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<DIV>Semi-Professional Troublemaker.......... at least there are two of you out there. Thanx for the clarification on which Mark. Too funny.</DIV>
<DIV> </DIV>
<DIV>So - The asking price for the Trail 10 acres of $250,000.00 is what the Trail Foundation thinks it could become worth? Just like we think our building/buisness is worth 1.3 mil. I understand the "asking price" could be anything. So if we had our building appraised, it would be appraised at what it's potential could be one day? Is an appraisal done on land different than an appraisal done on a building?</DIV>
<DIV> </DIV>
<DIV>You are very helpful Mark and I thank you for taking the time to educate me on this.</DIV>
<DIV> </DIV>
<DIV>Shelley</DIV>
<DIV> </DIV>
<DIV id=IncrediOriginalMessage><I>-------Original Message-------</I></DIV>
<DIV> </DIV>
<DIV id=receivestrings>
<DIV dir=ltr style="FONT-SIZE: 11pt" <i><B>From:</B></I> <A href="mailto:msolomon@moscow.com">Mark Solomon</A></DIV>
<DIV dir=ltr style="FONT-SIZE: 11pt" <i><B>Date:</B></I> 04/09/05 11:49:39</DIV>
<DIV dir=ltr style="FONT-SIZE: 11pt" <i><B>To:</B></I> <A href="mailto:CJs@Turbonet.com">Shelly</A></DIV>
<DIV dir=ltr style="FONT-SIZE: 11pt" <i><B>Cc:</B></I> <A href="mailto:vision2020@moscow.com">vision2020@moscow.com</A></DIV>
<DIV dir=ltr style="FONT-SIZE: 11pt" <i><B>Subject:</B></I> [Spam] Re: [Vision2020] Assessment of the Property Tax</DIV></DIV>
<DIV> </DIV>
<DIV>Shelley,</DIV>
<DIV><BR></DIV>
<DIV>No, I'm not an architect.. that's the other "Mark" who often contributes to this list: Mark Seman. I'm the blacksmith and semi-professional troublemaker who was a county commissioner back in the early 90's.</DIV>
<DIV><BR></DIV>
<DIV>I'll guarantee you that the land will be appraised for it's development potential, not for farmland. That's as it should be unless the Trail family was selling it as farmland.</DIV>
<DIV><BR></DIV>
<DIV>Mark</DIV>
<DIV><BR></DIV>
<DIV>At 11:38 AM -0700 4/9/05, Shelly wrote:</DIV>
<DIV cite type="cite">Do you know if the Trail property will be assessed/appraised, "as is?" Or, "what could be?"</DIV>
<DIV cite type="cite">Mark - you are an architect, right?</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">S</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"><I>-------Original Message-------</I></DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"><B>From:</B> <A href="mailto:msolomon@moscow.com">Mark Solomon</A></DIV>
<DIV cite type="cite"><B>Date:</B> 04/09/05 11:33:43</DIV>
<DIV cite type="cite"><B>To:</B> <A href="mailto:CJs@Turbonet.com">Shelly</A></DIV>
<DIV cite type="cite"><B>Cc:</B> <A href="mailto:vision2020@moscow.com">vision2020@moscow.com</A>
<BLOCKQUOTE></BLOCKQUOTE>
<DIV cite type="cite"><B>Subject:</B> [Spam] Re: [Spam] Re: [Vision2020] Assessment of the Property Tax</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Shelley,</DIV>
<DIV cite type="cite"><BR></DIV>
<DIV cite type="cite">I don'tt know how the value was derived. I'd assume from sale or conversion of similar properties along Moscow's border.</DIV>
<DIV cite type="cite"><BR></DIV>
<DIV cite type="cite">m.</DIV>
<DIV cite type="cite"><BR></DIV>
<DIV cite type="cite">At 11:29 AM -0700 4/9/05, Shelly wrote:
<DIV cite type="cite">Thank you for Mark. I know Phil went to the assessors office with the intent to find out how the Trail property is assessed and this brochure was given to him.</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">OOOOOOPS. I previously did say city not assessors office. I think I need to ask Phil. I will get some clarification. Sorry.</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Do you know how the value was derived of $250,000.00 for these ten acres?</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Shelley</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"><I>-------Original Message-------</I></DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"><B>From:</B> <A href="mailto:msolomon@moscow.com">Mark Solomon</A></DIV>
<DIV cite type="cite"><B>Date:</B> 04/09/05 11:17:04</DIV>
<DIV cite type="cite"><B>To:</B> <A href="mailto:CJs@Turbonet.com">Shelly</A>; <A href="mailto:dickschmidt@moscow.com">dickschmidt@moscow.com</A><BR>
<DIV cite type="cite"><B>Cc:</B> <A href="mailto:vision2020@moscow.com">vision2020@moscow.com</A><BR>
<DIV cite type="cite"><B>Subject:</B> [Spam] Re: [Vision2020] Assessment of the Property Tax</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Shelley,</DIV>
<DIV cite type="cite"><BR></DIV>
<DIV cite type="cite">the numbers you are quoting refer to forest land, not agricultural land. We confuse the issue here in Latah County with our land use zoning designation of Ag/Forest. The county assessor does not. Most forest land in the county does not have the development potential any land adjacent to Moscow does, including the Trail property.</DIV>
<DIV cite type="cite"><BR></DIV>
<DIV cite type="cite">Mark Solomon</DIV>
<DIV cite type="cite"><BR></DIV>
<DIV cite type="cite">At 11:11 AM -0700 4/9/05, Shelly wrote:
<DIV cite type="cite">Hi Jeff,</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Yes, CJ's is for sale for 1.3 mil. The assessed value on CJ's building is based on it's income.<U> Similar</U> to farmland.</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Phil picked up a brochure at the city called, "Idaho's Forestland Taxation Law" that I think can answer your other question. Since I do have the brochure I will quote from it.</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">We are in Zone 2 also known as Latah County.</DIV>
<DIV cite type="cite">Zone 2 Land Grade is as follows:</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">For bare land and yield:</DIV>
<DIV cite type="cite">Good: $150.00</DIV>
<DIV cite type="cite">Med. $94.00</DIV>
<DIV cite type="cite">Poor: $48.00</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">For productivity:</DIV>
<DIV cite type="cite">Good: $485.00</DIV>
<DIV cite type="cite">Med.: $311.00</DIV>
<DIV cite type="cite">Poor: $137.00</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">In a nutshell:</DIV>
<DIV cite type="cite">10 acres of the "primmest" AG/FOREST land goes for $4,850.00 per acre.</DIV>
<DIV cite type="cite"><I>Far cry from $250,000.00.</I></DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">40 acres of the "primmest" AG/FOREST land goes for $194,000.00 per acre.</DIV>
<DIV cite type="cite"><I>Far cry from $1,000,000.00.</I></DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Now, if you valuate AG/FOREST land on it's "potential value"<B> with</B> added infrastructure, not it's current value then the Trail "gifted" land is easily worth over a million.</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Phil is at the meeting and I am home sick and trying to get 2 years of reading done for Phil on this levy issue.</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Shelley/Phil's wife</DIV>
<DIV cite type="cite">Yes Phil will get his own email account shortly. I hope! :)</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"><I>-------Original Message-------</I></DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite"><B>From:</B> <A href="mailto:dickschmidt@moscow.com">Dick Schmidt</A></DIV>
<DIV cite type="cite"><B>Date:</B> 04/09/05 09:55:30</DIV>
<DIV cite type="cite"><B>To:</B> <A href="mailto:vision2020@moscow.com">vision2020@moscow.com</A>; <A href="mailto:jeffh@moscow.com">Jeff Harkins</A></DIV>
<DIV cite type="cite"><B>Subject:</B> Re: [Vision2020] Assessment of the Property Tax</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Jeff,</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">So then for example CJ's is for sale for $1.3 million then his assessment would be based on that amount using a formula you have worked which probably has one formula for business and another for residential? In accordance to the freedom of information law then someone could go in and see what they are paying in taxes.</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">Dick Schmidt</DIV>
<DIV cite type="cite"> </DIV>
<DIV cite type="cite">----- Original Message -----</DIV>
<DIV cite type="cite"><B>From:</B> <A href="mailto:jeffh@moscow.com">Jeff Harkins</A></DIV>
<DIV cite type="cite"><B>To:</B> <A href="mailto:vision2020@moscow.com">vision2020@moscow.com</A>
<BLOCKQUOTE></BLOCKQUOTE>
<DIV cite type="cite"><BR>
<DIV cite type="cite"><B>Sent:</B> Saturday, April 09, 2005 9:10 AM</DIV>
<DIV cite type="cite"><B>Subject:</B> [Vision2020] Assessment of the Property Tax</DIV>
<DIV cite type="cite"><BR></DIV>
<DIV cite type="cite">As many of you have commented, the Tax Assessment Rate may not be a good measure of the tax burden for a particular county. And yes, you are absolutely correct.<BR><BR>The real driver for the assessment of property tax on residents of a county is the level of budgeted expenditures for that county. As many of you are aware, the determination of the tax rate is derived by identifying the amount of revenue needed to fund the budgeted expenditures for the year. Then, given the level of assessed valuation subject to the tax, the tax levy rate is determined by dividing the required revenue (to be funded by property taxes) by the total assessed valuation or:<BR><BR>Required revenues / Total assessed valuation = Tax levy rate</DIV>
<DIV cite type="cite"><BR>But as is obvious, while the budgeted expenditures (required revenues) are driving the amount of taxes that will be assessed on property owners, it is the assessed valuation that determines the amount of tax that will be paid by each property owner. And there are numerous and inherent problems with the assessment process. In Idaho, the approach is to attempt to provide "uniformity" to achieve fairness in the assessment process. Below is a quote from the 2004-05 Ratio Assessment Manual ( http://tax.idaho.gov/propertytax/pt_ratiostudy.htm):<BR><BR><FONT face="Courier New">MEASURING ASSESSMENT UNIFORMITY<BR>Uniformity determines the quality and inherent equity of property<BR>assessments. Although both the appraisal and the market transaction<BR>are subject to distortion on any individual property, if the<BR>magnitude of this distortion is consistently large, taxes paid by</FONT></DIV>
<DIV cite type="cite"><FONT face="Courier New">similar properties in the same area will differ widely. The goal of<BR>a fair assessment program is to reduce inequity of this type.<BR>There are two overall types of inequity that can occur:<BR>1. Inequity between categories.<BR>2. Inequity within a given category.<BR>In the first case, inequity results when the assessment level is<BR>lower in one category than another. This situation becomes apparent<BR>when level indicators from different categories are compared.<BR>In the second case, the distortion is entirely within one category<BR>and is not indicated by measurements of level.<BR><BR></FONT>I don't really like the property tax as a vehicle for funding public programs - not because I don't want to support public programs - but because the property tax is an extraordinarily difficult tax to administer. The overhead necessary to manage an equitable property tax system is enormous. Without getting into a diatribe or dissertation on administering a property tax system, consider the following elements of the system"<BR></DIV>
<DIV cite type="cite">
<UL>
<LI>Must maintain an online-realtime system of all real property transactions
<LI>Must maintain a persistent and consistent real property assessment system
<LI>Must maintain a means of adjudicating or resolving individual property assessment complaints
<LI>Must maintain a system of oversight that monitors and assures that the systems operated by taxing jurisdictions in the State is fair and equitable</LI></UL></DIV>
<DIV cite type="cite">The property tax is an expensive tax to manage. For example, in Latah County, we levied about $5.8 million in property tax for 2003. Give or take a few $10's of thousands, the amount spent in Latah County for management of the Property Tax System was above $1,000,000 for 2003. This number is not readily available from the County's financial statements because the system is managed across more than one County department (Assessor's Office, Collector's Office, etc.), but the Revaluation program (administered by the Assessor's Office) spent $457,011 just on the revaluation program. From my memory (always a dubious source) the normal operating cost of the Assessor's office, in addition to the revaluation program) was about $700,000 for 2003. Thus, if these numbers are at all reliable, about $.20 of every dollar collected in property taxes was spent in administering the tax. Of course, this does not include any costs incurred by the tax collectors office nor, at the state level, for their oversight responsibilities. Also, my numbers do not include the cost of having our elected County Commissioners serve as the local adjudicating body for appeal of property valuations. If you scrutinize the agendas for last year, you may be surprised at how much time was spent hearing tax appeals.</DIV>
<DIV cite type="cite"><BR>And, by the way, even though we spend a lot of money on trying to assure that the property tax is fair and equitable, those that received their property tax assessment notices for 2005 know that the system occasionally requires significant adjustment. Again I would refer you to the 2004-05 Ratio Assessment Manual for details about how the assessment oversight works. Here is that link again - http://tax.idaho.gov/propertytax/pt_ratiostudy.htm.<BR><BR>As you dig into the details of the ratio study and the application of that technique to properties in Latah County (as well as other counties) you might want to refresh your statistical analysis tools - especially the difficulties of small samples. I noted that for 2003, in the assessment of Rural Residential properties ( http://tax.idaho.gov/propertytax/PTpdfs/rpt_03_county_ratio_study.pdf ) that Latah stats were generated from 11 sales for that year. A sample this small can be problematic.</DIV>
<DIV cite type="cite"><BR>This concludes my thoughts on property tax assessment and the tax burden on Latah residents. For me, the conclusion is pretty straightforward - our property taxes are rather high and the level of tax probably influences many potential businesses and individuals from living here. The fact that the Moscow - Lewiston region was the only sector of Idaho that did not report growth for the year is some indication of that. <BR><BR>My next post on taxes will address the question of property tax exemptions and the impact of exemptions on tax receipts, fairness and equity of the tax exemption, etc. It will be a few days - I have some yardwork to do.</DIV>
<DIV cite type="cite"><BR>Hope this was helpful.<BR></DIV>
<DIV cite type="cite">
<HR>
</DIV>
<DIV cite type="cite"><BR><BR>No virus found in this outgoing message.<BR>Checked by AVG Anti-Virus.<BR>Version: 7.0.308 / Virus Database: 266.9.5 - Release Date: 4/7/2005<BR></DIV>
<DIV cite type="cite">
<HR>
</DIV>
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