Washington Appeals Board Sets Aside County Assessor’s Valuation of Taxpayer’s Hotel

The Washington Board of Tax Appeals issued a final decision regarding taxpayer’s property tax appeal against the King County Assessor. The dispute centered around the Jan. 1, 2019, true and fair market value of taxpayer’s 163-room, limited-service, hotel. Taxpayer argued for a lower valuation using the income approach, contesting the Assessor’s assumptions for franchise fees, management fees, reserves for replacement, and capitalization rate. The Board found that taxpayer had demonstrated by clear, cogent, and convincing evidence that the Assessor erred in valuing certain components, and ordered the Assessor to adjust the assessment to reflect the Owner’s proposed franchise and management ...