Loading...
HomeMy WebLinkAboutM101612O� Dave Garing Michael Smith Henry Krist 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Dave Garing Henry Krist MINUTES October 16, 2012 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 Michael Smith and Member Henry Krist. DISCUSSION AND POSSIBLE DECISION re: Request to Equalize all Similar Jefferson County Quarry Properties; David Armitage, Requester: Member Krist stated that he feels that Mr. Armitage has a compelling argument and even though the income approach is not normally used, there were no comparable property sales provided to show fair market value. However, annual income was shown through an agreement between the lessee and lessor. Vice - Chairman Smith stated that he tends to agree with Member Krist that there is evidence that Jefferson County quarries are undervalued, however, the information provided by Mr. Armitage has not been verified. The Board of Equalization does not have the authority to request income information. The Assessor is the only one who can ask for income information if he chooses. Assessor Westerman previously stated that no other Washington State Counties use the income approach and questioned the Board's ability to equalize without sales data. Chairman Garing stated that it is an assumption, based on one quarry, that all quarries located in Jefferson County are incorrectly valued. There are presumptions made by both parties. In the information provided by Mr. Armitage he presumes the following: the rate of return; operating costs; expenses; sale prices; royalties and reclamation; Assessor's assessments; and the compensating tax for the last 10 years is incorrect. He pointed out that Assessor Westerman said that mineral rights are not assessed by Jefferson, Clallam, Mason or Kitsap Counties and tied in the importance of uniformity in assessments. It is not about the tax that is being paid nor is it the Board's concern. The only duty of the Board of Equalization is to assure that properties are assessed fairly. He thinks the Assessor has done that. Assessor Westerman also provided statistical data prepared by the Washington State Department of Revenue that shows Jefferson County values are uniform. Phone (360)385 -9100 Fax (360)385 -9382 jefiboco@co.jefferson.wa.ns Board of Equalization Minutes — October 16, 2012 Page: 2 The discrepancy is between the methodology used by Jefferson County and the methodology Mr. Armitage feels should have been used to value the quarries. Member Krist stated he feels the income approach makes the most sense and he realizes that all commercial properties are not and should not be valued the same. He questioned the value of property that has the potential to receive a substantial amount of money over a certain period of time. It may be a question for the State. Chairman Garing responded that if all quarries are not equal then how is the Board going to equalize? Member Krist stated it appears that there is a potential problem and it should be reviewed. Vice - Chairman Smith stated there is a lot of information but not enough to equalize Jefferson County quarries. He read a portion of an email (dated July 3, 2013) from Diann Locke, Washington State Department of Revenue, that reads: "If the Board decides they do not have enough information to overcome the Assessor's presumption of correctness and not equalize the quarries, the Board must issue a determination stating they are not going to equalize." Vice - Chairman Smith moved not to equalize Jefferson County quarries based on the fact that there is not adequate information to do so. Based on the email from Diann Locke, Washington State Department of Revenue, Member Krist seconded the motion which carried by a unanimous vote. Member Krist moved to request an opinion from the Washington State Department of Revenue and examine this whole process. Vice - Chairman Smith seconded the motion. A vote was called on the motion. Member Krist and Vice - Chairman Smith voted for the motion and Chairman Garing voted against the motion. The motion carried. (See later in minutes for additional discussion) DETERMINATIONS Per WAC 458 -14- 095(4) post hearing deliberations of the Board of Equalization are not recorded. The Board began post hearing deliberations at 10:00 a.m. At the conclusion of the deliberations the Board resumed the regular meeting at noon and the following action was taken. Board of Equalization Minutes — October 16, 2012 Page: 3 Scott & Gail Sloan BOE: 12 -01 -LO PN: 948 002 816 13513 NE 5"' Court Vancouver, WA 98685 The appellants purchased their property in February, 2008 for $89,000 and requested that the value of the lot be reduced from the January 1, 2009 assessed valuation of $77,000 to $25,500. The appellants were not available to present oral testimony but their petition referenced a lot next door (Parcel # 948 002 807) which was valued at $25,500 due to lack of sewer access. According to the Assessor's Representative, that lot has sewer access and the designation will be corrected. All the parcels in the area have access to utilities. The Assessor's Representative presented two comparable sales adjacent to the appellants' parcel. Comparable sale #I was almost identical in size and valued at $80,000. Comparable sale #2 was somewhat larger and it was valued at $95,400. After reviewing all the information submitted, the Board finds that the appellants did not present clear, cogent, and convincing evidence necessary to overcome the presumptive correctness of the value established by the Assessor. Member Krist moved to sustain the Assessor's valuation of $77,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See also minutes of August 16, 2012) Elizabeth Blake BOE: 12 -02 -LO PN: 972 904 603 128 Woodland Avenue Port Townsend, WA 98368 The appellant was not available to present oral testimony but indicated she purchased the lot in September, 2004 for $92,000 and requested that the value of the lot be reduced from the January 1, 2009 value of $135,000 to $75,000. Her request was based on the fact that she has been trying to sell the lot, but there has been no interest. The comparable sales presented by the appellant were not in the same area as the subject property. The Assessor's Representative had four comparable sales in the area of the appellant's property, and none of them had a view. The appellant's lot has a partial view and is much closer to the water than the four comparable sales. After reviewing all the information submitted, the Board finds that the appellant did not present clear, cogent, and convincing evidence necessary to overcome the presumptive Board of Equalization Minutes — October 16, 2012 Page: 4 correctness of the value established by the Assessor. Vice - Chairman Smith moved to sustain the Assessor's valuation of $135,000. Member Krist seconded the motion which carried by a unanimous vote. (See also minutes of August 16, 2012) James & Petey McCune BOE: 12 -04 -R PN: 965 000 026 McCune Family Trust P.O. Box 1295 Corona, CA 92878 -1295 The appellants were unable to appear at the hearing but indicated they purchased their property in September, 2011 for $880,000. They are appealing the value set by the Assessor's Office of $943,900 which was determined during the last valuation cycle (January 1, 2008). State law mandates that properties be valued for assessment purposes as of January 1 of the assessment year. At the time of the hearing the appellants had not received the new change of value notice that lowered their value to $794,485 as of January 1, 2012. The appellants were contacted and verbally accepted the new value placed by the Assessor. Member Krist moved to sustain the Assessor's valuation of $794,485. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See also minutes of July 12, 2012) John & Peggy Molsness BOE: 12 -06 -R PN: 972 903 905 107055 th Street Port Townsend, WA 98368 The appellants estimated the value of their property at $250,000. They presented a fee appraisal done as of May, 2011, stating the value to be $250,000 as of that date. The Assessor valued the property as of the assessment date. January 1, 2009, at $292,810. The Assessor presented comparable sales that occurred close to the assessment date and located near the appellant's property which support the current value. After reviewing all the information submitted, the Board finds that the appellants did not present clear, cogent, and convincing evidence necessary to overcome the presumptive correctness of the value established by the Assessor. Board of Equalization Minutes — October 16, 2012 Page: 5 Vice - Chairman Smith moved to sustain the Assessor's valuation of $292,810. Member Krist seconded the motion which carried by a unanimous vote. (See also minutes of August 16, 2012) Barbara & Joseph Buchman BOE: 12 -08 -R PN: 502 142 011 1223 Spring Street, Apt. 501 Seattle, WA 98104 The appellants purchased their property in February, 2011 for $240,001 and they requested that the value of the lot be reduced from the January 1, 2010 value of $317,625 to $250,000. Their request is based on three comparable sales of waterfront property. The appellants thought that the assessment included the value of a trailer on wheels located on the property, but the Assessor's Representative stated that was not the case. The appellant's property is located on the waterfront in Brinnon consisting of 2.25 acres with a total of 1,125 feet of water frontage. It received negative adjustments for excess frontage and limited building footprint. It was listed in October, 2009 for $750,000. The Assessor's Representative presented two comparable sales of Brinnon waterfront properties which were substantially smaller than the appellants' property as well as having far less waterfront footage. The appellants' comparable properties were not comparable to the subject property and one was located in Mason County. The Assessor's Representative was unaware that the property did not have utilities and acknowledged that the value should be reduced by $5,000. Based on all available evidence, testimony and a recommendation by the Assessor's Representative, Member Krist moved to overrule the Assessor's value and reduce it from $317,625 to $312,625. Chairman Garing seconded the motion. The motion carried. Vice - Chairman Smith abstained from voting because he did not attend the hearing. (See also minutes of September 27, 2012) Tim Morris BOE: 12 -20 -LO PN: 021 321 036 P.O. Box 1177 Orem, UT 84059 The appellant's property is an 85' waterfront parcel on Marrowstone Island's Griffith Point that includes tidelands. The appellant estimates the true and fair market value of the land to be $150,000. The appellant was not available to present oral testimony nor did he submit any comparable property sales to support his estimate of value. He did express his concern that the Assessor's Representative had used two improved properties as Board of Equalization Minutes — October 16, 2012 Page: 6 comparable property sales and a vacant land sale that occurred three years ago. The Assessor's Office listed the appellant's property value to be $202,200 as of January 1, 2011. The Assessor's Representative submitted an appraisal worksheet for the appellant's property, a map of the area, and three comparable property sales that sold between November, 2009 and August, 2011. He acknowledged two of the comparable property sales were improved properties but explained that the waterfront rate of $2,500 was the same for all waterfront land in this neighborhood and that improvements were calculated separately. He explained this rate was supported in all three comparable property sales but particularly in comparable # 1, a vacant land sale on Griffith Point. This comparable property sale was a 150' waterfront property with 1.18 acres that sold in November, 2009, 14 months before the date of revaluation, for $354,000. After careful consideration the Board finds that the appellant did not present clear, cogent, and convincing evidence necessary to overcome the presumptive correctness of the value established by the Assessor. Vice - Chairman Smith moved to sustain the Assessor's valuation of $202,200. Member Krist seconded the motion which carried by a unanimous vote. (See also minutes of September 12, 2012) Keith & Rachel Helms BOE: 12 -43 -R PN: 602 353 062 3047 Dapple Way Eugene, OR 97401 The appellant's property is located in the Brinnon area and includes approximately 5 acres and a metal pole building with utilities. The appellants were not available to offer oral testimony but estimate the true and fair market value of the land to be $55,000 and the improved value of the property to be $50,000. They contacted a realtor but were unable to identify any comparable sales and indicated their cost in constructing the pole building to be $50,000. The Assessor estimates the appellant's property value to be $181,105 as of January 1, 2010. The Assessor's Representative submitted an appraisal worksheet for the appellant's property, a map of the area, an affidavit showing the appellant's property had sold for $155,000 in 2004, an affidavit showing the property had been gifted to the appellants in 2006, a 2007 building permit application for the pole building indicating a valuation of $65,422, and four comparable property sales. Comparable property sales #1, #2, and 43 are owned by the appellants and were used to demonstrate uniformity in assessment methodology. Comparable property sale 44 is a 2.5 acre of land that sold twice; first in June of 2005 for $45,000 and then in November of 2011 for $63,000. Board of Equalization Minutes — October 16, 2012 Page: 7 After careful consideration the Board finds that the appellants did not present clear, cogent, and convincing evidence necessary to overcome the presumptive correctness of the value established by the Assessor. Member Krist moved to sustain the Assessor's valuation of $181,105. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See also minutes of September 12, 2012) CONTINUED DISCUSSION re: Request to Equalize all Similar Jefferson County Quarry Properties; David Armitage, Requester: The Clerk of the Board asked for clarification on the earlier motion to send a letter to the Washington State Department of Revenue. Motion #1: "Vice- Chairman Smith moved not to equalize Jefferson County quarries based on the fact that there is not adequate information to do so. Based on the email from Diann Locke, Department of Revenue, Member Krist seconded the motion which carried by a unanimous vote. " Member Krist clarified that the Board is not going to equalize and a determination order needs to be sent to the requestor notifying him of the Board's decision. Motion 92: "Member Krist moved to request an opinion from the Washington State Department ofRevenue and examine this whole process. Vice - Chairman Smith seconded the motion. A vote was called on the motion. Member Krist and Vice - Chairman Smith voted for the motion and Chairman Garing voted against the motion. The motion carried. " Member Krist volunteered to draft a letter to the Washington State Department of Revenue requesting that they review the methodology used by the Jefferson County Assessor to value quarries located in Jefferson County and determine accuracy and uniformity. Vice - Chairman Smith moved to adjourn the meeting at 12:20 p.m. Chairman Garing seconded the motion which carried by a unanimous vote. AT T ST Leslie R. Locke, Clerk of the Board JEFFERSON COUNTY BOARD O UALIZATION JD�ave�GaiiCai Henry