Property values debated

By BRIAN WALKER

Staff Writer

COEUR d'ALENE — When Greg Folk was informed his 5.4-acre parcel in the Post Falls area was assessed at $221,856, he decided to take action.

He said sawdust has been blowing onto his property from a nearby mill to the point he wouldn't want to sell the property even if there was a tempting offer.

Folk took his case to Kootenai County commissioners, who act annually as the Board of Equalization, which settles assessment appeals. Folk successfully had the valuation temporarily reduced to $75,000 until the dust issue is dealt with.

"If the value goes back up to where it's supposed to be (in future years) and the dust is gone, I'm happy," he said after the appeal hearing.

Folk drew laughter during the otherwise serious hearing when he sought a reaffirmation on the new assessment.

"It's OK as long as you don't try to increase the value in the future just to make up for what you lost (with the temporary drop)," he said.

Folk was assured that wouldn't happen.

Folk's appeal hearing is among 33 being held before the Board of Equalization this summer and includes 77 total parcels. Some property owners are appealing assessments on multiple parcels, which is typical.

The parcel count is the lowest in the past four years, as 91 were appealed in 2016, 172 in 2015 and 232 in 2014. The deadline to file an appeal was June 26.

Rich Houser, Kootenai County's chief deputy assessor, attributes the decline to a few factors, including more assessment information that's posted on the county's website.

"Property owners are now able to look at their assessed values and compare them to neighboring parcels," Houser said.

Houser said assessments always lag behind the present market.

Property values are currently increasing as Realtors report low inventory and high demand.

Houser said the assessment notices that went out May 30 are based on 2016 sales data.

"So, if a property owner is looking at their assessed value in today's market, our assessed value is low," he said.

The net taxable 2017 value of the county is $14.73 billion, a 9.5 percent increase over 2016.

All properties are re-assessed on a five-year schedule. The last year waterfront properties were assessed was 2013, so those will be re-assessed next year. Houser expects the appeal numbers will increase in 2018 as a result.

"Typically when we revalue the waterfront there are more inquiries, probably due to the higher values associated with waterfront," Houser said.

The county had as many as 1,000 appeals during some of the boom years before the recession.

"In the early 2000s, when there'd be a 30 percent jump (in property values); that's what would bring people out," Houser said.

In assessment appeal hearings, the burden of proof is on the property owner as Idaho code states the Assessor's Office is presumed to be correct. Both sides are allowed equal time to state their case. The Board of Equalization considers the evidence and renders an opinion.

The board can’t adjust value based on the amount of taxes due or the owner’s ability to pay the amount on a property tax statement.

"These are not tax appeals; they're valuation appeals," Houser said.

In Folk's case, he provided photos of the dust issue that helped persuade the board to temporarily lower his valuation.

"It's like Desert Storm," Folk told the board. "I won't sell the property and be in a lawsuit. If I can't sell my property, what good is it?"