Get documents about "Homeowners Guide to Property Taxes FS 0012
Description
taxes pdf
Document Sample
Property Taxes
HOMEOWNER ’S GUIDE TO
WASHINGTON STATE DEPARTMENT OF REVENUE DECEMBER 2005
In Washington State, all real and personal property is subject to tax unless specifically exempted by law.
Property tax was the first tax levied in the state of Washington. Today, property tax accounts for about
30 percent of total state and local taxes. It continues to be the most important revenue source for public schools,
fire protection, libraries, and parks and recreation.
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.
The information contained in this fact sheet is current at the time of publication. However, state tax laws, their
interpretation, and their application can change because of legislative action, reviews, or court decisions. This
publication will not reflect such changes that occur after the date of printing.
PROPERTY VALUES
State law requires that assessors appraise Real Property Personal Property
property at 100 percent of its true and Real property includes land, improvements The primary characteristic of personal
fair market value in money, according to land, structures, and certain equipment property is mobility. Personal property
to the highest and best use of the affixed to structures. Characteristics of includes furnishings, machinery
property. Fair market value or true real property that influence the value and equipment, fixtures, supplies,
value is the amount that a willing and include but are not limited to zoning, and tools.
unobligated buyer is willing to pay location, view, geographic features, Most personal property owned
a willing and unobligated seller. easements, covenants, and the condition by individuals is specifically exempt.
of surrounding properties. However, if these items are used
in a business, personal property
Fair Market Value or True Value is the amount of money that a willing tax applies. For detailed information
and unobligated buyer is willing to pay a willing and unobligated seller. about personal property tax, please
refer to the Personal Property Tax
fact sheet.
The assessor values real property
using one or more of the following INSIDE
appraisal methods:
u Market or sales comparison value Changes to property values 2
is determined or estimated based
on multiple sales of similar properties. Appealing your appraised value 2
Most residential property is valued
using this method. Calculating your property taxes 3
u Cost approach value is determined
based on the cost of replacing Reductions, exemptions, & deferrals 4
an existing structure with a similar
one that serves the same purpose. Dates to remember 5
This method is used to value
new construction.
u Income value is determined based
on the income producing potential
of the property. This method is used
primarily to value business property.
Novemeber 2005
CHANGES TO APPEAL OF
PROPERTY VALUES APPRAISED VALUE
Assessors must revalue real property If you do not agree with the Information Needed
at least once every four years. In some appraised value of your property, to Appeal
counties, properties are revalued each you are encouraged to contact You are not required to have legal
year and require physical inspection your local county assessor’s office. representation to appeal your property
at least once every six years. Disagreements of property values values to the County Board of Equalization.
If your appraised property value are often settled at this level. You may To appeal, you must show that the
changes, you will receive a change request copies of the comparable assessor erred in the appraisal. To do this,
of value notice that lists the old and sales information the assessor used you must provide evidence that clearly
new appraised value of land and to value your property. shows that the appraised value does not
improvements. By comparing the If you are unable to reach an reflect market value. This evidence may
two values, you can determine agreement, you may file a formal include information on sales of comparable
if your appraised property value appeal with the County Board of properties in your area or documentation
has increased or decreased. Equalization in the county where the about conditions of the property that
The assessed value of your property property is located. Appeal forms are the assessor may not have known. For
may be less than the appraised value available at the assessor’s office. example, the land is not suitable for a
if you are receiving any type of property The completed petition must be septic system (does not perk) or is not
tax exemption or reduction. filed by July of the assessment suitable for building.
Valuation notices are NOT tax bills! year or within 30 days of the date Please note, the County Board is appointed
An increase in value does not mean the change of value notice was to determine questions of value and does
that next year’s property taxes will mailed, whichever date is later. Some not consider taxes.
increase at a proportionate rate. counties have extended the filing You may also appeal the County Board’s
deadline to 60 days. Please check decision to the State Board of Tax Appeals.
with the Board of Equalization in the Like the County Board, the State Board only
county where the property is located considers questions of value. You may also
to determine your filing deadline. pursue litigation in court.
You must provide evidence Questions: If you have any questions about
appeal procedures, please contact your
that the Appraised local County Board of Equalization or the
Value does not reflect assessor’s office. The telephone numbers
Market Value. are listed in the county government
section of the telephone directory.
PROPERTY TAX RATES
AND LIMITATIONS
Property tax rates are expressed The Levy Limit
in dollars per thousand dollars of The Levy Limit applies to a taxing district’s Taxing districts with a population of 0,000
assessed property value. Assessors budget, and not to increases in the or more are limited to the lesser of one
set the levy rate based on the taxing assessed value of individual properties. percent or the rate of inflation with the
district’s budget request, the total The limit is based on the population adoption of a resolution/ordinance. If the
assessed value of the taxing district, of the district as well as the district’s need rate of inflation is less than one percent,
and any applicable limitations. to increase revenue. The law restricts the district could increase its levy up
Property tax limitations restrict or limit taxing districts from collecting, in any to the one percent limit if it can show
increases to property tax rates. Two such year, more than a one-percent increase substantial need for additional funds and
limitations include the One-Percent in its regular, non-voted levy over the its governing board passes a second
Constitutional Limit and the Levy Limit. highest amount that could have been resolution/ordinance.
levied since 985. Because the Levy Limit does not include
The One-percent A taxing district with a population below new construction, annexations, and voter
0,000 must adopt a resolution/ approved excess levies, a taxing district’s
Constitutional Limit ordinance to be able to increase its levy actual revenue increase may be greater
Washington State’s Constitution limits
up to the one-percent limit. than one percent.
the regular (non-voted) combined
property tax rate that applies to an
individual’s property to one percent
of market value ($0 per $,000). Voter
approved special levies, such as special
levies for schools, are in addition
to this amount.
2 Property Taxes
PROPERTY TAX RATES VARY CALCULATING HOW TO PAY YOUR
Since various factors determine property YOUR TAXES PROPERTY TAXES
tax rates, the amount of property tax If you know the assessed value of your Property tax statements are mailed
due on comparable properties may vary property and the tax levy rate, you in February of each year. To avoid
throughout a county. The three main can estimate the amount of tax. For penalties, at least half of the amount
factors that determine the tax example, if the assessed value of your due must be paid by April 30 and the
rate include: property is $00,000 and the levy rate balance by October 3. You may pay
u various combinations of taxing is $5 per thousand dollars of value, your property tax in person or by mail.
districts in different areas your estimated tax will be $,500. When paying by mail, be sure to write
of the county the tax parcel or account number on
u budget amounts for each taxing
$100,000 your check and include the tax
district, and X .015 ($5 per ,000) statement payment stub.
u voter-approved special levies $1,500 estimated tax Many lending companies pay the
and bonds. property tax for the homeowner from
VALUE a property tax reserve account. In this
X LEVY RATE case, tax statements are sent directly
WHERE YOUR PROPERTY to the lending company. If your
TAXES lending company pays the tax directly
TAX MONEY GOES
Ports .9% and you would like to receive
Fire 5% information, please contact your
local county treasurer’s office.
*Other 6.4%
Questions: If you have questions
about paying your property taxes,
Cities and please contact your local county
Towns 4% treasurer’s office.
Counties 7.4%
Schools 55.3%
* Other includes regional libraries, parks
and recreation, emergency medical,
and hospital districts.
(Distribution of 2005 Levies)
Property Taxes 3
REDUCTIONS, EXEMPTIONS,
AND DEFERRALS
Reductions Property Tax Deferral and
Damaged/Destroyed Property: If your Exemption Program
property is damaged or destroyed, you Senior citizens and disabled persons
may qualify for a reduced assessed value may qualify for a property tax deferral.
for taxes payable in the following year. Veterans with a 00 percent service
Application forms are available through connected disability, senior citizens
the assessor’s office. and disabled persons may qualify for
a property tax exemption. Household
Current Use/Open Space Program: income and age, or disability
Owners of agricultural, open space, or determines eligibility. The county
timberland, may qualify for a reduced assessor approves or denies
assessed value under the current use/open applications for the senior/disabled
space program. Please note, tax, penalties, exemption and deferral programs.
and interest charges may apply when
property is removed from this classification. The Senior Citizens and Disabled
Applications must be received by Person Property Tax Exemption
December 3 for classification in the Program freezes the value of your
following year. Application forms are residence, (as of January of the initial
available through the assessor’s office. year of application) exempts all excess
levies, and may exempt a portion
Three-year Tax Exemption on Value of regular levies, thereby reducing
of Remodel: If you improve your single the amount of property tax due.
family residence such as adding a new
room, deck, or patio, you may qualify for The Senior Citizen and Disabled
a three-year tax exemption on the value Person Property Tax Deferral
of the improvements. Normal maintenance Program allows you to defer
does not qualify. your property taxes and special
To receive the exemption, you must assessments in an amount up to
apply through your local county assessor’s 80 percent of the equity in your home.
office prior to completing your Unlike the tax exemption, deferred
remodeling project. taxes are a lien on the property. This
lien becomes payable together with
interest, upon sale, transfer,
or inheritance of the property.
Other Exemptions
Churches, government units, and
many nonprofit agencies are exempt
from property tax if they use property
for a tax-exempt purpose. The
department of Revenue determines
which properties are entitled to the
exemption based on laws enacted
by the Legislature.
For more information regarding the
exemption and deferral program,
please refer to the corresponding
property tax exemption or deferral
fact sheet.
Property Taxes 4
IMPORTANT DATES Need more information?
TO REMEMBER The following publications are available
from your local county assessor’s office.
January 1 You may also obtain a copy from the
Date real and personal property Department of Revenue online
is subject to taxation and at http://dor.wa.gov or by calling
valuation. -800-647-7706.
Personal Property Tax
u
February 14
Nonprofit Organizations
u
County treasurer mails tax
bill (based on previous year’s Property Tax Deferrals for Senior
u
assessed value). Citizens and Disabled Persons
Property Tax Exemptions for Senior
u
April 30 Citizens and Disabled Persons
First half of taxes due.
u Open Space Taxation Act
Personal Property affidavits due.
u Appealing your Property Tax
July 1 Valuation to the County
Deadline for appeals to the Board of Equalization
County Board of Equalization
on current year’s assessment; Questions
or 30 days from date of mailing, Your local county assessor’s office
whichever date is later. can answer questions regarding:
u Assessed values
August 31 u Appeals
New construction placed
on current assessment roll. u Personal property
u Current Use/DFL
October 31 u Property Tax Deferrals for Senior
Second half property taxes due. Citizens and Disabled Persons
u Property Tax Exemptions for Senior
December 31
Citizens and Disabled Persons
Deadline for applications for
Open Space classification.
Your local county treasurer’s office
can answer questions regarding:
Deadline for senior citizen
and disabled persons property u Tax statements
tax exemption claims filed u Paying property tax
with assessor.
Telephone numbers are located in
the county government section (blue
pages) of your local telephone directory.
5 Property Taxes
FIELD OFFICE LOCATIONS
1904 Humboldt St Suite A 11627 Airport Rd Suite B
PO Box 1176 EVERETT 98204-8714
BELLINGHAM 98227-1176 (425) 356-2911
(360) 676-2114
4407 N Division
2101 4th Ave Suite 1400 Suite 300
SEATTLE 98121-2300 SPOKANE 99207-1685
(206) 956-3000 (509) 482-3800
734 E First St Suite B 630 N Chelan Ave Suite B-3
PO Box 400 PO Box 220
PORT ANGELES 98362-0064 WENATCHEE 98807-0220
(360) 457-2564 (509) 663-9714
20819 72nd Ave South 3315 South 23rd St
Suite 680 Suite 300
KENT 98032 PO Box 111180
(253) 437-3440 TACOMA 98411-1180
(253) 593-2722
6500 Linderson Way SW
Suite 102 1714 S 16th Ave
TUMWATER 98501 YAKIMA 98902-5713
(360) 705-6676 (509) 575-2783
8008 NE 4th Plain Blvd 1657 Fowler St
Suite 320 PO Box 140
PO Box 1648 RICHLAND 99352
VANCOUVER 98668-1648 (509) 734-7526
(360) 260-6176
Department of Revenue
Taxpayer Assistance
Telephone Information To inquire about the availability
Center -800-647-7706 of this document in an alternate
format for the visually impaired,
http://dor.wa.gov please call (360) 705-675. Teletype
(TTY) users, please call -800-45-7985.
Prepared by the Taxpayer Services Division
Printed on recycled paper 2/05 FS 002
