West Ward owner wants higher valuation
The Colorado man who owns the former West Ward Elementary school property in McCook has the dubious honor of being the first known taxpayer to ask Red Willow County commissioners to increase the valuation of his real estate property.
Peter Coulter of Vail, Colo., did not appear before commissioners at a property tax valuation protest hearing scheduled for him Tuesday morning, but indicates, in notes accompanying his protest hearing application, that he wants his current property valuation increased from $127,030 to $385,680.
The county's assessor has the land currently valued at $55,000 and the building at $72,030, for a total of $127,030. Coulter is requesting that the land be valued at $130,680 and the building at $255,000, for a total of $385,680.
In a written protest, Coulter presented no sales of comparable buildings -- which drives the property valuation process -- arguing that the sale of McCook's former East Ward school and the city block on which it sits, (which sold for $75,000), "cannot and should not be compared" to West Ward. Coulter claims that West Ward must be more marketable, and therefore more valuable, because of its location "in the center of a community," and because it is in higher demand. Coulter called the two properties "exactly alike," but likened the East Ward property to property "out in the country."
Coulter writes that the county never considered purchasing East Ward because, "West Ward school is more marketable, in higher demand and therefore (should) command a higher value for assessment purposes."
(A City of McCook and Red Willow County jail subcommittee has indicated interest in the West Ward property as a possible site for a joint public safety center and county jail. Coulter has denied access to the interior of the school building to a private appraiser hired by the county to appraise the property before the county enters into negotiations with Coulter for the purchase of the property. State law requires an appraisal of any property being proposed for purchase by a county.)
County Assessor Sandra Kotschwar told commissioners during Coulter's 15-minute protest hearing that by using Coulter's purchase price "as a guide," she can justify the assessment of $127,030, which is just less than $3,000 less than what Coulter paid -- $130,000 -- in December 2005. This is a concept with which Coulter himself would not seem to disagree. He writes that the former school was assessed at $65,000 when Jon Morrison purchased it, for $65,000, from the school district. This, Coulter writes, "is perfectly logical," because the property, as a tax-exempt school property since 1925, has no history of valuation, nor could Kotschwar easily categorize it. Coulter wrote: "I would submit that this same procedure should be followed again; that is, that the property should be at least valued at what it brought in the open market in an arms length transaction: $130,000 minimum."
Coulter also claims however, that the building should be assessed at its replacement value -- for which he has it insured -- at $255,000.
Coulter claims that the building should be assessed as a museum, the purpose for which he purchased it. Kotschwar told commissioners that properties must be assessed as they sit on January 1, at which time Kotschwar called West Ward a community service building.
Coulter claims that the land itself should be valued at $1 a square foot, (not $.24 per square foot), and therefore should be assessed at $130,680.
Coulter concludes his letter to commissioners by writing that he wants the adjustment to $385,680 made retroactive to Jan. 1, 2006.
Any adjustments approved by commissioners in 2006 protest hearings would become effective Jan. 1, 2007, for the 2007 tax year.
As with any other Red Willow County tax payer who has filed a protest and is not satisfied with a decision made by commissioners, Coulter has the opportunity to appeal to the Nebraska Tax Equalization Review Commission (TERC) in Lincoln.
Commissioners must make their final decisions by Tuesday, July 25.
A tax payer who owns rural property told commissioners Tuesday morning that he appreciates the position of commissioners -- trying to maintain a tax base for their county. But, he added, "As a tax payer, I have to stand up for what I believe is fair and equitable." The man was protesting a 31 percent increase in his property valuation in one year, after consecutive years of 3 to 5 percent increases each year.
Because of taxes that increase every year, the man said, "I won't be able to retire in Southwest Nebraska, like I want to. I won't be able to afford to live here."
He continued, "There are 383 empty houses in McCook and Red Willow County. Why is that? It's because they can't afford to live here."
Commission Chairman Earl McNutt said the man's protest filing has given the commissioners the opportunity to review the assessment of his property. "You've opened the door for us by filing a protest," McNutt said. "We'll throw this thing around and see what we can do for you. We'll certainly work on it."
An Indianola tax payer, upset that his property valuation went up again, told commissioners during a protest hearing July 10, "You're gonna reach a point where you'll sell me off my land ... force me to sell it."
He continued, "Taxed at that level, it becomes undesirable to me."
He concluded, "Some one comes to me with a check for 45-hundred, and it would be a sale."
The exterior of a rural home, with its new siding and roof, "doesn't tell the whole story," McNutt mused as he looked at pictures of the exterior of a rural home and listened to a homeowner's description of the interior. "We assumed it was a finished home," McNutt said.
"We're trying to renovate it while we're living in it," the property owner said. "The interior was badly damaged by raccoons and other animals.
Commissioners and Kotschwar will make an appointment o view the inside before passing judgment on an valuation.
A tax payer assured commissioners, "I don't mind paying my fair share," but questioned whether the mass appraisal system was the best approach to assess his 100-year-old house-turned-apartment.
McNutt agreed fundamentally, saying that the tax payer's protest would give commissioners a chance to look deeper into the condition and quality of the property. McNutt said, "We can't make any promises, but we can't make any changes without a protest."
Another tax payer, questioning the valuation of his commercial property, told commissioners and Kotschwar, "I don't envy you guys. The process has to be very taxing." Quickly, he added, "Um, no pun intended."