Dramatic Increase in Assessed Value of Watercraft

[mdibella]

My county (Alameda, California) tax assessor has assessed the value of my 2006 First 36.7 at 22% over the assessed value in 2021. The office claim that boat prices are increasing across the board due to a decrease in supply and an increase in demand die to the COVID-19 pandemic.

I've reviewed both listing on Yachtworld and closed sales on BUC for other First 36.7 and consider this finding unsubstantiated.

After informal review, the assessors office is refusing to consider my data because the comps are with a year or two of 2006, but not 2006-built samples.

If you have recently bought or sold a 2006 First 36.7 and are willing to share the sale price, I will share the results of my formal appeal.

If you are uncomfortable posting to the thread, you can PM me.

 

[sail sfbay]

I feel your pain!!

Contra Costa County (adjacent to Alameda County) appraised my sailboat at significantly higher than its recent purchase price and above any comparable market asking/selling price. AND unlike Alameda, they do not even send out a form requesting a self valuation of the boat condition prior to adjusting the apraised value. Downloaded Contra Costa County Assessor "Vessel Value Review / Questionaire" form from their website, filled it out with requested documentstion to submit to them for a re-evaluation of it appraised value including. Will see if I get some relief.

 

[Don S/V ILLusion]

Didn’t realize california assesses a tax annually. Do other states do that too?

To your question, a friend recently bought a 367 for around $65,000.

 

[mdibella]

To your question, a friend recently bought a 367 for around $65,000.

Do you know if it is a 2006 model?

 

[Calif. Ted]

Don, California does assess "unsecured property tax" annually on boats thru the county tax assessor at the same rate as real estate or other "secured property" usually about 1% of assessed value. Mine was higher this year in Orange County also, they started by valuing it at $10,000 MORE than I'd paid 10 years ago and they said "initial value is established by NADA Guide". It had decreased every year until it got to the actual purchase price and I think it may have gone all the way back up.

 

[mdibella]

they said "initial value is established by NADA value".

Yup, Alamenda county assessor sent me the NADA price for my year, make, model as justification for the increase. Thing is: 1. the empirical data (listings & sales) doesn't comport with the NADA price, and 2. a long time broker told me that the banking industry doesn't use NADA valuations to underwrite ocean vessels, only for inland/trailer vessel loans. Could this be a case where the assessors just answer shop and use the sources that support their revenue goals without regard to objectivity?

Does anyone know how to get the raw data underpinning NADAs schedule or are their sources and methods secret?

 

[Tedd]

As painful as it is, their assessment may well be accurate. When I was tracking used boat prices in 2020 and 2021 there was definitely a rise of about 20 percent.

I'm in the process of buying a new boat that was imported into Canada before Covid. I.e., it was imported new as a display boat for boat shows and then put into storage--never sailed. The dealer is selling it to me for the 2019 price, which is a gift because to import the same boat today would be at least 20 percent more. The dealer told me that shipping from Poland to Canada was seven thousand Canadian dollars when he brought this boat in in 2019 and now it's $13,500.

 

[Rick D]

Absolutely go for the formal appeal and find comps plus get some statements from surveyors and brokers. Throw a lot of paper at it. I'm sure NADA has some disclaimers. Be sure to highlight them.

 

[SkipR]

I had a similar problem with Alameda Co. and my 2015 Beneteau 38. The assessor consistently valued it above comparable sales and the value estimated by the owner of Passage Nautical (local Beneteau dealer from whom I bought the boat). I appealed the assessment. While the appeal was pending I sold the boat. About 1 week before I was due to appear, in person, before the assessment appeals board the assessor offered a new assessment almost $40,000 below the actual sales price. I’m now waiting for a rebate of the excess tax I paid since I filed the appeal. Lesson: Be persistent and don’t settle for the result of the informal appeal.

 

[mdibella]

I had a similar problem with Alameda Co. and my 2015 Beneteau 38.

Was this for the 2022-23 fiscal year or earlier? If earlier, how many years were you paying inflated taxes while waiting form the appeal hearing? Did the due process for the administrative hearing still allow you discovery such that the assessor had to share relevant artifacts related to their calculation of the valuation?

In my case, during my informal review I asked for factual basis for their valuation and was stonewalled.

 

[SEMPERAVANTI41]

I was in the car business back in the late 80s. The prices in the NADA book were a complete fantasy. Using this for actual valuation is completely unfair, but hey it's California.

 

[SkipR]

Was this for the 2022-23 fiscal year or earlier? If earlier, how many years were you paying inflated taxes while waiting form the appeal hearing? Did the due process for the administrative hearing still allow you discovery such that the assessor had to share relevant artifacts related to their calculation of the valuation?

In my case, during my informal review I asked for factual basis for their valuation and was stonewalled.

I sold the boat in 2021. The assessment appeal dates back to 2018-2019 so I will be receiving a rebate for 3 years worth of payments. I don't recall asking the assessor to share their data.

 

[mdibella]

I don't recall asking the assessor to share their data.

Got it. TYVM.

 

[sail sfbay]

Good news story...........the local county property assessor just agreed there was no justification to increase the assessed value by 25% after challenging it with comparable boat sales and my original purchase document so they knocked the appraisal down.