Values soar, tempers rise

Published 7:00 am Saturday, October 7, 2006

With property assessments now in the hands of Island County residents, the bottom line is that people don’t like the bottom line.

The 2006 Change of Value notices were mailed on Monday. Property owners are being given 60 days to review the revaluation and file a petition with the Board of Equalization. In previous years, only 30 days was alloted.

“The reason for the extension is that it will give the assessor’s office more time to work with the citizens so they can resolve any mistakes, if there are any, or explain so the citizens feel comfortable before they file a claim,” said Betty Kemp, General Services Administration director.

Property values have skyrocketed countywide, though that doesn’t necessarily mean property taxes will follow suit.

The volume of phone calls at the Board of Equalization this week has been inordinate. Eighty petitions were sent out Wednesday alone.

“People are paying attention. They’re seeing the jump in value and they’re calling. How many of those petitions are going to come back, I don’t know,” Kemp said. “This year, it might be all of them. We’ve had a lot of walk-ins this week. It’s a lot more this year for the first few days.”

Kemp confirmed what people have already ascertained, that property values have increased considerably. In Admirals Cove, where she resides, she has seen the growth firsthand, an ominous sign for someone living in a modest domicile.

“If I see a for sale sign and it’s gone the next week, and I’m looking at houses that are selling for $292,000, that means our little modest places are going to increase in value,” she said, adding that nice, expansive homes have been built in proximity to her residence.

Another Admirals Cove resident, William Gallagher, is irate about his increased valuation. His mobile home on 2.5 acres went from $185,000 to $237,500.

“We’re retired on a fixed income,” Gallagher said. “This is terrible, they’re going to run people out of their homes.”

The market is driven by buyers and sellers. The appraiser studies the market and estimates the valuations accordingly.

Growth has played a major role in the increase, Kemp said, as have comparable values, called “comparables.” When one’s neighbor erects a $500,000 home in an area not known for its opulence, everyone in the vicinity can be affected.

“We’ve had an influx of people,” Kemp said. “Our permit department, our planning department have been busy. Our contractors are busy.”

In the coming weeks, a relatively accurate trend will develop, allowing personnel to discern the hot spots, areas where values are increasing the most.

“Property values have gone up, absolutely,” she said. “Which areas have gone up the highest, I don’t know yet.”

The call activity at the Board of Equalization as of Thursday morning had been split in thirds, with approximately equal amounts of inquiries coming from Oak Harbor, Clinton, and Camano Island.

Future looks

expensive

Property owners are paying taxes on 2005 assessed values. Kemp said she is worried about 2007, given the growth and construction currently overtaking the county.

“Look at all the activity we had in 2006,” she said.

Residents expected growth. The exorbitant increases, however, are flooring property owners.

Coupeville resident Jennifer Shinn’s home increased by $77,000. Her house, a rambler with no view, has never increased by more than a few thousand dollars a year. The property was purchased in 1994 for $127,000. Now valued at $277,000 it does not take a mathematical wizard to figure out that something could be amiss.

“I just think it’s crazy,” the local grocery store employee said. “If we sold it, we wouldn’t be able to afford anything else.”

Shinn has spoken with customers at the grocery store who share her pain. Whether young or advancing in age, people are scared that they are being priced out of their homes.

“They don’t know how they can afford their houses,” she said. “It’s sad.”

Even more frightening, a real estate agent told Shinn that Coupeville homes are still undervalued.

Appraisers use standard practices, examining like properties and basing the values on comparable sales. Shinn questioned the homes her residence has been compared to when finding a reasonable number.

Several years ago, she and her husband visited the assessor’s office and were able to get the value lowered. Another time, she was told not to bother coming in, the implication being that nothing would change.

Assessor Tom Baenen was out of town when the valuations came out this week and could not be reached for comment.

Tax impact

not so clear

Given the increase in property values, the blanket assumption is that taxes will increase proportionately.

Treasurer Linda Riffe said there is an inverse relationship between the property values and the millage rate, also known as the tax rate. The greater the value, the more the millage rate decreases.

Good news, perhaps, but the treasurer added that with the out-of-control increases, taxes will still go up, just not as much as many might think.

“The growth and values have put so much pressure on existing properties,” she said, adding that even though it does not allay the current frustrations, when people ultimately sell their properties they will find themselves with a larger chunk of change.

One other factor that has driven the assessments up, Riffe said, is that in the previous year, only buildings were revalued, whereas land was not. With the land added in, the numbers increased dramatically.

“Now they had to do the land and that made the jump bigger,” the treasurer said.

Explanations aside, residents have been in awe of the discrepancies in valuation. Robert Clark of Oak Harbor saw his property increase by a third, jumping $103,000. A friend’s went up $100,000 and his neighbor’s by the same amount.

“I don’t know how you can justify this sudden, enormous increase. In 16 years, we’ve made no improvements to our place,” Clark said, adding that his area has not seen significant growth or construction. “I’m very angry. My friends and neighbors are angry. And I don’t know what’s going to be done.”

Both Clark and Shinn have called the assessor’s office, but have not had their calls returned. On Friday morning, Shinn was ready to buy a latte and go to the office to wait out the appraisers, who have had their hands full this week.

“I’ll take the time,” she said.