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HomeMy WebLinkAboutM032917ok EQU&� Dave Garing Michael Smith Henry Krist 1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368 Dave Garing MINUTES March 29, 2017 Henry Krist 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. HEARINGS Gary & Carol Hills BOE: 16-25-R PN: 002 342 016 1387 Old Gardiner Road Sequim, WA 98382 Carol Hills was present. Appraiser Linda Manthe represented the Assessor's Office. After explaining the hearing process, Chairman Garing swore in both parties. Under appeal is the improvement value of property located at 1387 Old Gardiner Road, Sequim. The property was assessed as of January 1, 2016 and is currently valued at $306,189 ($80,000 for the land and $226,189 for the improvements). The appellants estimate the value to be $215,676 ($49,500 for the land and $166,176 for the improvements). Ms. Hills stated she received the Assessor's packet of information and testified that their parcel is smaller than indicated on the map found in the Assessor's packet. She agrees with the Assessor's improvement value but disputes the land value. The parcel is less than one acre. The comparable property sales provided by the Assessor's representative are 4 acre parcels and are not comparable. She feels the land value should be between $45,000-$55,000. Appraiser Manthe explained that the appellants land has been given a site value, meaning an area of land, not a one acre parcel. She used improved property sales to value the appellants' property. The appellants' home was built in 2015 and has a water view. She explained that the home was valued as new construction in 2015. In 2016, the appellants' home was valued at 100% which increased the value. Phone (360)385-9100 Fax (360)385-9382 jeffbocc@co.jefferson.wa.us Board of Equalization Minutes — March 29, 2017 Page: 2 Ms. Hills reiterated that the land value is too high and requested the Board make a reduction in value. Vice -Chairman Smith explained that the Board of Equalization is required to value the entire parcel with improvements at 100%. Discussion ensued regarding neighboring assessments. Appraiser Manthe explained that a neighboring parcel could have other implicating factors that reduce the neighboring parcel's value such as a senior exemption or different view, etc. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later time. David & Tiffany Drewry Trust BOE: 16-30-R PN: 970 600 009 P.O. Box 763 Port Townsend, WA 98368 David and Tiffany Drewry were present. Appraiser Linda Manthe represented the Assessor's Office. After explaining the hearing process, Chairman Garing swore in both parties. Under appeal is the improvement value of property located off of Cape George Road, Port Townsend. The property was assessed as of January 1, 2016 and is currently valued at $191,126 ($154,160 for the land and $36,966 for the improvements). The appellants estimate the value to be $154,160 ($154,160 for the land and $0 for the improvements). The appellants stated they own two 10 acre parcels located on Cape George Road. Their primary residence is located on one 10 acre parcel. They are appealing the value of the second 10 acre parcel which has two park models located on the property. In the past, park models were not considered an improvement and therefore not valued. The appellants understand that recently the law has changed and park models are now required to be valued. Only a small portion of the property is cleared. Some of the comparable property sales provided by the Assessor's Office were located in Clallam County and have water views. Only one comparable sale was located in Jefferson County and consisted of a Yurt which they feel is not comparable. Both park models were purchased in 2003 for $30,000 ($15,000 each). Currently, both units combined are valued at approximately $37,000. The park models consist of 500 square feet for both units and the appellants feel that park models depreciate in value, not appreciate in value. No improvements have been made to the park model homes. The appellants did not provide the second page of the petition form. Chairman Garing stated that the second page is not required, but offers a space for the appellants to provide comparable property sales as evidence of their estimate of value. Appraiser Manthe stated that the law has changed and now park models are required to be valued. Currently, tiny homes are very popular which increase the value. The appellants' park models are installed on property, they have decks and utilities and the conditions of these homes are very good. Vice -Chairman Smith questioned the increase in value from $97,000 to the current value of $154,160. Appraiser Manthe explained how values are established including what a property would sell for or what someone would purchase a property for. Board of Equalization Minutes — March 29, 2017 Page: 3 The appellants stated that the parcel has its own septic system, but does not have water and power. They provide power and water to the park models from their primary residence. If they were to sell the property, the new owners would have to install power and water. Appraiser Manthe will research the utility value and send a corrected notice if warranted. Discussion ensued regarding the annual cycle. The appellants asked if the value is going to increase every year, because their income is not going to triple. Hearing no further testimony, Chairman Garing closed the hearing. The Board will make a determination at a later time. Ebel Family Living Trust BOE: 16-33-R PN: 978 900 102 Matthew & Maria Ebel, Trustees 480 Jefferson Avenue Port Ludlow, WA 98365 Matthew and Maria Ebel were present. Appraiser John Pray represented the Assessor's Office. After explaining the hearing process, Chairman Garing swore in both parties. Under appeal is the improvement value of property located at 480 Jefferson Avenue, Port Ludlow. The property was assessed as of January 1, 2016 and is currently valued at $382,575 ($154,500 for the land and $228,075 for the improvements). The appellants estimate the value to be $305,000 ($154,500 for the land and $150,500 for the improvements). The appellants provided the following testimony explaining why the Assessor's value does not reflect the true and fair market value of their property: 1) Assessed for a preexisting building described as a boat shed or garage. This structure has been demolished. (Per a prior discussion with Appraiser Pray, the value of the boat shed/garage has been removed and this issue is resolved). 2) This is not view property; minimal view with the majority of the view being blocked by trees which the County does not want removed. 3) Presence of asbestos containing materials in multiple locations have been found, some of which have been removed. 4) Pre -purchase inspection failed to identify that the metal roof was installed over three layers of existing roofing materials. This is a very significant expense that would have to be paid by a purchaser. 5) Per discussion with the Assessor's representative, the current value is based in part on the 2009 purchase price and the previous sale in 2001. These values have nothing to do with the current market value, reflecting prices that are 7 and 15 years old. The appellants stated that the Assessor's worksheet indicates the view is a superior panoramic view. Due to tree growth the view has diminished over the years as shown in the pictures provided with their Board of Equalization Minutes — March 29, 2017 Page: 4 petition. They provided an inspection report for the asbestos that has not been removed from the flooring of the master bathroom, kitchen, laundry room and back hall. The presence of asbestos will have to be disclosed to any potential buyer, which they feel will reduce the value. There are several layers of shingles that were not removed prior to the installation of the metal roof. This makes the materials too heavy for the structure and will need to be replaced. Chairman Garing informed the appellant that prior to the hearing today, the Board of Equalization requested additional information from the Assessor's representative. WAC 458-14-066 states, "that timely access to valuation and other documentary information should be provided to both parties prior to the hearing ... " Per Section (5)(b)(iii) of the WAC listed above, Chairman Garing stated that the hearing will proceed and the appellant will have 45 days to submit new evidence to the Board and the Assessor's Office. This allows each party with an adequate opportunity to rebut or comment on the new evidence prior to the Board's decision. The appellant may request the hearing be continued in order to provide verbal testimony or he may submit additional testimony in writing. Appraiser Pray stated that the appellants' property is located in Port Ludlow, however it is not included in the Master Planned Resort (MPR). He discussed the following comparable property sales also located outside the MPR: Comparable Property #1 Parcel No.: 821 081 004 Location: 2330 Swansonville Road, Port Ludlow Assessed Value: $379,121 Sale Date: September, 2015 Sale Price: $388,000 Comparable Property #2 Parcel No.: 821 082 010 Location: 131 Thoren Road, Port Ludlow Assessed Value: $232,518 Sale Date: May, 2016 Sale Price: $320,000 Comparable Property #3 Parcel No.: 821 081 006 Location: 321 Werner Road, Port Ludlow Assessed Value: $157,790 Sale Date: October, 2016 Sale Price: $191,000 Appraiser Pray stated that the appellants purchased their property in 2009 for $414,000. The appellants are in the process of building a new garage which is currently assessed at 50% complete at $17,435. He asked the appellants how they arrived at a value of $305,000? The appellants responded that the purchase price in 2009 should not have any effect on the 2016 value. They have done some improvements to the home, such as removing a portion of the asbestos. With Board of Equalization Minutes — March 29, 2017 Page: 5 asbestos found in the flooring they will have to remove all the cabinets at a considerable cost. They reiterated that the view is minimal and should be adjusted. Discussion ensued regarding the appellants' written statement listed above. Appraiser Pray stated that the boat shed/carport value has been removed. He said that it appears that the trees blocking the view are located on the appellants' property. The appellants testified that they contacted the Jefferson County Community Development Department and were told that their property is located in a slip zone and removal of the trees could increase the possibility of a land slide. Discussion ensued regarding the various descriptions used to value views. The cost to remove the vinyl flooring was discussed. The appellants noted that the asbestos is located in the first layer of flooring with another layer of vinyl over the top. Appraiser Pray stated that a metal roof has a life span of 40-50 years. The appellants do not dispute that a metal roof, if installed properly, will last 40-50 years. Their roof was not installed properly and needs to be redone. The weight of four (4) layers of roofing material can cause problems to the structure. All the problems that the appellants have found with the home would have to be disclosed to a potential buyer. Assessor Chapman was sworn in by Chairman Garing. He provided testimony regarding the code descriptions of property views. Adjustments can be made to increase or decrease the value depending on the actual view. Chairman Garing reiterated that the appellant will have 45 days to provide comments regarding the additional information provided by the Assessor's representative. The appellant is asked to do one of the following: provide written comments to the Board of Equalization and Assessor; request the hearing be continued in order to provide verbal testimony; or not respond. If no response is received within 45 days, the Board will close the hearing and make a determination on the testimony and evidence provided today. ADJOURNMENT Member Krist moved to adjourn the meeting at 11:51 a.m. Vice -Chairman Smith seconded the motion which carried by a unanimous vote. JEFFERSON COUNTY WARD OAn2 UALIZATION ATT T:. - Dave GarirmL sl e R. Locke, Clerk of the Board ichae S�c - irman Henry Krist, Member