80% Property Tax Increase... Loosing my Home? (Olympia: apartment, car insurance, loan)

[Ultrarunner]

Originally Posted by cdelena

So explain the ruling... here is the best explaination I have found...

Washington Policy Center • Publications (broken link)

I stand corrected on my use of the word "Technicality"... It would have been better had I said judge Roberts believed the voters were incorrectly led in voting to limit property tax increases and cancelled the peoples vote in favor of the initiative.

Does judge Roberts decision mean the right of the people to use the initiative process as a cornerstone of our states constitution is no longer meaningful?

[dcgirl]

Texas has the same problem with ever increasing property appraisals. Taxing on the increases when someone hasn't sold their home is taxing on unrealized capital gains. Funny how the government never gives you any money back if the value goes down in subsequent years. In Texas we go on-line and get comparables to other homes in the area - compare year built, type of construction, square feet, etc. Be sure to list any and all "defects" which you could claim to lower the value and be sure to protest at your appraisal office.

[sean98125]

The Washington Policy Center is a biased think-tank.

You could read the court's decision and see for your self, in context, what was said.

http://www.metrokc.gov/kcsc/docs/i-747.pdf

The Washington Policy Center article fails to mention that I-722 was ruled unconstitutional in February of 2001 and that we didn't vote on I-747 until six months later. There was plenty of time to revise I-747 so that it would be constitutional by simply replacing the I-722 text with the correct citations.

[sean98125]

Originally Posted by Ultrarunner

Does judge Roberts decision mean the right of the people to use the initiative process as a cornerstone of our states constitution is no longer meaningful?

Of course it doesn't, particularly if you read her actual opinion and see her references to the cases that show how protected the intitiative process actually is - as long as the initiative is constitutional.

[Ultrarunner]

Originally Posted by sean98125

Of course it doesn't, particularly if you read her actual opinion and see her references to the cases that show how protected the intitiative process actually is - as long as the initiative is constitutional.

I guess my question is... how does one know if an initiative is constitutional?

People far more learned than I have been debating constitutional issues and filing suits far longer then I've been on this earth.

I did read the link provided by the other Poster which referred to the judge's decision this way:

"Judge Roberts has set a neat trap for voters. Since no one can tell how the law might change between January, when an initiative is filed, and November, when the people vote on it, her ruling effectively deprives the people of the right to make law through initiative"

Most of us just live our lives trying to do the right things and be contributing members of our communities. Life is full of unforeseen events, some that are catastrophic. We try to cope the best way we can. The arrival of your Property Tax Bill should not be one of those catastrophic events. I don't gamble of play the lottery... although I feel as though each year at tax time we are all playing a very high stakes game called Assessment Roulette.

A person can buy insurance for Fire, Floods and Earthquakes, as well as Health Insurance. The community, through the taxes we pay, also provides assistance to those without means.

There ought to be a type of Homeowner Insurance that could protect homeowners from double digit property tax increases. We all know what happens if you can't pay your property taxes... the government takes your home. At least with income tax, the more you EARN the more you pay... what makes Washington Property Tax so insidious is that you are forced to pay a tax based on the Assessor's opinion, irregardless of any action or decision within your control.

What about an initiative called the Home Owner's Protection Act of 2008? It could say something to the effect that We the Citizens of Washington recognize that Home Ownership is a Benefit to Society and the Foundation of Our Communities and as such it should be encouraged and protected.

One way to protect home ownership is to add some predictability to property taxes... one would then at least have the opportunity to budget according and realistically one could run the numbers to project if home ownership is even realistic or feasible.

I can't and don't have the ability to write a blank check for anything... why is it fair for the government to compel me, under the threat of loosing my home, to do so? If I can't afford something, I do without and it looks like a lot of people in Washington will soon be doing without.

[Sandy Nelson]

Ultrarunner,
The tax valuation on my home has been assessed with a fifty percent increase. The real estate values in Thurston county have not gone up near that amount. If I look at the monthly MLS sales statistics since January 2007, the average annual increase in real estate values for home and condo sales is 4.22%. The announced tax assessments are so extremely close to actual market value and in some cases above what the market would bear, it leaves no margin for the market to adjust downward. If that were to happen we can be certain that our taxes won't be adjusted downward. I would recommend getting an appraisal, or a comparative market analysis of your home. Ask the county assessor's office to provide you with their appraisal or comps used to determine the assessment. If there is a discrepancy go through the appeals process. You can find more information at the Thurston County Assessor's website here: Assessor's Office | Appeal Your Assessed Value
I can totally understand your issue, as this is the home you live in and what it would sell for is really of no consequence to you, as you have not sold it yet and do not have the proceeds from a sale at your disposal. The Washington state tax surplus is due to the thriving local real estate market, and 1,78% of every home sale go to the state in form of excise tax. There really needs to be a cap on the annual increase of property taxes.

Sandy

[StealthRabbit]

Originally Posted by missyM

I feel for ya.....last year my 2BR got assessed for 211K, it must be the highest 2br in my county. It went up again this year. We haven't done a lot of improving, either. It couldn't hurt you to fight it. Are you a sr. citizen yet? That could put you in a different tax category, hopefully it is statewide and not just Yakima county that recognizes those things.

I have a 2bdrm trashed mobile assessed at $285k (1975, and has survived 33 yrs of 80 mph winds and freezing rain). Ceiling gutted from leaks, every window sill dry rotted, Doors falling off, blackberries growing through the wall... Floor rotted from leaky and burst pipes...

It is on 6 Very steep and unusable acres.
*************

I fought my 75% increased assessments last yr, but didn't get very far...just as my friend who successfully makes a great living fighting WA commercial assessments told me; "Board of Equalization is a 'rubber stamp' for assessors in residential battles". YOU HAVE to PROVE the assessor is wrong, I had a very good case illustrating how the assessor had used "hot spots" for his comps, and that the actual comps I found were ~ 50% of the value of the assessors, and that I had valuation adjustments the assessor did not consider - Blah Blah... I had ~ 20 pages of facts / maps / statistics, comps... and... several hours of preparation and of course, the hearing itself...They dropped my assessment ~ 1% It would be best to continue the fight through the state appeal, and I was advised that is where you get the real benefit, BUT... you better be right, or you will be sorry; as they can also RAISE your assessment based upon the recommendation and case brought by the assessor (Who has a whole staff and abundant data to shoot you dead + incentive to win (keep his job and get GOOD annual reviews / raises))

I didn't appeal, because the assessor keeps offering to buy my house as he really likes it..., AND I stand a good chance of getting his value in an 'optimal' sale. But, the WA tax assessments are totally screwed, as they do not consider the fact that you might have worn out appliances and leaky roofs... and you may have built your house with used supplies (from the Re-Building Center, light fixtures $4, doors $6...) they just consider your home is spiffed and pretty and would garner the TOP price of the special homes they use as comps. Do be aware that your comps need to be the same date the assessor uses, not today's date.

I will have to say I learned a lot, and I enjoy a bit of contentious battle while presenting my case at the recorded hearing, but... homeowners are not availed the same luxury as commercial, who can use Cap Rates, Depreciation, and vacancy rates as ammunition. So, if you value your time, don't waste it. Your hearing will probably be scheduled as convenient as mine (the day I was giving master's dissertation), but you CAN"T change it because it is SO important that they have the opportunity to try to humiliate you, but most of all so they can get a good laugh and tighten the screws.

so... long story short... WA homeowners on fixed income are very susceptible to being taxed out of their homes.

and, 'rocco is correct, your mil rate SHOULD fall as district valuations increase; as the taxing entities have a $$ amount of budgetary need, not a % of each property. BUT... don't count on your out of pocket taxes going down, only the Mil rate MAY go down. But with your increased valuations, inflation and special bonds, replacement levies... your out of pocket tax will most probably increase.

The senior exception is very restrictive and only FREEZES your values at current rates, tho there is the provision for 'lien' taxation, but interest rates and admin fees are very high. Basically you need to prove you are destitute, and stay that way, and you have to be old enough (65, I think)... by then I will be able to buy a 'Golden Age' passport to National Parks, and with 'stealth' camping I might not need a home (I've been paying my $50-$75/yr for the Golden Eagle for over 30 yrs...but just like Christine, my (Your) un-elected governor, the NPS needs my dough worse than I do)

The only solution I am planning (short of moving) is to own only commercial property that is leased NNN (Tenant pays taxes + increases). Unfortunately, I will never be able to replace my home that is in a national scenic area, and I like the view and peacefulness, but... the assessor likes it more, AND he has a job to afford it, and if he can no longer afford it, he can raise his neighbors assessment.

Today I'm checking out locations in NH (very high Prop tax) and last week was VT. I was very surprised to see the tax bill for the VT home I stayed in was $8000/yr, but that is 20% less than my WA taxes.

[stingray427]

It is my understanding that Washington does not have a state income tax. But they make up for this in that they have very high property taxes perhaps higher than California? Is this true?

[Ultrarunner]

To Sandy and JanB

Thanks Guys for for the detailed posts... I e-mailed you, JanB, the other day and guessed that you were probably out and about.

The proposed Assessor value on January 1, 2007 is 49% higher than my very detailed loan appraisal from December 2005. I don't have anything more current.

The most recent comparable sale I can find on a similar 30 year old home and land is from 2005. All the others comps are on homes built within the last 5 years.

I feel I have no choice other than to appeal... the kicker is the land my home sits on was large enough for a second home until my neighbor's pasture was declared a wetland and the resulting buffer zone which now encompasses just about all of my land makes my land unbuildable... part of my home is also in this zone.

I stopped by the county to enquire about expanding my septic and was told the wetland buffer would be a tremendous obstacle to overcome.

If anything, I would think the above factors would be grounds to reduce my valuation.

Stingray427... my effective Washington tax rate for this year is 1.17% or just about the same as my friends in California... however, the actual tax amount they pay can only be increased by 2% each year aside from additional specific voter approved items.

Unlike Washington, California assessments are NOT subject to the opinion of the Assessor.

JanB and Sandy, what would happen if I were to market my home at the new 80% higher value and not find a buyer... would this be sufficient grounds to lower my assessment?

[stingray427]

Originally Posted by Ultrarunner

To Sandy and JanB

Thanks Guys for for the detailed posts... I e-mailed you, JanB, the other day and guessed that you were probably out and about.

The proposed Assessor value on January 1, 2007 is 49% higher than my very detailed loan appraisal from December 2005. I don't have anything more current.

The most recent comparable sale I can find on a similar 30 year old home and land is from 2005. All the others comps are on homes built within the last 5 years.

I feel I have no choice other than to appeal... the kicker is the land my home sits on was large enough for a second home until my neighbor's pasture was declared a wetland and the resulting buffer zone which now encompasses just about all of my land makes my land unbuildable... part of my home is also in this zone.

I stopped by the county to enquire about expanding my septic and was told the wetland buffer would be a tremendous obstacle to overcome.

If anything, I would think the above factors would be grounds to reduce my valuation.

Stingray427... my effective Washington tax rate for this year is 1.17% or just about the same as my California friends... however, the actual tax amount they pay can only be increased by 2% each year aside from additional specific voter approved items.

Unlike Washington, California assessments are NOT subject too the opinion of the Assessor.

JanB and Sandy, what would happen if I were to market my home at the new 80% higher value and not find a buyer... would this be sufficient grounds to lower my assessment?

Thanks for the info my current property tax is 1,617 per year