HomeMy WebLinkAbout05/05/2015 Order of the Mason County
Board of Equalization
Property Owner: Jeff S McHargue
Parcel Number(s): 3)2109-50-00012
Assessment Year-, 2014 Petition Number: 300.2015
Having considered the evidence presented by the parties in this appeal, the Board hereby:
❑ sustains ❑ overrules the determination of the assessor.
Assessor's True and Fair Value BOE True and Fair Value Determination
❑ Land $ 40,265 F] Land $ 40,265
❑ improvements $ 265,215 FlImprovements $ 195,000
❑ Minerals $ ❑ Minerals $
❑ Personal Property $ ❑ Personal Property $
This decision is based on our finding that:
The valuation placed on the property by the Assessor's Office is presumed to be correct, and can only be
overcome by the presentation of clear, cogent, and convincing evidence that the value is erroneous
[RCW84.40.030(1)].
The Board's goal is to acquire sufficient, accurate evidence to support a determination of true and fair value
for the purpose of uniformity and equalization of taxation within the county as defined by statute (RCW
84.40.030) and the Washington Administrative Code (WAC 458-12-301).
The Appellant was not in attendance. The Assessor was represented by Oliver Querin.
The Appellant provided a fee appraisal indicating fair market value at $230,000 dated 2012. The fee
appraisal included three arm's length transactions and two listings.
Additionally,the Appellant and Assessor agreed on a fair market value of$230,000 in 2012,based upon a
fee appraisal submitted by the Appellant.
The Board found numerous errors in the Assessor's comparable worksheet,therefore the Board overruled
the Assessor's value and relied upon the Appellant's fee appraisal's value of$230,000. The Board agreed
the land value should be $40,265 as per the Assessor and the Board supported the Appellants value of
$195,000 for the improvements. The total value of the subject property is $235,265.
Page 2
Petition No.300.2015 Parcel No.32109-50-00012
Dated this 5th day of May ,2015
R.A. I bbin,Chairperson's Signature Clerk's Sig6ature
NOTICE
This order can be appealed to the State Board of Tax Appeals by filing a notice of appeal with them
at PO Box 40915, Olympia, WA 98504-0915, within thirty days of the date of mailing of this order.
The Notice of Appeal form is available from either your county assessor or the State Board.
To ask about the availability of this publication in an alternate format for the visually impaired,please call(360)705-
6715. Teletype(TTY)users,please call(360)705-6718. For tax assistance,call(360)534-1400.
Distribution: • Assessor •Petitioner •BOE File
REV 64 0058 (2/16/12)
Order of the Mason County
Board of Equalization
Property Owner: James &Donna Rogers
Parcel Number(s): 32014-23-00000
Assessment Year: 2014 Petition Number: 328.2015
Having considered the evidence presented by the parties in this appeal,the Board hereby:
® sustains ❑ overrules the determination of the assessor.
Assessor's True and Fair Value BOE True and Fair Value Determination
❑ Land $ 40,365 ❑ Land $ 40,365
❑ Improvements $ ❑ Improvements $
❑ Minerals $ ❑ Minerals $
❑ Personal Property $ ❑ Personal Property $
This decision is based on our finding that:
The valuation placed on the property by the Assessor's Office is presumed to be correct, and can only be
overcome by the presentation of clear, cogent, and convincing evidence that the value is erroneous
[RCW84.40.030(1)].
The Board's goal is to acquire sufficient, accurate evidence to support a determination of true and fair value
for the purpose of uniformity and equalization of taxation within the county as defined by statute (RCW
84.40.030) and the Washington Administrative Code (WAC 458-12-301).
The Appellant was not present at the hearing. The Assessor was represented by Oliver Querin.
The Appellant's petition requested a value that was the same as the Assessor's valuation. Therefore, the
Board sustains the land value at $40,365.
Dated this 5th day of May , 2015
R.A. ibbin,Chairperson's Signature Clerk's Signatur
NOTICE
This order can be appealed to the State Board of Tax Appeals by filing a notice of appeal with them
at PO Box 40915, Olympia, WA 98504-0915,within thirty days of the date of mailing of this order.
The Notice of Appeal form is available from either your county assessor or the State Board.
To ask about the availability of this publication in an alternate format for the visually impaired,please call(360)705-
6715. Teletype(TTY)users,please call (360)705-6718. For tax assistance,call(360)534-1400.
Distribution: •Assessor •Petitioner • BOE File
REV 64 0058 (2/16/12)
Order of the Mason County
Board of Equalization
Property Owner: James&Donna Rogers
Parcel Number(s): 32014-22-00000
Assessment Year: 2014 Petition Number: 329.2015
Having considered the evidence presented by the parties in this appeal,the Board hereby:
® sustains ❑ overrules the determination of the assessor.
Assessor's True and Fair Value BOE True and Fair Value Determination
❑ Land $ 172,045 ❑ Land $ 172,045
❑ Improvements $ 53,270 ❑ Improvements $ 53,270
❑ Minerals $ ❑ Minerals $
❑ Personal Property $ ❑ Personal Property $
This decision is based on our finding that:
The valuation placed on the property by the Assessor's Office is presumed to be correct, and can only be
overcome by the presentation of clear, cogent, and convincing evidence that the value is erroneous
[RCW84.40.030(1)].
The Board's goal is to acquire sufficient, accurate evidence to support a determination of true and fair value
for the purpose of uniformity and equalization of taxation within the county as defined by statute (RCW
84.40.030) and the Washington Administrative Code (WAC 458-12-301).
The Appellant was not present at the hearing. The Assessor was represented by Oliver Querin.
The Appellant submitted no documentation to alter the Assessor's valuation.
Therefore,the Board sustains the value of$172,045 for the land and $53,270 for improvements for a total
of$225,315.
Dated this 5th day of May ,2015
RA. ibbin,Chairperson's Signature Clerk's Signature
NOTICE
This order can be appealed to the State Board of Tax Appeals by filing a notice of appeal with them
at PO Box 40915, Olympia, WA 98504-091.5, within thirty days of the date of mailing of this order.
The Notice of Appeal form is available from either your county assessor or the State Board.
To ask about the availability of this publication in an alternate format for the visually impaired,please call(360)705-
6715. Teletype(TTY)users,please call(360)705-6718. For tax assistance,call(360)534-1400.
Distribution: •Assessor •Petitioner •BOE File
REV 64 0058 (2/16/12)
Order of the Mason County
Board of Equalization
Property Owner: Simpson Lumber Co., LLC
Parcel Number(s): 3)2017-34-00020
Assessment Year: 2014 Petition Number-. 432.2015 thru 498,2015
Having considered the evidence presented by the parties in this appeal, the Board hereby:
F-I sustains M overrules the determination of the assessor.
Assessor's True and Fair Value BOE True and Fair Value Determination
0 Land $ See Attached List El Land $ See Attached List
El Improvements $ R Improvements $
F] Minerals $ El Minerals $
E] Personal Property $ ❑ Personal Property $
This decision is based on our finding that:
The valuation placed on the property by the Assessor's Office is presumed to be correct, and can only be
overcome by the presentation of clear, cogent, and convincing evidence that the value is erroneous
[RCW84.40.030(1)].
The Board's goal is to acquire sufficient, accurate evidence to support a determination of true and fair value
for the purpose of uniformity and equalization of taxation within the county as defined by statute (RCW
84.40.030) and the Washington Administrative Code (WAC 458-12-301).
The Appellant, Simpson Lumber Co., LLC, was not represented at the hearing. The Assessor was
represented by Chief Appraiser, Oliver Querin; Dean Ando, Dept. of Revenue (DOR) and Mark Studer,
DOR.
The Board considered testimony from the Assessor's Office as to the factors involved in the Assessor's
original assessment of$40,077,667 being revised to $39,800,000 or a reduction of$277,667, The Board
then proceeded to analyze the data submitted by the DOR appraisal and the data provided by the
independent consultant on behalf of Simpson.
The Board considered four principal categories in their analysis: Sales/operating expenditures; depreciation
factors; working capital factors; and capitalization rates.
® Operating Expense factors—The DOR appraiser used an industry average of 95%, or a margin factor
of 5%. This industry average was a composite of data submitted for 12 similar operations, in the
opinion of the Appraiser, as delineated on Exhibit 6, Page 37 of the DOR Appraisal.
The reports submitted by Simpson delineated actual operating expenditures of 96%, or a margin of 4%.
The Board elected to use the actual information provided by Simpson in their financial worksheet.
® Depreciation Factors—Three numbers were submitted by DOR and Simpson in determining a
depreciation factor. The DOR used a 4%industry factor or$5,200,000, A historical operating
statement submitted by Simpson indicated $3 million in depreciation; however, Simpson's report to
Exhibit B indicated actual depreciation for 2013 for$4,337,000. The Board decision was to use the
$4,337,000 in their financial worksheet.
Page 2
Petition No.432.2015 thru 498.2015 See Attached List
• Capitalization Rates—The DOR appraisal used the capitalization factor of 13%, and Simpson used a
capitalization factor of 15.4%, indicating that a small business premiurn should be applied to the
capitalization factor. The DOR Appraiser provided documentation to the Board, by Michael W.
Goodman&Associates indicating an opinion that the small business capitalization rate premium is
highly questionable in its application. After reviewing the data thoroughly,the Board concluded that
the small business factor premium factor was not applicable and therefore accepted the Assessor's rate
factor of 13%.
• Working Capital Factors—The DOR appraisal applied a 9%working capital factor equaling
$11,700,000. The report provided by Simpson,Exhibit A, Item 5, indicated a math error in dividing
$55,198,000 by 5 years. The error equaled$15,327,000, which should be $11,040,000. In view of the
errors,the Board accepted the DOR report working capital factor of$11,700,000.
Incorporating the above data into the financial worksheet(See attached)prepared by the Board, the revised
determination of true and fair value after working capital was $27,723,000.
The Board overrules the Assessor's total assessed value of 40,077,667 and sets the true and fair value at
$27,723,000. This revised estimate of true and fair market value represents 69.2% of the revised total
assessed value of$40,077,667.
The Board then directed the clerk to apply the 69.2%factor to the 67 individual parcels.
Dated this 5th day of May , 2015
R.A. Cibbin,Chairperson's Signature Clerk's Sig Aure
NOTICE
This order can be appealed to the State Board of Tax Appeals by filing a notice of appeal with them
at PO Box 40915, Olympia,WA 98504-0915, within thirty days of the date of mailing of this order.
The Notice of Appeal form is available from either your county assessor or the State Board.
To ask about the availability of this publication in an alternate format for the visually impaired,please call(360)705-
6715. Teletype(TTY)users,please call(360)705-6718. For tax assistance,call(360)534-1400.
Distribution: •Assessor •Petitioner •BOE File
REV 64 0058 (2/16/12)
ATTACHMENT
Order of the Mason County Board of Equalization
Petition 432.2015 thru 498.2015
TOTAL ASSESSOR'S BOE True&Fair BOE True&Fair BOE True&Fair TOTAL
Assessor's True& Assessor's True& Assessor's True& TRUE&FAIR Value Value Value BOE TRUE&FAIR
Fair Value Fair Value Fair Value VALUE Determination Determination Determination VALUE
Petition tt Appellant Parcel Number Land Improvements Personal Property Land Improvements Personal Property DETERMINATION
1 432.2015 Simpson Lumber Co.,LLC 32017-34-00020 $ 24,000 $ 24,000 $ 16,602 $ $ $ 16,602
2 433.2015 Simpson Lumber Co.,LLC 32018-52-01009 $ 400 $ 400 $ 277 $ $ $ 277
3 434.2015 Simpson Lumber Co.,LLC 32019-53-03003 $ 115,200 $ 555,630 $ 670,830 $ 79,688 $ 384,347 $ $ 464,034
4 435.2015 Simpson Lumber Co.,LLC 32019-14-60400 $ - $ $ - $ - $ - $ $ -
5 436.2015 Simpson Lumber Co.,LLC 32019-15-01470 $ 2,400 $ 2,400 $ 1,660 $ - $ $ 1,660
6 437.2015 Simpson Lumber Co.,LLC 32019-41-00020 $ 153,330 $ 210,920 $ 364,250 $ 106,063 $ 145,900 $ $ 251,963
7 438.2015 Simpson Lumber Co.,LLC 32019-41-00700 $ 2,822,690 $ 11,633,280 $ 14,455,970 $ 1,952,545 $ 8,047,111 $ $ 9,999,655
8 439.2015 Simpson Lumber Co.,LLC 52011-00-00001 $ - $ 524,160 $ 524,160 $ - $ 362,578 $ $ 362,578
9 440.2015 Simpson Timber Company 32020-12-00020 $ 45,305 $ 20,450 $ 65,755 $ 31,339 $ 14,146 $ $ 45,485
10 441.2015 Simpson Timber Company 32020-57-70001 $ 28,720 $ - $ 28,720 $ 19,867 $ - $ $ 19,867
11 442.2015 Simpson Lumber Co.,LLC 52011-00-00002 $ - $ 10,124,125 $ 10,124,125 $ - $ 7,003,180 $ $ 7,003,180
12 443.2015 Simpson Lumber Co.,LLC 52011-10-00000 $ 358,700 $ - $ 358,700 $ 248,124 $ - $ $ 248,124
13 444.2015 Simpson Lumber Co.,LLC 10-01936 $ 7,195,927 $ 7,195,927 $ - $ $ 4,977,652 $ 4,977,652
14 445.2015 Simpson Lumber Co.,LLC 10-02301 $ 678 $ 678 $ $ $ 469 $ 469
15 446.2015 Simpson Lumber Co.,LLC 10-02302 $ 321,928 $ 321,928 $ $ $ 222,688 $ 222,688
16 447.2015 Simpson Lumber Co.,LLC 10-02303 $ 404,605 $ 404,605 $ $ $ 279,878 $ 279,878
17 448.2015 Simpson Lumber Co.,LLC 10-02305 $ 272,789 $ 272,789 $ $ $ 188,697 $ 188,697
18 449.2015 Simpson Lumber Co.,LLC 10-02310 $ 3,883,541 $ 3,883,541 $ $ $ 2,686,369 $ 2,686,369
19 450.2015 Simpson Lumber Co.,LLC 10-02311 $ 1,992 $ 1,992 $ $ $ 1,378 $ 1,378
20 451.2015 Simpson Lumber Co.,LLC 10-02314 $ 33,660 $ 33,660 $ $ $ 23,284 $ 23,284
21 452.2015 Simpson 10-02315 $ 33,750 $ 33,750 $ $ $ 23,346 $ 23,346
22 453.2015 Simpson Lumber Co.,LLC 10-02741 $ 38,500 $ 38,500 $ $ $ 26,632 $ 26,632
23 454.2015 Simpson Lumber Co.,LLC 10-02742 $ 80,696 $ 80,696 $ $ $ 55,820 $ 55,820
24 455.2015 Simpson Lumber Co.,LLC 10-02746 $ 81,400 $ 81,400 $ $ $ 56,307 $ 56,307
25 456.2015 Simpson Lumber Co.,LLC 10-02748 $ 94,552 $ 94,552 $ $ $ 65,405 $ 65,405
26 457.2015 Simpson Lumber Co.,LLC 10-02750 $ 382,325 $ 382,325 $ $ $ 264,466 $ 264,466
27 458.2015 Simpson Lumber Co.,LLC 10-03028 $ 89,443 $ 89,443 $ $ $ 61,871 $ 61,871
28 459.2015 Simpson Lumber Co.,LLC 10-03739 $ 3,684 $ 3,684 $ $ $ 2,548 $ 2,548
29 460.2015 Simpson Lumber Co.,LLC 10-03973 $ 6,201 $ 6,201 $ $ $ 4,289 $ 4,289
30 461.2015 Simpson Lumber Co.,LLC 10-04097 $ 84,783 $ 84,783 $ $ $ 58,647 $ 58,647
31 462.2015 Simpson Lumber Co.,LLC 10-06587 $ 260,578 $ 260,578 $ $ - $ 180,250 $ 180,250
32 463.2015 Simpson Timber Company 32017-51-07900 $ 400 $ 400 $ 277 $ - $ - $ 277
33 464.2015 Simpson Lumber Co.,LLC 32019-13-00800 $ 1,640 $ 1,640 $ 1,134 $ - $ $ 1,134
34 465.2015 Simpson Lumber Co.,LLC 32019-13-60850 $ 2,210 $ 2,210 $ 1,529 $ - $ $ 1,529
35 466.2015 Simpson Lumber Co.,LLC 32019-14-00070 $ 1,460 $ 1,460 $ 1,010 $ - $ $ 1,010
36 467.2015 Simpson Lumber Co.,LLC 32019-21-00010 $ 770 $ 770 $ 533 $ - $ $ 533
37 468.2015 Simpson Lumber Co.,LLC 32019-25-01310 $ 16,000 $ 16,000 $ 11,068 $ - $ $ 11,068
38 469.2015 Simpson Lumber Co.,LLC 32019-41-00650 $ 960 $ 960 $ 664 $ - $ $ 664
39 470.2015 Simpson Lumber Co.,LLC 32019-53-04001 $ 400 $ 400 $ 277 $ - $ $ 277
40 471.2015 ISimpson Lumber Co.,LLC 32019-53-04018 1 $ 400 $ 400 $ 277 $ - $ $ 277
Page 1 of 2
ATTACHMENT
Order of the Mason County Board of Equalization
Petition 432.2015 thru 498.2015
TOTAL ASSESSOR'S BOE True&Fair BOE True&Fair BOE True&Fair TOTAL
Assessor's True& Assessor's True& Assessor's True& TRUE&FAIR Value Value Value BOE TRUE&FAIR
Fair Value Fair Value Fair Value VALUE Determination Determination Determination VALUE
Petition tt Appellant Parcel Number Land Improvements Personal Property Land Improvements Personal Property DETERMINATION
41 472,2015 Simpson Lumber Co.,LLC 32019-63-23907 $ 400 $ 400 $ 277 $ - $ - $ 277
42 473.2015 Simpson Lumber Co.,LLC 32020-12-00050 $ 440 $ 440 $ 304 $ - $ $ 304
43 474.2015 Simpson Lumber Co.,LLC 32020-50-16900 $ 25,920 $ 37,500 $ 63,420 $ 17,930 $ 25,940 $ $ 43,870
44 475.2015 Simpson Lumber Co.,LLC 42007-30-00000 $ 2,425 $ 2,425 $ 1,677 $ - $ $ 1,677
45 476.2015 Simpson Lumber Co.,LLC 42015-00-60000 $ 1,620 $ 1,620 $ 1,121 $ $ $ 1,121
46 477.2015 Simpson Lumber Co.,LLC 42015-40-00000 $ 11,065 $ 11,065 $ 7,654 $ $ $ 7,654
47 478.2015 Simpson Lumber Co.,LLC 42016-44-00030 $ 9,400 $ 9,400 $ 6,502 $ $ $ 6,502
48 479.2015 Simpson Lumber Co.,LLC 42017-00-00000 $ 9,925 $ 9,925 $ 6,865 $ $ $ 6,865
49 480.2015 Simpson Lumber Co.,LLC 42018-10-00000 $ 2,150 $ 2,150 $ 1,487 $ $ $ 1,487
50 481.2015 Simpson Lumber Co.,LLC 42018-21-00010 $ 1,560 $ 1,560 $ 1,079 $ $ $ 1,079
51 482.2015 Simpson Lumber Co.,LLC 42024-11-00000 $ 2,025 $ 2,025 $ 1,401 $ $ $ 1,401
52 483.2015 Simpson Lumber Co.,LLC 42024-12-00020 $ 400 $ 400 $ 277 $ $ $ 277
53 484.2015 Simpson Lumber Co.,LLC 42024-13-00020 $ 795 $ 795 $ 550 $ $ $ 550
54 485.2015 Simpson Lumber Co.,LLC 42024-22-00000 $ 1,325 $ 1,325 $ 917 $ $ $ 917
55 486.2015 Simpson Lumber Co.,LLC 42024-23-00020 $ 4,655 $ 4,655 $ 3,220 $ $ $ 3,220
56 487.2015 Simpson Lumber Co.,LLC 42024-24-00010 $ 960 $ 960 $ 664 $ $ $ 664
57 488.2015 Simpson Lumber Co.,LLC 52011-00-01000 $ 13,615 $ 13,615 $ 9,418 $ $ $ 9,418
58 489.2015 Simpson Lumber Co.,LLC 52012-20-00000 $ 5,820 $ 5,820 $ 4,026 $ $ $ 4,026
59 490.2015 Simpson Lumber Co.,LLC 52012-31-00000 $ 1,280 $ 1,280 $ 885 $ $ $ 885
60 491.2015 Simpson Lumber Co.,LLC 52012-40-00010 $ 5,810 $ 5,810 $ 4,019 $ $ $ 4,019
61 492.2015 Simpson Lumber Co.,LLC 52012-44-00010 $ 3,960 $ 3,960 $ 2,739 $ $ $ 2,739
62 493.2015 Simpson Lumber Co.,LLC 32019-24-00270 $ 460 $ 460 $ 318 $ $ $ 318
63 494.2015 Simpson Lumber Co.,LLC 32019-41-00071 $ 16,000 $ 16,000 $ 11,068 $ $ $ 11,068
64 495.2015 Simpson Lumber Co.,LLC 32019-41-00540 $ 400 $ 400 $ 277 $ $ $ 277
65 496.2015 Simpson Lumber Co.,LLC 32019-41-60010 $ - $ - $ - $ $ $ -
66 497.2015 Simpson Lumber Co.,LLC 32020-12-00010 $ 3,000 $ 3,000 $ 2,075 $ $ $ 21075
67 498.2015 Simpson Timber Company 42024-13-00230 $ 175 $ 175 $ 121 $ $ $ 121
$ 3,700,570 $ 23,106,065 $ 13,271,032 $ 40,077,667 $ 2,559,802 $ 15,983,202 $ 9,179,996 $ 27,723,000
Page 2 of 2
Mason County Board of Equalization
Financial Analysis - Capitalization Approach - Simpson Lumber Co.
CATEGORY FACTOR SALES COMMENTS
Sales $ 130,000,000.00 Agreed to by Appellant & Assessor
Operating Expenditures 96% $ 124, 0,000.00 Simpson Provided Information
EBITDA $ 5,200,000.00
Less Depreciation Actual $ (4,337,000.00) Simpson's Consultant
Earning Before Income Tax (EBIT) $ 863,000.00
Income Tax $ (660,000.00) Agreed to by Appellant & Assessor
Net Income $ 203,000.00
Plus Depreciation Actual $ 4,337,000.00 Simpson's Consultant
Plus Property Tax $ 585,000.00 Agreed to by Appellant & Assessor
Cash Flow to Capitalization $ 5,125,000.00
Capitalization Rate 13% Dept of Revenue Estimate
Capitalization Value $ 39,423,000.00 $5,125,000 divided by 13%
Less Working Capital $ (11,700,000.00) Estimate provided by Dept of Revenue
Value of Real Property and Personal Property $ 27,723,000.00