitted as additional evidence. The letter reads "We feel that the 2008 assessment is obscenely excessive. We are also aware that a large increase in property taxes cannot be used as a reason for contention. We hired an appraiser and he told us that this was a very difficult house to appraise because it is so modest in an area of very valuable houses that have large lots. The land value of the empty septic lot went from $7,500 to $25,000, an increase of 333% in one year. This lot, parcel number 921 292 058 (not currently under appeal) is less than 1/4 acre, cannot be built on and is not waterfront. With this in mind, the assessment is incorrect. An adjacent lot, to the south of our property was indicated as vacant. That is a mistake. It has a house with attached garage and a separate garage on it and should not be used as a comparison to our vacant lot. The lot, parcel number 921 292 059 where our house is located is approximately 1/4 acre. The assessed land value went from $29,000 to $100,000, an increase of 345 %. The house value went from $78,130 to $124,000, an increase of 159 %. If all these assessments are based on prices of recently sold property, a few facts should be considered. Neighboring houses are very upscale modern lovely homes and are much larger, while ours is the smallest house and lot size in the area. They have 3 bedrooms, we have 1. They have garages, we do not. They have fresh water, we have saltwater and have to buy fresh water by the bottle for human consumption, ie, drinking and cooking. Because of the saltwater problems, we are unable to use the toilet and shower in the basement. There are portions of the interior of our house that are incomplete and need further construction. We wanted to bring the oldest part of the cabin up to code including insulation in the walls, install a heat source and raise the roof so a 6 foot person doesn't have to duck when moving from one room to another. We were told we could not get a building permit for that kind of remodel because this house should never have been allowed on this small lot. We didn't want to expand the foot print, just raise the roof. The laundry area needs further drywall work. The ceiling area in the bedroom needs further work. Pictures are included. The oldest part of the house seems to be sinking and the walls are separating from the ceiling. We believe this is due to the county re- routing some drainage culverts at the highway uphill above our house. Since then we have had terrible problems with water coming down the hill and settling on our lot. We have spent thousands of dollars trying to deal with these problems that the county has created. None of the other houses in this area have the problem, but, some of the non- buildable lots have also been affected. Since this area does not have municipal services such as, water, sewer and trash pickup, all the houses in this area are overly assessed. For several years we have continually read that houses are vastly over valued. Governor Christine Gregoire insists that she has kept property taxes at only a 1% increase. A re- assessment should be considered for this and many different reasons." Currently, the property is assessed at $224,050 ($100,000 for the land and $124,050 for the improvements). The appellants estimate the value is $117,000 ($32,000 for the land and $85,000 for the improvements). Board of Equalization Minutes - October 20, 2008 Page: 4 Mr. Pray stated that he used two of the appellant's three comparable property sales in support of his assessed valued. Comparable property 41 is located at 671 N. Bay Way, Port Ludlow. Situated on the property is a 1980 single -wide mobile home with an addition. It sold in September 2006 for $215,000 and included two additional parcels. Since there are no additional water taps available in this area, the two additional parcels cannot be developed and are currently valued as recreational lots for $25,000 each. Comparable property 42 is located at 571 N. Bay Way, Port Ludlow. It sold in September 2006 for $538,000. The house on the property was built in 1981. It also consists of three parcels, but, it is considered one building site due to the lack of water taps in the area. The house on this property is nicer than the appellant's. Mr. Pray concluded by stating the appellant's property has a very nice water view. Discussion ensued regarding the appellant's photographs and the condition of the home. Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a determination at a later date. Samuel H. Shinozaki 11832 - 77" Avenue S. Seattle, WA 98178 -3808 BOE: 08 -31 -LO PN: 902 261 004 Samuel Shinozaki was present. Appraiser John Pray represented the Assessor's office. Chairman Marlow explained the hearing process and swore in both parties. Under appeal is approximately 14.57 acres of bare land located off of W. Uncas Road, Port Townsend. Currently, the property is assessed at $102,780 (land only). The appellant estimates the value is $84,500. Mr. Shinozaki stated that Uncas Road runs right through the middle of this parcel. There is a stream which also runs through this property and bisects it from the other direction. In the summer time the ditch is dry, but, in the winter it floods. All but a small portion of this parcel is on the side of a hill. He tried to have it designated as agricultural land and was told that it is too small in size to qualify for the program which required a minium of 20 acres. Also restricting the property is an access easement which Mr. Shinozaki's father gave to a neighbor (Mr. Hilson) to enable Mr. Hilson to cross the Shinozaki property to access the Hilson property. Mr. Shinozaki is not certain if that easement was ever recorded, but, he doesn't consider that portion of the property to be in his ownership any longer. He is not a lawyer, but, he understands that if someone uses property for more than 10 years, then they have a right to it. He noted that the Assessor's comparable property sales are not in the immediate area. Mr. Pray explained that he provided two comparable property sales. Comparable property #1 is a 20 acre parcel that sold in June 2006 for $150,000. A good portion of the parcel is on a steep hillside. Comparable property 42 sold in February 2004 for $69,000 and consists of 7 acres. Compared to the appellant's property which has a partial water view, this parcel has no view of the water. He noted that the appellant's property is receiving a reduction in value of 25% applied to the one acre site value. The reduction is given for poor site quality. The smaller portion of this parcel which is separated by the road is also receiving a reduction in value of 50% due to topography. Board of Equalization Minutes - October 20, 2008 Page: 5 Mr. Shinozaki presented a copy of a 2006 aerial photo map outlining the Reseck Conservation Easement Discussion ensued regarding the adjustments made to the value of the appellant's property. Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a determination at a later date. Kenneth M. Brooks BOE: 08 -80 -LO PN: 901314 013 644 Old Eaglemount Road Port Townsend, WA 98368 Kenneth Brooks was present. Assessor Jack Westerman and Appraiser John Pray represented the Assessor's office. After explaining the hearing process, Chairman Marlow swore in all parties. Under appeal is bare land situated at 644 Old Eaglemount Road, Port Townsend. Currently, the property is assessed at $55,320 (land only). The appellant estimates the value is $3,000. Mr. Brooks stated that during this most recent revaluation of his property, 5 acres were no longer designated as "Forest Land" because it was considered a wildlife pond. This resulted in an increase in value from $6,000 to $55,320. After getting an explanation from the Assessor about why the one acre homesite is valued at $30,000 he no longer disputes that portion. However, he still disputes the valuation rate of $4,000 per acre for the remaining 5.5 acres that is not designated as "Forest Land ". He noted that only '/z an acre of his property is a wildlife pond, the remaining property is pasture land. With his appeal he submitted an economic analysis indicating a value of $3,000. Based on the County's wetland rules, this entire 5 acre parcel is either a wetland or a wetland buffer. The parcel cannot be developed and can only be used for agricultural practices. He has made application to designate the property as "Agricultural Land" which may resolve the issue. Assessor Jack Westerman stated that his staff located the original application for designating this property as "Forest Land" and a copy is included in the Board's information packet. The original application shows that 1.5 acres was held out as a homesite and was not designated as "Forest Land ". The remaining 5 acres was later removed as it was considered a wetland area. He understands from testimony provided by Mr. Brooks that actually only '' /z an acre is a wetland. The 6.5 acres has been valued separately from the designated "Forest Land" portion of the property. The total value of the property including the "Forest Land" portion increased from $39,820 to $55,320. Mr. Brooks is only appealing the 6.5 acre portion of the property. It is currently being valued as a one acre homesite at $30,000 plus 5.5 residual acres at $4,000 per acre. He agrees with Mr. Brooks that the value of $4,000 per acre for the wetland acreage seems high. Mr. Westerman suggests that the Board consider reducing the value of 1/2 an acre by 50% due to wetlands. Mr. Brooks interjected by stating the information he received from the title company states that 5 acres of the property was removed from the "Forest Land" designation because it was a pond. There is in fact a "created pond" that encompasses approximately '/2 an acre, but, the remaining 5 acres is a wetland. Given Mr. Brooks' testimony, Mr. Westerman revised his recommendation. He suggests that '' /z an acre (land code #1875) be valued at $4,000 per acre; 5 acres (land code #1875) be valued at a base rate of Board of Equalization Minutes - October 20, 2008 Page: 6 $4,000 per acre with a reduction of 50% due to wetlands; and the 1 acre homesite remain at its current value of $30,000. That would lower the value to $42,000 for this portion of the property. Adding the value of $3,320 for the "Forest Land" portion of the property. The new total valuation would be $45,320. Mr. Westerman noted that this valuation change would only be in effect for one year because, as Mr. Brooks stated, he has applied to designate the property as "Open Space /Agricultural Land ". Member Garing asked Mr. Brooks how he feels about Mr. Westerman's proposal? Mr. Brooks replied that his proposal values the 5 acres at $10,000 which he feels is a bit high. He would value the property at half of that amount, but, he is not going to argue over $5,000. Mr. Westerman stated that his proposal is only a recommendation. The Board is welcome to make its own decision. Mr. Brooks noted that his recommended value was submitted with his appeal and he appreciates the Assessor's position. Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a determination at a later date. ASSESSOR'S CERTIFICATE OF ASSESSMENT ROLLS FOR 2008 Vice - Chairman Broders moved accept the Assessor's Certificate of Assessment Rolls for 2007 in the amount of $5,030,929,887. Member Garing seconded the motion which carried by a unanimous vote. TWO (2) REQUESTS TO WAIVE FILING DEADLINE The Board reviewed the following two requests to waive the filing deadline for appealing the Assessor's 2008 real property valuation determination: Property Owner: William Kenneweg Parcel No.: 001 053 014 Mr. Kenneweg submitted evidence as outlined in RCW 84.40.038 and WAC 458 -14 -056 in support of his request to waive the appeal filing deadline. Upon review of the evidence, the Board determined that Mr. Kenneweg has shown good cause to waive the filing deadline pursuant to RCW 84.40.038 (2)(b) and WAC458 -14 -056 (3)(b). Property Owner: Garrett Bandy Parcel Nos.: 002 273 009; 002 273 010; 221273 020; 002 273 019; 002 342 035; 002 342 039; 002 273 008; 002 273 023; 002 342 017; 002 273 003; 002 342 034; 002 342 026; 002 342 023; 002 273 018; 002 273 007; 002 273 005 Evidence was submitted as outlined in RCW 84.40.038 and WAC 458 -14 -056 in support of Mr. Bandy's request to waive the appeal filing deadline. Upon review of the evidence, the Board determined that good cause has been shown to waive the filing deadline pursuant to RCW 84.40.038 (2)(b) and WAC458 -14- 056 (3)(b). Board of Equalization Minutes - October 20, 2008 Page: 7 Member Garing moved to waive the appeal filing deadline for Mr. Kenneweg and Mr. Bandy. Vice - Chairman Broders seconded the motion which carried by a unanimous vote. The Clerk will write a letter to Mr. Kenneweg and Mr. Bandy notifying them of the Board's decision. ASSESSMENT CORRECTIONS /PETITION WITHDRAWALS Member Garing moved to accept the following assessment corrections and petition withdrawals. Vice - Chairman Broders seconded the motion which carried by a unanimous vote. APPELLANT Paul Greene Richard & Carolyn Wasteneys Dolly Sine Ian & Rosalie Napier Ron & Frances Reynolds Paul J. Zozula (f ), I I David & Janet Nelson Eric & Barbara Lucas Lambert F. Eliel, Trustee Sharon R. Levine John & Astrid Duba Considine Alton B. Otis, Jr. Tod Easton & Janice Kemp fL ,> Melvin J. & Maxine M. Wilson Edward & Susan Gee Rodney Taylor & Kay Jackson f< William D. Starkey APPEAL NO. BOE 08 -40 -LO BOE 08 -42 -R BOE 08 -63 -LO BOE 08 -64 -LO BOE 08 -67 -R BOE 08 -68 -LO BOE 08 -69 -LO BOE 08 -70 -LO BOE 08 -71 -LO BOE 08 -72 -LO BOE 08 -73 -LO BOE 08 -74 -LO BOE 08 -75 -LO BOE 08 -79 -LO BOE 08 -92 -R BOE 08 -93 -LO BOE 08 -109 -R BOE 08 -111 -R BOE 08 -112 -R BOE 08- 113 -LO BOE 08 -133 -R PARCEL NO. 947 300 018 947 300 019 977 100 905 001 275 014 002 341 016 977 100 504 977 100 513 977 100 514 977 100 621 977 100 619 977 100 611 001 195 110 977 100 210 983 500 002 001 293 003 001293 001 940 500 014 939 601 441 977 101 001 977 101 002 901 323 011 Member Gazing moved to adjourn the meeting until 9:30 a.m. Monday, October 27, 2008. Vice - Chairman Broders seconded the motion which carried by a unanimous vote. Meeting adjourned. Attest: Crln'fC- �,,�Irk*!"BeCo—a-r'd�/ rm Lun g JEFFERSON COUNTY BOARD OF EQUALIZATION ,x William S. MazlQwan t AX Ric oder* Vice - Chairman Dave Gari . embe