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HomeMy WebLinkAboutM022715ok Dave Garing Henry Krist Mike Smith 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Dave Garing Henry Krist Michael Smith MINUTES February 27, 2015 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. Member Michael Smith was absent. APPROVAL OF MINUTES Vice -Chairman Krist moved to approve the minutes of the September 8, 2014. Member Smith seconded the motion which carried by a unanimous vote. ASSESSOR'S CERTIFICATE OF ASSESSMENT ROLLS The Board reviewed the Assessor's Certificate of Assessment Rolls: Real Property: $4,479,372,483 Personal Property: $44,215,745 New Construction: $28,720,059 Member Smith moved to accept the Assessor's Certificate of Assessment Rolls for 2014 in the amounts listed above. Vice -Chairman Krist seconded the motion which carried by a unanimous vote. ASSESSOR'S ANNUAL UPDATE Assessor Jeff Chapman stated that 2014 is the first year of annual assessments. He presented a power point presentation showing the new PACs system. He discussed the Jefferson County valuation schedule explaining that each area of the County will be physically inspected on a rotating basis every six years. One area will be physically inspected each year and the other areas Phone (360)385-9100 Fax (360)385-9382 jeffbocc@co.jefferson.wa.us Board of Equalization Agenda — February 27, 2015 Page: 2 will be statistically updated. See schedule below: Cycle 1 — Brinnon (2014 Physical Inspection) Cycle 2 — Quilcene and West Jefferson County (2015 Physical Inspection) Cycle 3 — Port Ludlow (2016 Physical Inspection) Cycle 4 — Tri Area (2017 Physical Inspection) Cycle 5 — Outside Port Townsend City Limits (2018 Physical Inspection) Cycle 6 — Port Townsend (2019 Physical Inspection) In 2020 the rotation continues with the physical inspection of Brinnon. Assessor Chapman reported that utilities (water, power, sewer) are currently valued at $10,000 and are listed as `site improvements' on the property worksheets. However, in 2015 utilities will be valued at $15,000. A reduction in value is given if a property does not have all three components. Discussion continued regarding the cost of installing utilities. Chairman Garing believes that in some cases it costs more than $10,000 to install utilities. Assessor Chapman agreed and he and his staff have discussed the option of valuing each parcel separately for the value of utilities. Which is something that may be implemented in the future. _ Assessor Chapman discussed the various methodologies of statistical updates. When the previous software system was converted to the new PACs system some data was not uploaded. It is time consuming to correct each parcel but eventually they all will be updated. Discussion continued regarding various valuation reductions and increases to properties (i.e. bare land; improvements; and condominiums). Per a request from Chairman Garing, Assessor Chapman reviewed the property worksheets produced from the new PACs system. Chairman Garing stated there are several appeals in the Port Ludlow area and asked if property is valued correctly in that area? Assessor Chapman replied that improvement values are correct in the Port Ludlow North Bay areas. However, comparable property sales indicate that bare land values are too high. ASSESSMENT CORRECTIONS AND PETITION WITHDRAWALS Vice -Chairman Krist moved to accept the following assessment corrections and petition withdrawals. Member Smith seconded the motion which carried by a unanimous vote. NAME APPEAL NO. PARCEL NO. Archie & Colleen Smith BOE 14-10-R 982 201 813 Michael & Judi Hyde BOE 14-12-R 982 202 002 Susan Kraght BOE 14-14-R 959 500 002 William Willison BOE 14 -20 -LO 951 000 205 Paul & Linda Spurgeon BOE 14-23-R 965 702 007 Charles & Kum Sook Van Zee BOE 14 -24 -LO 601 334 130 " BOE 14 -25 -LO 601 334 131 " BOE 14-26-R 601 334 132 Donald Lillegard BOE 14 -27 -LO 921 084 013 Board of Equalization Minutes — February 27, 2015 Page: 3 Tony Dunn William Gallant & Lea Rickel LG 4L Paddock Heritage Fellowship Nina Ames Estate Carl Martin BOE 14-36-R 901 354 010 BOE 14-63-R 964 501 502 BOE 14 -64 -LO 964 501 503 BOE 14-100-R 921 042 014 BOE 14-49-R 965 000 132 HEARINGS BOE: 14-22-R PN: 955 900 031 1623 W. Admiralty Heights Lane, Apt. 104 Bremerton, WA 98312 Carl Martin was not present. Appraiser Charley Hough and Assessor Jeff Chapman represented the Assessor's Office and were sworn in by Chairman Garing. Under appeal is the land and improvement value of property located at 2003 Shasta Place, Port Townsend. The property was assessed as of January 1, 2014 and is currently valued at $220,940 ($52,500 for the land and $168,440 for the improvements). The appellant estimates the value to be $170,000 ($40,000 for the land and $130,000 for the improvements). On the petition form the appellant wrote the following reason for appealing the valuation of his parcel: "Two similar properties in my neighborhood are for sale for $169,500 and $169,900. I was just offered $170, 000 for my property by a Port Townsend Realtors that knows the market of houses in my area. Property values have gone down dramatically since I purchased my home. " Appraiser Hough said that the property under appeal was assessed as of January 1, 2011. He provided the following documents for review: • Area map of appellant's property; • Field sheet for appellant's property; • Tax affidavit showing the property was purchased by the appellant on September 6, 2011 for $225,000; • 16 Comparable Property Sales; including a map, a field sheet and an Excise Tax Affidavit for each comparable property sale; He discussed the following comparable property sales provided by the appellant: Appellant's Comparable Property `A' Parcel No.: 931 700 403 Location: 2347 Sheridan Street, Port Townsend Value: $198,168 Sale Date: April, 2014 Sale Price: $200,000 Board of Equalization Minutes — February 27, 2015 Page: 4 Appellant's Comparable Property `B' Parcel No.: 955 900 041 Location: 2225 Shasta Place, Port Townsend Value: $154,812 Sale Date: April, 2014 Sale Price: $164,000 Appellant's Comparable Property `C' Parcel No.: 999 000 101 Location: 584 N. Jacob Miller Road, Port Townsend Value: $189,796 Sale Date: May, 2014 Sale Price: Quit Claim Deed Sale Date: July, 2011 Sale Price: $175,000 Abnellant's ComAarable Property `D' Parcel No.: 972 900 503 Location: 4919 Sheridan Street, Port Townsend Value: $173,802 Sale Date: December, 2012 Sale Price: Quit Claim Deed Appraiser Hough stated that out of 16 comparable property sales that occurred in the Hamilton Heights neighborhood, the appellant only used one of those sales as a comparable property. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Barbara Donovan & Louis Schwartz BOE: 14-85-R PN: 936 900 601 P.O. Box 493 Port Townsend, WA 98368 Barbara Donovan and Lois Schwartz were present. Appraiser Charley Hough represented the Assessor's Office. After explaining the hearing process, Chairman Garing swore in both parties. Under appeal is the land and improvement value of property located at 5021 Jackman Street, Port Townsend. The property was assessed as of January 1, 2014 and is currently valued at $250,682 ($117,700 for the land and $132,982 for the improvements). The appellants estimate the value to be $227,893 ($107,000 for the land and $120,893 for the improvements). The appellants testified that their neighbor's property located to the South is littered with garbage, junk vehicles, various building materials, and rats. The condition of their neighbor's property should lower the value of their property. They provided photographs to substantiate their statement. They live on a dirt road that is dusty in the summer and muddy in the winter. Comparable property sales were Board of Equalization Minutes — February 27, 2015 Pale: 5 located close to North Beach where the values are higher. The Assessor's aerial map of the appellants' property indicates that the neighbor to the West has encroached on their property. The appellants stated that the neighbors built a garage which is partially located on their property. At the time, they did not have the funds to pay for a survey and are now unsure if there is anything legally they can do about the situation. Appraiser Hough stated he visited the appellants' property in 2013 and at that time the neighbors to the South had a lot of garbage and junk on their property which has gotten worse since that visit. He discussed the following comparable property sales that occurred in the area: Comparable Property #1 Parcel No.: 936 901 503 Location: 828 51 st Street, Port Townsend Value: $261,603 Sale Date: November, 2013 Sale Price: $265,000 Comparable Property #2 Parcel No.: 936 901 508 Location: 848 51 st Street, Port Townsend Value: $207,932 Sale Date: March, 2014 Sale Price: $212,000 Comparable Property #3 Parcel No.: 936 902 203 Location: 5308 Landes Street, Port Townsend Value: $238,671 Sale Date: June, 2013 Sale Price: $235,000 Comparable Property #4 Parcel No.: 936 903 503 Location: 85055 th Street, Port Townsend Value: $347,952 Sale Date: June, 2013 Sale Price: $306,000 Comparable Property #5 Parcel No.: 936 903 402 Location: 5510 Jackman Street, Port Townsend Value: $223,551 Sale Date: April, 2013 Sale Price: $225,000 Board of Equalization Minutes — February 27, 2015 Page: 6 Comparable Property #6 Parcel No.: 936 902 704 Location: 5440 Jackman Street, Port Townsend Value: $335,481 Sale Date: March, 2013 Sale Price: $327,500 Comparable Property #7 Parcel No.: 936 903 603 Location: 808 56th Street, Port Townsend Value: $228,831 Sale Date: April, 2014 Sale Price: $236,500 He then discussed the following comparable property sales provided by the appellant: Appellants' Comparable Property `A' Parcel No.: 936 900 502 Location: 4929 Jackman Street, Port Townsend Value: $170,614 Sale Date: September, 2014 Sale Price: $140,000 (Special Warranty Deed) Appellants' Comparable Property `B' Parcel No.: 972 903 602 Location: 5408 Gise Street, Port Townsend Value: $281,978 Sale Date: July, 2014 Sale Price: $282,000 Appellants' Comparable Property `C' Parcel No.: 984 903 901 Location: 510 O Street, Port Townsend Value: $183,491 Sale Date: April, 2014 Sale Price: $125,000 Sale Date: August, 2014 Sale Price: $204,000 Appellants' Comparable Property `D' Parcel No.: 931 700 209 Location: 2330 Sheridan Street, Port Townsend Value: $237,429 Sale Date: November, 2014 Sale Price: $223,000 Board of Equalization Minutes — February 27, 2015 Page: 7 Appellants' Comparable Property `E' Parcel No.: 948 312 302 Location: 1375 13th Street, Port Townsend Value: $224,436 Sale Date: June, 2014 Sale Price: $226,500 Appraiser Hough agreed that the property located to the South is an eyesore and would support the Board reducing the appellants' property value. He recommended giving the land value a 20% reduction for location. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Roger Oster BOE: 14-33-R PN: 990 600 263 73 Resolute Lane 14 -34 -LO 990 600 267 Port Ludlow, WA 98365 Roger Oster was present. Appraiser Charley Hough represented the Assessor's Office. After explaining the hearing process, Chairman Garing swore in both parties. Under appeal is the value of one bare land parcel and one improved parcel located at 73 Resolute Lane, Port Ludlow. The property was valued as of January 1, 2014. Following is the current assessment and the appellant's estimate of value for the parcels under appeal: Parcel No. Current Assessed Value Appellants' Estimate of Value 990 600 263 $264,453 ($71,300 Land & $193,153 Imp) $200,000 (Breakdown not provided) 990 600 267 $71,300 (Land Only) $17,000420,000 (Provided a Range) The appellant provided an independent appraisal that estimates the land value for each parcel to be $21,000. He is a retired Real Estate developer and stated that the State is carefully scrutinizing licensed appraisers because much of the last economic disaster was due to the lack of supervision. The independent appraisal listed several comparable property sales that sold between $18,000 to $21,000. One property was listed for sale at $38,000 and to date, no offers have been received. Based on the independent appraisal, he feels the Assessor overvalued his land by 350%. It appears there is tax shifting happening from people who have lived in Jefferson County for generations, to people who have retired or recently moved to this area. There is a pattern and it has been going on for some time. The Assessor's worksheet indicates the size of the lot to be one acre when it is only 3/1 01h of an acre. On the petition form (BOE 14 -34 -LO), the appellant indicated that he estimates the land value to be between $17,000 to $20,000. Chairman Garing asked if the appellant thinks the value is in that range or if the value is $21,000 as determined by the independent appraiser? The appellant replied that the independent appraisal was performed after he submitted his petition form and he agrees with the $21,000 land value concluded in the appraisal. Board of Equalization Minutes — February 27, 2015 Page: 8 Chairman Garing asked the appellant if he estimates the improvement value of parcel #990 600 263 (BOE 14-33-R) to be $179,000 and the land value to be $21,000? The appellant responded that a house sold across the street for $200,000. It is comparable to his home and lot size and the breakdown noted by the Chairman would be correct. Appraiser Hough responded to the appellant's concern about the lot size listed on the worksheets. He showed the Board and the appellant where the actual lot size is listed on the worksheet and assured the appellant he is not being valued for a one acre site. Appraiser Hough provided the following documents for review: • Area map of the appellant's property; • Field sheet for appellant's property; • Real Estate Tax Affidavit showing the property was purchased by the appellant on August 3, 2004 for $285,000; • Field sheet for appellant's comparable A • Real Estate Tax Affidavit of appellant's comparable A • Sales Chart (after statistical update) He discussed the following comparable property sale provided by the appellant for BOE 14-33-R: Aunellant's Comparable Property `A' Parcel No.: 990 600 250 Location: 30 Resolute Lane, Port Ludlow Value: $186,394 Sale Date: December, 2014 Sale Price: $202,000 Appraiser Hough discussed the fiscal update spreadsheet (sales chart) of the appellant's neighborhood (3333 Port Ludlow #2 Area 2). Eight out of the nine improved properties in this area sold at or above the value set by the Assessor. It has come to the attention of the Assessor's Office that bare land property values in the North Bay area of Port Ludlow are too high. However, improved properties in this area are correct. Washington State requires all land be valued as unimproved. He discussed recent sales listed on the spreadsheet. The appellant stated that in 2006, two lots sold for $171,000 which set the value of all properties in the North Bay area too high. Appraiser Hough informed the Board that Port Ludlow was assessed in 2003, 2007 and 2011. In 2007, there were several properties that were double sales (sold twice) which increased the value for the next four years during the decline in the Real Estate market. In 2011, values were decreased by 35% for an economical adjustment. This area will be physically inspected in 2016. After being sworn in by Chairman Garing, Assessor Jeff Chapman testified that during the annual statistical update for this area he increased the land value by 15% based on evidence from improved property sales. When they received several appeals within the North Bay area it caused them to look at Board of Equalization Minutes — February 27, 2015 Page: 9 bare land sales and determined they should have increased the improvement value not the land value. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Mark & Annette Johnson BOE: 14-81-R PN: 990 600 252 . .............. . 72 Resolute Lane Port Ludlow, WA 98365 Annette Johnson was present. Appraiser Charley Hough represented the Assessor's Office. After explaining the hearing process, Chairman Garing swore in both parties. Under appeal is the land and improvement value of property located at 72 Resolute Lane, Port Ludlow. The property was assessed as of January 1, 2014 and is currently valued at $283,690 ($71,000 for the land and $212,690 for the improvements). The appellants estimate the value to be $230,690 ($18,000 for the land and $212,690 for the improvements). The appellant stated they purchased the property in March, 2013 for $18,000. It was listed through Windemere Real Estate for $25,000. They are appealing the land value only and feel the value established by the Assessor at $71,000 is unrealistic. Chairman Garing asked what is the fee for sewer, water and power connection in the North Bay area? The appellant responded that the fee for utilities is $12,900 ($12,000/sewer; $400/water; and $500/power). Appraiser Hough stated that the appellants' property is located in the North Bay area of Port Ludlow. The home is considered new construction and is valued at 70% complete. The base rate for the land is $65,000 and it is receiving a 20% reduction for site quality. There is a $10,000 adjustment for utilities and a 15% market adjustment. He discussed the following comparable bare land property sales provided by the appellants: Appellants' Comparable Property `A' Parcel No.: 990 400 499 Location: Puget Loop, Port Ludlow Value: $18,688 Sale Date: March, 2013 Sale Price: $18,000 Sale Date: July, 2014 Sale Price: $19,000 Board of Equalization Minutes — February 27, 2015 -Page: 10 Appellants' Comparable Property `B' Parcel No.: 990 400 140 Location: Cressey Lane, Port Ludlow Value: $37,375 Sale Date: August, 2013 Sale Price: $22,000 Appellants' Comparable Property `C' Parcel No.: 990 400 425 Location: Olympic Lane, Port Ludlow Value: $22,425 Sale Date: October, 2013 Sale Price: $18,000 Appellants' Comparable Property `D' Parcel No.: 990 400 423 Location: Olympic Lane, Port Ludlow Value: $26,163 Sale Date: October, 2013 Sale Price: $15,000 Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Janice Svien BOE: 14-90-R PN: 990 400 247 P.O. Box 1223 Port Hadlock, WA 98339 Janice Svien was not present. Appraiser Charley Hough represented the Assessor's Office and was sworn in by Chairman Garing. Under appeal is the land and improvement value of property located at 543 Montgomery Lane, Port Ludlow. The property was assessed as of January 1, 2014 and is currently valued at $236,303 ($86,250 for the land and $150,053 for the improvements). The appellant estimates the value to be $205,481 ($75,000 for the land and $130,481 for the improvements). Appraiser Hough met with the appellant prior to the scheduled hearing and determined that the kitchen floor had water damage and needed to be replaced. He recommends the property value be reduced to: $212,496 ($75,038 for the land and $137,458 for the improvements). The appellant submitted a letter stating she was in agreement with the recommendation. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later date. Board of Equalization Minutes — February 27, 2015 Page: 11 ADJOURNMENT Vice -Chairman Krist moved to adjourn the meeting at 3:10 p.m. Member Smith seconded the motion which carried by a unanimous vote. ATTEST: slie R. Locke, Clerk of the Board JEFFERSON COUNTY BOARD OF EQUALIZATION Dave arin , airman Henry Krist, Vice -Chairman Michael Smith, Member