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Home My WebLink AboutM102711I ok Dave Garing Henry Krist Michael Smith 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Dave Garing Henry Krist MINUTES October 27, 2011 Michael Smith Chairman Vice - Chairman Member Chairman Dave Garing called the meeting to order at 9:30 a.m. in the presence of Vice - Chairman Henry Krist and Member Michael Smith. Per WAC 458 -14- 095(4) post hearing deliberations of the Board of Equalization are not recorded. At the conclusion of the deliberations the Board resumed the regular meeting at 11:45 a.m. and the following action was taken. DETERMINATIONS G.P. Middleton, Trustee BOE: 11 -12 -R PN: 948 311 403 Gregory 1329 Trust P.O. Box 676 Port Townsend, WA 98368 The Board considered the information presented by the Appellant and the Assessor's Representative. The Appellant contends that the property should be assessed at a value of $147,400 based on the fact that the building on the property is largely uncompleted and that the land had no site improvements (utilities) as of the assessment date of January 1, 2009. Based on a review of all available evidence, the Assessor's Representative recommended that the improvement value be reduced to $49,410 to reflect a 40% completion of the building instead of the 60% stated on his value. He also recommended that the land value be reduced by $10,000 for lack of utilities. Based on the recommendation of the Assessor's Representative, Vice - Chairman Krist moved to overrule the Assessor's valuation of $192,400 ($117,400 for the land and $75,000 for the improvements) and reduce it to $156,810 ($107,400 for the land and Phone (360)385 -9100 Fax (360)385 -9382 jeffbocc&o.jefferson.wa.us Board of Equalization Minutes - October 27, 2011 Page: 2 $49,410 for the improvements). Member Smith seconded the motion which carried by a unanimous vote. (See also minutes of September 15, 2011) Ann Kittredge BOE: 11 -11 -R PN: 701 195 008 AMK Properties P.O. Box 763 Quilcene, WA 98376 The Board considered the information presented by the Appellant and the Assessor's Representative. The Appellant contends that the property should be assessed at a value of $75,000 based on the fact that the home is unfinished and recycled materials were used in construction. During the hearing it was discovered that the Assessor's Representative visited the subject property, but was asked to leave the premises by the occupants of the home before he was able to determine an accurate improvement value. The Appellant was unaware that the Assessor's Representative was not able to inspect the property and invited him to conduct another site visit. The Assessor's Representative performed a second site visit and recommended that the improvement value be reduced to $36,155 based on the stage of completion. The Appellant provided a written statement agreeing to the recommendation of the Assessor's Representative. Based on the recommendation of the Assessor's Representative and the concurrence of the Appellant, Member Smith moved to overrule the improvement value of the subject property and reduce it from $100,000 to $36,155. The land value remains unchanged at $77,600 for a total valuation of $113,755. Vice - Chairman Krist seconded the motion which carried by a unanimous vote. (See also minutes of August 1, and September 15, 2011) Daniel & Audrey Lafforgue BOE: 11 -24 -R PN: 964 601 601 P.O. Box 692 Brinnon, WA 98320 The Board considered the information presented by the Appellants and the Assessor's Representative. Board of Equalization Minutes - October 27, 2011 Page: 3 The Appellants contend that the property should be assessed at a value of $211,290 as of the January 1, 2010 assessment date. The Assessor valued the property as of that date for $304,355. The Appellants purchased the subject property for $305,000 in August 2006. At that time the property was assessed at $314,400. The Appellants appeared at the hearing and submitted two comparable sales. Neither comparable sale involved a sale close to the assessment date. The Assessor' Representative testified that these properties were not very similar to the subject property. In any event, changes in assessed valuations of the 2 "comparables" do not support the Appellant's position that their property is assessed unfairly when compared to nearby properties. Between 2006 and 2010, the Appellant's property assessment was decreased from $314,410 to $304,355, or over 3 %, while the assessment of the Appellant's comparable sale #1 actually increased, from $211,020 to $211,290, and the assessment of their comparable sale #2 decreased slightly from $210,625 to $209,915 (or 3/10 of 1 %). The Board carefully considered the information presented by the Appellants and the Assessor's Representative. It was determined that the Appellants did not present clear, cogent, and convincing evidence necessary to overcome the presumptive correctness of the value established by the Assessor. Vice - Chairman Krist moved to sustain the Assessor's valuation of $304,355 ($103,750 for the land and $200,605 for the improvements). Member Smith seconded the motion which carried by a unanimous vote. (See also minutes of September 15, 2011) Wayne Bibbins BOE: 11 -17 -LO PN: 948 308 403 P.O. Box 1941 11 -18 -LO 948 308 406 Port Townsend, WA 98368 The Board considered the information presented by the Appellant and the Assessor's Representative for both appeals. The Appellant contends that both parcels should be assessed at a value of $35,000 each as of the January 1, 2009 assessment date. The Assessor valued the property as of that date at $70,000. The Appellant did not attend the hearing to offer testimony but cited 4 sales in his petition as "comparable." All of these sales occurred long after the assessment date. The Assessor's Representative testified that the Appellant sold one of the subject lots for $80,000 in March of 2010, and later received it back via a deed in lieu of foreclosure. Board of Equalization Minutes - October 27, 2011 Page: 4 The law requires that the Board of Equalization presume the Assessor's valuation to be correct unless the Appellant presents clear, cogent and convincing evidence to the contrary. The Board of Equalization fords that the Appellants did not present such evidence. Member Smith moved to sustain the Assessor's valuation for both parcels as shown below: Appeal Number Parcel Number Current Assessed Value BOE 11 -17 -LO 948 308 403 $70,000 BOE 11 -18 -LO 948 308 406 $70,000 Vice - Chairman Krist seconded the motion which carried by a unanimous vote. (See also minutes of October 20, 2011) George & Jane Ansley BOE: 11 -29 -LO PN: 021 321 040 Ansley Living Trust 373 20`s Street Port Townsend, WA 98368 The Board considered the information presented by the Appellants and the Assessor's Representative. The Appellants were present at the hearing held on October 20, 2011. They were appealing the Assessor's valuation of $215,700 as of January 1, 2011 on a lot of .65 acres with 85 feet of waterfront footage located on Marrowstone Island. The Appellant's estimate of fair market value was $175,000 in their original petition received on August 22, 2011; however, during the hearing they reduced their estimate to $50,000. They stated there have been no comparable sales in the area for the last five years so were not able to present documentation to support their estimate. The Appellants also stated their concern that the subject property had experienced an increase in value that was not reflected in neighborhood properties. The Assessor's Representative presented three sales that occurred from November 2009 to August 2011 in the immediate area that had various aspects of comparability with the subject property, most notably the waterfront foot value of land located on Griffith Point. He also explained that the subject property had previously received a deduction for lack of potable water which was removed once PUD water became accessible. Board of Equalization Minutes - October 27, 2011 Page: 5 The law requires that the Board of Equalization presume the Assessor's valuation to be correct unless the Appellant presents clear, cogent and convincing evidence to the contrary. The Board of Equalization finds that the Appellants did not present such evidence. Member Smith moved to sustain the Assessor's valuation of $215,700 (Land Only). Vice - Chairman Krist seconded the motion which carried by a unanimous vote. (See also minutes of October 20, 2011) RG Woodman & Brian Dempsey BOE: 1142 -LO PN: 721 173 002 12093 Viewcrest Place NE Bainbridge Island, WA 98110 The Board considered the information presented by the Appellants and the Assessor's Representative. The Appellants assert the value of their waterfront property to be $441,800 rather than the Assessor's valuation of $552,000. The Assessor's Representative reviewed market based evidence and acknowledges that the rate used to value all waterfront parcels in neighborhood #3440 was inaccurate. The Assessor's Representative testified that the true market value of waterfront property in neighborhood #3440 can be fairly determined by using a rate of $2,000 per waterfront foot. He presented a letter addressed to the Appellants dated September 27, 2011 in which he supported reducing the value of the subject property (land code #1525) from $2,500 /waterfront foot to $2,000 /waterfront foot. The Appellants concur with the Assessor's revised method in establishing the value of the property. After careful consideration Member Smith moved to overrule the Assessor's initial determination of value and finds the true and fair market value to be $441,600 (Land Only). Vice - Chairman Krist seconded the motion which carried by a unanimous vote. (See also minutes of October 26, 2011) Brian & Cairns Dempsey BOE: 11 -44 -R PN: 721 174 006 DBC #1, LLC 11 -45 -LO 721 174 024 1301 Spring Hill Street, Unit 29J Seattle, WA 98104 Board of Equalization Minutes - October 27, 2011 Page: 6 The Board considered the information presented by the Appellants and the Assessor's Representative for both appeals. The Assessor's Representative reviewed market based evidence and acknowledges that the rate used to value all waterfront parcels in neighborhood 43440 was inaccurate. The Assessor's Representative testified that the true market value of waterfront property in neighborhood #3440 can be fairly determined by using a rate of $2,000 per waterfront foot. He presented a letter addressed to the Appellants dated September 27, 2011 in which he supported reducing the value of both parcels (land code # 1525) from $2,500 /waterfront foot to $2,000 /waterfront foot. The Appellants concur with the Assessor's revised method in establishing the value of the property. Member Smith moved to overrule the Assessor's valuation for both parcels as shown below: Appeal Number Parcel Number Current Assessed Value BOE 11 -44 -R 721 174 006 $449,390 ($137,270 Imp. & $312,120 Land) BOE 11 -45 -LO 721 174 024 $138,610 (Land Only) Vice - Chairman Krist seconded the motion which carried by a unanimous vote. (See also minutes of October 26, 2011) Tory & Tod Nissle BOE: 11 -47 -R PN: 935 100 011 15616 3`d Drive SE Bothell, WA 98012 -6328 The Board considered the information presented by the Appellants and the Assessor's Representative. The Appellants were not present at the hearing to offer oral testimony. They indicated on their petition that they do not refute the Assessor's land valuation ($88,000) but are appealing the assessed value of improvements on this Port Ludlow parcel. The Assessor estimated the fair market value of the improvements to be $225,630 versus the Appellant's estimate of $173,000. The Appellants presented a professional appraisal of the property which contained a number of comparable sales. A few of the comparable sales were 3 -4 miles away from the subject property including several transactions that occurred under Bargain and Sale Deeds. The Appellants purchased the subject property in June, 2011 from Bank of America for $261,000 and they stated this amount represents the current combined value of land and improvements. For comparison purposes, the Assessor's total valuation was $313,630. Board of Equalization Minutes - October 27, 2011 Page: 7 The Assessor's Representative presented three comparable sales, the first of which was the same as Appellants comparable sale #1. There was a lengthy discussion regarding a professional appraiser's difficulty in numerically determining subjective adjustments to variables such as the quality of construction. The Assessor's Representative also pointed out the curious sales history of Appellant's comparable sale #6 and noted the subject property had been listed for sale in late 2010 for $350,000. The law requires that the Board of Equalization presume the Assessor's valuation to be correct unless the Appellant presents clear, cogent and convincing evidence to the contrary. The Board of Equalization finds that the Appellants did not present such evidence. Member Smith moved to sustain the Assessor's valuation of $313,630 ($88,000 for the land and $225,630 for the improvements). Vice - Chairman Krist seconded the motion which carried by a unanimous vote. (See also minutes of October 26, 2011) Stephen Nielsen BOE: 11 -48 -LO PN: 721 174 012 8350 Merrimount Drive 11 -50 -LO 721 174 032 Mercer Island, WA 98040 11 -51 -LO 721 174 014 11 -52 -LO 721 174 033 The Board considered the information presented by the Appellant and the Assessor's Representative. The Appellant attended the hearing held on October 26, 2011. The subject property is a parcel with 110' of saltwater frontage on Hood Canal intersected by Thorndyke Road. The Appellant's estimate of the fair market value is $155,000. The Assessor originally determined the value to be $235,315. During the hearing the Assessor's Representative testified that review of market based evidence for waterfront in this area (neighborhood #3440) indicated that the property had been overvalued. He testified that the waterfront rate on this parcel and other neighborhood parcels with land code designation #1525 should be decreased from $2,500 to $2,000 per waterfront foot. After applying this revised waterfront rate, with no change to the residual acreage or negative adjustments for excess waterfront footage and topography, the Assessor's Representative recommended the total land value of this parcel be reduced to $189,710. The Appellant concurred with this proposed revision. Board of Equalization Minutes - October 27, 2011 Page: 8 Member Smith moved to overrule the Assessor's valuation for each appeal as shown below: Anneal Number BOE 11 -48 -LO BOE 11 -50 -LO BOE 11 -51 -LO BOE 11 -52 -LO Parcel Number 721 174 012 721 174 032 721 174 014 721 174 033 Current Assessed Value $189,710 $59.575 $190,310 $59,600 Vice - Chairman Krist seconded the motion which carried by a unanimous vote. (See also minutes of October 26, 2011) Kenneth & Loretta Close BOE: 11 -33 -LO PN: 995 500 011 P.O. Box 65455 Port Ludlow, WA 98365 The Board considered the information presented by the Appellants and the Jefferson County Assessor. The Appellants attended the hearing held on October 26, 2011. The property is a kite shaped lot at the intersection of Cameron and Highland Drive in the South Bay Estates in Port Ludlow. It includes approximately 10' of frontage on the community golf course. The Appellants assert the fair market value of the property to be $39,950. They also contend that variable street and golf course setbacks limit, but do not necessarily prohibit, the construction of building on this lot. The Appellants researched sales in the area and testified they were unable to identify any comparable property sales. The Assessor originally determined the value to be $73,840. He explained that while the improved value of property in the area has significantly declined since the last assessment cycle, the unimproved land values have not dropped to 2003 levels. The Assessor also noted that setback requirements appeared similar for parcels in the immediate vicinity but acknowledged the irregular shape of the subject property. He proposed an additional adjustment of negative 10% be applied to this parcel's base value of $125,000. The Appellants indicated agreement with the Assessor's proposal. After careful consideration Member Smith moved to overrule the Assessor's initial determination of value and reduce the value to $62,500 (Land Only). Vice - Chairman Krist seconded the motion which carried by a unanimous vote. (See also minutes of October 26, 2011) Board of Equalization Minutes - October 27, 2011 Page: 9 Vice - Chairman Krist moved to adjourn the meeting at 11:55 a.m. Member Smith seconded the motion which carried by a unanimous vote. ATT S�T- Lksli- R. Locke, Clerk of the Board JEFFERSON COUNTY BOARD OF EQUALIZATION Dave Garing, hai an Henry Krist, Vice-Chairman Michael Smith, Member