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HomeMy WebLinkAboutM012611• ok EQU44I� D Dave Garing Vacant Henry Krist Dave Garing MINUTES January 26, 2011 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Henry Kriat Michael Smith Chairman Vice - Chairman Member Chairman Dave Garing called the meeting to order at 9:30 a.m. in the presence of Member Henry Krist. Vice - Chairman Sally Shumaker resigned from the Board effective December 13, 2010. ASSESSMENT CORRECTION Member Krist moved to accept the following assessment correction. Chairman Gazing seconded the motion. The motion carried. NAME John & Julianna Steveley Paul & Janice Coover 55 Beach Drive Quilcene, WA 98376 APPEAL NO. BOE 10 -45 -R HEARINGS BOE: 10 -36 -R PARCEL NO. 821 355 006 PN: 701344 049 Paul and Janice Coover were not present. Appraiser John Pray represented the Assessor's office and was sworn in by Chairman Garing. Under appeal is the land and improvement value of property located at 55 Beach Drive, Quilcene. Currently, the property is assessed at $702,970 ($153,220 for the land and $549,750 for the improvements). The appellants estimate the value is $400,000 ($100,000 for the land and $300,000 for the improvements). Chairman Gating stated that on October 27, 2010 the Board held a hearing and it was determined that additional information was needed in order to make a decision regarding this appeal. Due to an unforeseen emergency, the appellants were unable to attend today's hearing, however they did provide additional documentation for the Board to review. Phone (3601385 -9100 Fax (3601385 -9382 jeffbocc@co.jefferson.wa.us Board of Equalization Minutes - January 26, 2011 Page: 2 Appraiser Pray informed the Board that he has no additional testimony or documentation to submit. Chairman Gating asked Appraiser Pray to explain the large discrepancy between the fee appraisal amount ($540,000) provided by the appellants and the assessed value ($702,970). Appraiser Pray replied that the appraiser who performed the fee appraisal was located in Oregon and was working for the appellant. He reiterated that the appellants indicated on their building permit that the value of their home was $625,000 and they did not provide any documentation that indicated that their costs were less. When asked how this property was assessed, Appraiser Pray replied that the appellants started building in 2008. He made a site inspection for the new construction in the summer of 2008 and gave a percentage of completion as of July 31, 2008. In 2009 the home was 100% complete and was given the final assessed value (approximately $600,000 for improvements). He factors in square footage, quality and looks at the building permit to see if it is a custom home. In 2010, during the 4 year evaluation cycle for that area, Appraiser Pray made another site inspection, reviewed the decline in the housing market and reduced the improvement value another $50,000 ($549,750). Chairman Gating asked if a cost approach was used? Appraiser Pray replied that he used a cost approach which is typical for new construction. There were no comparable property sales in the area to use in assessing the subject property. Chairman Gating said the replacement cost indicated in the fee appraisal was $544,255 which isn't much lower than the current assessed value. Member Krist indicated that there is some confusion about the sequence of the fee appraisal. The accessory dwelling unit (ADU) was built in 2008 and the house was completed in 2009. However, the fee appraisal was conducted in June 2008. Unfortunately, the appellants were not present to answer questions. Hearing no further testimony, Chairman Gating closed the hearing. The Board will make a determination at a later date. WorldMark, The Club BOE: 10 -26 -C PN: 10 -41302 9805 Willows Road NE Redmond, WA 98052 Jeanne Nield and Daniel Crooker were present on behalf of WorldMark, The Club (hereinafter called WorldMark). Lauralee Kiesel and Sherrie Shold represented the Assessor's office and everyone was sworn in by Chairman Gating. Under appeal is the personal property value of items located at 141 Orcas Drive, Port Townsend. Currently, the property is assessed at $378,060. The appellants estimate the value is $0. WorldMark Representative, Jeanne Nield informed the Board that they are not appealing the valuation, however the issue at hand is the exemption for household furnishings. WorldMark is an association of Board of Equalization Minutes - January 26, 2011 Page: 3 all of its owner members. They do not considered themselves a commercial business. The timeshare units are not for sale; they are only used for vacation purposes and therefore the appellants feel they should be exempt. Assessor's Representative Lauralee Kiesel stated that their office works with the Washington State Department of Revenue who performs approximately three (3) audits a year. WorldMark was randomly selected to be audited. WorldMark manages the personal and real property for people who have interests, however the units are not individually owned. As is the case for items in the unit such as a couch or a lamp. No one could take those items home with them. Assessor's Representative Sherrie Shold added that WAC 458.16.115 says personal property held for sale or used for any business or commercial purposes does not qualify for the household goods exemption. It is her understanding that when you redeem points to use a timeshare unit all the necessary items are already in the unit. Similar to a hotel, motel or a bed and breakfast. You bring your personal affect and you leave with your personal affects. You are not allowed to take the chair or table, etc. nor do you have to bring those items. She also informed the Board that included in the Board's packets is an e -mail from Pete Levine, Personal Property Supervisor with the Washington State Department of Revenue who stands by their position from the 2007 audit in which WorldMark would not qualify for the exemption. WorldMark Representative Daniel Crooker responded that the difference between a hotel, motel or a bed and breakfast and a WorldMark timeshare unit is that a WorldMark owner purchases all furnishings up front. Owners have a mortgage and pay maintenance dues to keep the property in excellent shape. The reason they don't bring household items is because they have already purchased them. He also stated that an individual can't take a couch or a lamp if they own a fixed week in a timeshare unit. So he feels they are no different in that regard. Member Krist asked whether a WorldMark owner actually owns a certain piece of property that has a legal description? Mr. Crooker responded that Wyndham builds the resorts and each unit has a credit value. Discussion ensued about the correlation between Wyndham (For Profit Developer) and WorldMark (Non -Profit Association of Member Owners) and the process for the building, furnishing and selling of units. Member Krist asked if this type of timeshare unit could be compared to `cooperative' units? Mr. Crocker replied, yes, that was a good comparison. The owners have the right to use their credits, but they also have the right to sell their credits. Member Krist asked if it is the argument of WorldMark that their units are not like a bed and breakfast, hotel or motel because they are not for rent? Ms. Nield replied yes. Mr. Crooker concurred and said that the units are for use by the owners. Assessor's Representative Lauralee Kiesel clarified that owners can transfer their credits or rent out their credits. Board of Equalization Minutes - January 26, 2011 Page: 4 Assessor's Representative Sherrie Shold asked if the Appellants have the RCW or WAC that may exempt WorldMark if they are considered a `cooperative' unit? Ms. Nield responded that it is RCW 84.36.383 which reads: "The term "residence' means a single family dwelling unit whether such unit be separate or part of a multiunit dwelling ... The term also includes a share ownership in a cooperative housing association, corporation, or partnership if the person claiming exemption can establish that his or her share represents the specific unit or portion of such structure in which he or she resides." She explained that all of their owner /members own a portion or share of all the assets. Assessor's Representative Sherrie Shold pointed out that the owner /members don't claim ownership in a particular unit they claim ownership in the entire company. Usually there are legal documents filed with the State or County showing ownership. Discussion continued regarding the 2007 audit conducted by the Washington State Department of Revenue and the exemption they cited. Ms. Nield discussed the non - profit status of WorldMark. The monthly income statement of WorldMark equals $0. Owners are able to rent or give their points away to anyone they choose. WorldMark rent out specific units, at wholesale price, at a location where they have low occupancy during a certain period of the year. This is to help cover costs. Hearing no further testimony, Chairman Gating closed the hearing. The Board will make a determination at a later date. Susan Kraght BOE: 1043 -R PN: 945 000 402 7698 E. Minnezona Avenue Scottsdale, AZ 85251 -2102 Susan Kraght was not present. Appraiser Dennis Pownall represented the Assessor's office and was sworn in by Chairman Garing. Under appeal is the land and improvement value of property located at 41 W. Fitchburg Avenue, Port Hadlock. Currently, the property is assessed at $152,140 ($44,640 for the land and $107,500 for the improvements). The appellant estimates the value is $92,000 ($35,000 for the land and $57,000 for the improvements). On the petition form the appellant wrote the following reason for appealing the valuation of her property: "I kindly request that the assessed value of my property purchased on October 22, 2010 be lowered to the price paid. Facts are as follows: 1. The property was on the market for 220 days before I made my offer. I did not know the seller, and my offer was accepted within 24 hours of submitting it. 2. The house is very outdated and the interior is original from 1981. 3. 1 do not plan to do any remodeling. My renter has moved in. The only plans are to build Board of Equalization Minutes - January 26, 2011 Page: 5 a fence for the renter's dogs, clean the roof, and paint the home's interior. None of these tasks increase value. 4. Sales activity in Port Hadlock has been very low over the last six (6) months. I have attached the only comp available (57 Arden and Parcel 961800611). It sold for $108,000 but had a two car garage, two bathrooms, and 340 square feet more of living space. Jefferson County assesses the land value of both properties about even ($44,640 and $44,000), therefore, a square footage comparison can be used (even though it favors a higher square footage cost for Arden). 57 Arden: $108,000 less land of $44,000 = $64,000 = $47.48 41 W Fitchburg: $92,000 less land of $44,640= $47,350 = $46.98 This comp clearly supports the sale price paid. In addition, the house was purchased in an arms - length transaction after the market was completely tested by the seller. I kindly request Jefferson County to reduce the assessed value of 41 W. Fitchburg to the price paid or $92,000." Appraiser Pownall informed the Board that the assessment date for the subject property is January 1, 2007. He e- mailed the Appellant and explained the 4 year cycle used in Jefferson County. He also provided a comparable property sale located on the same block that sold in June, 2009 for $175,000. This sale occurred closer to the assessment date than any of the Appellant's comparable sales including the purchase of her home. Ms. Kraght submitted additional testimony via fax arguing that the Assessor's comparable sale is a three bedroom home and is much nicer than her property. Appraiser Pownall agrees that the market has declined and will take this sale into consideration when assessing this area in 2011. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Member Krist moved to adjourn the meeting until February 2, 2011 at 9:30 a.m. Chairman Garing seconded the motion. The motion carried. F lie T•. e, Clerk of the Board JEFFERSON COUNTY BOARD OF EOUALIL i Dave Gazing, C"au� Henry Krist, Member (Vacant) Member