Homeowner's Guide to Property Tax - Washington State ...
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WASHINGTON STATE DEPARTMENT OF REVENUE
Homeowner’s Guide
to Property Tax JUNE 2021
In Washington State, all real and Property values Personal property
personal property is subject to tax State law requires that assessors The primary characteristic of
unless specifically exempted by law. appraise property at 100 percent personal property is mobility.
of its true and fair market value in Personal property includes
Property tax was the first tax levied
money, according to the highest and furnishings, machinery and
in the state of Washington. Today,
best use of the property. Fair market equipment, fixtures, supplies,
property tax accounts for about 30
value, or true value, is the amount of and tools.
percent of total state and local taxes.
money that a willing and unobligated
It continues to be the most important Most personal property owned by
buyer is willing to pay a willing and
revenue source for public schools, fire individuals is specifically exempt.
unobligated seller.
protection, libraries, and parks and However, if these items are used in
recreation. Real property a business, personal property tax
Real property includes land, applies. For detailed information
The information contained in this
improvements to land, structures, about personal property tax, please
publication is current at the time of
and certain equipment affixed to refer to the Personal Property Tax
production. However, state tax laws,
structures. Characteristics of real publication.
their interpretation, and their
property that influence the value
application can change because of
include but are not limited to zoning,
legislative action, reviews, or court Changes to property values
location, view, geographic features,
decisions. This publication will not All counties revalue properties each
easements, covenants, and the
reflect these changes. year and are required to do physical
condition of surrounding properties.
inspections at least once every six
The assessor values real property years.
using one or more of the following
appraisal methods: If your appraised property value
changes, you will receive a change
Market or sales comparison of value notice that lists the old and
approach to value is determined, new appraised value of land and
or estimated, based on multiple improvements. By comparing the
sales of similar properties. Most two values, you can determine if your
residential property is valued using appraised property value has
this method. increased or decreased.
Cost approach to value is
determined based on the cost of The assessed value of your property
replacing an existing structure with may be less than the appraised value
a similar one that serves the same if you are receiving any type of
purpose. This method is commonly property tax exemption or reduction.
used to value new construction. Valuation notices are not tax bills. An
Income approach to value is increase in value does not necessarily
determined based on the income mean that next year’s property taxes
producing potential of the will increase at a proportionate rate.
property. This method is used
primarily to value business
property.
This fact sheet provides general information about Washington’s property tax. For more information or to get answers to specific questions, please
contact your local county assessor’s office.
1WASHINGTON STATE DEPARTMENT OF REVENUE
Property tax rates up to the one percent limit if it can If you or the assessor disagrees with
and limitations show substantial need for additional the BOE determination, their
Property tax rates are expressed funds and its governing board passes decision can be appealed to the
in dollars per thousand dollars of a second resolution/ordinance. State Board of Tax Appeals (BTA).
assessed property value. Assessors If the appeal at the BTA is a “formal”
Because the Levy Limit does
set the levy rate based on the taxing appeal compared to an “informal”
not include new construction,
district’s budget request, the total appeal, the decision made by the
annexations, and voter approved
assessed value of the taxing district, BTA can be appealed
excess levies, a taxing district’s actual
and any applicable levy limitations. in Superior Court.
revenue increase may be greater
Property tax levy limitations restrict than one percent. Information needed to appeal
or limit increases to property tax The appeal form must include
rates. Two such limitations include Appeal of true and specific reasons why you believe
the One-Percent Constitutional Limit fair market value the assessor’s valuation is incorrect.
and the Levy Limit. If you do not agree with the assessed Examples may include an appraisal
value of your property, you are of your property as of the
The one-percent assessment date in question,
encouraged to contact your local
constitutional limit excessive deterioration of your
county assessor’s office. You can find
Washington State’s Constitution property or sales of similar
a full list here: dor.wa.gov/
limits the regular (non-voted) properties reflecting a lower value
CountyContacts
combined property tax rate that for your property. Statements that
applies to an individual’s property Disagreements of property values the assessor’s valuation is too high
to one percent of market value ($10 are often settled at this level. You may or property taxes are excessive are
per $1,000). Voter approved special request copies of the comparable not sufficient reasons.
levies, such as special levies for sales information the assessor used
schools, are in addition to this to value your property. For a successful appeal, you must
amount. provide market evidence that clearly
If you are unable to reach an shows the assessor’s valuation is
The levy limit agreement, you may file an appeal incorrect. This evidence may include
The Levy Limit applies to a taxing with the county board of equalization information on sales of comparable
district’s levy amount, and not to (BOE) in the county where the properties in your area or
increases in the assessed value of property is located. Appeal forms documentation about conditions
individual properties. The limit is are available at the assessor’s office, of the property that the assessor
based on the population of the BOE office or dor.wa.gov/content/ may not have known. For example,
district as well as the district’s need getaformorpublication/ the land is not suitable for a septic
to increase revenue. The law restricts formbysubject/forms_prop. system or is not suitable for
taxing districts from levying, in any aspx#Appeals a building site.
year, more than a one-percent The completed petition must be If you have any questions about
increase in its regular, non-voted levy filed with the BOE by July 1 of the appeal procedures, please contact
over the highest amount that could assessment year you are appealing your local BOE or the assessor’s
have been levied since 1985. or within 30 days of the date the office. The telephone numbers are
A taxing district with a population change of value notice was mailed, listed in the county government
below 10,000 must adopt a whichever date is later. Some section of the telephone directory.
resolution/ordinance to be able counties have extended the filing
to increase its levy up to the one- deadline up to 60 days. Please check
percent limit. with the Board of Equalization in the
county where the property is located
Taxing districts with a population to determine your filing deadline.
of 10,000 or more are limited to the
lesser of one percent or the rate of
inflation with the adoption of a You must provide market evidence that the assessed
resolution/ordinance. If the rate of value does not reflect true and fair market value.
inflation is less than one percent, the
district could increase its levy
2WASHINGTON STATE DEPARTMENT OF REVENUE
Property tax rates vary How to pay your property taxes
Many factors determine property Property tax statements are mailed
tax rates, the amount of property by the county treasurer in February
tax due on comparable properties of each year. To avoid interest and
will vary throughout a county. The penalties, at least half of the amount
three main factors that determine due must be paid by April 30 (if the
the tax rate include: tax is less than $50 it must be paid in
full by April 30) and the balance by
various combinations of taxing
October 31. You can pay your
districts in different areas of the
property tax in person or by mail.
county
Some counties are now accepting
budget amounts for each taxing electronic payments via the county
district, and treasurer website. Check with your
voter-approved special levies county treasurer to see if this option
and bonds. is available to you. When paying by
mail, be sure to write the tax parcel
or account number on your check
Calculating your taxes and include the tax statement
If you know the assessed value of payment stub.
your property and the tax levy rate,
you can calculate the amount of tax. Many lending companies pay the
For example, if the assessed value property tax for the homeowner from
of your property is $150,000 and a property tax reserve account. In this
the levy rate is $9.41 per thousand case, tax statements are sent directly
dollars of value, your tax will be to the lending company. If your
$1,411.50. lending company pays the tax
directly and you would like to receive
$150,000 information, please contact your local
X .00941 ($9.41 per $1,000) county treasurer’s office.
$1,411.50 tax liability Questions: If you have questions
about paying your property taxes,
please contact your local county
treasurer’s office.
Where your property tax money goes
*Other 8.2%
Ports 1.5%
Fire 5.5%
Cities and
Towns 12.7%
Schools 56%
Counties 16%
* Other includes regional libraries, parks and recreation, emergency medical,
and hospital districts. (Distribution of 2015 tax year)
3WASHINGTON STATE DEPARTMENT OF REVENUE
Reductions, exemptions, deferrals and assistance
Reductions
Destroyed Property: Any real or Three-year tax exemption on value Property tax deferral program for
personal property that has been of remodel: If you improve your homeowners with limited income:
destroyed in whole or part, or is in an single family residence such as If qualified, you can defer your
area that has been declared a disaster adding a new room, deck, or patio, second half property taxes, due
area by the governor or the county you may qualify for a three-year tax in October, in an amount up to 40
legislative authority and has been exemption on the value of the percent of the equity in your home.
reduced in value by more than 20 improvements. Normal maintenance There is no age or disability
percent may be eligible for a does not qualify. To receive the requirement but you must have
property assessment reduction and exemption, you must apply through owned your home for at least 5 years.
or abatement of property taxes. your local county assessor’s office Household income and equity
Destroyed property form applications prior to beginning your remodeling determine eligibility. The interest
are available at your assessor’s office project. rate varies annually, as provided in
or on line at dor.wa.gov/docs/forms/ statute, and is based on an average
proptx/forms/taxpclaimreducassmtd Other exemption: Churches,
of the federal short-term rate, plus
estryrealpersprop_e.xls government entities, and many
2 percent.
nonprofit agencies are exempt from
Current use program and property tax if they use property Assistance
designated forest land: Owners of for a tax-exempt purpose. The Property tax assistance for widows
agricultural, open space, timber land, department of Revenue determines or widowers of veterans: This
or designated forest land may qualify which properties are entitled to the program is a grant assistance
for a reduced assessment under the exemption based on laws enacted program to help you pay property
current use program or as designated by the Legislature.
forest land. However, additional
taxes. Senior citizens and disabled
tax, interest, and penalties or Deferrals persons who are widows or widowers
compensating tax may apply Under these programs, the State of of a veteran may qualify. Age or
when property is removed from Washington pays all, or a portion, of disability, household income, and
classification. your property taxes on your behalf. your spouse’s veteran status at the
Unlike the tax exemptions, deferred
time of his/her death determine
Applications must be received by taxes are a lien on the property. The
Dec. 31 for a reduction in assessment lien becomes payable, together with
eligibility for this program. The
the following year. Application forms interest, upon sale, transfer, or Department of Revenue administers
are available through the assessor’s inheritance of the property, or when this program and approves or denies
office. the home is no longer your primary claims for assistance.
residence. The county assessor
Exemptions approves or denies applications
Property tax exemption for senior for the deferral programs.
citizens and disabled persons: This
program freezes the value of your Property tax deferral program
residence (as of January 1 of the initial for senior citizens and disabled
year of application), exempts all persons: If qualified, you can defer
excess levies, and may exempt your property taxes and special
a portion of regular levies, thereby assessments in an amount up to 80
reducing the amount of property tax percent of the equity in your home.
due. Senior citizens, veterans with Senior citizens and disabled persons
a 100 percent service-connected may qualify. Household income and
disability, and disabled persons equity determine eligibility. The
may qualify. Household income current interest rate is set in statute
determines eligibility and level and is 5 percent.
of exemption. The county assessor
approves or denies applications for
this program.
4WASHINGTON STATE DEPARTMENT OF REVENUE
Important dates Need more information?
The following publications are
For general information contact:
Department of Revenue
to remember available from your local county
Telephone Information Center
January 1 assessor’s office. You may also obtain
Real and personal property is 360-705-6705
a copy from the Department of
valued for taxes due next year Revenue online at dor.wa.gov dor.wa.gov
March 31 or by calling 360-534-1400. For tax assistance or to request this
Applications due for Senior/ Personal Property Tax. document in an alternate format,
Disabled Deferral and Widow/ visit dor.wa.gov or call 360-705-
Nonprofit Organizations. 6705. Teletype (TTY) users may use
Widower Assistance
Property Tax Deferrals for Senior the Washington Relay Service by
April 30
Citizens and People with calling 711.
First half of property taxes due.
Disabilities.
Personal Property listing forms due Property Tax Deferrals for
to assessor. Homeowners With Limited Income.
May 1 Property Tax Exemptions for Senior
One percent per month (12 percent Citizens and People with
per annum) assessed on delinquent Disabilities.
taxes. Assistance Program for Widows
June 1 or Widowers of Veterans.
Three percent penalty assessed on Open Space Taxation Act.
current year’s delinquent taxes. Appealing your Property Tax
July 1 Valuation to the County Board
Deadline for appeals to the County of Equalization.
Board of Equalization on current
year’s assessment; or 30 days from Questions
date of notification, whichever Your local county assessor’s office
is later. can answer questions regarding:
August 31 Assessed values.
New construction placed on current Appeals.
assessment roll at the valuation
Personal property.
assessed July 31.
Current Use Program and
September 1 Designated Forest Land.
Limited Income Deferral
Property Tax Deferrals for Senior
applications due.
Citizens and People with
October 31 Disabilities.
Second half of property taxes due. Property Tax Deferrals for
December 1 Homeowners With Limited Income.
Eight percent penalty assessed Property Tax Exemptions for Senior
on current year's delinquent tax. Citizens and People with
Disabilities.
December 31
Current Use Program and Your local county treasurer’s office
Designated Forest Land can answer questions regarding:
applications due.
Tax statements.
Property tax exemption Paying property tax. dor.wa.gov
applications for senior citizens
and disabled persons due.
PTFS0012 06/21
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