The URL can be used to link to this page

Home My WebLink AboutM041499 Jefferson County Board of Equalization TELEPHONE: 385.9100 do ~ --- -- ,...., r"/ -", ~. , ,~ r-).( !' ;"~- j I "-}~ "Ie-- .;>- "A ,-" - II ~\ ~0jt I ,[ J' ~, I: . ~i'hf I~ · I "I fl' ~~ t-:~:~ i ~~ ~ :;/"'), COURTHOUSE ,<f~ I.', ,<~ ~F:::A: >t] P.O. BOX 1220 h Jri:~11/'m"' ~ ,,', PORTTOWNSEND, WASHINGTON 98368 . :;r.,",:~;jl~~" , t' JEFFERSON COUNTY BOARD OF EQU~!~~~'Ji\L 'p;;o!~~~ MINUTES ~~ =~~,~==..o-~ April 14, 1999 Richard A. Broders William S. Marlow James A. DeLeo Chairman Vice-Chairman Member Chairman Richard A Broders called the meeting to order at 9:30 a,m. in the presence of Vice-Chairman William S. Marlow and Member James A DeLeo, APPROVAL OF THE MINUTES Vice-Chairman Marlow moved to approve the minutes of March 16, 1999 as presented, Member DeLeo seconded the motion which carried by a unanimous vote, HEARING Jack & Barbara Thomson 81 Beckett Point Road Port Townsend, W A 98368 BOE: 98-54-E PN: 002242011 Mr, and Mrs. Thomson were present Representing the Assessor's office was Lead Property Technician Sherrie Shold and Property Technician Kelli Larson, Chairman Broders explained the hearing process and swore them in, This appeal is based on the denial of a Senior Citizen Exemption for 1998, Mr. Thomson presented and discussed a copy of his 1997 and 1998 income tax returns which were used in considering eligibility for the Senior Citizen Exemption, ' Ms, Shold clarified that the appeal is on the denial of the 1998 exemption which is based on the 1997 income tax return. The 1998 income tax return is not relative to this case, She stated that the Assessor's office requested a copy of the appellant's tax return directly from the Internal Revenue Service (IRS) which did not contain the same figures as the copy the appellants submitted, She added that the appellants were informed that they needed to fill out and submit a schedule "D" form because they had sold rental property and a schedule "E" form for rental information, When rental property (property which is not the owner's primary residence) is sold, the full capital gain must be included as income, The income tax return also showed a gain from the sale of business property which must be included as income, Ms, Shold noted that the copy of the income tax return submitted to the Board of Equalization by the appellants lists an installment sale for their rental property, n '-J 100% Recycled Paper BOARD OF EQUALIZATION MINUTES - APRIL 14, 1999 Page 2 According to the Department of Revenue, the Assessor's office must include as income, the full capital gain plus the interest from the installment payments, however, the appellants have not provided the necessary information on the interest. Ms, Larson explained that with the sale of rental property the Department of Revenue requires that the full capital gain be included as income regardless of whether it was a cash sale or an installment sale. All that is taken into consideration is how much an individual paid for the property and how much it was sold for, Ms. Shold stated that after adding the appellant's total income, it was over the limit of $28,000 for the Senior Citizen Exemption. Based on the overage and the fact that the appellants have not provided the schedule forms needed by the Assessor's office, they were denied the exemption, She noted that she has sent all this information to the Department of Revenue for comment. Ms, Thomson explained that the reason there was a discrepancy between the income tax return initially submitted to the Assessor's office and the income tax return the Assessor's office requested directly from the IRS, is because the appellant's did not keep a copy of the return they submitted to the IRS so they attempted to duplicate the information on another income tax return form, which was very confusing, Ms, Thomson stated that they also requested a copy directly from the IRS which was the same copy the Assessor's office had, but was still not correct in their opinion. Mr. Thomson stated that they sold their rental property for $79,000 and the cost of the sale was $10,385.42 which he can support with documentation, After deducting the costs, the net sale is approximately $68,615, He stated that they paid $66,232 for the property, so they actually only profited $2,383. Ms. Shold stated that several of the costs are not allowed as deductions for exemption purposes, even though the IRS may allow them in filing tax returns. Discussion ensued regarding the schedule "D" and schedule "E" forms, Ms, Larson presented the Board with copies of the State guidelines on dealing with capital gains for exemption purposes, Ms. Shold noted that if the appellants feel that their income tax return is incorrect they may want to file a corrected copy with the IRS, since the one on file with the IRS is the one the Assessor's office must use in determining eligibility f-or senior citizen exemptions. If that is done, the appellant's eligibility may be reconsidered, After reviewing all the information submitted and hearing the testimony the hearing was closed, (See determination later in minutes) DETERMINATIONS Deepwater Investments, LLC C/O Kidder, Mathew, Segner 601 Union Street, Suite #4720 Seattle, WA 98101-2355 BOE: 98-S1-C PN: 989700901 After reviewing all the information submitted by both parties and conducting an inspection of the property, the Board concurred that the sale was an "arms length" transaction, and the sale best reflects fair market value, Vice-Chairman Marlow moved to overrule the Assessor and reduce only the improvement value from BOARD OF EQUALIZATION MINUTES - APRIL 14, 1999 Page 3 $1,032,630 to $326,750, To insure equity among land values in the area the land value will remain at $373,250, for a new total value of $700,000. Member DeLeo seconded the motion which carried by a unanimous vote, (See also minutes of February 9, 1999) Mark & Barbara Peterson P.O. Box 764 Edgewood,~ 87015 BOE: 98-53-W PN: 801042023 The Board reviewed all the information submitted by both parties and conducted an inspection of the property, It was agreed to make a reduction in value which best reflects fair market value, Vice-Chairman Marlow moved to overrule the Assessor and reduce the land value from $96,220 to $70,355, Member DeLeo seconded the motion which carried by a unanimous vote, (See also minutes of March 16, 1999) Jack & Barbara Thomson 81 Beekett Point Road Port Townsend, WA 98368 BOE: 98-54-E PN: 002 242 011 After reviewing all the information submitted by both parties the Board concurred that the Assessor's office staff correctly applied State guidelines as they relate to income tax returns for the purpose of senior citizen exemptions, Member DeLeo moved to uphold the Assessor's determination to deny the exemption. Vice- Chairman Marlow seconded the motion which carried by a unanimous vote, (See earlier in minutes of this date) APPROVAL OF MINUTES Vice-Chairman Marlow moved to approve the minutes this date (April 14, 1999) upon completion and review. Member DeLeo seconded the motion which carried by a unanimous vote, With no further business before the Board of Equalization for the 1998 season, Chairman Broders adjourned sine die, ATTEST: r/h "A J{ irfn~~ndgren, C hU~r::EQUALIZATION Richard A Broders, Chairman ;/'- ,. William S, Marlow, Vice-Chairman ~/ /J ,(l/Y"",v, tl p{ 7't/<) a es A DeLeo, Member