98-1337
Property Tax/Locally Assessed
Signed
____________________________________
WILLIAM &
NORENE PETERSEN, ) ORDER
:
Petitioners, : Appeal No. 98-1337
: Parcel No.
001-014-2418
v. :
: Tax
Type: Property
Tax/Locally Assessed
BOARD OF
EQUALIZATION OF ) Recreational Property
DUCHESNE COUNTY, : Tax Year: 1998
UTAH, )
: Judge: Hendrickson
Respondent. : Johnson
_____________________________________
Presiding:
Pam Hendrickson, Commissioner
R. Bruce Johnson, Commissioner
Appearances:
For
Petitioner: William
and Norene Petersen
For
Respondent: Gregory
Garff, County Assessor
Kris Bancroft, Deputy Assessor
STATEMENT OF THE CASE
This
matter came before the Commission for an Initial Hearing pursuant to the
provisions of Utah Code Ann. §59-1-502.5, on May 3, 1999.
STATEMENT OF FACTS
This
appeal involves recreational property, including approximately 8.8 acres of
land, a 32 foot, 1980, Shasta travel trailer,
and a small mountain cottage. There is no dispute regarding the value of the
land or the travel trailer. There is a dispute, however, regarding the
value of the cottage. The cottage
measures 8 feet by 16 feet with a finished interior and a small upper loft, a
one-half bath, and a wood burning stove.
The
County acknowledged that there are no good comparable sales in the area for the
cottage. Accordingly, the County used
the Marshall and Swift Residential Cost Handbook for low cost
cottages. Applying this methodology,
the County arrived at a value of
$7,772 as the base cost of the
structure of 224 square feet at approximately $35 per square foot. Adding $750 for a one-half bath, $600 for a
wood burning stove and pipe, applying the local multiplier and three years of
depreciation resulted in a replacement cost new, less depreciation value of
$8,282.
The
uncontradicted testimony at the hearing, however, was that the mountain cottage
measured 8 by 16 feet, or 128 square feet.
Although there was some miscellaneous decking, there was no testimony
that the size of the cabin should be increased to reflect the deck. Nor was there testimony to indicate the loft
would account for the difference.
Multiplying the cabin size by $35 per square foot results in a base
value of $4,480. Applying the same
methodology used by the county assessor, with the smaller size cottage, the
value of the cottage would be computed as follows:
Base cost of
structure.....................$4,480
Cost for
1/2 bath............................$
750
Wood Burning Stove
& Pipe.........$ 600
$5,830
Local
Multiplier X .97
$5,655
Depreciation
factor X .936
RCN Less
Depreciation $5,293
APPLICABLE LAW
Petitioners have the burden to establish that the market
value of the subject property is other than that as determined by
Respondent. Utah Admin. R. R861-1A-7(G). To prevail in a real property
tax dispute, the Petitioners must (1) demonstrate that the County's original
assessment contained error, and (2) provide the Commission with a sound
evidentiary basis for reducing the original valuation to the amount proposed by
Petitioner. Nelson v. Bd. Of Equalization of Salt Lake County, 943 P.2d
1354 (Utah 1997).
DECISION AND ORDER
Based
on the evidence presented at the hearing, we believe Petitioners have carried their
burden of proof with regard to the cottage.
No adjustment is warranted to the other property. Accordingly, we find that the value of the
subject property, as of January 1, 1998, is as follows:
Land.......................$5,300
Cottage...................$5,293
Travel
Trailer.........$1,720
Total....................
$12,313
This
decision does not limit a party's right to a Formal Hearing. However, this Decision and Order will become
the Final Decision and Order of the Commission unless any party to this case
files a written request within thirty (30) days of the date of this decision to
proceed to a Formal Hearing. Such a
request shall be mailed to the address listed below and must include the
Petitioner's name, address, and appeal number:
Utah State Tax Commission
Appeals Division
210 North 1950 West
Salt Lake City, Utah 84134
Failure
to request a Formal Hearing will preclude any further appeal rights in this
matter.
DATED
this 7TH day of June, 1999.
____________________________________ ____________________________________
Pam
Hendrickson R.
Bruce Johnson
Tax
Commissioner Tax
Commissioner
BY ORDER OF THE UTAH STATE TAX COMMISSION.
The
Commission has reviewed this case and the undersigned concur in this decision.
DATED
this 7th day of June, 1999.
Richard B.
McKeown
Chairman
^^