Advisory Opinion 95-07-1125

Assessments/Conflict of Interest

ISSUE: WHETHER IT WOULD BE A CONFLICT OF INTEREST FOR AN APPRAISER IN THE DEPARTMENT OF ASSESSMENTS TO USE MASS APPRAISAL TECHNIQUES TO ESTABLISHED GUIDELINES FOR REVALUATION WHEN THE APPRAISER OWNS RESIDENTIAL PROPERTIES WITHIN THE AFFECTED AREA?

Opinion: The Board of Ethics finds that an appraiser within the Department of Assessments would have a conflict of interest if he or she appraises real property in which the appraiser has a financial interest. This conflict would occur whether the appraiser uses individual or mass appraisal techniques.

Statement of Circumstances: The King County Code of Ethics and the Department of Assessments Code of Conduct clearly establish a conflict of interest for employees of the Department of Assessments who have an interest in any property being considered for revaluation by the County Board of Appeals and Equalization or when such employees may have a personal interest or connection with another person's petition for revaluation (K.C.C. 3.04.030 O(10)). In this instance, the Department of Assessments has asked the Board of Ethics to determine whether a conflict of interest would still exist if an appraiser had an interest in property being valued, but used mass appraisal techniques to conduct the revaluation?

Analysis: Chapter 84.41 RCW provides for the revaluation of real property for tax purposes. While the Department of Assessments is responsible for physically inspecting and valuing property every six years, interim revaluation and adjustments may be made using statistical methods. These methods are applied to so-called "mass appraisals." In a mass appraisal, large sections of the County may be revalued as a block. When this occurs, hundreds or perhaps thousands of individual residential properties are reassessed using standard appraising variables such as number of bedrooms, square footage, etc. The result is an overall increase or decrease in assessed value.

The conflict of interest provisions in the Code of Ethics are constructed to prevent County employees from engaging in any act which is in conflict with the performance of official duties. In most, but not all, instances a conflict of interest as defined in the Code of Ethics is a financial benefit or advantage that could accrue to County employees when they engage in certain activities. For example, if an appraiser with the Department of Assessments were to appraise his or her own property on an individual basis, the Code of Ethics would clearly be violated because the appraiser could undervalue the property and realize a tax benefit. The same conflict exists with regard to a mass appraisal, because a mass appraisal may result in an advantage to the appraiser.

References: King County Code of Ethics, section 3.04.030. Chapter 84.41 RCW.

ISSUED THIS ___________ DAY OF ___________________, 199__.

Signed for the Board: Dr. J. Patrick Dobel, Chair

Members:

Dr. J. Patrick Dobel, Chair
Timothy Edwards, Esq.
Rev. Paul Pruitt
Ron Carlson
Dr. Lois Price Spratlen

cc:

Gary Locke, King County Executive
Metropolitan King County Councilmembers
Scott Noble, King County Assessor
Jan Davies, Acting Director-Ombudsman, Office of Citizen Complaints
Robert I. Stier, Senior Deputy Prosecuting Attorney and Counsel to the Board of Ethics
Bob Roegner, Manager, Administrative Services Division, Department of Assessments