[Vision2020] Property Tax Increases
Art Deco aka W. Fox
deco@moscow.com
Sat, 24 Apr 2004 18:21:47 -0700
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John, et al,
John writes: "However, since market values are not specifically known by either
entity, having a state commission determine statutory requirements, and override
local control, seems heavy handed. Plus, what purpose is served? How does the
state, or whatever, gain by doing this?"
The following is from Boundary County memories so it might be out of date or in
error:
One thing the state does is to check the methodology the local assessor is using
to determine property valuations. Although, as Tom Trail has nicely taken the
time to point out, Idaho does not require real property sales price information
to be revealed as many other states do, reasonably accurate estimates can be
made from examining asking prices, loan documents, personal responses from
people in involved in real estate transactions, etc. I believe the state sets
the methodology that the county assessor is to use and examines whether, in
fact, the county assessor is correctly applying that methodology.
[I recently sold some property in Boundary County. Immediately after the sale
was recorded, the assessor sent me a letter asking what my sales price had been.
Giving this information is voluntary.]
Another problem that occurs is that some county assessors apply the methodology
in such a manner that the effect is to deliberately factor down the market value
for all properties by a certain percent. I believe that in the 1980's, Kootenai
County property was grossly undervalued. After the state made an audit and
after a very nasty fight, the county was forced to raise valuations by a very
large margin.
Another area of concern for the state is whether the county assessor is being
evenhanded in applying his valuation work.
When I moved back to Boundary County in the 1981, I found that certain types of
properties were valued differently depending on whether the owner was a county
resident, or if not, how far away the owner lived. Valuations for out-of-state
nonresident owned Moyie riverfront property, for example, were about 1.5 - 2.5
times higher than those owned by county residents.
It is important to remember that almost all of the assessor's tasks are driven
by statute and regulations enacted under statute. As with any writing, statutes
and regulations are open to different interpretations. By law, the state, after
procedural safeguards, has the last word.
This example may be in error but it will give you some idea about the effect of
the state's action in raising county evaluations. Suppose the state orders a
county assessor to raise his valuations by 20%. The practical effect of this is
to raise the amount of taxes than are/can be collected by various taxing
districts/agencies when those taxes are based on a percentage of assessed
valuation.
As an aside, when we first moved here, we believed we had a property valuation
problem. We went to the assessor's office, gave them some information, they
investigated, and made an adjustment. We were treated with courtesy, frankness,
and respect. We felt that our inquiry was fairly and professionally handled.
I don't know how accurate the above is or whether it has been helpful. I would
welcome comment from someone better informed than I.
Wayne
Art Deco (Wayne Fox)
deco@moscow.com
----- Original Message -----
From: John Danahy
To: 'Art Deco aka W. Fox' ; 'Vision 2020'
Sent: Saturday, April 24, 2004 5:30 PM
Subject: RE: [Vision2020] Property Tax Increases
Wayne, you said:
If I recall correctly from living in Boundary County, where I was for a period
of three years a county employee, the State Tax Commission, by statue,
periodically reviews each county's assessments and valuations to determine if
they meet statutory requirements, e.g., are the property valuations consistent
with current market values of the properties, etc.
I can agree with this. Tom Trail has also stated that sometimes local
assessors are thought of as 'generous" by the state. However, since market
values are not specifically known by either entity, having a state commission
determine statutory requirements, and override local control, seems heavy
handed. Plus, what purpose is served? How does the state, or whatever, gain by
doing this?
John
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<DIV><FONT size=3D4>John, et al,</FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>John writes: <FONT face=3D"Times New =
Roman">"However, since=20
market values are not specifically known by either entity, having a =
state=20
commission determine statutory requirements, and override local control, =
seems=20
heavy handed. Plus, what purpose is served? How does the =
state, or=20
whatever, gain by doing this?"</FONT></FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>The following is from Boundary County memories so it =
might be=20
out of date or in error:</FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>One thing the state does is to check the methodology =
the local=20
assessor is using to determine property valuations. Although, as =
Tom Trail=20
has nicely taken the time to point out, Idaho does not require real =
property=20
sales price information to be revealed as many other states =
do, reasonably=20
accurate estimates can be made from examining asking prices, loan =
documents,=20
personal responses from people in involved in real estate =
transactions,=20
etc. I believe the state sets the methodology that the county =
assessor is=20
to use and examines whether, in fact, the county assessor is correctly =
applying=20
that methodology.</FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>[I recently sold some property in Boundary =
County. =20
Immediately after the sale was recorded, the assessor sent me a letter =
asking=20
what my sales price had been. Giving this information is=20
voluntary.]</FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>Another problem that occurs is that some county =
assessors=20
apply the methodology in such a manner that the effect is to =
deliberately factor=20
down the market value for all properties by a certain percent. I =
believe=20
that in the 1980's, Kootenai County property was grossly =
undervalued. =20
After the state made an audit and after a very nasty fight, the =
county was=20
forced to raise valuations by a very large margin.</FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>Another area of concern for the state is whether the =
county=20
assessor is being evenhanded in applying his valuation =
work.</FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>When I moved back to Boundary County in the 1981, I =
found that=20
certain types of properties were valued differently depending on whether =
the=20
owner was a county resident, or if not, how far away the owner =
lived. =20
Valuations for out-of-state nonresident owned Moyie riverfront property, =
for=20
example, were about 1.5 - 2.5 times higher than those owned by =
county=20
residents.</FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>It is important to remember that almost =
all of the=20
assessor's tasks are driven by statute and regulations enacted =
under=20
statute. As with any writing, statutes and regulations are open to =
different interpretations. By law, the state, after procedural =
safeguards,=20
has the last word.</FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>This example may be in error but it will give you =
some idea=20
about the effect of the state's action in raising county =
evaluations. =20
Suppose the state orders a county assessor to raise his valuations by =
20%. =20
The practical effect of this is to raise the amount of taxes than =
are/can be=20
collected by various taxing districts/agencies when those taxes are =
based on a=20
percentage of assessed valuation.</FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>As an aside, when we first moved here, we believed =
we had a=20
property valuation problem. We went to the assessor's office, =
gave=20
them some information, they investigated, and made an adjustment. =
We were=20
treated with courtesy, frankness, and respect. We felt that our =
inquiry=20
was fairly and professionally handled.</FONT></DIV>
<DIV><FONT size=3D4></FONT> </DIV>
<DIV><FONT size=3D4>I don't know how accurate the above is or whether it =
has been=20
helpful. I would welcome comment from someone better informed than =
I.</FONT></DIV><FONT size=3D4>
<DIV><BR>Wayne</DIV>
<DIV> </DIV>
<DIV>Art Deco (Wayne Fox)<BR><A=20
href=3D"mailto:deco@moscow.com">deco@moscow.com</A><BR></FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Djdanahy@turbonet.com =
href=3D"mailto:jdanahy@turbonet.com">John=20
Danahy</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A title=3Ddeco@moscow.com=20
href=3D"mailto:deco@moscow.com">'Art Deco aka W. Fox'</A> ; <A=20
title=3Dvision2020@moscow.com =
href=3D"mailto:vision2020@moscow.com">'Vision=20
2020'</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Saturday, April 24, 2004 =
5:30=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [Vision2020] =
Property Tax=20
Increases</DIV>
<DIV><BR></DIV>
<DIV class=3DSection1>
<DIV>
<DIV>
<P class=3DMsoNormal><FONT face=3D"Times New Roman" color=3Dblack =
size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black">Wayne</SPAN></FONT><FONT=20
color=3Dblack><SPAN style=3D"COLOR: black">, you =
said:</SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial color=3Dblack size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: =
Arial"></SPAN></FONT> </P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D4><SPAN style=3D"FONT-SIZE: 13.5pt">If I recall correctly from =
living in=20
</SPAN></FONT><FONT size=3D4><SPAN=20
style=3D"FONT-SIZE: 13.5pt">Boundary</SPAN></FONT><FONT size=3D4><SPAN =
style=3D"FONT-SIZE: 13.5pt"> </SPAN></FONT><FONT size=3D4><SPAN=20
style=3D"FONT-SIZE: 13.5pt">County</SPAN></FONT><FONT size=3D4><SPAN=20
style=3D"FONT-SIZE: 13.5pt">, where I was for a period of three years =
a county=20
employee, the State Tax Commission, by statue, periodically reviews =
each=20
county's assessments and valuations to determine if they meet =
statutory=20
requirements, e.g., are the property valuations consistent with =
current market=20
values of the properties, etc.</SPAN></FONT></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D4><SPAN style=3D"FONT-SIZE: 13.5pt"></SPAN></FONT> </P>
<P class=3DMsoNormal><FONT face=3D"Times New Roman" size=3D4><SPAN=20
style=3D"FONT-SIZE: 13.5pt">I can agree with this. =
</SPAN></FONT><FONT=20
size=3D4><SPAN style=3D"FONT-SIZE: 13.5pt">Tom</SPAN></FONT><FONT =
size=3D4><SPAN=20
style=3D"FONT-SIZE: 13.5pt"> </SPAN></FONT><FONT size=3D4><SPAN=20
style=3D"FONT-SIZE: 13.5pt">Trail</SPAN></FONT><FONT size=3D4><SPAN=20
style=3D"FONT-SIZE: 13.5pt"> has also stated that sometimes local =
assessors are=20
thought of as =91generous=94 by the state. However, since market =
values are=20
not specifically known by either entity, having a state commission =
determine=20
statutory requirements, and override local control, seems heavy =
handed. =20
Plus, what purpose is served? How does the state, or whatever, =
gain by=20
doing this?</SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3D"Times New Roman" size=3D4><SPAN=20
style=3D"FONT-SIZE: 13.5pt"></SPAN></FONT> </P>
<P class=3DMsoNormal><FONT face=3D"Times New Roman" size=3D4><SPAN=20
style=3D"FONT-SIZE: 13.5pt">John</SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial color=3Dblack size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: =
Arial"></SPAN></FONT> </P></DIV></DIV></DIV></BLOCKQUOTE></BODY></HT=
ML>
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