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1820 Jefferson Street
PO Box 1220
Port Townsend, WA 98368
William S. Marlow, District 2 Richard A. Broders, District 3
JEFFERSON COUNTY BOARD OF EQUALIZATION
MINUTES
AUGUST 5, 1999
William S. Marlow
Richard A. Broders
James A. DeLeo
Chairman
Vice-Chairman
Member
Chairman William S. Marlow called the meeting to order at 9:30 a.m. in the presence of Vice-Chairman
Richard A. Broders and Member James A. DeLeo.
HEARINGS
Charles Nisbet
5500 West Valley Road
Chimacum, W A 98325
BOE: 99-35-R
PN: 801 044 012
Mr. Nisbet was present. Appraiser Robert Shold represented the Assessor's office. After explaining the
hearing process Chairman Marlow swore them in. The property under appeal is a residence and land located at
5500 West Valley Road, in Chimacum. Mr. Nisbet stated that he is not opposed to paying taxes, however, he
does not feel that they should go up 25%. Tax increases should be more in line with the cost ofliving. Being
only two (2) years from retirement, his budget may not allow him to keep his home. He asked the Board if they
would be able to live here iftheir taxes went up 25% per year? The little people are going to be forced out of
the area by higher taxes.
Chairman Marlow stated that the Board of Equalization only has the authority to review property valuations in
order to insure equity among similar property. The Board does not have any authority over property taxes.
Mr. Nisbet added that Chimacum Creek runs through his back yard and there is a possibility that the
endangered species act might affect his property by requiring a 200 foot setback from the high water mark. If
that happens, his property will become useless. He believes that the sale of a neighboring parcel contributed to
the increase in his property valuation. If some fool pays an outrageous price for a piece of property, other
property owners should not be penalized for their poor judgement. Mr. Nisbet does not feel the current
assessment of $182,985 ($50,365 for the land and $132,620 for the improvements) is fair and he is requesting it
be reduced to $169,000 ($44,000 for the land and $125,000 for the improvements).
Phone (360)385-9100 ! 1-800-831-2678 Fax (360)385-9382 jeffbocC@co.jefferson.wa.us
BOARD OF EQUALIZATION MEETL"'IG MINUTES - AUGUST 5, 1999
Page 2
Mr. Shold stated that the property was previously valued at $164,295 which compared to the new valuation of
$182,985 is not a 25% increase. The sale mentioned by the appellant in his testimony is one of the comparable
property sales used in the assessment. The property which sold was previously assessed at $23,245 and was
purchased for $60,000. He reviewed other sales of comparable property which also support the current
assessed valuation of the appellant's property.
Mr. Nisbet stated that he cannot afford the taxes on his wages and he will be forced to sell his property.
Member DeLeo stated that the Board can only review the assessed valuation, not the taxes. He added that the
majority of taxes are voted on by the people. They bring it on themselves.
Chairman Marlow explained that only the legislature can reform the tax structure. The Board of Equalization
can only review property assessments. In order to make an adjustment they must have documented evidence
that the Assessor's valuation is incorrect. He added that property valuations do not change every year. In
Jefferson County property is assessed every four (4) years, so the increase in valuation is over a four (4) year
period. He calculated that an increase of 25% over four (4) years is approximately an increase of 6% per year.
Mr. Nisbet stated that his wages do not increase 6% per year.
After reviewing all the information submitted and hearing the testimony of both parties, the Board concurred to
conduct an inspection of the property and make a determination at a later date.
BOE: 99-38-R
PN: 948 303 802
Charles E. Courtney
610 Fourteenth Street
Port Townsend, WA 98368
Charles Courtney was present. Appraiser Dennis Pownall represented the Assessor's office. After explaining
the hearing process Chairman Marlow swore them in. The property under appeal consists of a residence
located at 610 Fourteenth Street in Port Townsend. Mr. Courtney stated that he purchased the property on June
23, 1999 for $243,000 and he did not attempt to negotiate a lower price. Being retired he had calculated that
the tax would be based on his purchase price of the property. The property is currently assessed at $268,185
($62,000 for the land and $206,185 for the improvements). He believes the value should reflect the purchase
pnce.
Mr. Pownall stated that he does not dispute that the purchase price is the fair market value of the property as of
the date of the purchase. The property was on market for more than a reasonable length of time to draw its
maximum value. His concern is with the date ofthe purchase. The property was assessed as of January 1, 1997
and may have had a different value at that time. He added that there have been a number of sales since the
assessment date which indicate an increase in value, although, he does not know if they are applicable in this
case. If the Board determines that an adjustment is necessary, he recommends the change be made to the
improvement value to insure equity among the land values in the area.
Discussion ensued regarding the ownership history of the property and the changes made to the interior of the
house which have had a decreasing effect on its value rather than increasing effect.
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BOARD OF EQUALIZATION MEETING MINUTES - AUGUST 5, 1999
Page 3
After reviewing all the information submitted and hearing the testimony of both parties, the Board concurred to
conduct an inspection of the property and make a determination at a later date.
Bernard & Norma Jeane Hein, Trustees
9731 Stanford Avenue
Garden Grove, CA 92841-4944
BOE: 99-17-R
PN: 947400068
Mr. and Mrs. Hein were not present. Appraiser Robert Kingsley represented the Assessor's office and was
sworn in by Chairman Marlow. The property under appeal is a residence located at 11 Molenda Lane,
Discovery Bay Village, in Port Townsend. The appellants wrote on their petition "When we purchased home in
1988, we had water view and mountain view. Now due to the greenery area grown-up, the water view is gone
and other views have been destroyed. We estimate our taxes are at least $400.00 over evaluated" The current
assessment is $127,835 ($35,500 for the land and $92,335 for the improvements). The appellants estimate the
value to be $120,000 ($30,000 for the land and $90,000 for the improvements).
Robert Kingsley clarified the amount of the current assessment and the amount of the sale which occurred in
the area. Even if the Board reduced the assessment to the appellants estimate of value, it would only decrease
their taxes by less than $100. Mr. Kingsley stated that he visited the property and he agrees that the view has
diminished over the years. However, the property was assessed as of January 1, 1996 and at that time there was
a good marine view. He believes the current assessment reflects fair market value.
At the close of the hearing the Board concurred to conduct an inspection of the property and make a
determination at a later date.
Ronald & Kathryn Desjardins
74 Beach Drive
Quilcene, WA 98376
BOE: 99-36-R
PN: 701344041
Mr. and Mrs. Desjardins were present. Appraiser Peter Schuck represented the Assessor's office. After
explaining the hearing process Chairman Marlow swore them in. The property under appeal consists of a house
and 12 acres located at 74 Beach Drive, Dabob Cove, in Qui1cene. Mrs. Desjardins stated that their property
has decreased in value due to the fact that the road to the community beach was destroyed by land slides in the
Dabob Cove area. They aren't sure they will be able to afford the taxes on a retirement budget and they may
have to sell the property. The damage which has occurred may prevent them from getting a price they would
prefer or may prevent the selling of the property at all. Mr. Desjardins stated that they feel their property has
been devalued due to the problems in the Dabob Cove area, and at this point, it is uncertain if there is any
remedy. The land slides may continue well into the future. The property is currently assessed at $187,785
($94,965 for the land and $92,820 for the improvements). No estimate of value was provided by the appellants.
Peter Schuck asked the appellants if there has been any settling of the house or garage? Mrs. Desjardins stated
that there are cracks around the skylights, but it is unknown if that was caused by normal settling of the house
or by the landslides.
Mr. Schuck stated that the land slides have affected the appellant's property.
BOARD OF EQUALIZATION MEETING MINUTES - AUGUST 5, 1999
Page 4
Chairman Marlow stated that the Board has copies of the geotechnical reports prepared for the area. He
explained that the Board may equalize all the valuations ofthe property in the area to reflect the degree of
impact the land slides have had.
At the close of the hearing the Board concurred to conduct an inspection of the property and make a
determination at a later date.
Paul Heib
P.O. Box 37
Chimacum, W A 98325
BOE: 99-39-R
PN: 901272 019
Mr. Heib was not present. Appraiser Robert Shold represented the Assessor's office and was sworn in by
Chairman Marlow. The property under appeal consists of 23 acres with an agricultural building located at 694
Naylor Creek Road, in Chimacum. The appellant wrote on his petition that "90% of the land is unbuildable
and unimproved. The building is 90% used materials and 10% mostly traded for. My time does not count
because I was on an extended vacation after selling my business. The surrounding land is mostly unimproved.
There is also no running water, no septic and no power. Also the County has this a 23 acre parcel, not to be
subdivided down. Cannot sell pieces of land." The property is currently assessed at $77,760 ($45,875 for the
land and $31,885 for the improvements). The appellant estimates the value to be $45,000 ($35,000 for the land
and $10,000 for the improvements).
Mr. Shold presented a map of the area and a worksheet showing how the property was valued. He explained
that the property was revalued this year. During the physical inspection of the property it was noted that there
is a building on the property and it was assessed and categorized as a cabin with a garage (two-story building).
Approximately two acres of land have been cleared and planted with grass.
After reviewing the information and hearing the testimony of the Assessor's representative, the Board
concurred to conduct an inspection of the property and make a determination at a later date.
Carla Renz
164 Cole Avenue
Port Townsend, WA 98368
BOE: 99-12-E
PN: 941500022
Ms. Renz was present. Representing the Assessor's office was Lead Property Technician Sherrie Shold, and
Property Technician Kelli Larson. Chairman Marlow explained the hearing process and swore them in. This
appeal is based on the denial of a Senior Citizen and Disabled Persons Exemption by the Assessor's office for
1998. Ms. Renz stated that she presented documentation for the Board to review. She is contesting the amount
of income the Assessor's office staff used as a basis for the exemption denial. Included in her income figure
was the amount of an IRA which had been rolled over into another account. She did not receive any money
from the IRA, therefore it should not be considered income.
Ms. Shold explained that when the Assessor's office staff completes the senior citizen application they must
follow rules set by the State Department of Revenue. The rules outline which line items on the form are to be
used in calculating income. The method of calculating income for the senior citizen/disability exemption is
different than the method used for calculating IRS income. For the purpose of the exemption, the Assessor's
office is required to use income which the IRS may allow as deductions. With regard to IRA's, there must be
BOARD OF EQUALIZATION MEETING MINUTES - AUGUST 5,1999
Page 5
documentation indicating a direct roll over into another account, otherwise the distribution is considered
income and is subsequently included in the exemption calculation. The income tax forms provided by Ms.
Renz indicate a normal distribution code rather than a roll over distribution code.
Discussion ensued regarding IRA direct roll overs versus normal distributions.
After hearing the testimony of both parties the Board concurred to review the RCW's and WAC's which govern
senior citizen and disability exemptions and make a determination at a later date.
Peter & Constantina Herzberg
5240 18'h Avenue NE
Seattle, WA 98105
BOE: 99-34-LO
PN: 701344034
Ms. Herzberg was present. Appraiser Robert Shold represented the Assessor's office. After explaining the
hearing process, Chairman Marlow swore them in. The property under appeal consists of five acres in Dabob
Cove, in Quilcene. Ms. Herzberg stated that this last winter there was a lot of land movement in the Dabob
Cove area. A geotechnical engineer was hired by the Dabob Cove community to evaluate the area. A copy of
his letter is attached to the petition form. According to the engineer, the ground is unstable and should not be
developed. She also presented a letter ("Exhibit C") from Realtor Rob Clark of John 1. Scott Realty, which
supports her contention that the property value has decreased due to the landslides in the area. The property is
currently assessed at $134,295. An estimate of value was not provided by the appellants.
Bob Shold stated that he is present on behalf of Appraiser Peter Schuck who valued this property. Mr.
Schuck's notes indicate that there have been four (4) appeals previously heard by the Board regarding this same
issue with property in the Dabob Cove area. There is no new information to submit.
Chairman Marlow stated that the Board has copies of the geotechnical reports prepared for the area. He
explained that since several properties in the area have been affected by the lands slides, it has been
recommended by Mr. Schuck that the assessments of the damaged properties be equalized to reflect the degree
of damage sustained by each parcel.
At the close of the hearing the Board concurred to conduct an inspection of the property and make a
determination at a later date.
Discovery View Associates
One Mount Jefferson Terrace
Lake Oswego, OR 97035
BOE: 99-37-C
PN: 948 332 903
Discovery View Associates did not have a representative at the hearing. Appraiser Robert Shold represented
the Assessor's office and was sworn in by Chairman Marlow. The property under appeal is a low-income
housing project consisting of 48 units located at 1051 Hancock Street, Port Townsend. The appellant wrote on
the petition form that 'This is a low-income housing project that is subject to government restrictions. It
should be valued based on its actual income." In a letter which was faxed from the appellant to the Clerk of the
Board of Equalization, the appellant requests that the Board of Equalization sustain the current assessed
valuation to enable the appellant to appeal to the State Board of Tax Appeals where it can be consolidated with
the appeals for other similar properties.
BOARD OF EQUALIZATION MEETING MINUTES - AUGUST 5,1999
Page 6
Mr. Shold explained that the property was valued using the cost approach. He noted that the appellant wishes
the Board to sustain the value so the case can be appealed to the State Board of Tax Appeals.
After reviewing the information and hearing the testimony of the Assessor's office representative, Member
DeLeo moved to sustain the current assessment of $2,398,930 ($282,640 for the land and $2,116,290 for the
improvements) as requested by the appellant. Vice-Chairman Broders seconded the motion which carried by a
unanimous vote.
Thomas Currey, Agent for U.S.P.S.
Deloitte & Touche
4414 N. Civic Center Plaza - Suite #101
Scottsdale, AZ 85251-3563
BOE: 99-40-C
PN: 901142041
No representative was present on behalf of the United States Postal Service. Appraiser Robert Shold
represented the Assessor's office and was sworn in by Chairman Marlow. The property under appeal consists
of the post office located at 9223 Rhody Drive, Chimacum. The U.S. Postal Service leases the property and
pays the property taxes. Per an agreement between the U.S. Postal Service and the lessor, the U.S. Postal
Service has the right to contest the valuation of the property being leased. The reason for appealing the
property valuation is listed on the petition form as "Cost, Market, Income". A property tax appeal analysis was
also submitted with the petition. The appellants believe the current assessment of $188,050 ($62,880 for the
land and $125,170 for the improvements), should be reduced to $74,800 (a breakdown between the land and
improvement value was not provided).
Mr. Shold explained the method used by the Assessor's office in valuing this property. He noted that the
figures on the petition form and in the attachment do not match the actual assessment figures, making it
difficult to determine how they arrived at their estimate of value.
After reviewing the information and hearing the testimony of Assessor's office representative, the Board
concurred to conduct an inspection of the property and make a determination at a later date.
Meeting adjourned.
A2st:
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Erin K. Lundgren, Clerk of the {oard
JEFFERSON COUNTY
BOARD OF EQUALIZATION
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Richard A. Broders, Vice-Chairman
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