HomeMy WebLinkAboutM102099
1820 Jefferson Street
PO Box 1220
Port Townsend, WA 98368
William S, Marlow, District 2 Richard A, Broders, District 3
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
Julia A. Rouse
1607 Sheridan Avenue
Port Townsend, W A 98368
BOE: 99-05-R
PN: 948310603
Ms. Rouse was present. Appraiser Dennis Pownall represented the Assessor's office. After explaining the
hearing process Chairman Marlow swore them in. The property under appeal is a residence on two (2) lots
located at 1607 Sheridan Avenue in Port Townsend. Ms. Rouse presented an appraisal prepared in November
1998 indicating the property value is $202,000. The current assessment is $212,430 ($36,000 for the land and
$176,430 for the improvements). She feels the assessment should reflect the appraisal value.
Mr. Pownall presented a memorandum to the Board and read it as follows: "The summary appraisal submitted
by the appellant shows a refinance value 5% less than the assessed value, which was determined two years
prior. This office contends that the difference in value is not significant enough to make a mid-cycle
adjustment. This is especia\1y true when considering that the fee appraisal was not designed to identify the
property's true and fair market value, but rather to determine whether or not the loan company's interest would
be covered for the refinance. With consideration for the above, and in the interest of maintaining equity
throughout the affected neighborhood, I recommend that an adjustment not be made. A point to ponder: If the
appraisal had shown that the value increased by 5% in the past two years, would an upward adjustment be made
out of cycle?" The appraisal may represent the value of the property as of November 1998, however, the issue
is that the appraisal was prepared two (2) years after the revaluation date and it only represents a 5% difference.
Any appraisal that falls within 5% high or low is considered good. It does not seem appropriate to change the
value in mid-cycle, but rather look at it again during the next revaluation.
Ms. Rouse asked for clarification of the term "mid-cycle"?
Phone (360)385-9100! 1-800-831-2678 Fax (360)385-9382 jeffbocC@co.jetTerson.wa.us
BOARD OF EQUALIZATION MEETING MINUTES - OCTOBER 20,1999
Page 2
Mr. Pownall explained that Jefferson County is on a four (4) year revaluation cycle which means that property
is only assessed every four (4) years. The appellant's property was assessed as of January 1, 1997.
Ms. Rouse stated that she would have appealed earlier, but, she did not feel that she had any data on which to
base her appeal until she had the appraisal done.
Discussion ensued regarding the remodeling of the house.
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.
Robert Hopkins
P.O. Box 725
Quilcene, W A 98376
BOE: 99-09-R
99-10-LO
PN: 701 213 005
701 205 015
Mr. Hopkins was 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 residence and
approximately 13 acres located at 596 Broad Spit Road in Quilcene. Mr. Hopkins stated that he purchased the
property in November of 1998 for $311,735 and he feels the current assessment should reflect his purchase
pnce.
Mr. Schuck interrupted stating that the excise tax affidavit for the sale of the property indicates that the
appellant paid $475,000.
Mr. Hopkins stated that is incorrect. While the excise tax affidavit lists $475,000 as the purchase price, the
actual purchase agreement includes interest over ten (10) years. It is a pre-payment penalty loan. He is unable
to prepay this loan to avoid paying interest payments. The purchase price was $311,735 and the interest
calculated was $163,265.
Mr. Schuck stated that if the appellant can provide documentation of the sale agreement proving the purchase
price was $311,735, he will stipulate to that value. The excise tax affidavit is the only document he has.
Mr. Hopkins stated he will provide copies of any needed documents.
Discussion ensued regarding how the waterfront was valued. Mr. Hopkins compared how his property was
valued to how neighboring properties were valued. He disputes the percentage of waterfront that Mr. Schuck
valued as no-bank.
Another negative impact to the property value, stated Mr. Hopkins, is the proximity of Taylor United, a
commercial shellfish hatchery. He believes that the continuing expansion of this commercial business devalues
the residential properties in the area. They are affected by the noise of the water pumps and lights which are on
all night long. At night it is lit up as bright as the Trident Submarine Base, and there are tractor trailers loading
and unloading oysters shells on the beach year round. He stated he is not trying to change the way Taylor
United does business, he just feels it has a negative impact on adjoining properties.
Mr. Hopkins proposes that the 100' of waterfront property be valued as low bank. He presented photographs
and a map and explained the easement problems he has had with the property.
BOARD OF EQUALIZATION MEETING MINUTES - OCTOBER 20,1999
Page 3
Mr. Schuck again stated that based on the purchase agreement, he would not have a problem with stipulating to
the purchase price as long as it included all four (4) lots.
Member DeLeo stated that the excise tax affidavit lists $475,000 as the purchase price and does not indicate
that a portion of that amount is interest.
Mr. Hopkins presented documentation that shows the interest is included in the $475,000.
Mr. Schuck stated that he does not dispute the documentation, however, this is the first time he has ever seen an
excise tax affidavit for a purchase price that included finance charges.
Mr. Hopkins explained that the purpose of including the finance charges was so he could not prepay this loan.
The seller wanted to guarantee income and at the time of the purchase he was unable to get a bank loan and had
to work out a deal directly with the seller and did not mind paying 12% interest.
Vice-Chairman Broders stated that he also has never seen an excise tax affidavit for a purchase price that
included interest. However, if that is what occurred, then the appellant paid excise tax on interest that is not
legally required to be paid.
Mr. Hopkins stated that he doesn't really know what excise tax is, besides the Real Estate contract.
Mr. Schuck explained that he paid tax based on the $475,000 listed on the excise tax affidavit, rather than on
the actual purchase price of$311,735.
Mr. Hopkins questioned whether he could get a refund for those taxes?
Mr. Schuck stated he would have to try to explain the situation to the Jefferson County Treasurer.
Discussion ensued regarding the appellant's estimate of value.
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.
Richard & Audrey Heaton, Trustees
Heaton Family Trust
911 Thorndyke Road
Port Ludlow, W A 98365
BOE: 99-42-R
PN: 935100005
Mr. and Mrs. Heaton were present. Appraiser Peter Schuck represented the Assessor's office. After explaining
the hearing process Chairman Marlow swore them in. The property under appeal is land located at 911
Thorndyke Road, Port Ludlow. Mr. Heaton stated that when they received the revaluation notice from the
Assessor's office they were surprised that the value had increased by $10,000 considering there had been land
slides in the area. The Federal Emergency Management Agency (FEMA) sent the appellants a letter stating that
if they ever sold the property they were required to disclose the fact that the property is located within 225' of
the land slide area. Mr. Heaton does not see how the property value has been enhanced. They do not intend to
sell their property, however, many homes in the area are for sale and nothing is selling. The appellants feel the
value has decreased due to the stigma ofthe land slides and they are requesting the current valuation be reduced
BOARD OF EQUALIZATION MEETING MINUTES - OCTOBER 20,1999 Page 4
from $194,770 ($66,000 for the land and $128,770 for the improvements) to $178,770 ($50,000 for the land
and $128,770 for the improvements).
Mr. Schuck stated that the valuation of the property is based on three (3) sales of comparable property in the
area. One of the sales occurred after the first land slide, however, there have been no sales since the land slides
which occurred in February of 1999. He noted that the property was assessed as of January 1, 1999.
Mrs. Heaton noted that the land slides occurred after the assessment date.
Discussion ensued regarding sales in the area and the land slides which have occurred.
At the close of the hearing the Board concurred to conduct an inspectiQn of the property and make a
determination at a later date.
T. Howard & Eleanor Peters
571 N. Bay Way
Port Ludlow, WA 98365
BOE: 99-43-R
PN: 921292045
Mr. and Mrs. Peters were present. Appraiser Robert Kingsley 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 571 N. Bay Way in Port Ludlow. Mrs. Peters stated that she felt the revaluation was a
tremendous increase from the previous valuation. After some research, she found that the description of the
house in the Assessor's office records did not match the description of the actual house. The Assessor's office
records describe it as a 1 story stucco house. The house is actually 2 stories with cedar siding. Mrs. Peters
believes they were assessing the wrong house. The property is currently assessed at $184,185 ($28,500 for the
land and $155,685 for the improvements). The appellants do not contest the land value. They contend that no
improvements have been made. An estimated improvement value was not provided.
Mr. Kingsley stated that he has the description of the house and it is the appellant's house. It is a I story house
with a basement. The exterior is noted as stucco/siding which is a standard description in the Assessor's office,
and the legal description matches the situs address. He further explained that the value given to the house is
titled "Improvements" on the revaluation card. It does mean that additional improvements have been made to
the property. He stated that the assessed value reflects fair market value based on the appellant's purchase of
the property. The appellants purchased this property and two (2) other adjacent parcels in March of 1999 for
$205,000.
At the close of the hearing the Board concurred to conduct an inspection of the property and make a
determination at a later date.
Evelyn S. Wibe, Trustee BOE: 99-45-LO
Mabel Sallee Estate & Hubert Sallee Testamentary Trust
P.O. Box 68
Bisbee, ND 58317
PN: 721092001
Ms. Wibe and Fred Antrobus, Associate Broker for Windermere Real Estate were present. Appraiser Peter
Schuck represented the Assessor's office. After explaining the hearing process Chairman Marlow swore them
BOARD OF EQUALIZATION MEETING MINUTES - OCTOBER 20, 1999
Page 5
in. The property under appeal consists of approximately 79 acres located adjacent to Thorndyke Road in Port
Ludlow. Ms. Wibe stated that she presented her petition which outlines her reasons for appealing the property
value. When she received her revaluation notice she was shocked at the new value, since the property has been
on the market and there have been no offers. When she spoke to a representative from the Assessor's office she
was told that the valuation of the property was based on the amount she was asking for the property. She feels
that is unusual since there is no guarantee that the property will sell for the asking price. Having sold other
property in the same area for considerably less than the asking price, indicates that the valuation of the parcel
she is appealing is very high. The value increased 400%. Additionally, she is not the sole owner of the
property. She has 50% interest and Shrine Hospital received her brother's 50% share of the estate when he
passed away. Because of this joint ownership she feels obligated to sell it for as much as possible.
Chairman Marlow asked if the Shrine Hospital is willing to sell the property?
Ms. Wibe answered yes. They would like to have the money. She stated that initially the property was zoned 1
house per acre and then re-zoned 1 house per 5 acres, and now it is zoned 1 house per 80 acres. This was done
without her being informed of the zoning change. She lives out of the area, so if it was in the newspaper she
would have no way of knowing about it. She would like to see it zoned so that it could be sold and developed.
Her parents purchased the property in 1948 and the family has paid taxes on it since that time. The best use of
the property is for residential purposes. The property would provide a lot of home sites for people who would
in turn pay taxes. Ms. Wibe is requesting the property value be reduced from $439,995 to $109,750.
Mr. Antrobus stated that Ms. Wibe's concern is that the County has devalued the property by re-zoning it from
1 house per 1 acre, to 1 house per 5 acres, and finally to 1 house per 80 acres. Then the County raised the taxes.
In 1998 the property was categorized as open space.
Mr. Schuck stated that the property is currently receiving a 50% reduction in value because it is categorized as
open space/open space. According to the A&sessor's records the property is approximately 2,640 feet of
waterfront, ranging from medium to high bank which is valued at $750 per foot. The first 100 front feet is
considered primary and was valued at $750 per foot. Then a 50% reduction was given for the property being in
open space/open space. The remaining 2,540 front feet was also valued at $750 per foot. A reduction of 60%
was given to that portion for excess front footage, and then another 50% reduction was given for open
space/open space. There is approximately 1,760' of tidelands which were valued at $20 per foot, and using the
tables, a 39% reduction was given for excess tidelands. The tidelands cannot be categorized as open
space/open space. With the property being in the open space/open space program the value is $439,995. lfthe
property was taken out ofthe open space/open space program, fair market value would be $860,000. The
property was on the market for $1,450,000 and that was taken into consideration when he valued the property.
Mr. Schuck presented a map of the property and explained that the mud flat was valued as tidelands. He also
noted that a road divides a portion of the uplands, so a road segregation may be possible which would enable
the uplands to be sold separately. Sales used to value the property were presented. Mr. Schuck stated that
while the appellant's asking price of $1 ,450,000 was considered during the revaluation of the property, the
value was not solely based on that and the current fair market value assessment of $860,000 is $500,000 under
the appellant's asking price.
Ms. Wibe stated that she is having difficulty trying to sell the property. She asked if the County would be
interested in buying it?
Mr. Schuck answered that she may want to talk with the Jefferson Land Trust about that.
BOARD OF EQUALIZATION MEETING MINUTES - OCTOBER 20, 1999
Page 6
Mr. Antrobus asked if the current assessment reflects the value of the timber on the property?
Chairman Marlow answered no. The Assessor's office does not value timber on land.
Discussion ensued regarding waterfront property sales with timber versus waterfront property sales without
timber.
Chairman Marlow excused himself from the meeting due to another commitment.
After reviewing the information 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.
DETERMINA nONS
Carla Renz
164 Cole Avenue
Port Townsend, W A 98368
BOE: 99-12-E
PN: 941 500 022
The Board reviewed all the information submitted by both parties. Based on recent information received by the
Assessor's office from Ms. Renz proving the IRA had been rolled over into another account, the Assessor's
office recommends granting the exemption for 1999 real property taxes. Member DeLeo moved to grant the
exemption as recommended by the Assessor's office. Vice-Chairman Broders seconded the motion. The
motion carried. (See also minutes of August 5, 1999)
James & Lorraine Ray
P.O. Box 116
Poulsbo, WA 98370-0116
BOE: 99-04-R
PN: 995400002
Vice-Chairman Broders stated that the Board previously made a determination to overrule the Assessor on the
value of this parcel. However, it needs to be clarified that it was the Board's intention to reduce only the land
value by 50% for the inability to have a septic system. The improvement value was not changed. Member
DeLeo moved to reduce the value from $31,185 ($30,685 for the land and $500 for the improvements) to
$15,843 ($15,343 for the land and $500 for the improvements). Vice-Chairman Broders seconded the motion.
The motion carried. (See also minutes of August 3, and September 29,1999)
Meeting adjourned.
Attest: . 15.
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~1t. Lund en~~k ~oard
JEFFERSON COUNTY
BOARD OF EQUALIZATION
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Ricrard A. Broders, Vice-Chairman
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