[WSBARP] feedback re: county tax assessment appeal? WAC 458-07-030

Wed Aug 13 12:38:26 PDT 2014

Having done a number of appeals for clients and my own rental properties
I’ve come to the realization that the system is stacked (no shock there)
against the taxpayer especially single family home owners who can’t afford
to obtain an appraisal.  Larger owners usually win as they have more
financially at stake.  When you really drill down into the WACs (see
below) you realize just how stacked the deck is against taxpayers.  

For example, I’ve had a number of assessors argue that you can’t use
comparables from foreclosures, short sales, deeds in lieu or otherwise
distressed sales as they are not the ‘true and fair value’ as they are
distressed sales.  

If I have a recent appraisal (purchase or refinance within 3 years) I’ve
usually won before the BOE or the assistant assessor rolls over and
stipulates to my value in lieu of going before the BOE. 

When I’ve been before the BOE and awaiting my 5 minutes of fame I’m always
amused by how many homeowners who think they’ll win merely my presenting a
couple of recent neighborhood sales.  

______________

Robert R. Rowley
Attorney & Counselor At Law

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WAC 458-07-030

True and fair value—Defined—Criteria—Highest and best use—Data from
property owner.

(1) True and fair value—Defined. All property must be valued and assessed
at one hundred percent of true and fair value unless otherwise provided by
law. "True and fair value" means market value and is the amount of money a
buyer of property willing but not obligated to buy would pay a seller of
property willing but not obligated to sell, taking into consideration all
uses to which the property is adapted and might in reason be applied.

(2) True and fair value—Criteria. In determining true and fair value, the
assessor may use the sales (market data) approach, the cost approach, or
the income approach, or a combination of the three approaches to value.
The provisions of (b) and (c) of this subsection, the cost and income
approaches, respectively, shall be the dominant factors considered in
determining true and fair value in cases of property of a complex nature,
or property being used under terms of a franchise granted by a public
agency, or property being operated as a public utility, or property not
having a record of sale within five years and not having a significant
number of sales of comparable property in the general area. When the cost
or income approach is used, the assessor shall provide the property owner,
upon request, with the factors used in arriving at the value determined,
subject to any lawful restrictions on the disclosure of confidential or
privileged tax information.

(a) Sales. Sales of the property being appraised or sales of comparable
properties that occurred within five years of January 1st of the
assessment year are valid indicators of true and fair value. In valuing
property, the following shall be considered:

(i) Any governmental policies or practices, regulations or restrictions in
effect at the time of appraisal that affect the use of property, including
a comprehensive land use plan, developmental regulations under the Growth
Management Act (chapter
<http://apps.leg.wa.gov/RCW/default.aspx?cite=36.70A> 36.70ARCW), and
zoning ordinances. No appraisal may assume a land usage or highest and
best use not permitted under existing zoning or land use planning
ordinances or statutes or other government restrictions, unless such usage
is otherwise allowed by law;

(ii) Physical and environmental influences that affect the use of the
property;

(iii) When a sale involves a real estate contract, the extent, if any, to
which the down payment, interest rate, or other financing terms may have
increased the selling price;

(iv) The extent to which the sale of a comparable property actually
represents the general effective market demand for property of that type,
in the geographical area in which the property is located; and

(v) Sales involving deed releases or similar seller-developer financing
arrangements shall not be used as sales of comparable property in
determining value.

(b) Cost. In determining true and fair value, consideration may be given
to cost, cost less depreciation, or reconstruction cost less depreciation.

(c) Income. In determining true and fair value, consideration may be given
to the capitalization of income that would be derived from prudent use of
the property, as limited by law or ordinance. Consideration should be
given to any agreement between an owner of rental housing and any
government agency that restricts rental income, appreciation, and
liquidity and to the impact of government restrictions on operating
expenses and on ownership rights in general of such housing.

(d) Manuals. Appraisal manuals or guides published or approved by the
department of revenue shall be considered in conjunction with the three
approaches to value. The data contained in these manuals or guides must be
analyzed and adjusted by the assessor to consider time, location, and any
other applicable factors to properly reflect market value in the county.

(3) True and fair value—Highest and best use. Unless specifically provided
otherwise by statute, all property shall be valued on the basis of its
highest and best use for assessment purposes. Highest and best use is the
most profitable, likely use to which a property can be put. It is the use
which will yield the highest return on the owner's investment. Any
reasonable use to which the property may be put may be taken into
consideration and if it is peculiarly adapted to some particular use, that
fact may be taken into consideration. Uses that are within the realm of
possibility, but not reasonably probable of occurrence, shall not be
considered in valuing property at its highest and best use.

(4) Valuation of land and improvements. In valuing any lot, tract, or
parcel of real property, the assessor must determine the true and fair
value of the land, excluding the value of any structures on the land and
excluding the value of any growing crops. The assessor must also determine
the true and fair value of any structure on the land. The total value of
the land and the structures must not exceed one hundred percent of the
true and fair value of the total property as it exists at the time of
appraisal.

(5) Valuation data from property owners. The assessor may require property
owners to submit pertinent data regarding property in their control,
including sales data, costs and characteristics of improvements, and other
facts necessary for appraisal of the property.

[Statutory Authority: RCW
<http://apps.leg.wa.gov/RCW/default.aspx?cite=84.08.070> 84.08.070. WSR
09-04-035, § 458-07-030, filed 1/29/09, effective 3/1/09; WSR 00-01-043, §
458-07-030, filed 12/7/99, effective 1/7/00.]

From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Wednesday, August 13, 2014 12:18 PM
To: wsbarp at lists.wsbarppt.com
Subject: RE: [WSBARP] feedback re: county tax assessment appeal?

I am sure that lots of attorneys (myself included) would like to hear of
your successful lessons if you have the time to respond online.  Many of
my clients have found that a tax assessment appeal has been an extremely
frustrating, expensive, and futile experience.

From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Kokie Adams
Sent: Wednesday, August 13, 2014 11:44 AM
To: wsbarp at lists.wsbarppt.com
Subject: RE: [WSBARP] feedback re: county tax assessment appeal?

I have appealed my King County assessment at least 3 times and been
successful each time if you want to contact me off the listserve I can
tell you what I learned.

Kokie Adams

Purcell & Adams, PLLC

Office:  425.774.0444 | Fax: 425.771.2711 

kadams at purcelladams.com 

From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Pearce Law PLLC
Sent: Wednesday, August 13, 2014 10:51 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] feedback re: county tax assessment appeal?

Hi Listmates:

I'd be curious to hear from anyone here who has successfully appealed a
county tax assessment. A former client of mine has recently been in touch
and is considering an appeal - his land value was assessed a 30+% increase
this year. He's done a quick look and none of the neighboring properties
were assessed the same increase (and he has done nothing to improve his
property). The property is on Mercer Island. 

I would very much appreciate any feedback that any of you might share
regarding your experience with appealing an assessment in King County,
and/or regarding trends generally with the county assessor's office and
land valuations. 

Thanks so much, 

Heather

Heather Pearce Campbell

Pearce Law, PLLC | c: 206.799.2539

Web: http://www.pearcelawservices.com <http://www.pearcelawservices.com/>
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Information provided on this list should not be considered legal advice.
As with all lists - let the reader beware! No warranties or
representations are made as to the accuracy of any information provided.
All opinions and comments in this message represent the views of the
author and do not necessarily have the endorsement of the Washington State
Bar Association nor its officers or agents. 

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Information provided on this list should not be considered legal advice.
As with all lists - let the reader beware! No warranties or
representations are made as to the accuracy of any information provided.
All opinions and comments in this message represent the views of the
author and do not necessarily have the endorsement of the Washington State
Bar Association nor its officers or agents. 

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the following in the body of the message: unsubscribe wsbarp - OR - send a
message to webmaster at wsbarppt.com asking that you be removed from the
wsbarp list. 

Information provided on this list should not be considered legal advice.
As with all lists - let the reader beware! No warranties or
representations are made as to the accuracy of any information provided.
All opinions and comments in this message represent the views of the
author and do not necessarily have the endorsement of the Washington State
Bar Association nor its officers or agents. 

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