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William S. Marlow
Wnnam S. Marlow
MINUTES
August 10, 2009
1820 Jefferson Street
P.O. Box 1220
Port Townsend, WA 98368
Richard A. Broders
Dave Garing
Chairman
Dave Garing Vice - Chairman
Richard A. Broilers Member
Chairman William S. Marlow called the meeting to order at 10:00 a.m. in the presence of Vice - Chairman
Dave Garing and Member Richard A. Broders.
APPROVAL OF MINUTES
Member Broders moved to approve the minutes of July 10, 2009. Vice - Chairman Garing seconded the
motion which carried by a unanimous vote.
PETITION WITHDRAWALS
Vice - Chairman Garing moved to accept the following petition withdrawal. Member Broders seconded the
motion which carried by a unanimous vote.
APPELLANT APPEAL NO. PARCEL NO.
Matthew & Maria Ebel BOE 09 -05 -R 978 900 102
ASSESSOR'S UPDATE
Assessor Jack Westerman, III and appraisal staff were present. Assessor Westerman stated that he came
before the Board last year and recommended that the Board take action to equalize Port Ludlow. The
Board contacted the Washington State Department of Revenue and were told they couldn't equalize an
area out of cycle. He appreciated the Board checking into his request.
Assessor Westerman provided a letter, dated July 13, 2009 that applied primarily to the 2007 Chimacum
revaluation area. The market peaked around January 1, 2007 and there were an abundance of sales
information that was supplied to the Board for 2007 appeals as well as the appeals for Port Ludlow in the
Phone (360)385 -9100 Fax (360)385 -9382 jeffbocc@co.jefferson.wa.us
Board of Equalization Minutes - August 10, 2009 Page: 2
2008 cycle. Port Ludlow residents are upset that their January 1, 2007 values will be in place until 2011
due to the fact that the market has dropped 20 -25 %. However, those residents weren't complaining when
their values were lower and the market was climbing. The appraisers will review each case to see if there
is any indication that the January 1, 2007 value is incorrect. If the appellant provides sufficient evidence,
staff will recommend a reduction. A standard packet of information will be provided for each January 1,
2007 appeal.
For January 1, 2008 appeals (Kala Point, Cape George, Discovery Bay, School District 50 outside the City
Limits) staff will provide the usual defense of those cases. However, next year staff will only review
January 1, 2008 cases and provide a standard packet of information. Similar to what they are providing
for the Chimacum Revaluation area this year.
Assessor Westerman indicated that the majority of appeals this year will occur inside the City limits of
Port Townsend. In preparing for those appeals, staff has compiled a "City Sales" list from every sales
transaction from July 1, 2008 until July 1, 2009 (six months on each side of January 1, 2009) and
calculated how much of an increase from the previous assessed value to the sale price in order to reach
market value. Each neighborhood is coded and depending on the location of the property under appeal
the appraiser will provide comparable sales pulled from the "City Sales" list.
A document showing sales after the rolls closed on July 7, 2009 was provided. The Assessor's office will
update this information on a weekly basis for the first month of the BOE season.
Assessor Westerman informed the Board that legislation was passed mandating that all Washington State
Counties go to an annual cycle by 2014. Appraisers will use statistics annually and a physical inspection
will be done every six (6) years.
HEARINGS
Barbara Boutaine BOE: 09 -01 -LO PN: 990 400 499
2810 Summit View Avenue
Yakima, WA 98902
Barbara Boutaine was not present. Appraiser Maryn Gossell represented the Assessors office and was
sworn in by Chairman Marlow. Under appeal is a bare land parcel located in Port Ludlow No. 1, Port
Luldow.
Currently, the property is assessed at $65,000 (land only). The appellant estimates the value is $55,000.
On the petition form the appellant wrote the following reason for appealing the valuation of her property:
"My lot in Port Ludlow has been listed at $60,000 for several months now through Coldwell Real Estate
with no action or interest at that price. Many of the homes and lots in area are being sold at way below
assessed value, which leads me to believe that they are over - assessed & charged too much for taxes on
properties. After receiving my change of value for the assessment taxation of my lot, I called your office
in regards to this change being so high. At that time I was told that land/properties assessments would be
Board of Equalization Minutes - August 10, 2009 Page: 3
in the process of being re- assessed because of the stagnant Real Estate market. I was also told I would be
sent this form back a couple of months ago to appeal which I didn't receive until I called again last week
in regards to this assessment matter."
The information summarized on the page attached to the appellant's petition is as follows:
Sales in the Port Ludlow area - 2008
Address
Lot
Sale
Assessed
%
180 Goliah
990 600 299
$200,000
$240,000
83
142 Resolute
990 600 259
$224,000
$243,595
92
51 McCurdy
990 603 157
$250,000
$266,335
94
107 Ludlow Bay
968 700 106
$299,950
$438,395
68
71 Rainier Lane
990 060 024
$305,000
$347.810
88
31 Resolute
990 600 265
$315,000
$347,665
91
154 Resolute
990 600 275
$380,000
$390,290
97
Appraiser Gossell indicated the appellant wrote on her appeal form that the property has been listed for
$60,000 for several months and she would like to see the documentation that it is indeed listed. The
appellant also said that she was told that the land /properties were in the process of being re- assessed.
Appraiser Gossell doesn't know where the appellant got that information because Jefferson County is on a
four year cycle.
The appellant provided various sales that have occurred, however, the date of sale was not included except
for the title "Sales in the Port Ludlow Area 2008 ". The appraisal date for the Port Ludlow area is January
1, 2007 and sales in 2008 are not comparable.
Appraiser Gossell sent a letter to the appellant indicating that the Assessor's Office is aware that the
market has declined in the Chimacum School District since the assessment date of January 1, 2007.
Unfortunately, Jefferson County is on a four year cycle and Port Ludlow residents are locked into values
that were correct as of January 1, 2007.
The subject property is a raw piece of land and sewer is available. It is valued at $65,000. The Real
Estate Tax Affidavit shows that this land was purchased in March, 2005 for $30,000. Appraiser Gossell
also presented a map that outlines the appellant's property and several 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 - August 10, 2009 Page: 4
Moira B. Bullen
111 Hill Blvd.
Petaluma, CA 94952
ROE: 09 -02 -LO PN: 990 602 100
The appellant's daughter, Nicole Lawson was present on behalf of Moira Bullen. Appraiser Maryn
Gossell represented the Assessor's office. After explaining the hearing process Chairman Marlow swore
in both parties. Under appeal is a bare land parcel located off of Goliah Lane, Port Ludlow.
Currently, the property is assessed at $80,000 (bare land). The appellant did not provide an estimate of
value.
Ms. Lawson presented comparable sales located in Port Ludlow that she feels are similar to the subject
property. The appellant's property has no water view.
Comparable Property 91
Parcel No.: 990 400 452 (bare land)
Location: 55 Rainier Lane
Date of Sale: May 2008
Sale Price: $70,000
Property Description: 0.327 acres
Comparable Property #2
Parcel No.: 990 400 452 (bare land)
Location: 56 Rainier Lane
Date of Sale: May 2008
Sale Price: $70,000
Property Description: 0.349 acres
Comparable Property #3
Parcel No.: 990 400 470 (bare land)
Location: 74 Machias Loop
Date of Sale: July 2007
Sale Price: $68,000
Property Description: 0.320 acres
Comparable Property #4
Parcel No.: 990 400 128 (bare land)
Location: 9999 Helm Lane
Date of Sale: August 2007
Sale Price: $75,000
Property Description: 0.350 acres
Ms. Lawson stated that $80,000 is too high especially since the market has dropped.
Chairman Marlow informed Ms. Lawson that the assessment date for Port Ludlow is January 1, 2007.
Board of Equalization Minutes - August 10, 2009 Page: 5
Ms. Lawson was not aware of that and had she known, she would have provided sales information during
that time. She agrees that in 2007 the property was assessed correctly, however it is not correct for 2008,
2009 and further into the future.
Appraiser Gossell reiterated that the assessment date for the subject property was January 1, 2007. A
letter was sent to the appellant stating that the market has dropped in the Chimacum revaluation area. The
Assessor is upset that Port Ludlow has to be overvalued in today's market. The property is not being
valued as water view or having sewer. Comparable sales provided by the appellant's representative are
too new. The Real Estate Tax Affidavit shows that this land was purchased in April, 2005 for $50,000.
Appraiser Gossell also presented a map that outlines the appellant's property and several comparable
property sales.
Chairman Marlow informed Ms. Lawson that currently Jefferson County is on a four year cycle and due to
new legislation all Washington State Counties will go to a one year cycle by 2014.
Member Broders asked if the down turn in the market happened in 2007? Appraiser Gossell replied that
Port Ludlow held its own through 2007 and didn't see much of a decline in sales until 2008.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Kees & Trix Bouterse BOE: 09 -10 -R PN: 998 500 058
34 Timber Ridge Drive
Port Ludlow, WA 98365
Kees and Trix Bouterse were present. Appraiser Maryn Gossell represented the Assessor's office.
Chairman Marlow explained the hearing process and swore in both parties. Under appeal is the land value
of improved property located at 34 Timber Ridge Drive, Port Ludlow.
Currently, the property is assessed at $349,620 ($130,000 for the land and $219,620 for the
improvements). The appellants estimate the value is $284,620 ($65,000 for the land and $219,620 for the
improvements).
Mrs. Bouterse stated their property has no view and the property down the street has a view and it is
assessed the same. A similar property in the neighborhood has a 2550 sq. feet home, 800 sq. feet more
than the appellant's home, and it sold for $345,000. Another home across the street is 1998 sq. feet, 200
sq. feet more, and it is listed for $299,000 and has been on the market for a while.
Appraiser Gossell stated that this property is located in Port Ludlow and the appraisal date was January 1,
2007. Her sales chart goes back to 2003 the majority of the weight in the values of these sales were 2005,
2006 and half of 2007 sales. This home is a double sale, meaning it has sold twice during the evaluation
Board of Equalization Minutes - August 10, 2009 Page: 6
period. It sold in December 2003 for $220,000 and the current owners purchased it in December 2005 for
$329,500.
The Appellant's property is located in Timberton Village in a plat that is fully developed. There are no
land sales to be pulled from in this community.
Mrs. Bouterse asked why the Assessor's office didn't use sales from 2008 and 2009 when the market was
falling?
Appraiser Gossell stated that Jefferson County is on a four (4) year cycle and by law property can not be
assessed out of cycle. Prior to January 1, 2007 the Chimacum revaluation area, which includes Port
Ludlow, were assessed as of January 1, 2003 at a substantially lower value and property owners were not
upset that their assessments were too low.
The Appellants argued that neighboring properties that have a view had the same base rate as their
property that has no view. That information was not provided to the Board or the Assessor's office by the
Appellants and therefore Appraiser Gossell couldn't respond to their argument.
In response to a question by Vice - Chairman Gazing regarding assignment of base rates, Appraiser Gossell
said it is based on sales. There are three (3) phases in Timberton Village ranging from low grade lots,
large lots, sweeping views to high elevation lots, etc. She assigned $200,000 as a base rate in this area
and adjusted up or down depending on the qualities of each individual lot.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Carmen & Mary Panucci, Trustees BOE: 09 -11 -R PN: 990 600 377
Panucci Family Trust
71 Keefe Lane
Port Ludlow, WA 98365
Carmen and Mary Panucci were present. Appraiser Maryn Gossell 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 at 71 Keefe Lane, Port Ludlow.
Currently, the property is assessed at $486,190 ($120,000 for land and $366,190 for the improvements).
The appellants estimate the value is $327,303 ($80,165 for the land and $247,138 for the improvements).
Mary Panucci read a statement. "We understand and agree with the County Assessor's position that in the
interest of equitable tax -payer treatment, the focus of any appeal should be on the revaluation appraisal
date, in our case August 2007. The Assessor noted the highs in the fair market values in 2006 and 2007
and to some degree in 2008.
Although, not relevant to this specific appeal, we believe there does remain a large inequity in this market
among County tax payers based upon the date of their latest assessment.
Board of Equalization Minutes - August 10, 2009 Page: 7
We are appealing the increased assessment of our particular residential property at 71 Keefe Lane in Port
Ludlow in August 2007: from $264,620 to $486,190. This increase represented a 67% in land value and
90% increase in improvements. The increase in our taxes resulting from the assessment was 46% in 2008
over 2007, from $3023.16 to $4369.96. We believe the proper assessed valuation should be no more than
the `Fair Market Value of $370,943 provided by Freddie Mac in February 2008.'
We have three (3) issues:
First. The largest evidence we can present to you is the Estimated Market Value: $370,943 provided our
lender in February, 2008, by Freddie Mac. The low valuation given by Freddie Mac was $327,303 which
we feel is even more realistic. This Freddie Mac estimate was within the window of high market values
noted by the Assessor. Based only upon the Freddie Mac estimated market value, we were denied the
requested Home Equity Line of Credit.
Second. Relative to the Assessor's calculations we recently received, we believe the 95% good
($366,192) applied to the indicated replacement value is way too large for a 30 year old home. It should
not be characterized as a "remodel" by the Assessor. Remodeling has been minor, just minor kitchen
changes and some window replacements. Although we have tried to maintain our home, it is still an older
home, 30 years old - by no means the effective age of 10 or only 5% physical depreciation as applied by
the Assessor.
Third. Our third issue is the significant and ongoing deterioration/obliteration of the view to which the
County Assessor applied a 10% "Site View Quality Adjustment ".
We believe the proper assessed valuation should be no more than the `Fair Market Value of $370,943
provided by Freddie Mac in February 2008'."
Ms. Panucci submitted photos of the their view or lack thereof.
Assessor Gossell asked what the view was as of January 1, 2007 and if they can see water? Ms. Panucci
responded that yes, they do see water from their house at a certain angle. The appellant's land has a site
value of $100,000, based on anon-view lot, plus 10% said Assessor Gossell. She feels the appellant's
property is 10% better than a property without a view.
In response to the appellant stating they are being assessed for a remodel, Assessor Gossell said that the
home was built in 1979 and if it had been remodeled then they would have indicated a remodel date. The
Assessor's office knows this property was not remodeled. The effective age of 10 does not mean 10 years
on the calendar, it means 10 years of wear and tear on a home. For instance, a home could be 20 years old
and show little or no signs of wear and tear. Or it could be brand new and look like it is 30 years old.
The appellants feel that they could not have sold their home for the amount it was assessed at as of
January 1, 2007.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Board of Equalization Minutes - August 10, 2009 Page: 8
Harry J. Hites, Trustee BOE: 09 -35 -R PN: 969 700 004
Hites Living Trust
132 Skiff Lane
Port Ludlow, WA 98365
Harry Hires was present. Appraiser Maryn Gossell 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 at 132 Skiff Lane, Port Ludlow.
Currently, the property is assessed at $907,250 ($460,000 for land and $447,250 for the improvements).
The appellant estimates the value is $780,235 ($395,600 for the land and $384,635 for the improvements).
Mr. Hires informed the Board that he was assessed in 2007 and he feels that was the "high water mark'
for property values in the Port Ludlow area. He presented a map of the area and stated that his neighbor's
property (Kraft) sold within the last year for $700,000. Mr. Kraft's property was assessed at $827,000 in
2007 and reassessed by the bank in May 2009 for $710,000. That equates to a 14% drop in two years.
Mr. Hires submitted a letter from Ludlow Bay Realty in which they state they have seen a decline of 10%
to 14 %. So he is asking for a 14% decrease.
Appraiser Gossell wants the appellant to keep in mind that the appraisal date is January 1, 2007 and as of
that date the fair market value of his home was $907,250. The Assessor's office is well aware that the
market has dropped 20 -25 %.
Mr. Hites agreed that on January 1, 2007 the value of his home was correct. He was unaware that the
Assessor's office can only assess his property every four years.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
Vice - Chairman Gazing moved to adjourn the meeting until 9:30 a.m. Tuesday, August 11, 2009. Member
Broders seconded the motion which carried by a unanimous vote.
ATTEST: 7 C', /C4
Leslocke, Clerk of the Board
JEFFERSON COUNTY
BOARD OF EQUALIZATION
iWilliam low, Chairman
l
Dave Gari . Vi e -Chdi an
4
Richard A. Broders, Member