1994-05-09 Regular MeetingKODIAK ISLAND BOROUGH
BOARD OF EQUALIZATION
May 9, 1994
A meeting of the Kodiak Island Borough Board of Equalization was held May 9, 1994, in the
Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting
was called to order at 7:00 p.m.
ROLL CALL
There were present:
Jim Carmichael Tim Hurley
Craig Fanning Bill Roberts
Will Walton
comprising a quorum of the Board; and
Pat Carlson, Borough Assessor
Donna Smith, Borough Clerk
BOARD ORGANIZATION
ROBERTS,
seconded by WALTON
VOTE ON MOTION
MOTION CARRIED
moved to nominate Tim Hurley
for chairperson.
Unanimous voice vote
OVERVIEW AND GENERAL DISCUSSION OF THE HEARING PROCESS
Assessor Carlson gave an overview of the hearing process, followed by general discussion by the
Board.
ITEMS OF BUSINESS
A. Approval of Minutes of the 1993 Board of Equalization.
ROBERTS, moved to approve the minutes
seconded by CARMICHAEL of the 1993 Board of Equalization.
VOTE ON MOTION
MOTION CARRIED
Board of Equalization
May 9, 1994
Unanimous voice vote
Page 1
B. Hearings:
Assessor Carlson was sworn in by the Borough Clerk.
Docket No. 1:
Appeal-No—q4--02
Roger Blackett/RFB Aquatech Inc. vs Kodiak Island Borough
Personal Property Account #P8B93001032
Assessor Carlson introduced the appeal.
Roger Blackett, appellant, was sworn in by the Borough Clerk. Mr. Blackett said he was being
taxed on a personal computer that was originally purchased as a business computer in 1992. Since
he had no work, he sold the computer to himself for use as a personnel computer. He thought the
Assessor was unable to recognize it as a personal computer and not for business use. He
emphasized his business was inactive, and he did not anticipate any business use of the computer.
In addition, he felt the assessment was overvalued. He estimated the value at $1500.
In response to questions, Mr. Blackett continued he used the computer for business in 1992 but
had not for 1993, nor purchased any software or supplies.
When Assessor Carlson noted that the 1992 assessment was $3100, Mr. Blackett said he had not
agreed with that.
Assessor Carlson presented the Borough's position in that the laws were not flexible in that if
business was conducted, the asset was taxable. He informed the Board that personal property of
all home businesses were on the rolls, with personal use computers exempt. He did not feel there
was latitude to grant an exemption as the business was still viable and the computer was available
to the business.
Assessor Carlson requested the value of the computer be adjusted to $1408 in addition to $50 for
supplies for the computer to bring the total to $1508.
Mr. Blackett presented rebuttal to the Assessor's testimony by reiterating that the computer was
sold and was not used for business except for one letter and one invoice during the year.
CARMICHAEL, moved to exempt on the basis that
seconded by WALTON computer was sold.
The Board was uncomfortable in that the business had not been closed; therefore, the computer
could be used for business.
VOTE ON MOTION
Ayes:
Noes:
Walton, Hurley
Carmichael, Fanning, Roberts
Board of Equalization Page 2
May 9, 1994
MOTION FAILED 2 ayes, 3 noes
FANNING, moved to change assessed value from
seconded by CARMICHAEL $2308 to $1508 ($1458 computer + $50.00 supplies).
VOTE ON MOTION
Ayes: Fanning, Roberts, Walton, Carmichael, Hurley
Noes: None
MOTION CARRIED Unanimous
FINDINGS -OF -FACT: Adjusted assessed value from $2,308 to $1508 ($1458 computer, $50
supplies). The chair ended the appeal hearing by stating the following: "According to Appellate
Rule 602, you, the Appellant, or the Assessor have the right of appeal to the Superior Court of
the State of Alaska from our decision. Should you wish to exercise your right of appeal, you must
do so by notifying the Borough attorney and initiating the process within 30 days from today.
Failure to do so will forever bar you from any appeal of this case."
Docket No. 2:
Appeal No. 94-03
Richard Yucker vs. Kodiak Island Borough
Russian Creek Sub. Block 3, Lot 9-B, Account #R9004030091
Assessor Carlson introduced the appeal.
Richard Yucker was sworn in by the Borough Clerk. Mr. Yucker gave a history of attempts to
meet with the assessor. He contended that the assessor increased the value of the property by
$16,000 when he had virtually done nothing on the structure. He agreed that the valuation of the
house would be $104,000 when finished but felt it was 36.5% finished, not $54.348% as
determined by the assessor.
Assessor Carlson reported he was required to reflect status of appraised property on the first of
January each year. When structures were built out-of-pocket, he used a schedule that allocated
values.
Photographs were entered into the record of the property in 1991, 1992, 1993, and 1994 with
values. It was Assessor Carlson's opinion that since the building was closed in, had heat,
electricity, water and sewer connections roughed in, and one floor functionally livable, it was
reasonable to consider the building at least 54% complete. He asked for a review in that the
basement was actually a tall crawl space.
Mr. Roberts noted that the Mr. Yucker distributed a list of items completed after January 1 and
asked the Assessor if he included those items. Assessor Carlson indicated the percentage of
completion did not include those items.
Board of Equalization Page 3
May 9, 1994
FINDINGS -OF -FACT: No motion was forthcoming; the assessment was upheld. The chair
ended the appeal hearing by stating the following: "According to Appellate Rule 602, you, the
Appellant, or the Assessor have the right of appeal to the Superior Court of the State of Alaska
from our decision. Should you wish to exercise your right of appeal, you must do so by notifying
the Borough attorney and initiating the process within 30 days from today. Failure to do so will
forever bar you from any appeal of this case."
Docket No. 3:
Appeal Nn_ 94-n4
Michael and Karen King vs. Kodiak Island Borough
Bells Flats Sub. Block 1, Lot 3-D, Account #R9003010033
No one was present to represent the appellant and the Board elected to hold the hearing in the
absence of the appellant. Assessor Carlson read the appeal from Michael and Karen King into the
record. The appellants sought to have a structure that was damaged by fire removed from the tax
roll.
Assessor Carlson presented the Borough's position in that the law required the property to be
valued in its condition as of January 1 of the assessment year. On the first of the year, the
building was rented out and a fire took place after the first of the year. The appellants had been
advised that if the building was still damaged as of January 1, 1995, it would be appraised
accordingly.
FINDINGS -OF -FACT: No motion was forthcoming; the assessment was upheld. The chair
ended the appeal hearing by stating the following: "According to Appellate Rule 602, you, the
Appellant, or the Assessor have the right of appeal to the Superior Court of the State of Alaska
from our decision. Should you wish to exercise your right of appeal, you must do so by notifying
the Borough attorney and initiating the process within 30 days from today. Failure to do so will
forever bar you from any appeal of this case."
A five minute recess was called by the chair at 8:10 p.m.
C. Request for Appeal Hearing from Mr. & Mrs. Dillon
No one was present to represent the appellant. Assessor Carlson read the appellant's request to
have an appeal heard by the Board even though their appeal was submitted to the Assessor after
the end of the appeal period. Mr. Dillon was presented with an appeal form to fill out on April
19, 1994, in the office of the assessor and was informed at that time he must file the form with
the office by April 30, 1994. Although April 30, 1994 fell on a Saturday, the assessor was
willing to accept any filing submitted on the following Monday. The envelope indicated the filing
was mailed on Saturday, April 30, 1994, but was not received until approximately noon on
Tuesday, May 3, 1994. Furthermore, the appellant made no attempt to contact the assessor's
office regarding the late filing, even though he was informed of the importance of the due date
that was on the assessment notice and appeal form.
Board of Equalization Page 4
May 9, 1994
The Assessor requested that, if the Board found to hold a hearing, the Board adjust the assessed
value of the improvements to $86,300, which when added to the land value of $31,600 yielded
a corrected assessment of $115,600 to adequately reflect the actual condition and quality of the
building.
FINDINGS -OF -FACT: No motion was forthcoming; the request for an appeal hearing from Mr.
and Mrs. Dillon was denied.
GENERAL COMMENTS AND QUESTIONS
Per Kodiak Island Borough Code 3.20.050 E 9 Certification: The board shall certify its actions
to the assessor within seven days following its adjournment.
Mr. Roberts commented he would appreciate receiving the packets before the meeting to allow
time to review.
ADJOURNMENT
With no further business to come before the Board, the meeting was adjourned at 8:34 p.m.
ROBERTS, moved to adjourn.
seconded by WALTON
VOTE ON MOTION
MOTION CARRIED
ATTEST:
Borough Clerk
Unanimous voice vote
Board of Equalization Page 5
May 9, 1994