Largest Property Tax increase in Washington state Coming truth or hype? (Seattle: sale, rental)

[St.Croix to Seattle]

Has anyone been following this,in 3 weeks we will be in Washington (Puget Sound) to find a house and I stumbled on this article from Seattle PI is this truth? does anyone know what stage this proposed law is in?...defiantely will have an effect on how much we decide to spend that is fo sure

[scirocco22]

Can you give a link to the article? I can't find it.

[scirocco22]

Never mind, I found it.

Assessor warns of largest property tax increase in state history

[Ultrarunner]

It is a REAL concern... at least for me. I started a thread last year when I learned the Assessor had revalued my home 80% higher this year over last.

I love Washington, but I can't continue to live with the unpredictability of Property Tax Roulette.

[StealthRabbit]

Not knowing the text of the specific laws that are on the table... I would venture to say that the sky is not falling, BUT... be prepared for higher property taxes in WA. Remember it is a LAGGING indicator (you pay taxes in the 'rears', based on valuation as-of-last-year..)

I fought my residential assessment last yr (~ 20% increase per yr for 13 yrs... = 10x the taxes I paid then, and now 50% more tax burden in the last two yrs... currently $33/day)

I was mentored by someone who makes a living fighting commercial assessments. Comments:

1) It is virtually impossible to win a residential assessment fight, unless you have something that is blatantly overvalued; I.e. you could not have sold it for assessed amount in Jan-July of previous yr.
a) The odds are against you, as the assessor has incentive to keep his job and your values high; has all 'the goods' (valuations is Assessor's real job, and knows it well)

b) You have comparables, which assessor will have more of AND also knows "The Sweet Spots" (where the most expensive props are, within your area of allowable comps.)
c) Also, you have material knowledge of your house if it has reasons it is not marketable, which you can prove by estimates, but you will not substantially reduce value.
d) They can also choose to RAISE your taxes at the hearing (which they are inclined to do if you mess up, and they can justify it)
e) Board of Equalization is actually a 'rubber stamp' for the assessor. (Do some data collection on residential contests and awards and you will note few are significantly successful to homeowner's)
f) If you have a VERY GOOD case, you can take it to the state appeal process (But you better have a good case, i.e. house is truly SIGNIFICANTLY overvalued in a way that you can PROVE IT)

2) It is relatively easy to win a commercial assessment contest IF you have relevant data. (much more info available to you, that the assessor has to DIG for).
a) cap rates for similar rental props
b) rents and variables
c) your building and market conditions
d) financial viability and projections
e) professional appraisals

3) The reality is that someone who professionally fights assessments gets paid a percentage of the reduction in taxes to client. For a home, ~ $5000 taxes, you MIGHT get it reduced by a few hundred dollars (BUT they WILL get you in the following years)
a) Payment to represent you would be ~ $50 to $100 for ~ 40 hrs work
b) For a commercial complex that gets a $50,000 tax reduction will pay the rep ~ $5,000 for approximately the same task, but a few more weeks effort. (with additional expenses the owner will pay for appraisals, financial data...)

[LMB]

Is WA property tax based on price of last sale or square footage? Or some combination of both?

Thanks!

Lynn

[madicarus2000]

Originally Posted by St.Croix to Seattle

Has anyone been following this,in 3 weeks we will be in Washington (Puget Sound) to find a house and I stumbled on this article from Seattle PI is this truth? does anyone know what stage this proposed law is in?...defiantely will have an effect on how much we decide to spend that is fo sure

One thing about WA state is not all counties do an annual assessment. Some are annual, some do an assessment every 4 years. There are some counties in between. So a county that may have done their assessment years ago, when prices were lower, are doing them this year, when prices are higher, and so you’ll see a much noticable change. The taxes should not increase in proportion to the assessed value increase, but it will increase. You need to check on each county and see when was the last assessment to get an idea. Counties that do an annual assessment will see less of a change than those that are not on an annual basis.

[madicarus2000]

Originally Posted by LMB

Is WA property tax based on price of last sale or square footage? Or some combination of both?

Thanks!

Lynn

Please see attached link.

Property tax

State law requires that county assessors appraise property at 100 percent of its true and fair market value in money, according to the highest and best use of the property. Fair market value or true value is the amount that a willing and unobligated buyer is willing to pay a willing and unobligated seller. The county assessor values real property using one or more of three professional appraisal methods.

[LMB]

Thanks for the link, Madicarus.