05-09-1985 CC MIN - BOE - Laserfiche WebLink

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. --.., Board of Equalization Minutes Mafl"1985 Page Three Discussion was carried on regarding the size of the apartment building in question and the market value. Ty Bischoff explained the formula used in calculating the assessed valuation, that is; the average rent is taken times the number of units in the building, times 12 months in a year, times a capitalization rate. The capitalization rate used previously was 15 and that it had been lowered to 11. Councilmember Williams questioned the impact of the increase in assessed valuation on Mr. Marshall's taxes. Mr. Kritzek indicated that the tax impact would be an increase of approximately $7,600 for 1986. Mr. Marshall stated that this would force him to apply a $30.00 increase per month per unit. Councilmember Williams indicated that it was his feeling that this was quite a severe increase and ques- tioned the possibility of spreading the increase over several years. Mr. Bischoff indicated that if the City Council were to decrease the amount of the assessed valuation in any way, he felt that the Department of Revenue would override the Council's decision and leave the increased assessed valuation as it stands. Mr. Bischoff advised Mr. Marshall that he felt the Council's hands were tied at this point, that he will have an opportunity to present his case to the County Board of Equalization at their meeting. Mr. Bischoff stated that he felt that the County Board of Equalization Board would not be able to act on the valuation either, but that he may then proceed to the State Board of Equalization for an adjustment. If that failed, his final option would be a tax court appeal. COUNCILMEMER SCHULDT MOVED THAT THE ASSESSED VALUATION FOR THE LYMAN MARSHALL PROPERTY REMAIN AS ASSESSED. COUNCILMEMBERGUNKEL SECONDED THE MOTION. THE MOTION PASSED 5-0. 3. Donald and Delles Singer Mr. Singer indicated that he and his wife had recently purchased the 12-unit apartment building on School Street from Gene Kreuser. Mr. Singer indicated that the assessed valuation had gone up over 1984 by $102,600, which was a 43.7 percent increase. Mr. Bischoff reviewed the reasons for the increase in the assessed valuation for Mr. and Mrs. Singer and also explained the procedure that was used in determining the assessed valuation. Mr. Bischoff advised the Singers that their options were in pursuing an adjustment to the assessed valuation. COUNCILMEMBER GUNKEL MOVED THAT THE ASSESSED VALUATION FOR THE DONALD AND DELLES SINGER PROPERTY REMAIN UNCHANGED. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4.0.