Decoding Property Taxes

Turns out that old adage about death and taxes being the only sure things might be true - but with caveats!  With property tax payments coming due, we thought to shed a little light on the pesky burden. 

Property tax makes up for about 30% of our state and local taxes and is the revenue which pays for schools, fire protections, libraries and parks!   

Our property taxes are determined by the assessor and the assessor is required to appraise property at 100% of its true and fair market value according to the highest and best use of the property. They determine this using the market or sales comparison approach, the cost approach (what it costs to replace a structure) and/or the income approach. 

Property values are revaluated each year and a physical inspection is required every 6th year.  If there is a change, you’ll receive a change of value notice and if you disagree with the assessed value, you can contact your local county assessor’s office.  Find a full list at dor.wa.gov/CountyContacts.  These disagreements are often resolved at this level and if not you may file an appeal with the board of equalization dor.wa.gov/content/getaformorpublication/formbysubject/forms_prop.aspx#Appeals.  Make sure to be up to date on deadlines for the appeal!  If you don’t agree with this determination, you can take it to the State Board of Tax Appeals.  For a successful appeal, among other things, you must provide market evidence that the assessed value does not reflect true and fair market value. 

The county treasurer mails your tax bill in February of each year.  In order to avoid penalties and interest, it is important to pay the first half payment by April 30th and the balance by October 31.  Be sure to include the tax parcel number on your payment and include the payment stub.  If your lender pays the tax for you, the statement is sent directly to the lending company.  Of course, you can call your local county treasurer’s office should you have any questions regarding payment of your property tax. 

Sometimes you can get a little relief.  If your property has been destroyed, or reduced in value by more than 20%, you may be eligible for a reduction.  If you improve your single family residence, you may qualify for a three year tax exemption on the value of improvements.  Further, some disabled persons and senior citizens may also qualify for tax deferral.   

Hopefully, our little synopsis sheds some light on property tax.  If you need more details or information you can check out dor.wa.gov. 

Important Dates: 

January 1 Real and personal property is valued for taxes due next year 

March 31 Applications due for Senior/ Disabled Deferral and Widow/ Widower Assistance  

April 30 First half of property taxes due. Personal Property listing forms due to assessor.  

May 1 One percent per month (12 percent per annum) assessed on delinquent taxes.  

June 1 Three percent penalty assessed on current year’s delinquent taxes.  

July 1 Deadline for appeals to the County Board of Equalization on current year’s assessment; or 30 days from date of notification, whichever is later.  

August 31 New construction placed on current assessment roll at the valuation assessed July 31.  

September 1 Limited Income Deferral applications due.  

October 31 Second half of property taxes due.  

December 1 Eight percent penalty assessed on current year's delinquent tax.  

December 31 Current Use Program and Designated Forest Land applications due.

Source: Ashley Duran at Chicago Title Company