“As real estate values have dropped, there is a natural expectation that your property taxes should drop as well. However this may not be the case.” This is a quote from Lloyd Hara, King County Assessor. In a recent meeting with Lloyd, I was able to glean some important tips about how taxes are determined and applied to the hundreds of thousands of homes throughout the County.

While taxes are a necessary evil of modern living, most of us demand that those taxes be applied fairly and that is the tough job of the Assessors office. The State, local Cities, School and Fire / Safety Districts rely on them to collect taxes so they can provide services.

Most of us have our taxes paid through an escrow account managed by our home lender so this amount is built into our housing budget and we don’t think much about it. It is however very important to fully understand your tax bill and make sure a mistake has not been made. Since assessments don’t look closely at your specific home, mistakes can be made and you can appeal.

Below are several points to ponder and resources for tax appeals ….

“Oh by the way, if you or someone you know could use some help with Real Estate or anything to do with homes, just call me with their name and number and I’ll be happy to help them.”

Facts about Tax Assessments

How can my assessed value decrease and my taxes increase?

  • When we vote for more taxes, taxes go up. For instance in Snohomish County voters approved 33 of 44 ballot measures last year. Voter approved measures amount to 42% – 47% of your tax bill.
  • When assessed values increase or decrease, taxes don’t necessarily follow suit. Property taxes in Washington are budget based. Each taxing district; cities, counties, school, library, fire, etc. decides how much to budget or levy each year then your share of the tax bill is determined by a simple formula. Taxes to be collected for the district are divided by the total assessed value of a district creating the levy rate. Then the levy rate is multiplied by the assessed value / 1000 = the taxes owed.

When will the 2011 sales affect my assessed value and tax bill?

  • Home sales that occur in 2011 will be used to set the Jan. 1st, 2012 assessments which will be used to calculate taxes due in 2013.
  • Tax statements received this year (2011) reflect market values from sales in 2009. So they will not reflect recent value losses.

Tax appeals. If you think your tax bill is too high you can appeal within 60 days of receiving your notice. Appeals are made to an appeals board which is separate from the Office of the Assessor. If you disagree with the board’s decision you can appeal to the Washington Board of Tax Appeals or pursue litigation in court.

Tax assistance. If you are a senior citizen, widow or widower, disabled or your income is below a certain level you may be eligible for a deferral or exemption.

Exempted property. Certain homes that have been damaged by natural disaster or have a unique use may be eligible for a reduction in assessment. Examples include:

  • Character building benevolent organizations. Protective or rehabilitative social services. Veterans and relief organizations. Libraries. Orphanages. Day care centers. Nursing homes and hospitals. Schools & colleges. Art, scientific and historical collections. Sheltered workshops for the disabled and more.
  • Contact the State Department of Revenue for a determination of exemption, they will then instruct the Assessor to change the tax assessment.

Contact your Assessor:

Courtesy of Linnea Jones – Windermere Real Estate / Northeast, Inc. 425-765-2211