HomeMy WebLinkAboutM031098
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1820 Jefferson Street
PO Box 1220
Port Townsend, WA 98368
William S. Marlow, District 2 Richard A. Broders, District 3
Richard A. Broders
William S. Marlow
James A. DeLeo
Chairman
Vice-Chairman
Member
Chairman Richard A. Broders called the meeting to order at 10:00 a.m. in the presence of Vice-Chairman
William S. Marlow and Member James A. DeLeo.
APPROVAL OF MINUTES
Vice-Chairman Marlow moved to approve the minutes of January 28 and February 5, 1998. Member DeLeo
seconded the motion which carried by a unanimous vote.
HEARING
Larry & Barbara Gauer
2020 Duckabush Road
Brinnon, W A 98320
Mr. and Mrs. Gauer were present. Peter Schuck represented the Assessor's office. After explaining the hearing
process, Chairman Broders swore them in. The property under appeal consists of 50' x 50' metal building located
in Brinnon. Mr. Gauer stated that the building is used mainly for storage with a small portion used as a
temporary residence until they are able to build their permanent home. Mr. Gauer presented information on the
actual cost of the building and stated that he feels the value should be based on those actual costs. He added that
he is in the construction business and has knowledge of material costs and current rates per square foot. The
Assessor's figures are much higher than the current rate, based on the marketability of the property in the
Brinnon area. Comparing the property to similar properties in the Port Townsend area is not equitable. The
Assessor's valuation is $63,440 ($30,500 for the land and $32,940 [$47,055 at 70% complete] for the
improvements). Mr. and Mrs. Gauer are requesting the value be reduced to $58,500 ($30,500 for the land and
$28,000 [actual cost] for the improvements).
BOE: 97-56-R
PN: 502 083 006
Peter Schuck stated that since there were no recent sales of comparable structures in the area, the sales
comparison approach was not used. Instead, the property value was based on figures from the Marshall & Swift
Commercial Cost Handbook. He noted that in reviewing the cost break down submitted by the appellants, there
seemed to be some costs that were not included which would increase the overall rate per square foot. Costs not
included were labor for forming the concrete slab and placement of bolt templates, rental of a lift or crane for
Phone (360)385-9100/ 1-800-831-2678 Fax (360)385-9382 jeffbocC@Co.jefferson.wa.us
.
BOARD OF EQUALIZATION MINUTES - MARCH 10, 1998
Page 2
raising the post, beams and purlins, and overhead, profit and sales tax. Mr. Schuck added that he feels the
appellant's cost of $1.00 per square foot to erect the building appears to be extremely low. He admits that the
marketability of the appellant's property located in the Brinnon area is not comparable to property located in Port
Townsend. Since there was no similar property in Brinnon, he reviewed similar property in Port Townsend to
show that they were valued using the same methodology.
Mr. Schuck stated that he would stipulate to the appellant's actual cost value of$28,008, if the appellant's would
agree to include 10% for profit and 7.9% sales tax. Mrs. Gauer stated that if sales tax is added, they will be
paying taxes twice, since they will be paying taxes on the sales tax. Mr. Schuck explained that the ultimate goal
is to reach a fair market value. The specific calculations in reaching that value are to be equitable and justifiable.
Therefore, including the profit and sales tax seems to be the best way to reach fair market value of this property.
After a brief discussion, both parties agreed to a valuation of the actual cost to construct the building, with the
addition of profit and sales tax.
The Board concurred that since both parties are in agreement there is no need to conduct a physical inspection of
the property. Vice-Chairman Marlow moved to reduce only the improvement value of parcel number 502 083
006 to $33,242 ($28,008-actual cost, plus $2,800-10% profit, plus $2,433.90-7.9% sales tax) for a new total
valuation of $53,770 ($30,500 for the land and $23,270 ($33,242 at 70% complete) for the improvements.
Member DeLeo seconded the motion which carried by a unanimous vote.
REQUEST FOR RECONVENING
The Board received a "Request for Reconvening" from Attorney Mark Huth on behalf of his client Ronald Y. Pak,
based on the condition being met pursuant to WAC 458-14-127 RECONVENED BOARDS-AUTHORITY (1)( c)
which states Boards of Equalization may reconvene on their own authority to hear requests or appeals concerning
the current assessment year when the request or appeal is filed with the Board by April 30 of the tax year
immediately following the Board's regularly convened session and when a bona fide purchaser or contract buyer
of record has acquired an interest in real property subsequent to the first day of July and on or before December
31 of the assessment year and the sale price was less than ninety percent of the assessed value. Vice-Chairman
Marlow moved to approve the reconvening request. Member DeLeo seconded the motion which carried by a
unanimous vote. The hearing was scheduled for April 7,1998.
Meeting adjourned.
JEFFERSON COUNTY BOARD OF EQUALIZATION
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ATTEST:
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Erlll K. Lundgren, &;;oftiJBoard
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William S. Marlow, Vice-Chairman
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