Friday, August 10, 2007

TAX facts and opinions to consider

Provided by D-Bell

Residents of Huntsville Town, I have gathered these facts and summarized them from area newspapers as referenced. Thanks go to Carl and Sharon Downing for providing the news copy to me. It is my belief that the better informed we all are the more we can glean the truth from the upcoming Taxation Meetings to be held at the Library (update Sat. 11 August. Because of the interest the meeting has been moved to the Junior High [Snow crest] bring your cushions for the bleachers…) between six and nine o’clock Wednesday evening. This meeting was arranged by Ruston McKay and Mayor McKay left a message saying he discussed the meeting with Commissioner Dearden and he will be in attendance.

In order to not allow a mere “Group Therapy Session” where they tell us basic information we already know and take questions from us so we will “feel better” having voiced our opinions; the following is a condensation of some facts we all should be aware of going into that meeting. And they may also be helpful when you (hopefully all in Town appeal your property tax assessments and taxes at the Board of Equalization, date and time TBA. The “opinions” are my own with which you may or may not agree.

I hope you all have signed both the Huntsville Town and the Ogden Valley the petition as well. And that you encourage your friends and neighbors to also sign it. We need to stand arm-in-arm and shoulder-to-shoulder against this tax abuse for yet a second year in a row. It is past time for a Town, Valley, County, and Statewide tax revolt and it just as soon start here in our beloved and proud little Town as any place else.

Scott Layton has an interesting story about Indianapolis having a stand-in around the Governor’s Mansion and a Tea Party which produced results. Mr. Goff has an interesting story about Oregon having a similar tax payer’s revolt, as have many other States. Oregon voters forced taxing authorities to retreat to 1996 property assessments. Using 1996 as a base; taxing agencies are only allowed a maximum of two and one-half (2.5%) percent increases per year.

We are in desperate need of such legislation. And only you and I can force it upon legislators that “go along to get along” or tax and spend liberals hiding out as “conservative” Republicans. Let us all make it clear to them in the many ways it apparently takes to get their attention. Otherwise we will be taxed out of this Valley and out of this State leaving nothing but vacation and resort homes in our wake. It is up to you and me to protect so many on retired incomes we love in our community that can no longer be up and about. They gave so much to us - let us return the favor.

Facts from Desert Morning News, page D14, July 23, 2007: “Utah home prices rise…but number of homes sold drops, notably in S.L. and Utah counties”

(Synopsis)
-Housing prices continued to rise in Utah in second quarter 2007. But number of homes sold dropped.

Salt Lake and Utah Counties 19% decrease in units sold compared to same 3-month period in 2006. (Report by SL Board of Realtors)

Davis saw a decrease of 16.1 % and Weber County 8.2% drop.

Median Salt Lake County home price $254K, a 15.5% increase over 2nd quarter of 2006.

Utah County median home value increased 19.9 % ($245K).

Weber County:
City Units Sold Median Price Percent Change

Roy 219 $167,000 14.0%
Eden 13 $400,000 (-5.9%)
Hooper 31 $259,500 18.5%

Huntsville (the Zip Code
NOT our Town) 8 $386,500 (-38.9%)

Marriott/Slaterville 166 $113,800 (-4.8%)
South Ogden 184 $135,000 1.9%
Farr West 317 $148,000 18.0%
Riverdale 98 $175,000 1.5%
North Ogden 123 $233,436 22.9%

The Salt Lake Tribune, page E-1, July 21, 2007: “Home-for Sale signs stack up”

Synopsis:

Same data as above. Except

For Zip Code 84317 :

Huntsville blank blank *

*Area had too few sales

“Weber County logged the smallest gain in selling prices, 12 % to $160,000”.

The Standard Examiner, Page 2A, August 7, 2007, “Utah’s increase in property values highest in nation.” Ogden-Clearfield area ranks at No. 5 nationally, by Loretta Park

Synopsis

Layton-Utah residents are dealing with the highest increase in property values nationally, according to a memo to Utah legislators.

With that increase, residents are also seeing unexpected increases in property taxes.

Utah has experienced a 17% increase in home values from the first quarter in 2006 to the first quarter in 2007, according to an Aug. 1 memo from the Office of Legislative Research & General Counsel.

That puts Utah in the No. 1 slot nationally for property value increases.

*(Huntsville Town assessed taxable property increased 116.45%, our Town property taxes increased by 90.74%, from D-Bell’s data collected from the Weber County Assessor Website, 9 August 07. http://otgweb.co.weber.ut.us/gis/2002/include/psearch/psearch.asp

Nationally, the average increase is a 4.3%, according to a report by the Office of Federal Housing Enterprise Oversight.

The counsel used the report to help explain to legislators why property taxes are increasing statewide, said Bryant Howe, assistant director of the Office of Legislative Research & General Counsel.

The report also listed the top 20 metropolitan areas with highest rate of house appreciation during that same period. It places the Ogden-Clearfield area a No. 5 nationally, with homes appreciating at 15.7 % in the past year.

*(Huntsville Town, 116.45 %!, from D-Bell’s analysis of Weber County Tax assessment data off their public Website.)

The Provo-Orem area was listed nationally at No 2, with homes increasing in value at 19.76 % and Salt Lake City listed at No.3 with homes increasing in value at 19.12 %.

(This is almost laughable if it weren’t true. Fellow Huntsvillians we have the highest rate of taxable assessed property and taxes in the Country according to Weber County’s own tax records.)

Appreciation rates:

States with the greatest rate of appreciation between the first quarter of 2006 and the first quarter of 2007:

Utah: 17%
Idaho; 12.3%
Montana: 11.7%
Wyoming: 11.7%
Washington: 11.6%
Source: Office of Federal Housing Enterprise Oversight.


More Tax questions, facts, thoughts and opinions:
Why property assessments and taxes recently announced are bogus
(D-Bell’s thoughts. Add your own- help your neighbor)


-Get a CMA (Certified Market Analysis) from a Realtor. It is free and required for an appeal whether or not appropriate or accurate given our unique local situation. Call 801-476-4216 and ask for an agency which provides CMAs to potential customers. Hint: one with local Huntsville ties is able to help best.

-After your agent visits and gives you the information decide your basis for an Appeal (see listing on the “Request for Review of Real Property market Value” included with your tax notice.

-Checkmark the appropriate numbers and then add any written comments you might feel is the truth referencing the checked numerical basis’ for appeal.

-The Board of Equalization will very likely feel besieged by applications so less is more. Be succinct and brief. Use bullet format where possible. They will likely appreciate it and look more favorably at it for approval.

(I would provide more if I had ever done this before. If any of you have, please add your advice to help a neighbor.)

Thoughts/ideas:

-Commissioners pledged tax increases less than 20% for the lower valley and less than 30% for the Ogden Valley. Ninety-one percent (91%) aggregate for the Town is Draconian, (your individual % increase may well be significantly higher. Call me (745-1419) if you need help with this calculation).

-If asked what you think your property is worth say, “Last year’s increase topped the actual market value…or hit close, if you think that is correct. And then give a reasonable dollar amount. Have that number in your head.

-Assessors are supposed to: use comparable home sales within the past two years. Inside Huntsville Town this does not seem possible given the low sales recently as acknowledged by the Salt Lake Tribune article (above). Local properties in foreclosure or for sale which have not moved in ten months or more are an indication of a previous inflated market.

-Why “comps” from ZIP code 84317 (outside Huntsville Town limits) when property owners within Town already separately pay for these services and more?

-Snow removal
-Public street lighting
-Public Safety/security/Police
-Fire protection
-Road maintenance
-Basic infrastructure
*Services the County must provide to Valley and County residents
-We are already paying for all these services.
-Huntsville Town residents should be taxed far less rather than the same as or more than residences outside Town limits.


-Why are ski resorts exempt from taxes? Why when every time a UDOT snow plough goes up to Powder Mountain or Snow Basin it cost us residents at least $500 a trip? Why are we being dunned for others to use our “lovely little sand box”? Our mountains and snow?

- When everyone is taxed out of the Valley who are you going to hire to plough and maintain the roads…illegal aliens? What is your plan for that?


-Utah State Code Section 59-2-103 limits the 45% residential exemption to"No more than one acre of land per residential unit". However the minimum acreage allowed per residence in the Upper Ogden Valley is 3 acres.Case in point: If your primary residence sits on a parcel of 3 acres. Under USC59-2-103, you are allowed a 45% residential exemption on only 1 acre ofproperty and are, therefore, subjected to 100% taxation on the remainder.Weber County Ordinance prohibits the ability to subdivide the parcel.Hence, rational logic would conclude that the entire parcel is yourPrimary Residence. And, as such, should be allowed the same residentialexemption. The result of this inequity in taxation logic is that persons livingwithin areas that require zoning in excess of 1 acre are penalized bybeing taxed at 100% of the excess EVEN THOUGH the larger parcel size is
mandated by local ordinance. (This input came from Mr. Keith Smith and we all thank you sir for it. It is yet another inconsistency and inequity in current assessment wrong headedness.)


Questions without answers so far:

After a review of all Huntsville Town parcels; whereas most people are honest, some seem to consider tax avoidance/evasion a game to play at the expense of their neighbors. As K-Bell said, “I don’t mind paying my fair share as long as everyone else does”. I think she’s got something there.

-There are instances where people are claiming primary resident status when they do not actually live in Huntsville Town, thus getting the 55% “discounted taxable property assessments”.

-Instances of “creative parceling” of lots to avoid high tax assessments. These people become obvious when doing a competent analysis and assessment.

-Instances where parcels are claimed as agricultural land, with significant tax rate benefits and discounts taken. Again at the expense of their neighbors. A competent assessor surely can see these.

-Some parcels show the same tax assessment for both years (06 & 07) with no increase at all? Poor assessment and attention to detail costs us all.

-Commercial property is frozen and un-assessed - nor have taxes on most of them increased from 2006? Why would income earning property not be worth more than a permanent resident’s home? Why weren’t commercial properties assessed? Again Weber County tax assessor inconsistence.

-One commercial property is claimed as a primary residence - clearly wrong.

-Some .75 acre parcels are assessed at $11,250, where most standard .75 acre lots are taxable assessed at $100,000. ($45,000 last year.) Why is this?

-Of the $425,057+ we are asked to pay into the Weber County coffers only about $40,000, or less than 1% will be returned to our Town. Where does the rest go and why?

-Huntsville Town when treated as if it were one residential parcel was taxably assessed at $16,780,196 in 2006 and that represented a nominal 60 to 80% increase over the previous year.

-The Weber County Commissioners’ Tax Assessor Cheryl Madson, enabled a 2007 taxable assessed property aggregate of $36,320,373 (and that does not include any assessment of the largest new mansion in Town; on three (3) parcels). So stand-by for RAM! Why has this property not been assessed and included? What justification could possibly explain an aggregate Huntsville Town ninety-one percent (91%) property tax increase?

-Our Huntsville Town aggregate taxes in 2006 where $16,780,196 and as I said about $40,000 came back to Town coffers.

-This year those same Commissioners and Legislators treated us to a 2007, $425,057 property tax bill. And that does not include commercial property, just residential (and faux agricultural claims). Again only about $40,000 will return to our Town General Fund. Less than 1%.

-If someone offers you $500,000 for your property, does that mean your property assessment should be a half million dollars? No, because the fundamental precept of any assessor is that the “Market Value is determined by a willing seller and a willing buyer agreeing on a price”.

-Many if not fully 60% of Huntsville Town is composed of unwilling sellers – at any price. We just want to live out our lives in peace, contribute to our Community, County, State and Country. And many want to leave their property to their progeny. Communities are made of this stuff. But for two years these oppressive taxes are having the apparent effect of heavy handed interference with fundamental constitutional beliefs and rights.

-Many have become convinced that Weber County Commissioners consider Huntsville and the Upper Ogden Valley as nothing more than a “lovely sandbox”. This is untrue to most who live here. Again they need to read their own Resolution No. 16-2007, “Ethics Pledge”.

-If the permanent residents are displaced by exorbitant taxation, who in the lower Valley or of the vacationer set and resorts owners will care?

-There are many models of this over taxation changing the demographics of a community and none have ended pretty. Jackson, Ketchum, and Park City - Summit Co. come to mind.

Huntsville Town and most of the Ogden Valley will continue to fight these poorly thought through taxation policies at the ballot boxes and where ever else it is necessary to put a stop to this insanity and immoral displacement of the old and infirm or retirees on fixed incomes. And young couples with children and energy need to pitch in too. Pitch in even though you are already over taxed by school fees and a multitude of some thirty-eight (38) taxes/fees on just about everything.

I personally feel that the Commissioners and Tax assessors need to reread Resolution 16-2007, “The Ethics Pledge”. What they are attempting against Huntsville Town with this outrageous property tax increase is not only morally wrong it is Draconian.

In the past Utah has been clever enough (until now it seems) to never be put in a National spot light for over taxing any one single service or parcel. But the trick played on us all is the legislature has passed taxes and fees on virtually everything imaginable. Thus making Utah’s dirty little secret of being in the top 10% of States in the Country when it comes to total taxation. (Fees are taxes by the way. And there is no such thing as business or corporate taxes…they just pass them on to you and me as a cost of doing business.)

My Town Councilman reported his post office box rental increased by $30 a year to $96. The reason…its rent is based on property values. Like I said, “On just about everything.”

Finally, after spending several days and evenings until one in the morning one tends to look for a “winner” relative to outrageous taxable assessment increases. The prize goes to a good neighbor to the North. Finally, because they built a humble two car garage (without a door or electricity) his property taxes increased by 803%. They win “the most draconian tax award”. Hopefully, we will see you in the appeal line along with every citizen of Huntsville. I will drive or arrange transportation for those who can not drive any more. Several volunteers have stepped forward and we could use more. This promises to be a long a hard fought campaign to get Proposition 13 type protection law passed. Those we elected should know better. Shame on them.