Stanwood v. Multnomah County Assessor

CourtOregon Tax Court
DecidedAugust 15, 2014
DocketTC-MD 140092N
StatusUnpublished

This text of Stanwood v. Multnomah County Assessor (Stanwood v. Multnomah County Assessor) is published on Counsel Stack Legal Research, covering Oregon Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stanwood v. Multnomah County Assessor, (Or. Super. Ct. 2014).

Opinion

IN THE OREGON TAX COURT MAGISTRATE DIVISION Property Tax

MARTIN STANWOOD ) and BRADLEY STANWOOD, ) ) Plaintiffs, ) TC-MD 140092N ) v. ) ) MULTNOMAH COUNTY ASSESSOR, ) ) Defendant. ) FINAL DECISION

The court entered its Decision in the above-entitled matter on July 29, 2014. The court

did not receive a request for an award of costs and disbursements (TCR-MD 19) within 14 days

after its Decision was entered. The court’s Final Decision incorporates its Decision without

change.

Plaintiffs appeal the real market value of property identified as Account R335696

(subject property) for the 2013-14 tax year. A trial was held on June 24, 2014, in the Oregon

Tax Courtroom in Salem, Oregon.1 Ted A. Martin, attorney at law, appeared on behalf of

Plaintiffs. Plaintiff Martin Stanwood (Stanwood) testified on behalf of Plaintiffs. Barry Dayton

appeared on behalf of Defendant. Sherri Guttormsen (Guttormsen), registered appraiser, testified

on behalf of Defendant. No exhibits were received from Plaintiffs. Defendant’s Exhibit A was

received without objection. Following trial in this matter, Plaintiffs filed a Motion for Summary

Judgment (Motion) on June 27, 2014. Defendant filed a letter in response to Plaintiffs’ Motion

on July 2, 2014. As of the date of this Decision, Plaintiffs have not filed a reply.

///

1 Defendant appeared by telephone.

FINAL DECISION TC-MD 140092N 1 I. STATEMENT OF FACTS

Guttormsen testified that she inspected the subject property on May 22, 2014, and

provided a description of the subject property in her appraisal report. (See Def’s Ex A at 5.) The

subject property is a 1,152-square foot, one-story, ranch-style, single family detached residential

home built in 1979. (Id.) It includes a living room with a fireplace, a dining room, three

bedrooms, one full bathroom, and one half-bathroom off of the “bedroom suite.” (Id.) The

subject property includes an attached two-car garage, a fenced backyard, and some landscaping.

(Id. at 4-5.) It is situated on a 0.16-acre lot on Holgate Boulevard, “a main arterial street.” (Id. at

4.) The subject property is located in the “R2A” zone, which allows development including

duplexes, townhouses, row houses, and garden apartments. (Id. at 5.)

Stanwood testified regarding the condition of the subject property. He testified that the

subject property requires repairs and maintenance including a new fence, a new concrete patio,

new gutters, new carpets, and new paint. Stanwood testified that the kitchen is original from

1977 and needs to be replaced.2 He testified that the composite roof was seven years old and

would have to be replaced in a few years. Stanwood testified that the repairs would likely cost

about $25,000, although he did not provide any estimates or other evidence of that estimated

cost. He testified that, if he were to sell the subject property, he would have to make the repairs

he described in order for a potential buyer to obtain bank financing. Guttormsen determined

based on her inspection that the subject property was in “average to below average” condition.

She testified that she found the condition to be typical for a rental property3 the age of the subject

property. Guttormsen testified that she observed the subject property could use new paint. 2 Stanwood did not address the discrepancy between the parties with respect to the age of the subject property. Defendant reported that the subject property was built in 1979, whereas Stanwood testified it was 1977. 3 Stanwood testified that the subject property has been leased to tenants for about three months as of the trial date.

FINAL DECISION TC-MD 140092N 2 Stanwood testified that the subject property’s location negatively impacted its real market

value. He testified that, as of January 1, 2013, “criminals” lived in the house next to the subject

property, but as of the date of trial that house was vacant because the criminals had been

arrested. Stanwood testified that a “strip bar” is located one block from the subject property and

its patrons can be heard from the subject property leaving the bar at 2:00 a.m. when it closes.

Guttormsen testified that she selected comparable sales that were located “on main arterials with

similar traffic patterns” and close to the subject property. (See Def’s Ex A at 6.)

Stanwood testified that he purchased the subject property in December 2010 for

$126,000. He testified that he needed a house quickly due to personal reasons and he was able to

purchase the subject property and move in within nine days of the sale. Stanwood testified that

he paid more than the subject property was worth because of his need to move quickly. He

testified that the subject property had been on the market for over 60 days and there were no

other offers made to purchase the subject property. (See also Def’s Ex A at 6.) Guttormsen’s

appraisal report confirmed that the subject property was on the market for 68 days with a listing

price of $139,900 as of October 14, 2010. (Id.) She wrote that the subject property sale was an

“estate sale” that was pending December 21, 2010, and closed January 3, 2011. (Id.)

In their Complaint, Plaintiffs requested that the subject property’s 2013-14 real market

value be reduced to $108,339. (Ptfs’ Compl at 1.) Stanwood testified that the 2012-13 real

market value of the subject property was $111,690 and, based on an Oregon Department of

Revenue Property Tax Statistics report, he determined that the subject property’s 2013-14 real

market value should be three percent less than the 2012-13 real market value, which is the basis

for Plaintiffs’ requested 2013-14 real market value. Plaintiffs did not provide a copy of the

Oregon Department of Revenue report as an exhibit. Stanwood testified that he did not obtain an

FINAL DECISION TC-MD 140092N 3 appraisal of the subject property because the cost of an appraisal was not justified by the

potential tax savings. He testified that he has no training as a real estate appraiser, but he has

experience buying properties and has purchased nearly 20 properties. Stanwood testified that he

would have listed the subject property for $120,000 as of January 1, 2013.

Guttormsen studied market conditions for non-distressed sales between August 2011 and

June 2013 and determined that “the market was [appreciating] just prior to and around the time

of the assessment date.”4 (Def’s Ex A at 8-9, see also Def’s Ex A at 18.) She found that the

median sale price of non-distressed sales increased by $14,900 from the period of August 1,

2011, through June 1, 2012, to August 1, 2012, through June 1, 2013, which was an 11.04

percent increase. (Def’s Ex A at 9.)

Guttormsen testified that she considered all three approaches of value, but did not use the

cost approach due to the age of the subject property or the income approach because single

family residences are not typically held for income production. (See Def’s Ex A at 10.) She

relied on the sales comparison approach to determine the subject property’s real market value as

of January 1, 2013. (Id. at 11.) In her appraisal report, Guttormsen selected five comparable

sales located within 0.19 and 1.9 miles of the subject property that sold between June 2012 and

May 2013. (Id. at 12-13.) Her comparable sales were all one-level homes built between 1973

and 1982 ranging in size from 1,120 to 1,245 square feet. (Id. at 12-13.) The lot sizes of

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