SAN JUAN ISLAND ASSESSMENTS

Assessor Restructures Reassessment Cycle

posted 07/23/2009
Because of reduced resources and an increased workload, San Juan County Assessor Charles Zalmanek was uncertain the county's 2009 tax rolls could be certified in a timely manner. He worked with R.C. Cavazos from the Dept. of Revenue to find the solution - a switch to a four-year revaluation cycle.

"So if he cuts off the rolls right now, that will give him some time to carry those parcels forward to a fourth year without having to worry about compliance issues with the state," Cavazos explained to the county Council earlier this month.

Zalmanek told the Council that following the DOR's recommendation will enable him to inspect and appraise new construction – adding property value that is not currently on the tax rolls – which could produce thousands of dollars of new revenue. Taxes from new construction is the only way to increase the tax base.

Adding the value of new construction to the rolls in 2007 produced more than $64,000 in revenue to the County's operating budget and contributed a total of more nearly $200,000 to the road fund and other taxing districts within the County, and about $250,000 to the state. While construction activity has dropped off sharply this year, Zalmanek said the impact on new construction revenue will be somewhat mitigated because his appraisers will be inspecting and appraising properties that were permitted as much as 30 months ago, before the economic downturn.

"What we will need is the funding that will allow us to travel to Orcas, Lopez and some of the outer islands to appraise the new construction," Zalmanek said. He added that he also needed some additional training for his staff and for his office administrator to be authorized to work five hours per day instead of four. Zalmanek advised that all of the additional expenses could be covered if the Council does not move ahead with a proposed $21,000 cut to the Assessor's budget that the Council postponed after his presentation on July 1.

The council are adding hours to his office administrative assistant's position in the proposed "Phase II" cutbacks to the 2009 budget.

Adopting a four-year revaluation cycle means approximately 2,000 of the 6,000 properties originally scheduled for re-appraisal in 2009 will be postponed until 2010. Total property tax revenue will not be reduced by the postponed re-appraisals because of the way the property tax rate is calculated. The re-appraisals figure out how the pie is being sliced not how big the pie is.

The Assessor's office will return to a three-year cycle in 2011, and adopt an annual revaluation program beginning in 2014, as required by the state. Annual revaluations will be done based on market factors, with physical inspections done at least once every six years.

Assessor asks Dept. of Revenue to require county to adequately fund his dept.

By Sharon Kivisto

posted 07/02/2009
"I am having to consider things I never imagined I would have to consider," San Juan County Assessor Charles Zalmanek told the county council as they considered budget cuts Wednesday July 1, 2009. "I am not willing perjure myself," he said, "And knowing that the value of new construction has not been appraised, I can't make the statement saying that all of the properties in San Juan County are appraised at their market value."

Zalmanek told the council his department is unable to complete its required duties with the allocated funding. A high number of appeals, a switchover to a new computer program which is replacing the 27-year-old one have compounded the problem. The switch was necessary because support would no longer be provided beyond 2009. Grants are paying for the replacement.

Zalmanek has told the council he does not have enough staff to appraise new construction. While the overall amount of property tax collected can increase only 1 percent a year - new construction can push up the total amount collected higher than 1 percent. In other words, new construction actually increases the tax base.

Not appraising new construction affects the state, county and all the junior taxing districts (libraries, EMS, fire departments, etc.)

The appraisals cannot be made by looking at the permit. State law requires an appraiser to do an onsite appraisal.

In order to carry out the duties of his office, Zalmanek contacted the Dept. of Revenue. Under state law, an appraiser classification plan can be set up. A three-member committee - one each from the DOR, the county Council and the Assessor's office would "by unanimous vote only, determine the required number of certified appraiser positions and their salaries necessary to enable the assessor to carry out the requirements relating to revaluation of property in chapter 84.41.RCW.

Each county legislative authority to which such a budget estimate is submitted shall allow sufficient funds for such positions.

After listening to Zalmanek's presentation during the public hearing, the council decided not to cut $21,313 from the assessor's budget for now. County Prosecutor Randy Gaylord was not in attendance at the budget public hearing, but had recommended a committee be formed if there is a dispute about the Assessor office staffing levels.

2009 property tax rates set

posted 01/27/2009
The total assessed value of taxable property in San Juan County increased 13.1 percent between 2007 and 2008 to approximately $7.976 billion. That is identical to the increase during 2006 and lower than the jump in 2005 when the total taxable property value increased by 17 bercent according to San Juan County Assessor Charles Zalmanek.

Taxes collected are limited to a one percent increase by law. Assessor Zalmanek noted that some of the 23 taxing entities in the county did not take their full allowable increase this year. Those include: the Port of Orcas, Port of Lopez, Port of Friday Harbor, the San Juan and Orcas Cemetery Districts, and San Juan Island Emergency Medical Services.

When the property values increase, the tax levy amount goes down so the same amount of tax reveune is collected. The tax levy rate was reduced by amounts ranging from 3 percent in Friday Harbor to 17.4 percent on Orcas Island. Because roughly one-third of the properties in the county are re-assessed each year, two thirds of the properties in the County actually pay a lower tax rate each year than the previous year. Residents of South San Juan Island – whose appraisals increased an average of 52 percent last year – will pay about $23 less in property taxes per $100,000 value. On Blakely Island property taxes will drop by $54 per $100,000 value.

"But it also means that the one-third that is re-assessed gets a pretty good bump in their assessed value to catch up with three years of market activity," said Zalmanek. In recent years that "bump" has averaged between 40 and 50 percent.

The area in 2008 included Orcas, Waldron, Crane, Obstruction and several other non-ferry served islands. Values in those areas increased an average of 41.5 percent. That means that despite the significant drop in the tax rate on Orcas, the higher values will produce average tax bill increases of 16 percent in those areas.

"We had a record number of people who appealed their assessments this year. A lot of them felt that values had dropped significantly since the national economic problems emerged." Zalmanek said. "But state law requires us to base our calculations on what the property was worth on January 1 of the current year and the problems had not had much of an effect on our market at that time."

The Assessor has set up a property tax calculator on the County Web site that property owners can use to calculate their 2009 property tax bill and compare it to last year’s bill. It is available at: www.sanjuanco.com/assessor/taxcalculator.aspx.

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