IN THE OREGON TAX COURT MAGISTRATE DIVISION Property Tax
CHERYLE CLUNES, ) ) Plaintiff, ) TC-MD 120255C ) v. ) ) CLACKAMAS COUNTY ASSESSOR, ) ) Defendant. ) DECISION
Plaintiff appeals the real market value (RMV) of property identified as Account
01415828 (subject property) for the 2011-12 tax year. Trial for the matter was held on
September 25, 2012, by telephone. Steven Anderson (Anderson), an Oregon licensed real estate
broker, appeared on behalf of Plaintiff.1 Todd Cooper (Cooper) appeared on behalf of
Defendant. Plaintiff’s Exhibits 1 through 8 and Defendant’s Exhibits A and B were admitted
without objection.
I. STATEMENT OF FACTS
The appeal involves the RMV of a single-family residential home for the 2011-12 tax
year. The RMV on the assessment and tax rolls, as reduced by the Clackamas County Board of
Property Tax Appeals (BOPTA), is $398,000. The assessment date is January 1, 2011.
ORS 308.007; ORS 308.210.2
The subject property is a 3,794 square-foot, two-story, three-level home built in 1990 and
situated on a 9,265 square-foot lot in Clackamas, Oregon. (Def’s Ex A at 4.) The home has
three bedrooms, two full bathrooms, and two half bathrooms. (Id.) There is also a four or five
car attached garage. (Id.) Exterior amenities include a 50 year comp roof, lap siding with brick 1 Plaintiff’s Authorization to Represent. (Ptf’s Compl at 2.) 2 All references to the Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR) are to 2009.
DECISION TC-MD 120255C 1 accents, a wood deck, and full landscaping. (Id.) Interior amenities include hardwood and
carpeted floors, granite kitchen counters, brick fireplaces, and high-end appliances. (Id.) The
subject property enjoys views of both Mount Hood and the valley to the east of the home. (Id.)
Defendant set the RMV at $459,832, with $115,442 allocated to the land and $344,090 to
the structures (i.e., the home and other real property improvements). (Ptf’s Compl at 3.) The
maximum assessed value (MAV) is $451,653, as is the assessed value (AV). (Id.) Plaintiff
successfully appealed to the Clackamas County Board of Property Tax Appeals (Board) and the
Board reduced the RMV of the structures to $282,558, for a total RMV of $398,000. (Id.)
Because that member is less than the property’s MAV, the AV was reduced to $398,000,
pursuant to ORS 308.146(2). (Id.)
A. Plaintiff’s value evidence
Plaintiff’s presentation was very brief, consisting of a summary overview of Anderson’s
comparable sales approach and his valuation grid. (Ptf’s Ex 3 at 3.) On cross examination,
Anderson described the grid as a “price opinion” based on 24 years of market experience,
including four years as a BOPTA board member and 22.5 hours of training from the Oregon
Department of Revenue.
Plaintiff presented three comparable sales, two of which occurred prior to the assessment
date and the third, 11 months after the assessment date.3 (Ptf’s Ex 3 at 3) Comparable one sold
on November 15, 2011, at an unadjusted sale price of $305,000; comparable two sold on March
26, 2010, at an unadjusted sale price of $375,000; comparable three sold on June 29, 2011, at an
unadjusted sale price of $394,000. (Id.)
Anderson adjusted for differences in exterior, number of fireplaces, square footage (of
both the home and the garage), quality, and time. (Id.) For example, Anderson made a $20,000
3 Defendant also used these same comparables in its valuation grid.
DECISION TC-MD 120255C 2 negative adjustment to comparable one for its new kitchen, testifying that he felt it was superior
to that of the subject property. (See id.) Defendant took exception to the $20,000 adjustment,
noting that there is insufficient detail of the nature and extent of the kitchen remodel in
comparable one and that the subject property itself had an upscale kitchen.
Anderson’s valuation grid sheet shows adjusted sale prices of comparables one through
three of $333,650, $356,525, and $344,750, respectively. (Id.) However, Andersen
acknowledged on cross-examination that he made adjustment errors for the basements of
comparables one and two, adjusting them up $35 per square-foot whereas the adjustment should
have been a downward adjustment of $16,100 each. He also acknowledged that he made a time
adjustment error with respect to comparable one; the net effect of that mistake resulted in a
$33,550 increase to its sale price. Anderson’s final, trial adjusted sale prices for comparables
one through three are $383,300, $372,625, and $344,750, respectively. Anderson testified that
he gave most weight to comparable three, although he considers it superior to the subject
property. Plaintiff’s Complaint requests a reduction in RMV to $300,000. At trial, Anderson
modified Plaintiff’s request, seeking an RMV of $350,000.
B. Defendant’s value evidence
Cooper’s presentation focused on the sales comparison approach and, like Plaintiff,
presented a valuation grid (titled “Comparable Sales Grid”). (Def’s Ex A at 5.) Cooper gave
little weight to the cost approach because the “home was over 20 years old as of the assessment
date”; 4 the income approach was considered but Copper concluded that it was not “a credible
indicator of market value * * *.” (Id. at 16.)
///
4 Cooper concluded that “[t]he cost approach indicates a value for the subject property of $399,012 ” as of the assessment date. (Def’s Ex A at 16.)
DECISION TC-MD 120255C 3 Cooper’s valuation grid shows six comparable sales with the following information:
comparable one (which is also Plaintiff’s comparable three) sold on June 24, 2010, at an
unadjusted sale price of $390,000; comparable two sold on February 23, 2011, at an unadjusted
sale price of $317,000; comparable three sold on November 12, 2010, at an unadjusted sale price
of $300,000; comparable four sold on November 15, 2011, at an unadjusted sale price of
$305,000; comparable five sold on June 18, 2010, at an unadjusted sale price of $390,000;
comparable six sold on March 26, 2010, at an unadjusted sales price of $375,000. (Id. at 5.)
Cooper made adjustments for time, overall quality, size (for square footage differences
above grade, in basement space, and in garage size), bathrooms, view, and heating/cooling
source. (Id.) For example, because comparables two, three, and six lacked an appealing view,
their sale prices were adjusted upward $32,300 each, a “market derived” adjustment. (Id.) Also,
the sale prices of comparables one and six were adjusted downward $33,100 each because of
their superior quality; comparables three and four have inferior quality, and their sales prices
were adjusted upward $33,100 each. (Id. at 9.) Cooper admitted on cross examination that he
did not make time adjustments accurate to the day, stating that such adjustments would result in
only minor changes to his adjusted sale prices. Cooper stated that all “adjustments were derived
from the market using paired sales analysis and extraction techniques and are supported by the
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IN THE OREGON TAX COURT MAGISTRATE DIVISION Property Tax
CHERYLE CLUNES, ) ) Plaintiff, ) TC-MD 120255C ) v. ) ) CLACKAMAS COUNTY ASSESSOR, ) ) Defendant. ) DECISION
Plaintiff appeals the real market value (RMV) of property identified as Account
01415828 (subject property) for the 2011-12 tax year. Trial for the matter was held on
September 25, 2012, by telephone. Steven Anderson (Anderson), an Oregon licensed real estate
broker, appeared on behalf of Plaintiff.1 Todd Cooper (Cooper) appeared on behalf of
Defendant. Plaintiff’s Exhibits 1 through 8 and Defendant’s Exhibits A and B were admitted
without objection.
I. STATEMENT OF FACTS
The appeal involves the RMV of a single-family residential home for the 2011-12 tax
year. The RMV on the assessment and tax rolls, as reduced by the Clackamas County Board of
Property Tax Appeals (BOPTA), is $398,000. The assessment date is January 1, 2011.
ORS 308.007; ORS 308.210.2
The subject property is a 3,794 square-foot, two-story, three-level home built in 1990 and
situated on a 9,265 square-foot lot in Clackamas, Oregon. (Def’s Ex A at 4.) The home has
three bedrooms, two full bathrooms, and two half bathrooms. (Id.) There is also a four or five
car attached garage. (Id.) Exterior amenities include a 50 year comp roof, lap siding with brick 1 Plaintiff’s Authorization to Represent. (Ptf’s Compl at 2.) 2 All references to the Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR) are to 2009.
DECISION TC-MD 120255C 1 accents, a wood deck, and full landscaping. (Id.) Interior amenities include hardwood and
carpeted floors, granite kitchen counters, brick fireplaces, and high-end appliances. (Id.) The
subject property enjoys views of both Mount Hood and the valley to the east of the home. (Id.)
Defendant set the RMV at $459,832, with $115,442 allocated to the land and $344,090 to
the structures (i.e., the home and other real property improvements). (Ptf’s Compl at 3.) The
maximum assessed value (MAV) is $451,653, as is the assessed value (AV). (Id.) Plaintiff
successfully appealed to the Clackamas County Board of Property Tax Appeals (Board) and the
Board reduced the RMV of the structures to $282,558, for a total RMV of $398,000. (Id.)
Because that member is less than the property’s MAV, the AV was reduced to $398,000,
pursuant to ORS 308.146(2). (Id.)
A. Plaintiff’s value evidence
Plaintiff’s presentation was very brief, consisting of a summary overview of Anderson’s
comparable sales approach and his valuation grid. (Ptf’s Ex 3 at 3.) On cross examination,
Anderson described the grid as a “price opinion” based on 24 years of market experience,
including four years as a BOPTA board member and 22.5 hours of training from the Oregon
Department of Revenue.
Plaintiff presented three comparable sales, two of which occurred prior to the assessment
date and the third, 11 months after the assessment date.3 (Ptf’s Ex 3 at 3) Comparable one sold
on November 15, 2011, at an unadjusted sale price of $305,000; comparable two sold on March
26, 2010, at an unadjusted sale price of $375,000; comparable three sold on June 29, 2011, at an
unadjusted sale price of $394,000. (Id.)
Anderson adjusted for differences in exterior, number of fireplaces, square footage (of
both the home and the garage), quality, and time. (Id.) For example, Anderson made a $20,000
3 Defendant also used these same comparables in its valuation grid.
DECISION TC-MD 120255C 2 negative adjustment to comparable one for its new kitchen, testifying that he felt it was superior
to that of the subject property. (See id.) Defendant took exception to the $20,000 adjustment,
noting that there is insufficient detail of the nature and extent of the kitchen remodel in
comparable one and that the subject property itself had an upscale kitchen.
Anderson’s valuation grid sheet shows adjusted sale prices of comparables one through
three of $333,650, $356,525, and $344,750, respectively. (Id.) However, Andersen
acknowledged on cross-examination that he made adjustment errors for the basements of
comparables one and two, adjusting them up $35 per square-foot whereas the adjustment should
have been a downward adjustment of $16,100 each. He also acknowledged that he made a time
adjustment error with respect to comparable one; the net effect of that mistake resulted in a
$33,550 increase to its sale price. Anderson’s final, trial adjusted sale prices for comparables
one through three are $383,300, $372,625, and $344,750, respectively. Anderson testified that
he gave most weight to comparable three, although he considers it superior to the subject
property. Plaintiff’s Complaint requests a reduction in RMV to $300,000. At trial, Anderson
modified Plaintiff’s request, seeking an RMV of $350,000.
B. Defendant’s value evidence
Cooper’s presentation focused on the sales comparison approach and, like Plaintiff,
presented a valuation grid (titled “Comparable Sales Grid”). (Def’s Ex A at 5.) Cooper gave
little weight to the cost approach because the “home was over 20 years old as of the assessment
date”; 4 the income approach was considered but Copper concluded that it was not “a credible
indicator of market value * * *.” (Id. at 16.)
///
4 Cooper concluded that “[t]he cost approach indicates a value for the subject property of $399,012 ” as of the assessment date. (Def’s Ex A at 16.)
DECISION TC-MD 120255C 3 Cooper’s valuation grid shows six comparable sales with the following information:
comparable one (which is also Plaintiff’s comparable three) sold on June 24, 2010, at an
unadjusted sale price of $390,000; comparable two sold on February 23, 2011, at an unadjusted
sale price of $317,000; comparable three sold on November 12, 2010, at an unadjusted sale price
of $300,000; comparable four sold on November 15, 2011, at an unadjusted sale price of
$305,000; comparable five sold on June 18, 2010, at an unadjusted sale price of $390,000;
comparable six sold on March 26, 2010, at an unadjusted sales price of $375,000. (Id. at 5.)
Cooper made adjustments for time, overall quality, size (for square footage differences
above grade, in basement space, and in garage size), bathrooms, view, and heating/cooling
source. (Id.) For example, because comparables two, three, and six lacked an appealing view,
their sale prices were adjusted upward $32,300 each, a “market derived” adjustment. (Id.) Also,
the sale prices of comparables one and six were adjusted downward $33,100 each because of
their superior quality; comparables three and four have inferior quality, and their sales prices
were adjusted upward $33,100 each. (Id. at 9.) Cooper admitted on cross examination that he
did not make time adjustments accurate to the day, stating that such adjustments would result in
only minor changes to his adjusted sale prices. Cooper stated that all “adjustments were derived
from the market using paired sales analysis and extraction techniques and are supported by the
local RMLS statistics, local cost guides, [Defendant’s] personal data banks[,] and [Defendant’s]
conversations with professionals * * *.” (Id. at 8.)
Each party used Plaintiff’s three comparable sales in their value estimates. During
Defendant’s presentation, Cooper criticized Anderson’s adjustments and calculated corrected
adjusted sales prices. As for Plaintiff’s comparable one, Cooper pointed out the time, basement,
and kitchen adjustments already discussed above. Correcting for these, Cooper stated that the
adjusted sales price for Plaintiff’s comparable one should be $403,000. Correcting for age and
DECISION TC-MD 120255C 4 view, Cooper stated that the adjusted sales price for Plaintiff’s comparable two should be
$416,175. Correcting for basement square footage, Cooper stated that the adjusted sales price
for Plaintiff’s comparable three should be $378,750. Anderson criticized Defendant’s time
adjustments as not accurate to the day, calculating corrected adjusted sales prices of $382,400,
$393,170, $397,400, no change, $405,693, and $374,025, respectively.
Cooper gave the most weight to his comparables one, five, and six, as they had the lowest
overall net adjustments. (Id. at 10.) His adjusted sale prices for those comparables are $384,300,
$406,800, and $385,300, respectively. (Id. at 5.) Upon reconciliation, Cooper estimates a value
for the subject property of $390,000 as of the assessment date. (Id. at 16.)
II. ANALYSIS
“Real market value is the standard used throughout the ad valorem statues except for
special assessments.” Richardson v. Clackamas County Assessor (Richardson), TC-MD
No 020869D, WL 21263620 at *2 (March 26, 2003) (citing Gangle v. Dept. Of Rev. 13 OTR
343, 345.) Real property “not exempt from ad valorem property taxation or subject to special
assessment shall be valued at 100 percent of its real market value.” ORS 308.232. Real market
value is defined by statute as:
“the amount in cash that could reasonably be expected to be paid by an informed buyer to an informed seller, each acting without compulsion in an arm’s-length transaction occurring as of the assessment date for the tax year.”
ORS 308.205(1).
The Department of Revenue has adopted methods and procedures for determining RMV.
ORS 308.205(2); OAR 150-308.205-(A). Per administrative rule, there are three approaches to
valuation: the sales comparison approach, the cost approach, and the income approach.
OAR 105-308.205-(A)(2)(a); see also Appraisal Institute, The Appraisal of Real Estate 130 (13th
ed 2008). In some cases, one or more approaches may not be useful; however, all three
DECISION TC-MD 120255C 5 approaches must be considered. Id. Ultimately, the approach to be used is a question of fact to
be determined by the court upon the record. Pacific Power & Light Co. v. Dept. of Revenue, 286
Or 529, 533, 596 P2d 912 (1979).
In the present case, the parties relied primarily on the sales comparison approach. “In
utilizing the sales comparison approach[,] only actual market transactions of property
comparable to the subject, or adjusted to be comparable, will be used. All transactions utilized in
the sales comparison approach must be verified to ensure they reflect arms-length market
transactions.” OAR 150-308.205-(A)(2)(c).
The court agrees that the sales comparison approach is the most appropriate. However,
the court concludes that Plaintiff’s comparable sales were not adequately adjusted to be
comparable. Overall, the court was not impressed with the quality and character of Anderson’s
valuation evidence. For example, Anderson testified that he made a $45,000 “quality” (class)
adjustment for every class point difference between his comparables and the subject.5 (see also
Ptf’s Ex 3 at 3.) When questioned by the court, Anderson stated that he felt he was being
conservative, because when he served on the board, they used $50,000 for each point difference
in class. He also failed to adjust for view differences because he testified that the county value
data (ProVal) did not include a separate line item for view. Nor did Anderson adjust for time
even though two of his three sales (comparables two and three respectively) sold nine months
and six months before the applicable assessment date. (Id.)
As the party seeking affirmative relief, Plaintiff bears the burden of proof. ORS 305.427.
To succeed in this appeal, Plaintiff “must affirmatively prove that the RMV figure * * * [she] has
5 Anderson apparently concluded that his comparables one and three were inferior and therefore made $45,000 upward adjustments to those two sales. (Ptf’s Ex 3 at 3.) Anderson applied a $15,000 negative adjustment to his comparable two. (Id.) Assuming $45,000 was the adjustment for a full one point difference between property classes, Anderson apparently determined that his comparable two differed from the subject by only a third of a point, although the testimony and documentary evidence is unclear on the matter.
DECISION TC-MD 120255C 6 requested for the subject property is more likely than not the value of the property.” Yarbrough v.
Dept. of Rev. (Yarbrough) TC No 5075 (Sept 18, 2012). Plaintiff must establish her requested
RMV “by a preponderance of the evidence, or the more convincing or greater weight of
evidence.” Schaefer v. Dept. of Rev., TC No 4530, WL 914208 at *2 (Jul 12, 2001) (citing Feves
v. Dept. of Revenue, 4 OTR 302 (1971)). “[I]t is not enough for a taxpayer to criticize a county’s
position. Taxpayers must provide competent evidence of the RMV of their property.” Poddar v.
Dept. of Rev., 18 OTR 324, 332 (2005) (quoting Woods v. Dept. of Rev., 16 OTR 56, 59 (2002)
(citation omitted)). “Competent evidence includes appraisal reports and sales adjusted for time,
location, size, quality, and other distinguishing differences, and competent testimony from
licensed professionals such as appraisers, real estate agents and licensed brokers.” Yarbrough,
TC No 5075. If the evidence presented is inconclusive or unpersuasive, it is insufficient to
sustain the burden of proof. Reed v. Dept. of Rev., 310 Or 260, 265, 798 P2d 235 (1990).
Plaintiff’s valuation evidence is unpersuasive. Anderson did not present an appraisal or
testimony from licensed professionals. Rather, Anderson supported the requested RMV
reduction with a “price opinion.” Anderson testified his opinions therein were based on his years
of “market experience,” plus his experience as a BOPTA member, and his 22.5 hours of
instruction with the Department of Revenue. Even so, Anderson failed to make accurate
adjustments for basement size and time, he failed to make any adjustment for view, and his
quality adjustments did not appear market based. The court finds that Anderson’s “price
opinion” and accompanying testimony are not competent evidence of the subject property’s
RMV for the 2011-12 tax year. This court has previously observed the “[p]ersonal conclusions
[of appraisers] with no basis in actual market data are entitled to little or no weight.” McKee v.
Dept. of Rev., 18 OTR 58, 64 (2004). The same holds true for others valuing property.
DECISION TC-MD 120255C 7 Even though Plaintiff’s burden has not shifted, the court has “jurisdiction to determine
the real market value or correct valuation on the basis of the evidence before the court, without
regard to the values pleaded by the parties.” ORS 305.412. The court concludes that
Defendant’s evidence supports the subject property’s BOPTA-reduced value of $398,000 for the
2011-12 tax year.
III. CONCLUSION
After careful consideration of the testimony and evidence, the court concludes that
Plaintiff has not met her burden of proof with respect to the requested reduction in the subject
property’s 2011-12 real market value. Now, therefore,
IT IS THE DECISION OF THIS COURT that Plaintiff’s appeal is denied.
Dated this day of November 2012.
DAN ROBINSON MAGISTRATE
If you want to appeal this Decision, file a Complaint in the Regular Division of the Oregon Tax Court, by mailing to: 1163 State Street, Salem, OR 97301-2563; or by hand delivery to: Fourth Floor, 1241 State Street, Salem, OR.
Your Complaint must be submitted within 60 days after the date of the Decision or this Decision becomes final and cannot be changed.
This document was signed by Magistrate Dan Robinson on November 14, 2012. The Court filed and entered this document on November 14, 2012.
DECISION TC-MD 120255C 8