Washington Appeals Board Reduces Assessed Value of Taxpayer’s Mercer Island Apartment Complex

The Washington Board of Tax Appeals issued a decision reducing the assessed value of taxpayer’s apartment complex in Mercer Island for tax year 2021. The dispute centered on the appropriate capitalization rate and estimated income for the 166-unit property. The Board held that the income approach was the proper valuation method, however, the Board found the 4 percent capitalization rate used by the assessor too low, siding more with the 4.3 percent rate from market data provided by taxpayer. The Board weighed rental data and reduced the value to $88,000,000 from $90,180,000. [John Wilson v. Bre Properties, Wash. B.T.A., No. ...