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Home My WebLink AboutM111708• NN William S. Marlow Richard A. Broders Dave Garing 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 William S. Marlow MINUTES November 17, 2008 Richard A. Broders Dave Garing Chairman Vice - Chairman Member Chairman William S. Marlow called the meeting to order at 10:30 a.m. in the presence of Vice - Chairman Richard A. Broders and Member Dave Gating. APPROVAL OF MINUTES Vice - Chairman Broders moved to approve the minutes of August 22 and September 8, 2008 as presented. Member Garing seconded the motion which carried by a unanimous vote. ASSESSMENT CORRECTION /PETITION WITHDRAWAL Vice - Chairman Broders moved to accept the following assessment correction and petition withdrawals. Member Gazing seconded the motion which carried by a unanimous vote. APPELLANT Howard & Yoshie Pevehouse Jim & Carole Franklin Carolyn R. Hunt Donald & Sylvia White Lawrence & Donna Coffey Paul Dennis Rogland 123 Vancouver Lane Port Townsend, WA 98368 APPEAL NO. BOE 08 -41 -R BOE 08 -78 -R BOE 08 -94 -R BOE 08 -98 -R BOE 08 -99 -R HEARINGS BOE: 08 -76 -R PARCEL NO. 947 300 024 947 300 021 947 300 012 947 300 022 947 300 020 PN: 947 300 011 Paul Rogland was present. Appraiser Charley Hough represented the Assessor's office. After explaining the hearing process Chairman Marlow swore in both parties. Under appeal is the land and improvement value of property located in the Discovery Bay Heights development at 123 Vancouver Lane, Port Townsend. Phone (360)385 -9100 Fax (360)385 -9382 jeffbocc&o.jefferson.wa.us Board of Equalization Minutes - November 17, 2008 Page: 2 Currently, the property is assessed at $271,945 ($110,000 for the land and $161,945 for the improvements). The appellant estimates the value is $200,000 ($80,000 for the land and $120,000 for the improvements). Mr. Rogland stated that he is appealing his property value due to the decline in the current market. The assessment is suppose to reflect actual market value and he believes the market value of his property is much lower than the current assessed value. He presented Real Estate ads from the local newspaper showing homes which are larger and newer than his property, and yet they are priced at or below the assessed value of his property. Also included in the information is an ad from a builder showing a brand new house twice as large as his house can be built for $50,000 less than the assessed value of his house. The comparable property sales information presented by the Assessor's office includes land sales and two improved property sales. One of the improved property sales is not at all comparable because it is much larger and has a view overlooking Discovery Bay. His property is located at the back of the development and has no view. The Assessor's comparable property 44 is the most comparable to his property because it is similar in size, it also has no view and is located three lots away from his property. It sold for $225,000 in April 2005. He acknowledged that the market had not yet peaked at that time, but it was approaching its peak, and now of course, the market has considerably declined. Mr. Hough presented a packet including a map of the area and comparable sales information. The map has a legend which identifies three different base land values used in assessing properties located in the development. The properties which front Discovery Bay Road and have views of Discovery Bay are assessed using a base land rate of $200,000. Lots 15 through 18 are located in the center of the development and valued using a base land rate of $150,000. The lots located in the back of the development are valued using a base land rate of $100,000. He reviewed the valuation differences between the appellant's property and comparable property #4. He reviewed the Real Estate newspaper ads presented by the appellant. Almost all of those property listings are located in other areas of the County and have listing prices which are higher than their assessed values. While there may be fewer sales occurring, properties are not selling for less than the assessed values. The foreclosure rate in Jefferson County is low and there is no sales evidence to show the market has declined in Jefferson County as it has in other areas in the Country. Mr. Rogland stated that the fact that properties have not sold or have been taken off the market is indicative that market values have decreased. Mr. Hough explained that the date of the assessment is January 1, 2008. Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a determination at a later date. Board of Equalization Minutes - November 17, 2008 Page: 3 Willy & Heidi Schmidt Donald & Sylvia White 100 Vancouver Lane Port Townsend, WA 98368 Willy & Heidi Schmidt 100 Vancouver Lane Port Townsend, WA 98368 BOE: 08 -90 -R PN: 947 300 016 PN: 947 300 013 Heidi Schmidt was present. Appraiser Charley Hough represented the Assessor's office. After explaining the hearing process Chairman Marlow swore in both parties. Under appeal is the land and improvement value of property located in Discovery Bay Heights at 100 Vancouver Lane, Port Townsend. Following is the current assessment and the appellant's estimate of value for the parcels under appeal: Parcel No. Current Assessed Value Appellant's Estimate of Value 947 300 016 $150,000 (land only) $56,815 (land only) 947 300 013 $334,615 (land $110,000 /imps. $224,615) $189,690 (land $44,000 /imps. $145,690) Ms. Schmidt stated they built their house 17 years ago. Up until now, the assessments over that period of time have been gradual increases. The sales used by the Assessor to value their property occurred between March 2005 and September 2007 when there was a Real Estate "bubble" and the market was peaking. It cannot be denied that the severe downturn in the market warrants adjusting assessed values to reflect the drastically changed reality we are facing. The Real Estate "bubble" created an unrealistic basis on which the present assessments were made. We all know the situation of the economy and that we are already in a recession. The Assessor's explanation that they are following the rules, does not change the numbers. In view of this unprecedented financial meltdown and the following economic repercussions, assessments made using these highly inflated Real Estate sale prices should be adjusted. There is good reason to adjust everyone who was affected in this last assessment cycle. She noted that the undeveloped property originally intended to complete the Discovery Bay Heights development, is on the market for $1,200,000. It consists of 95.4 acres and includes 1,000 feet of beach for common use. That equates to $12,570 per acre. She realizes this property is raw land, but, it is located immediately adjacent to the Discovery Bay Heights development and is comparable property. She found another Real Estate listing in the newspaper advertising 8+ acres with power /water and 427 feet of waterfront on Discovery Bay facing west, for sale for $800,000, or $100,000 per acre. That is also much lower than the value of their land. It is difficult for seniors who do not have jobs which keep abreast with the cost of living. The tax system needs to be changed especially for seniors so they have some protection. Attached to her petition is a copy of a letter she sent to Representative Kevin Van De Wege about this issue and requesting that the income limit for property tax exemptions be increased from $35,000 to at least $45,000. She noted that they did not qualify for their property tax exemption in 2006 because their income was $35,040. They lost their exemption by $40.00. Board of Equalization Minutes - November 17, 2008 Page: 4 Mr. Hough presented packets with a map of the area and comparable sales information used to value the appellant's property. He agrees with the appellant that the tax system needs to be changed. However, Washington State law requires that he value property at 100% of its fair market value as of the assessment date. The assessment date is January 1, 2008. Property in Jefferson County is assessed once every four years. In tracking more recent sales the data shows that the Assessor's values are at 89% of sale prices. Properties are not selling for less than the amount they are assessed. Property values in Jefferson County have not yet been affected by the economy in the same way they have in other areas of the Country. Mrs. Schmidt questioned whether or not assessed values could go down at the next revaluation cycle if there is no change in the economy over the next four years and market values decline? Mr. Hough replied yes. It doesn't happen very often, but, it could happen. 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 1:00 p.m. Tuesday, November 18, 2008. Member Garing seconded the motion which carried by a unanimous vote. ATTEST: L �C. bin Lundgren, Jerk of t e Board JEFFERSON COUNTY BOARD OF EQUALIZATION William, hairman Richard A. Broders, Vice - Chairman Dave Garing�mber