2019 Appeals
I'll speak in general term regarding SCAR cases and
what transpired. I will not identify parties, but rather the issues
addressed:
1) Petitioner had recently purchased the property that had
been on market for three years at arms length. The assessment had
been more than $100,000 higher than purchase price. Petitioner was
building a house and lived in a trailer on site. Improvements had
been made to the waterfront by previous owner. But the sale price
was given weight. There were other sales of superior properties
that were assessed for less. So combining sale price of subject
property with comparable sales suggested a reduction of ~ 60% of
the difference in opinion.
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2) Property had been assessed at a figure higher than any
property had ever sold in the township. It was reduced at BAR but
still was higher than any sale in the history of the town. The property
had been listed at that price for sale and had not sold. Petitioner
representative agreed the owner had more than double the assessed
value invested in the property. But cost does not necessarily equal
value. Particularly when the cost has never been achieved and had
not been achieved when listed. Legitimate arguments could be made
for substantially more and substantially less than the current assessed
value and there is no right answer. The Petitioner and Assessor
were able to agree upon a figure and a decision was not necessary.
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3) Property assessed at more than double the previous assessment
was reduced by ~ 10% at BAR. It was raised from less than half current
assessed value it had been for years. Testimony indicated that the
property was singled out for more than double increase due to improvements
from 15 to 20 years ago that were previously unknown to Assessor
and relayed thru complaints by neighbors. It was asserted by Assessor
that the improvements from 1998 – 2005 were undocumented via
required building permits as required by the town.
Interestingly, a neighbor whose dock sticks out in front of this
property is also assessed at the original assessment before BAR
reduction though it is nearly double the square footage, has a huge
dock setup, significant landscaping, a substantial garage that appears
to have an apartment ...... and is nearly 100 years newer than subject
property.
Both properties have irregularities in their waterfront. And it
appears the neighbor may have raised the issue with the Assessor
due to his or her frustration with assessment issues. The Assessor
testified there were multiple complaints though it is unclear if
any were formal. The neighboring property to subject appears to
be fairly accurately assessed for fair market but it’s assessment
appears to be unequal. If that neighbor was upset by comparison
of his assessment to the subject property my observation is he should
have been upset about many others as well.
In addition it appears as though that very neighbor is the Code
enforcement officer for the town and that he may have provided Assessor
access to his property so that Assessor could look at the subject
property.
The town web site indicates the following in regard to the code
enforcement officer: “The Code Enforcement Officer and Planning
Board play a major role in preserving the integrity of the .....neighborhoods,
buildings and overall quality of life in the Town.”
This is a noble aspiration….. but the current situation does
not appear to have been handled as well as it could. It is apparent
the property owners feel mistreated. And I can sympathize with their
position. Perhaps moving forward these matters can be handled to
appease these concerns and be more consistent with the above quoted
goal.
This case is particularly unusual in that the right hand neighbors
dock (the neighbor mentioned above) sticks out in front of subject
property beyond the left side of subject house. So that if the neighbor
is having a party on his large dock the entire frontal view of the
subject property is to the dock.
It is a bad bad setup, exasperated by the narrow cove. It is particularly
a problem if you are not friendly with your neighbor as appears
to be the case here. It is a highly irregular situation. To emphasize
the problem, the neighbors dock not only sticks out in front of
the view of the subject property, it is also huge and obtrusive.
The square footage of the dock looks to be half the square footage
of the subject house and is in direct line of subject property view.
Not good. For the property owners to get to their own dock they
have to walk down and over almost to the neighboring property. So
it creates a double problem that can significantly impair resale
value. Or resale at all.
It is clear that the subject property has been upgraded and enhanced.
And it is clear the old assessment was low. But it is equally clear
that with the waterfront configuration issues, $192,000 is high.
No sales have been presented to substantiate that figure. In fact
petitioners representative provided sales to support their position
that were not disputed by the Assessor. So I think $192,000 is clearly
an excessive assessment. But I also believe looking at area assessments
that close-by assessments are low compared to likely sales prices.
So I believe there is also an unequal assessment issue as well.
The petitioners representative provided many examples of unequal
assessments and the Assessor did not challenge those either.
The Assessor provided no comparable sales and provided no comparable
assessments. Her argument was limited to improvements... which had
been done 15 to 20 years ago but never detected by the Assessor
until now.... as a result of the complaints.
I also believe an over-night doubling of a property owners taxes
after 20 Years is simply not right.
I am going to adjust this assessment to ~ a 60% reduction of difference
in opinion.
Subject property is a nice cottage with a peculiar waterfront configuration
that is hard to anticipate how it would impact resale value. I think
it would sell for what I am going to reduce it to quite easily.
Perhaps more. But that issue and demonstrated assessments being
low compared to likely resale value I can not condone the assessment
figure . And it appears there is a wide-spread issue of water front
properties in at least this part of the lake being assessed under
fair market value.
If other properties get assessed closer to fair market value then
I could see justification for raising this property somewhat. Until
then I believe a reduction of about 60% of difference is equitable.
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4) Petitioner demonstrated in great detail that the majority of
surrounding properties assessments have not changed since 2007.
They also demonstrated Assessor raised their assessment as a result
of their purchase of the property and that had they not purchased
the property likely the assessment would not have changed.
Petitioner argues unequal assessment and I agree that they have
made that case. When the Assessor gets the area properties to fair
market value he may at that time justify a higher figure, but frankly
I doubt even then he could justify much more than the previous assessment.
This property has very little water influence and the water influence
there is poor. Assessor provided many prime waterfront properties
as comparable's that simply are not comparable. They have a 10 foot
water access and a cabin in the woods with no views. The cabin acreage
should not be compared to waterfront properties. Only the 10 foot
strip should. A near-by similar water access is an actual parcel
assessed at $18,000 with 15 feet access. So that places water access
at below $15,000 for this property using that assessment as a comparable.
The rest of the petitioners parcel is non waterfront.
Assessor provided a large number of “comparable sales”
of which I found most were not comparable at all and several supported
the petitioners position not the Assessors.
I believe the petitioner could also win on excessive assessment
due to their unique circumstances.
The lake is irregularly shaped so it is problematic to compare
waterfronts. It is even more problematic in the particular bay.
An enormous amount of work is needed to compare properties in this
area. The Petitioner did that work in tremendous detail and met
their burden of proof for a reduction.
To the contrary I do recognize that the property does have water
access although limited and that is worth something. And to have
a water access property at the low figure is almost unheard of.
We do have this sale as recent, arms length and not abnormal and
we can not use it alone to establish value. But it does mean something.
It is difficult to value this precisely but in an attempt to be
fair to all I am going to use the sale as a 1/3 influence. Since
I have nothing else to use as comparable and I need two more sales
to do so, I instead will use old assessments as the other 2/3rds
influence. Meaning I’m using 2/3rds influence to return to
the previous assessment. The difference between old assessment and
new is $30,000. New Assessment was geared toward the sale. Therefore
1/3 of $30,000=$10,000. This is not an ideal way to calculate this
matter. But I believe it to be as equitable as I can calculate under
the circumstances.
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5) Petitioner lawyer requested significant reduction on an estate
property that had been unoccupied for years, looked to have a 50%
commercial influence. Because of the commercial influence and the
lack of owner occupancy it was clear SCAR had no jurisdiction. But
the Assessor was good enough to concede the property was over assessed
and a stipulation was agreed to.
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6) Assessed at Nearly double what petitioner paid for it, Petitioner
sought a 1/3 reduction.
Property owner purchased property recently for about half assessed
value and about 20% greater than previous assessment and owners
subsequently commenced renovations.
Property owner converted a property that was becoming dilapidated
and returned it to respectable serviceable condition. Their work
was clearly beneficial to the neighborhood.
The home according to testimony is grand fathered for an in-home
commercial business utilizing 450sq ft.
The Assessor wanted to compare the property to other commercial
influenced residential neighborhood properties. He utilized a sale
of a similar area property at assessed value and considered it a
comparable sale. I view the neighborhood that property is in to
be more commercially oriented. Next to it is a Chinese restaurant.
Subject property is surrounded by residential and multi-family residences.
And I found the lots were different. No other comparable sales were
presented that sold at assessed value of subject property or above.
A couple were presented that were residential with businesses but
sold for far less and needed work.
They may have been somewhat comparable before this renovation.
I found there simply wasn’t enough to go by as far as comparable
analysis with like-properties with small commercial influence at
the assessed value level. I’m thinking the owners paid a little
too much and had to spend more than they had anticipated to get
the property in suitable condition for the business.
There was a dispute as to what was spent to get the property where
it is. And there is dispute as to whether it was a capital improvement.
My observation is that there were configuration changes, but essentially
a dilapidated building was returned to serviceable condition. For
example, another wing was not added. The roof was repaired, the
foundation was repaired, eaves repaired. The siding was repaired.
It is possible the siding is higher quality than what was there.
But over-all I view the renovation was correction for long forgone
maintenance.
Whether it was a capital improvement or not isn’t relevant
to fair market value in my view.
The property clearly is worth more than what petitioner is asking.
I thought a doubling of the taxes was unconscionable. I can see
how the property owner was upset by that. The parties were too far
apart. So a hearing officer decision was necessary. I analyzed the
data provided and concluded there were inadequate sales to make
an accurate determination. The assessments in the area are lower
than what was asked by Assessor.
I’m going to split the difference in opinion. To go higher
would create a strong argument for unequal assessment. If the Assessor
had better comparable sales data next time I’d likely not
be adverse to an increase of $10,000 to $20,000 two years from now.
But that large a jump over night I believe is the wrong thing to
do to people who are doing good things, taking risks and making
the neighborhood better.
It’s possible this property could sell for more but I don’t
see data to substantiate it. And it is possible other properties
in the area could sell for more than their assessed value as well.
Splitting the difference seems equitable to me in a situation that
has issues of both excessive and unequal assessment at the current
assessed value.
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7) Petitioner requests 10% reduction.
The Petitioner testified adjustments were not made for the road
that cuts thru her property dissecting her lot and impacting her
more than the down road neighbors as progressively as you go down
the dead end street there are less cars. And also she is on the
curve and two cars have hit her house over the years. The street
is parallel to the other properties. She is the only one on the
curve.
She argues her assessment is excessive and unequal. She thoroughly
demonstrates many other parcels that are assessed less than she
is that should not be. She noted others had additional buildings
which she lacks. She argues other have superior dockage.
The Assessor argues that he doesn’t include docks in valuation.
Clearly an extensive dock would certainly impact resale value. So
it is apparent that issue generates a difference in their opinions
of value as others have investments in this aspect which she does
not.
The difference in assessment argued is only ~10%. The analysis
by the Petitioner is so thorough I think it would be impossible
and unreasonable to expect an Assessor to know these kinds of details.
I have found no discrepancies in her assertions.
I believe her assertions regarding the road issue, dockage and
comparable assessments are accurate. I believe the assessor to be
quite thorough as well. But this petitioner knows her neighborhood
in great detail.
I think her property and others could sell in excess of assessed
value as pretty much any waterfront is worth that figure. But I
believe vs other assessments she is high.
I believe that the Assessor and I are at a disadvantage to this
very meticulous property owner who knows her neighborhood like the
back of her hand.
I’m going with her figure thru no fault of the Assessor.
I am adjusting the assessment down 10% as she asks. I believe she
could make arguments for less than that but I can not order less
than what was requested.
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8) Assessment reduced by 7% at BAR. .
Property owner requested a further reduction of 60%.
Property owner representative argued regarding the neighborhood
and demonstrated homes there are dilapidated and are worth very
little. Even the houses with waterfront are worth very little.
Certainly, these homes impact subject property value negatively
as they’d have to be driven past to get to this house.
The houses with water frontage have very small amount of frontage
and the houses are close together.
Perhaps 1/5 to 1/10th the frontage and 1/10th to 1/20th the acreage.
The structure of subject property was recently built and in good
condition. The others are old and in poor condition with inferior
lots.
This property is also isolated to a degree from the others and has
a very different setting with acreage and 300 feet of frontage.
My opinion is that if this property were not associated with this
neighborhood it would be worth a lot more. Perhaps as much or more
than the original assessment. But the reality is that it is associated
with this neighborhood.
A lot of dialog between assessor and property owner and representative
transpired. Pluses and minuses were raised and the disagreement
became narrowed. I believe the property owners representative pressed
the Assessor as far as he could at 27% reduction. I believe a good
faith negotiation took place. After reviewing all materials I do
not believe I can improve upon that dialog with any degree of justifiable
accuracy. I believe there are legitimate arguments both higher and
lower than this figure. The property could be worth more due to
its waterfront and setting. But I also understand the negative influence
of the streets that lead up to it.
I think 27% reduction is fair. And if anything, I considered leaning
higher due to the significant waterfront. But the negative influence
of the neighborhood is to too great to over look
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9) Tax payer apparently submitted 5 of 6 petitions to the right
place and one went to the wrong place but, I believe in the right
building. Assessor wanted case dismissed because filing was not
done on time. Clerk made me aware of this and indicated she was
going to return the petitions and no hearing scheduled. I said I
am a public servant in customer service business and if we can accommodate
customers were should. The petitions were mailed to me and I proceeded.
The Assessor objected, I told Assessor he could bring objections
up at hearing. Town Attorney intervened and said they had an obligation
to follow the law. I told him the particulars had not been relayed
to me but they could relay them in the hearing and I'd take their
objections into consideration. A hearing date was set. Assessor
indicated he could not make it even though he was given alternative
scheduling options. I told him the hearing would proceed as scheduled.
Prior to hearing Assessor stipulated with tax payer and agreed to
~25% reduction on one petition and 3% on the other.
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10) A somewhat dilapidated home was purchased and was being worked
on by tax payer. Petitioner asked assessment be cut in half. A detailed
discussion regarding the condition of the property ensured. Tax
payer had a lot of photos which really helped. Assessor acknowledged
a reduction would be appropriate and an adjustment to 69 of assessed
value was agreed upon. It was great to see reasonable people work
out something fair.
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11) Petitioner requested assessment reduced by half on a recently
purchased waterfront home. Petitioner testified she does not occupy
the property. The property is boat access only and in significant
disrepair. SCAR had no jurisdiction. But it was good to see the
Assessor agree to a 1/3 reduction. It was the right thing to do
vs force petitioner to go to Supreme Court.
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