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1820 Jefferson Street
P.O. Box 1220
Port Townsend, WA 98368
Dave Gering Henry Krist Michael Smith
MINUTES
February 14, 2013
Dave Garing Chairman
Michael Smith Vice - Chairman
Henry Krist 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.
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 9:30 a.m. At the conclusion of the
deliberations the Board resumed the regular meeting at 12:20 p.m. and the following action was
taken.
Robert Wise
Marsh Andersen, LLC
P.O. Box 10477
Bainbridge Island, WA 98110
BOE: 12 -21 -LO thru 12 -35 -LO
The properties under appeal are 15 unimproved parcels West of Hadlock Bay Road near the Port
Hadlock Marina. The 15 parcels were listed for sale in July 2011 for $299,000. In November
2011 the price was reduced to $199,000. In May 2012 the appellant purchased all 15 properties
for $110,000.
The appellant calculates fair market value of each parcel to be approximately one eighth of the
Assessor's valuation because all 15 parcels generated a purchase price of $110,000. The
Assessor's representative determined the combined value of these parcels to be $785,000. In
addition to oral testimony the appellant offered testimony from his Real Estate broker, a letter
from the listing broker dated May 1, 2012 summarizing the sales history for the properties, a
Jefferson County parcel map, and a list of vacant land sales during 2011 & 2012 in which 5
comparable property sales are identified for consideration. The appellant also indicated
neighborhood property values were being adversely impacted by the uncertainty of future
commercial and light industrial zoning and the vacant restaurant/hotel was falling into a state of
disrepair due to bankruptcy.
The Assessor's representative presented a list of improve properties sold during a period of July
2010 to July 2011 but acknowledged this was an error. He should have provided unimproved
Phone (360)385 -9100 Fax (360)385 -9382 jeffbocc@co.jefferson.wa.us
Board of Equalization Minutes — February 14, 2013 Page: 2
property sales. He also testified a portion of the parcels purchased by the appellant in May of
2012 had previously sold as a bundle in June of 1997 for $500,000.
The Board held a hearing on October 23, 2012 and determined they did not have adequate
information on the appellant's individual parcels and an additional hearing would be required.
The Board requested the Assessor's office provide worksheets for each tax parcel under appeal, a
list of raw land sales in the immediate area with parcel map and assessed valuations, raw land
assessments in the immediate area, and any other relevant information that might be helpful to
the Board in reaching true and fair determinations of value for each individual tax parcel.
Parcel #901121005 (BOE 12- 21 -LO)
The appellant asserts the true and fair market value of this parcel to be $3,360. He believes the
property is overvalued with respect to comparable property sales; it is overgrown with brush and
its full use is significantly limited by the fact that it is intersected by Cedar Lane separating over
1,300 square feet of the SW comer. He testified that the value of this parcel is further diminished
by its proximity to State Route 116.
The Assessor's representative maintains the value for the four lots that comprise this parcel to be
$8,000 per lot and notes he applied a 50% reduction for topography to two of the four lots for a
total value of $24,000.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to oven -We the Assessor's valuation of $24,000 and reduce the value to
$9,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel #901 121007 (BOE 12- 22 -LO)
The appellant believes this parcel is overvalued with respect to comparable property sales and its
full use is limited by its "L" shape.
The property was valued by the Assessor on January 1, 2011 for $106,000. Upon further
examination the Assessor's representative concluded he had overvalued the property so he and
recommended a new value of $48,000. At the second hearing he testified that his estimate of
$48,000 was also incorrect and further recommended a reduction from his original determination
of $106,000 but an increase from his second recommendation to $64,000. He also stated that the
$10,000 site value for utilities should be removed.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $106,000 and reduce the value to
$48,000. Vice- Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Board of Equalization Minutes — February 14, 2013 Page: 3
Parcel 9931800 101 (BOE 12- 23 -LO)
The appellant asserts the true and fair market value of this parcel to be $4,200. He feels the
property is overvalued with respect to comparable property sales and testified the lot is small
with no view.
The property was valued by the Assessor on January 1, 2011 for $30,000. Upon further
examination the Assessor's representative concluded he had overvalued the property stating that
the 25% positive adjustment for superior view should be removed. He recommends a reduction
from his original determination of $30,000 to $24,000.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $30,000 and reduce the value to
$24,000. Vice- Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel #966 000101 (BOE 12- 24 -LO)
The appellant asserts the true and fair market value of this parcel to be $8,960. He believes the
property is overvalued with respect to comparable property sales.
The property was valued by the Assessor on January 1, 2011 for $64,000. Upon further
examination the Assessor's representative concluded he had overvalued the property, and
recommended a new value of $24,000. At the second hearing he testified that his estimate of
$24,000 was also incorrect and the 100% positive adjustment for superior view should be
removed. He then recommended a further reduction for a new value of $16,000.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $64,000 and reduce the value to
$12,800. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel #966 000102 (BOE 12- 25 -LO)
The appellant asserts the true and fair market value of this parcel to be $26,880. He believes the
property is overvalued with respect to comparable property sales.
The property was valued by the Assessor on January 1, 2011 for $192,000. Upon further
examination the Assessor's representative concluded he had overvalued the property stating that
the 100% positive adjustment for superior view should be removed. He recommends a reduction
from his original valuation of $192,000 to $48,000.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Board of Equalization Minutes — February 14, 2013 Page: 4
Member Krist moved to overrule the Assessor's valuation of $192,000 and reduce the value to
$48,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel #966 000 201 (BOE 12- 26 -LO)
The appellant asserts the fair market value to be $6,720. The property could potentially be used for
commercial purposes.
The property was valued by the Assessor on January 1, 2011 for $48,000. Upon further
examination the Assessor's representative concluded he had overvalued the property and
recommended a reduction in value to $24,000. At the second hearing he testified that his
estimate of $24,000 was also incorrect and the 100% positive adjustment for superior view
should be removed. He then recommended a further reduction for a new value of $16,000.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $48,000 and reduce the value to
$12,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel #966 000 202 (BOE 12- 27 -LO)
The appellant asserts the fair market value to be $11,200. The property could potentially be used
for commercial purposes. He feels the property is overvalued with respect to comparable
property sales.
The property was valued by the Assessor on January 1, 2011 for $80,000. Upon further
examination, the Assessor's representative determined he had overvalued the property and
recommended a reduction in value from $80,000 to $48,000.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $80,000 and reduce the value to
$36,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel 4966 000 301 (BOE 12- 28 -LO)
The appellant asserts the fair market value to be $2,240. During the hearing the appellant testified
that he owns three of the four small parcels in this area. The parcels are too small for a building site
and he would have to combine his three parcels which would make an unusual shaped building site.
In order to market these three parcels they would have to be sold together for $8,000 or $9,000.
The property was valued by the Assessor on January 1, 2011 for $16,000. Upon further
examination, the Assessor's representative determined he had overvalued the property and
recommended a reduction in value from $16,000 to $4,000.
Board of Equalization Minutes — February 14, 2013 Page: 5
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $16,000 and reduce the value to
$4,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel 9966 000 302 (BOE 12- 29 -LO)
The appellant asserts the fair market value to be $2,240. During the hearing the appellant
testified that he owns three of the four small parcels in this area. The parcels are too small for a
building site and he would have to combine his three parcels which would make an unusual
shaped building site. In order to market these three parcels they would have to be sold together
for $8,000 or $9,000.
The property was valued by the Assessor on January 1, 2011 for $16,000. Upon further
examination, the Assessor's representative determined he had overvalued the property and
recommended a reduction in value from $16,000 to $4,000.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $16,000 and reduce the value to
$4,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel 4966 000 303 (BOE 12- 30 -LO)
The appellant asserts the fair market value to be $3,164. He testified at the hearing that this parcel
would need approximately nine feet of fill dirt to make a building site and the location would not be
appealing to a buyer. The sign for the Inn at Port Hadlock is located on this property as well as a
power vault.
The property was valued by the Assessor on January 1, 2011 for $22,600. Upon further
examination, the Assessor's representative determined he had overvalued the appellant's property
and recommended a 50% reduction for road noise and topography. After further review, the
Assessors representative recommended an additional 50% reduction in value for location.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $22,600 and reduce the value to
$3,640. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel #966 000 305 (BOE 12- 31 -LO)
The appellant asserts the fair market value to be $1,120. During the hearing the appellant
testified that he owns three of the four small parcels in this area. Each parcel is too small for a
Board of Equalization Minutes — February 14, 2013 Page: 6
building site and the three parcels would have to be combined which would make an unusual
shaped site. In order to market these three parcels they would have to be sold together for $8,000
or $9,000.
The property was valued by the Assessor on January 1, 2011 for $8,000. Upon further
examination, the Assessor's representative determined he had overvalued the property and
recommended a 50% reduction in value for size.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $8,000 and reduce the value to
$4,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel 4901121009 (BOE 12- 32 -LO)
The appellant asserts the fair market value to be $1,825. He testified at the hearing that this parcel
would require fill dirt in order to establish a building site. The location would not be appealing to a
buyer. It is overgrown with brush and a power vault is located on the property.
The property was valued by the Assessor on January 1, 2011 for $26,640. Upon further
examination, the Assessor's representative determined he had overvalued the property and
recommended a 50% reduction in value for location.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $26,640 and reduce the value to
$11,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel #966 000 804 (BOE 12- 33 -LO)
The appellant asserts the fair market value to be $4,860. He testified at the hearing that this parcel
would require fill dirt in order to establish a building site. The location would not be appealing to a
buyer. It is overgrown with brush and a power vault is located on the property.
The property was valued by the Assessor on January 1, 2011 for $34,720. Upon further review, the
Assessor's representative recommended a 50% reduction in value for limiting factors.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $34,720 and reduce the value to
$9,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Board of Equalization Minutes — February 14, 2013 Page: 7
Parcel #997 900 010 (BOE 12- 34 -LO)
The appellant asserts the fair market value to be $8,400. He testified that the Inn at Port Hadlock's
septic drainfield is located on several parcels including this one.
The property was valued by the Assessor on January 1, 2011 for $60,000. Based on the testimony
of the appellant, the Assessor's representative recommended the value be reduced to $6,000 due to
limiting factors.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $60,000 and reduce the value to
$6,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Parcel #997 900 101 BOE 12- 35 -LO)
The appellant asserts the fair market value to be $8,400. He testified that the Inn at Port Hadlock's
septic drainfield is located on several parcels including this one.
The property was valued on January 1, 2011 for $60,000. Based on the testimony of the appellant,
the Assessor's representative recommended the value be reduced to $32,000 due to limiting factors.
After reviewing all the information submitted, the Jefferson County Board of Equalization
overrules the Assessor's determination of value.
Member Krist moved to overrule the Assessor's valuation of $60,000 and reduce the value to
$32,000. Vice - Chairman Smith seconded the motion which carried by a unanimous vote. (See
also minutes of October 23, 2012 and January 28, 2013)
Irene Gunstone BOE: 12 -61 -R PN: 002 344 006
Reed Gunstone 12 -62 -LO 901 063 001
P.O. Box 216
Port Townsend, WA 98368
Parcel 9002 344 006 BOE 12 -61 -R)
The property under appeal is a 1.82 acre parcel in Gardiner fronting Highway 101. The appellant
asserts the true and fair market value of the property to be $28,000. The Assessor valued the
property as of January 1, 2012 at $45,280 ($43,280 for the land and $2,000 for the
improvements).
The appellant's petition stated the following reasons for requesting a revised valuation: the
property did not sell at a value below the assessed value, a realtor stated $25,000 to $30,000 as a
price, and the existing cabin should be considered a "tear down" while suggesting this cost
should be deducted from the value of the land. The appellant indicated additional documentary
evidence would be submitted prior to the scheduled hearing but the Board of Equalization did not
receive any additional information nor was the appellant or a representative present to offer oral
Board of Equalization Minutes — February 14, 2013 Page: 8
testimony or answer questions.
The Assessor's representative presented a tax parcel map of the immediate area, a copy of the
appraisal worksheet, a list of all property sales that occurred in School District #50 from July
2011 to July 2012, and a Real Estate listing profile (MLS #387497) showing the property had
been offered for sale in combination with a second parcel for $129,360.
The Board concurred 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 $45,280 ($43,280 for the
land and $2,000 for the improvements). Member Krist seconded the motion which carried by a
unanimous vote. (See also minutes of February 7, 2013)
Parcel #901063 001 (BOE 12- 62 -LO)
The property under appeal is a waterfront parcel Southeast of Gardiner. The appellant asserts the
true and fair market value of the property to be $149,000. The Assessor valued the property as of
January 1, 2012 at $355,250.
The appellant believes the property is overvalued by the Assessor because it was placed on the
market but did not sell at a value below the assessed value. The appellant indicated additional
documentary evidence would be submitted prior to the scheduled hearing. The Board of
Equalization did not receive any additional information nor was the appellant or a representative
present to offer oral testimony or answer questions.
The Assessor's representative presented a tax parcel map of the immediate area, a copy of the
appraisal worksheet, and a list of all property sales that occurred in School District #50 from July
2011 to July 2012. The Assessor's representative testified that the first 100 feet of waterfront is
assessed at $1,400 per front foot, which is a uniform waterfront rate for this area. The property
also received a reduction in value for excess front footage as well as a negative adjustment of
25% for topography.
The Board concurred 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 $355,250. Member Krist
seconded the motion which carried by a unanimous vote. (See also minutes of February 7, 2013)
Reed Gunstone BOE: 12 -63 -R PN: 002 344 012
P.O. Box 216
Port Townsend, WA 98368
The property under appeal is an improved parcel fronting Highway 101. The appellant asserts
the true and fair market value of the property to be $25,000. The Assessor valued the property as
of January 1, 2012 at a value of $45,670 ($30,000 for the land and $15,670 for the
improvements).
Board of Equalization Minutes — February 14, 2013 Page: 9
The appellant was not present to testify at the hearing. He stated in his petition that the reasons
for his valuation are that the property did not sell at a value below the assessed value, that the
listing agent stated $25,000 as a maximum price, and that there had been break -in and theft
damage to the improvements, there was mold present, and the structure was a "tear down." He
did not submit any evidence in support of his assertions.
The Assessor's representative recommended reducing the land value by $6,000 due to the poor
condition of the septic system for a revised land value of $24,000, and reducing the improvement
value to $5,000 due to the condition of the building, for a total assessed value of $29,000.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Vice - Chairman Smith moved to overrule the Assessor's valuation of $45,670 ($30,000 for the
land and $15,670 for the improvements) and reduce the value to $29,000 ($24,000 for the land
and $5,000 for the improvements). Member Krist seconded the motion which carried by a
unanimous vote. (See also minutes of February 7, 2013)
North Slope Tree Farm BOE: 12 -64 -LO PN: 001 303 001
Reed Gunstone Gift Trust
P.O. Box 216
Port Townsend, WA 98368
The property under appeal is an unimproved waterfront parcel on Discovery Bay. This property
is in the Open Space Timber Program. The appellant asserts the true and fair market value of the
property to be $700,000. The Assessor appraised the property as of January 1, 2012 at a fair
market value of $1,250,635, and a taxable value of $445,095 for purposes of participation in the
Open Space Timber Program.
The appellant was not present to testify at the hearing. He stated in his petition that the reason
for appealing the valuation is that the property was for sale at a value below the assessed value.
He further noted that an appraisal would be submitted. No such appraisal was submitted and the
appellant submitted no evidence in support of his assertions.
The Assessor's representative testified that the taxable value as appraised is correct, however,
manifest error was made in calculating the fair market value and a correction is in order which
would reduce the fair market value from $1,250,635 to $1,061,645. This correction does not
affect the taxable value.
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 appellant did not present such evidence and therefore sustains the
taxable value of $445,095 established by the Assessor.
Board of Equalization Minutes — February 14, 2013 Page: 10
Vice - Chairman Smith moved to sustain the Assessor's taxable valuation of $445,095 and directs
the manifest error of the Assessor's value be corrected reducing it from $1,250,635 to
$1,061,645. Member Krist seconded the motion which carried by a unanimous vote. (See also
minutes of February 7, 2013)
Reed Gunstone Gift Trust BOE: 12 -65 -R PN: 002 363 002
P.O. Box 216
Port Townsend, WA 98368
The property under appeal is an improved waterfront parcel located on Discovery Bay. The
appellant asserts the true and fair market value of the property to be $750,000 (No breakdown
between land and improvements provided). The Assessor appraised the property as of January 1,
2012 at a value of $1,029,355 ($800,800 for the land and $228,555 for the improvements).
The appellant was not present to testify at the hearing. He stated in his petition the following
reasons for appealing his valuation: the Assessor's value varies from appraised value; and
comparable property sales. He further stated that an appraisal would be submitted. No such
appraisal was submitted and the appellant submitted no evidence in support of his assertions.
The Assessor's representative testified that the appellant's property is a very unique and nice
waterfront parcel with a substantial amount of waterfront footage which goes from no bank to
medium bank. He stated he had lowered the appraised valuation 27% from the 2008 valuation.
He also submitted data on sales of property in that area showing that the average sale in 2011 and
2012 (up to June 29, 2012) was at a 2008 assessed value to sale price ratio of 128.2 %. This
indicates that the 2008 valuation was approximately 28% higher than what properties were
selling for on the average during this period.
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 appellant did not present such evidence and therefore sustains the
value established by the Assessor.
Vice - Chairman Smith moved to sustain the Assessor's valuation of $1,029,355 ($800,800 for the
land and $228,555 for the improvements). Member Krist seconded the motion which carried by
a unanimous vote. (See also minutes of February 7, 2013)
Kenneth Gentil BOE: 12 -70 -R PN: 948 320 001
909 Rosecrans Street
Port Townsend, WA 98368
The property under appeal is a small house in Port Townsend built in 1945. The Assessor valued
the appellant's property at $124,855 ($78,000 for the land and $46,855 for the improvements).
The appellant bought the property in May, 2011 for $65,000 and feels the purchase price is the
true market value ($40,000 for the land $25,000 for the improvements). He presented
Board of Equalization Minutes — February 14, 2013 Page: 11
photographs of the property and stated that it was initially listed for sale for $120,000 in October
2010 with a number of subsequent reductions. The appellant testified that when he purchased the
house it was in very poor condition and there are notes in the appraiser's worksheets stating
"House in poor condition" and "Is house salvageable ?" The appellant also stated that he has
spent $3,500 for materials, including a roof, and work he has done himself.
The Assessor's representative testified that the current effective age of the improvements is in
error and recommends that the effective age be listed as 35 years, thereby reducing the improved
value to $22,020.
After reviewing all the information submitted, the Board concurred to overrule the Assessor's
valuation.
Member Krist moved to overrule the Assessor's valuation of $124,855 ($78,000 for the land and
$46,855 for the improvements) and reduce the value to $100,020 ($78,000 for the land and
$22,020 for the improvements). Vice - Chairman Smith seconded the motion which carried by a
unanimous vote. (See also minutes of February 7, 2013)
NOTICE OF ADJOURNMENT: Member Krist moved to adjourn the meeting at 12:40 p.m.
Vice - Chairman Smith seconded the motion which carried by a unanimous vote.
AT
eslie R. Loyler the B oard
JEFFERSON COUNTY
BOARD OF EQUALIZATION
Dave Gari g, hai n
Michael Smith, ' -Chairman
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Henry Krist, Member