Item A: Measure 37 Givings Tax - Laserfiche WebLink

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In order to identify the affected properties and then make determinations as to the amount of increase in fair market value, the City likely will need to retain both economists (for the identification task) and appraisers (for the fair market value determination). As noted above, a preliminary estimate by economists for developing a computer model to identify properties is in the $50,000 - $100,000 range, with a cost of a couple thousand dollars for each legislative change. The cost of an individual appraisal (to determine actual increase in fair market value) generally ranges anywhere from a few thousand dollars to $10,000 or more – particularly since two values would be needed (the “before” and the “after”). Should the council direct the City Manager to further investigate this option, the Manager would contract with both economists and appraisers to identify specific economic and appraisal tools for carrying out this option, as well as specific proposals (including contract amounts) for creating those tools. In addition to the administrative costs noted above, there would also be additional costs where a property owner objected to the City’s determination as to whether a legislative change increased the fair market value to the owner’s property, and if so, by how much. Where the City and property owner had such a disagreement, the City would need to defend its determination in front of a hearings official, and possibly in court. Has the property owner paid (or will the property owner owe) other assessments, taxes or fees in connection with the same triggering action? Measure 50 allows assessed value (and therefore property taxes) to be increased under certain circumstances, such as for additions or improvements, partitions, subdivisions, rezoning where the property is used consistently with the rezoning, lot line adjustment, or the property is dis- qualified from exemption. Neither a change to the land use code, nor an amendment to the Metro Plan or to a refinement plan, would trigger a revision to the assessed value. Therefore, a property owner would not be double assessed. L:\CMO\2006 Council Agendas\M060125\S060125A.doc