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HomeMy WebLinkAboutE&R 1999-07-06 I I I -.., 193 MINUTES OF BOARD OF EQUALIZATION AND REVIEW JULy 6, 1999 ASSEMBLY The 1999 New Hanover County Board of Equalization and Review met on Tuesday, July 6, 1999, at 2:00 p.m. in the Meeting Room of the New Hanover County Library, 201 Chestnut Street, Wilmington, North Carolina. The purpose of the meeting was to hear appeals filed by property owners regarding their tax value assessments. Members present were: Commissioners Buzz Birzenieks, Charles R Howell; Vice-Chairman Robert G. Greer; Chairman William A. Caster; Tax Administrator Robert Glasgow; Tax Appraisal Supervisor Jim Bethune; and Deputy Clerk Teresa P. Elmore. Commissioner Ted Davis, Jr. was unable to attend. Chairman Caster called the meeting to order and informed the appellants that the Board would hear the appeals and make decisions following the hearings. The Tax Administrator will notify the appellants of the Board's decisions within a week. ASSESSED VALUES REDUCED Tax Administrator Robert Glasgow reported several appellants have met with the Tax Appraisal Staff and based on these discussions, they have concurred with the proposed reductions in the assessed values. He recommended that the Board approve the reduction in assessed values for those appeals. Motion: Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to reduce the assessed value on the appeals that have been agreed upon by the appellants and Tax Department. Upon vote, the MOTION CARRIED UNANIMOUSLY. The Board of Equalization and Review reduced the assessed value on the following appeals as recommended by the Tax Administrator: TAX APPEAL - JONATHAN M. AND LAWRIE DAWSON, 8416 BALD EAGLE LANE, WILMINGTON, NC, TAX MAP NUMBER R03712-001-006-000 Tax Administrator Robert Glasgow reported the appellants, Jonathan and Lawrie Dawson, have agreed with the recommended reduction in the assessed value from $586,404 to $536,440. Changes were made to more accurately reflect the effective age and condition of the property. TAX APPEAL - EDITH T. SULLIVAN, 310 FOURTH STREET, WILMINGTON, NC, TAX MAP NUMBER R05405-020-013-000 Tax Administrator Robert Glasgow reported the appellant, Edith T. Sullivan, agreed with the recommended reduction in the assessed value from $148,941 to $99,981. Changes were made to more accurately reflect the effective age and condition of the 96-year-old structure. ~ 194 MINUTES OF BOARD OF EQUALIZATION AND REVIEW JULy 6, 1999 TAX APPEAL - BOBBY LEE JONES, HRS., 515 THIRD AVENUE, KURE BEACH, NC, TAX MAP NUMBER R09405-003-024-001 Tax Administrator Robert Glasgow reported that the appellant, Bobby Lee Jones, agreed with the recommended reduction in the assessed value from $54,428 to $46,928. An adjustment was made to reflect the market value of a 25-foot lot in the beach community. TAX APPEAL - FAYE T. JONES, 505 THIRD AVENUE, KURE BEACH, NC, TAX MAP NUMBER R09405-003-002-000 Tax Administrator Robert Glasgow reported that the small lot size and condition of the 840-square-foot house warranted a change in the assessed value. He recommended to reduce the assessed value from $112,704 to $102,482. TAX APPEAL - RONALD M. AND ANN C. LAREAU, 1704 BELLEVUE COURT, VILLAS AT LANDFALL, WILMINGTON, NC, TAX MAP NUMBER R05710-006-028-000 Tax Administrator Robert Glasgow reported that the comparable sales do not support the assessed value of the property in the Landfall community, and he recommended to reduce the assessed value from $427,761 to $403,068. The property owners, Ronald M. and Ann C. Lareau, have agreed with the reduction in value. TAX APPEAL - L. F. HUFHAM, JR., 122 52ND STREET, (OLEANDER/SEA GATE), WILMINGTON, NC, TAX MAP NUMBER R06205-009-013-000 Tax Administrator Robert Glasgow reported that the sales in the Seagate area do not support the assessed value of the property and that an additional depreciation was made to the dwelling. He recommended to reduce the assessed value from $71,702 to $60,605. TAX APPEAL - CECIL ROBINSON, 1671 CANADY ROAD, WILMINGTON, NC, TAX MAP NUMBER R04510-001-005-002 Tax Administrator Robert Glasgow reported that the property value was reduced to conform with neighboring properties who have water -front properties that do not have boat access at low tide. The appellant, Cecil Robinson, has agreed to the recommended reduction in assessed value from $596,566 to $499,595. TAX APPEAL - MARVIN AND MILDRED H. YOW, 209 FORT FISHER BOULEVARD, KURE BEACH, NC, TAX MAP NUMBER R09213-006-013-000 Tax Administrator Robert Glasgow reported that a clerical error was made on the value of the land. He recommended to correct the error by reducing the assessed value from $159,794 to $126,372. TAX APPEAL - THOMAS F. JORDAN, 318 LEWIS DRIVE, WALTER T. LEWIS DIV., CAROLINA BEACH, NC, TAX MAP NUMBER R08810-002-006-000 Tax Administrator Robert Glasgow reported that comparable sales of properties in the I I I :tg5 ~ MINUTES OF BOARD OF EQUALIZATION AND REVIEW JULY 6, 1999 neighborhood did not support the assessed value of the property. He recommended to change the quality grade and depreciation of the structure in order to reduce the assessed value from $122,358 to $107,651. TAX APPEAL - MASONBORO BOAT YARD/MARINA, 609 TRAILS END ROAD, WILMINGTON, NC, TAX MAP NUMBER R07210-001-003-000 Tax Administrator Robert Glasgow reported that an adjustment was given to the property value because the one-acre lot has restricted access. Mr. Edward Lowe, owner ofMasonboro Boat Yard, has agreed to the recommended reduction in the assessed value from $179,998 to $107,999. PRESENTATIONS OF TAX APPEALS TAX APPEAL - C. J. STRUTHERS, 309 SAINT ANNES MOOR COURT, WILMINGTON, NC, TAX MAP NUMBER R07007-002-015-000 Ms. Caroline Struthers, property owner of309 Saint Annes Moor Court, was sworn in to give testimony on her appeal. Ms. Struthers stated that her townhouse is one of twelve units in the Echo Farms Townhouses, which consist of six buildings. She found several differences when comparing the tax record cards of all the units. Her unit was assigned an Age Group 2 with the effective age of four to six years, and a 5% percent physical depreciation while the other units were assigned approximately $10,015 less value. She stated that the units were indistinguishable from each other and were maintained by the same homeowners association. The appeal was further supported by sales information on the units sold in Echo Farms Townhouses during the past two years. One unit sold for $120,000 to Sandra Houston, who purchased the unit in order to live near a relative in the community. Another unit sold for $95,000 to Judith Strickland in January 1999 and another unit sold for $108,000 to Ona Mae Puckett. These units were larger than her unit. Additionally, she felt the large developments of multi-family housing in and near Echo Farm had affected the selling prices of the older townhouse units. More than 500 multi-family units were built last year within a one mile radius of her property. Since the market has changed, she felt the selling prices of two years ago were not a true indication of value. Using the Tax Department's value of $18, 000 for the land and the average selling price, she calculated her value to be $94,346. Since her building had the original heat pump, carpeting, and water heater, as well as the smallest lot adjacent to the golf course, she felt the market value of her home should be $90,000. The Tax Department's comparable sales at Wimbledon Court were for newer and larger units with deluxe bathrooms. Tax Appraisal Supervisor Jim Bethune recommended that the Board apply the same depreciation factors of the adjacent townhouse units to Ms. Struther's unit. ~ 19G MINUTES OF BOARD OF EQUALIZATION AND REVIEW JULy 6, 1999 Motion: After the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice- Chairman Greer, to reduce the assessed value from $123,540to $106,770. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - LEROY D. MARSHBURN, JR, 108 WATER STREET, WRIGHTSVILLE BEACH, NC, TAX MAP NUMBER R06319-009-020-002 Mr. Leroy D. Marshburn, Jr., the property owner of 108 Water Street in Wrightsville Beach, was sworn in to give testimony on his appeal. Tax Appraisal Supervisor Jim Bethune reported the appraiser had given an adjustment based on the depth of the lot being 79 feet on one side and 93 feet on the other side to reflect a lot size of 56 feet x 82 feet. The revised value for the land was changed to $608,993, making the total property value $829,383. Mr. Marshburn spoke on his 16-year-old house that did not have some of the conveniences of newer built homes and that most of the bedrooms were conservative in size. He felt that the house may be difficult to sell because it did not have an elevator and the number of steps between the first floor and the master bedroom on the third floor. His primary reason for the appeal was based on having to share a 20-foot boat slip and pier that is owned by the property owners of the four-parcel subdivision of Seaforth. Two of the parcels are rental properties and may have as many as eleven vehicles parked in the area and many people using the pier during the summer time. Tax Appraisal Supervisor Jim Bethune stated the income approach may also support the value of the property since rental income is approximately $1000 week. If the rental properties were sold to other owners who would live in the houses instead of renting, the problem of having several people using the private pier may go away. Mr. Bethune felt that it may be difficult to justify a reduction to Mr. Marshburn's property without it affecting the other properties. Based on the comparable sales that supported the value of the property, Mr. Bethune stated that he could not recommend a further reduction in value. Motion: After the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to reduce the value of the property from $889,539 to $829,383 due to the adjustment of the lot size. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - PETER C. DARIUS, 307 PUTNAM DRIVE, WILMINGTON, NC, TAX MAP NUMBER R04405-003-011-000 Tax Administrator Robert Glasgow reported that Mr. Darius was present earlier, but has since left the meeting area. Mr. Darius had stated that he purchased the property in April 1997 for $121,500. The Tax Department has the property assessed at $120,690, but Mr. Darius felt the value should be $2,000 because of defects he had found in the foundation, garage floor, attic vents, and electrical and plumbing installations. Upon visiting the site, the appraisers reported that the 1,406- I I I 197 ~ MINUTES OF BOARD OF EQUALIZATION AND REVIEW JULY 6, 1999 square-foot house appeared to be in good condition and had no evidence of unusual deterioration. Mr. Glasgow stated that the comparable sales supported a value between $120,500 and $125,000. Motion: After the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice- Chairman Greer, to uphold the assessed value of$120,690, as recommended by the Tax Appraisal Supervisor. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - LLOYD C. AND MIRIAM W. ALLEN, 801 BRAGG DRIVE, WILMINGTON, NC, TAX MAP NUMBER R066l0-003-011-000 Tax Administrator Robert Glasgow reported the appellant, Lloyd Allen, was scheduled to give his appeal, but he was not present. His written letter of appeal stated that the commercial development along South College Road had devalued his residential property; however, he did not provide documentation to support his opinion. The appellant felt the assessed value should be $104,400. Mr. Glasgow recommended to uphold the assessed value of$131,163, based on the comparable sales that supported the value. Motion: Vice Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to uphold the assessed value of$131, 163, as recommended by the Tax Administrator. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - BILLY B. AND WANDA SOUTHERLAND, 5504 PEDEN POINT ROAD, WILMINGTON, NC, TAX MAP NUMBER R07620-002-002-000 Mr. Billy B. Southerland, property owner of 5504 Peden Point Road, was sworn in to give testimony for his appeal. Mr. Southerland stated that the Natural Resource Commission decreased the size of his lot from 60 feet to 44 feet when the State took ownership of the land between the low-water mark to the high-water mark. He also believed that the measurement of his house was incorrect and asked for another measurement. He stated that his 1200-square-foot home on a small and narrow lot was not worth $294,325 and he requested the Board to reduce the assessed value to $195,000. Mr. Bethune explained that the lot was processed as a buildable lot on the waterway, and was not priced according to the front footage. He recommended that the house be re-measured and the property assessed accordingly. Motion: After the hearings on this date, Vice Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to confirm the measurements of the structure and to determine if the land was charged as a front footage or as a lot. Upon verification, the schedule of values will be applied accordingly. Upon vote, the MOTION CARRIED UNANIMOUSL Y. ~ 198. MINUTES OF BOARD OF EQUALIZATION AND REVIEW JULY 6, 1999 TAX APPEAL - JOHN DAVID AND GOLDIE C. WALTON, 106 GREENVILLE A VENUE, WILMINGTON, NC, TAX MAP NUMBER R05620-001-007-000 Mr. John David Walton, the property owner of 1 06 Greenville Avenue, Wilmington, NC, was sworn in to give testimony for the appeal. Mr. Walton informed the Board that the five buildings on the property were non-conforming to setback requirements and were unable to be sold as individual structures. Ifthe rental properties were burned beyond 80%, the structures could not be replaced. Of all his rental properties in the county, the assessed value of this property increased 20-25% more than the others. He felt that the assessment for the property should be $100,000. Tax Appraisal Supervisor Jim Bethune stated that when applying the income approach to the rental units, a calculation was made on six rental units instead of the seven that Mr. Walden had noted. By using a vacancy rate of 5%, normal expenses of 20%, and a capitalization rate of 10%, rental income from the six units was estimated to be more than $20,000 a year. The income approach supports a higher assessed value than $171,584. Although the owner may not be able to subdivide and sell the property by the individual structures, the highest and best use of the property may be for rental property. No comparable sales were found to support the value. By looking at market rents and projecting a pro forma income approach to value based on the rental units, the indicated value of the property should be $189,000. Based on that value, the Tax Department could not justify a reduction in value. He recommended to uphold the assessed value of$171,584. Motion: After the hearings on this date, Commissioner Birzenieks MOVED, SECONDED by Vice- Chairman Greer, to uphold the assessed value of $171,584. Upon vote, the MOTION CARRIED UNANIMOUSLY. TAX APPEAL - GENERAL ELECTRIC COMPANY, CASTLE HAYNE ROAD, CASTLE HAYNE, NC, TAX MAP NUMBERS R01700-001-001-000, ROI719-001-008-000, R01719- 001-010-000, ROI719-002-011-000, R02500-002-001-000, R02507-002-001-000 Mr. Joe Taylor, an attorney representing the General Electric Company in Wilmington, and Mr. William A. Hathaway, Tax Manager of General Electric, were sworn in to give testimony on the General Electric tax appeal. Tax Administrator Robert Glasgow stated that as of this date, the assessed value is perceived to be $44,267,107. However, the Property Tax Commission has ruled that the County's tax records for General Electric should show the primary site as 385 acres instead of 163.20 acres and another building should be added to the site. Additional rulings will be forthcoming. Mr. Joe Taylor, an attorney representing the General Electric Company in Wilmington, stated that a 1999 appraisal of the entire plant site showed the value was approximately $25 million. Because the plant site consists of 1.6 million square feet over 1500 acres, comparable sales are I I I ,., 199 MINUTES OF BOARD OF EQUALIZATION AND REVIEW JULY 6, 1999 difficult to find. He stated that substantial errors were made by the County's computer system, such as a double listing of the sprinkler systems and a 60-foot building listed as two 180-foot three-story buildings. His main concern was the inconsistency in applying depreciation to the buildings. Instead of a 40-year life, the Tax Department had applied a 55-year life or more to the fire resistant buildings. Correcting the depreciation to reflect the County's schedule of values for 40-year life buildings, the assessed value would be $25 million, which is almost the same as GE's recent appraisal. Mr. William Hathaway spoke on several errors that he found in the tax record cards for GE's assessment. He showed that the depreciation used in 1999 was the same that was applied in 1991. Some of the fire-resistant buildings were estimated to have an economic life of94 to 500 years when they should be listed as 40 years. The double listing of the sprinkler system amounted to an error of $1,028,579. Some buildings were listed as 180 feet high when they were 60 feet high. Two 38-foot tall buildings were reduced to 12 foot heights on the record cards and a 15% functional obsolescence was applied. Depreciation rates were inconsistently applied to other buildings. Tax Appraisal Supervisor Jim Bethune explained that when an age is placed on the property record card, such as Group 7, an adjustment is made to the story height. He held the opinion that there was not a double charge for the sprinklers. However, the Property Tax Commission, at the recent hearing, has made other corrections to the property tax record cards of which GE and the County have not been notified. Mr. Glasgow reported that the Property Tax Commission has assigned a value of $490,268 less than the County's assessed value, which was based on wall height and a double charge of one building. Another discrepancy occurred on the acreage of the plant site. There may be other corrections that will apply to the 1999 tax assessment. Motion: After discussing the fact that both the Tax Department and General Electric were unaware of all the rulings made at the hearing of the Property Tax Commission that may affect the 1999 Tax Listing, Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to continue the appeal until such time that the County and GE have reviewed and applied the findings of the 1996 Tax Appeal. ASSESSED V ALVES UPHELD Tax Administrator Robert Glasgow reported that some of the appellants have withdrawn their appeal or were not present to give their appeal arguments. He recommended that the Board affirm the assessed values for those appeals. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to uphold the assessed value on the properties that the appellants have withdrawn their appeals or who were not present to argue their case. Upon vote, the MOTION CARRIED UNANIMOUSLY. ~ 200 MINUTES OF BOARD OF EQUALIZATION AND REVIEW JULY 6, 1999 The Board of Equalization and Review upheld the assessed value on the following appeals, as recommended by the Tax Administrator: TAX APPEAL - MARY NETHA WAY, 1103 CANAL DRIVE, CAROLINA BEACH, NC, TAX MAP NUMBER R08811-002-001-001 Tax Administrator Robert Glasgow reported the appellant, Mary Nethaway, submitted a written appeal based on purchasing her home in 1992 for $152,500. Mr. Glasgow did not agree that the appellant's argument supported a reduction in value to $216,550. Based on comparable sales of the property, he recommended to affirm the assessed value of $226,604. TAX APPEAL - EUGENE S. AND PHYLLIS ANDREWS, 402 THIRD A VENUE, KURE BEACH, NC, TAX MAP NUMBER R09217-022-021-000 Tax Administrator Robert Glasgow reported the appellants, Eugene S. and Phyllis Andrews, submitted their appeal based on the size of their lot being half the normal lot size and that other similar properties are valued for less. Based on the comparable sales of beach community properties, Mr. Glasgow recommended to uphold the assessed value of $74,452. TAX APPEAL - ROBERT AND DOROTHY CARROLL, 5300 VILLA COURT,-' WILMINGTON, NC, TAX MAP NUMBER R07713-004-001-053 Tax Administrator Robert Glasgow reported that the appellants, Robert and Dorothy Carroll, have withdrawn their appeal. He recommended to uphold the assessed value of $244,526 for the townhouse in Tangle Oaks Subdivision. TAX APPEAL - JOHN AND BETTY STAITZ, 231 MOHICAN TRAIL, WILMINGTON, NC, TAX MAP NUMBER R07116-010-020-000 Tax Administrator Robert Glasgow reported that the appellants, John and Betty Staitz, have withdrawn their appeal, and he recommended to uphold the assessed value of $86,416. TAX APPEAL - A. D. AVERETTE, 230 CAROLINA BEACH AVENUE NORTH, CAROLINA BEACH, NC, TAX MAP NUMBER R09006-006-002-000 Tax Administrator Robert Glasgow reported that A. D. Averette, the property owner, has withdrawn the appeal. He recommended to uphold the assessed value of $208,532. TAX APPEAL - LOWELL R. AND SARAH LOU MASON, 1636 SUNRISE LANE, WILMINGTON, NC, TAX MAP NUMBER R08207-002-024-000 Tax Administrator Robert Glasgow reported that Lowell R. and Sarah Lou Mason, the property owners of 1636 Sunrise Lane, have withdrawn their appeal. He recommended to uphold the assessed value of $293,671. I I I 201_ ,., MINUTES OF BOARD OF EQUALIZATION AND REVIEW JULY 6, 1999 ADJOURNMENT Motion: Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to recess the Board of Equalization and Review until the General Electric appeal comes back before the Board. Upon vote, the MOTION CARRIED UNANIMOUSLY. The meeting adjourned at 5:00 p.m. Respectfully submitted, ~/~ Teresa P. Elmore Deputy Clerk to the Board of Equalization and Review ~