Seattle / Queen Anne property tax question.. (for sale, 2015, houses)

[townie123]

So we moved from out of state and bought a house in upper Queen Anne about a year ago. So far so good, we love Seattle!

However, something seems screwy with the amount we're paying in property tax. On Redfin dot com, there is up to date prop tax info for all the houses in our neighborhood and nobody seems to be paying the same tax rate.

For example, let's say our "assessed value" from the county is $500k and we're paying $8k in taxes, while our neighbor's assessed value is $700k and is paying $6k in taxes - how can that be? Our house is worth less (according to the city) yet we're paying a much higher tax rate?!?!

And it's not just our home - it seems that everyone in our area is paying a different rate based on assessed value. Is there some logical explanation for the inconsistencies in tax rates - does anyone know? Any other considerations or things to beware of before we contact the city?

Thank you in advance!!

[Hemlock140]

Rather than using Redfin, which could be out of date or just wrong, go to the King County site and put in various addresses to search for the actual tax bills. Click LAUNCH, then put the address in the search field, and when it comes up, click the parcel on the map and select Assessor's Report. Then click Property Tax Bill. My tax is $6,051 on a value of $572k, about $200k less than actual sale value. The house next to us sold recently, is much smaller, but taxes just slightly less because their assessed value went up after the sale to just less than ours. Any recent sale at a higher price will affect the assessed value, so people staying in the same home many years will have lower taxes than those just buying. We are not in Seattle, but the same applies, taxes are county, not city, though some of the money goes to the city.


King County iMap: Interactive Mapping Tool

[homesinseattle]

Another interesting thing I've noticed in my work. Quite frequently, when listing a home for sale, I discover that the seller (perhaps in great part to avoid a higher tax rate) has done high quality remodeling, basement conversion, even additions without permits. When homes are listed for sale, there is a question on the mandatory WA state property disclosure form that asks if remodeling was permitted. It is not uncommon at all to see something like "Lower level converted. No permits, excellent work quality". In this market, that doesn't seem to keep buyers from buying homes like that once they have had the work inspected. I guess the thought is that if the city ever discovered work that was done improperly, they wouldn't penalize the new owner that severely.

[townie123]

Thanks for the input so far! We did go to the govt website (Hemlock) to verify and renovations were involved (homesinseattle), but all were definitely permitted....

I want to give a little more detail on what exactly is causing us so much heartburn and to see if you all think it passes the smell test:

My house and my neighbor 2 houses down - both were fully 100% renovated, studs out renovation, completed in summer of 2015. Ours is what I'd call a mid-level renovation, definitely better than builder grade but no imported Venetian marble or anything. Our neighbor's house is a 10++ amazing in every way, highest quality everything, really impressive.

They bought their house within 1 month of us buying ours in summer of 2015 - and they paid a full $800k more than we did!! Yet, they are paying $4500 less per year in property taxes!! So it's exact same scenario in terms of history of each home, yet a huge disparity in tax bill.

It's really an outrage and feels like we're getting royally shafted. We want to contact they city to see if there's some mistake, but as you all know, dealing with local government in any way is treacherous/miserable/exhausting/infuriating/heartbreaking/confusing/soul crushing, etc., so we want to make sure we're prepared and not missing something before going down that path. Any thoughts on this or similar experiences out there?

[pinkerton83]

We bought in Queen Anne in 2015 as well and our property taxes are enormous compared to neighbors with similarly valued houses. Can't offer an explanation but our house was re-assessed for 2016 property taxes at 20% more that what we paid only months prior. We have appealed the valuation.

[fnh]

Originally Posted by townie123

Thanks for the input so far! We did go to the govt website (Hemlock) to verify and renovations were involved (homesinseattle), but all were definitely permitted....

I want to give a little more detail on what exactly is causing us so much heartburn and to see if you all think it passes the smell test:

My house and my neighbor 2 houses down - both were fully 100% renovated, studs out renovation, completed in summer of 2015. Ours is what I'd call a mid-level renovation, definitely better than builder grade but no imported Venetian marble or anything. Our neighbor's house is a 10++ amazing in every way, highest quality everything, really impressive.

They bought their house within 1 month of us buying ours in summer of 2015 - and they paid a full $800k more than we did!! Yet, they are paying $4500 less per year in property taxes!! So it's exact same scenario in terms of history of each home, yet a huge disparity in tax bill.

It's really an outrage and feels like we're getting royally shafted. We want to contact they city to see if there's some mistake, but as you all know, dealing with local government in any way is treacherous/miserable/exhausting/infuriating/heartbreaking/confusing/soul crushing, etc., so we want to make sure we're prepared and not missing something before going down that path. Any thoughts on this or similar experiences out there?

I can't really comment on your tax situation (appraisals do sound very uneven) but, based on my experience, you may be pleasantly surprised at how efficient/knowledgable/helpful Seattle public employees are, even those in the tax office.

[misscross]

I vaguely recall a conversation with our agent that King County property taxes should equal roughly 1% of the assessed value and that seems to be correct when I look up our neighborhood (new construction houses so taxed at very current/high value not lagging behind market value like older homes).

Perhaps some of your neighbors got a senior tax exemption/discount? I believe the county does have that for seniors that meet the requirements. Or if yours is roughly 1% might be yours is correct but somehow theirs isn't up to date.

[townie123]

Originally Posted by pinkerton83

We have appealed the valuation.

Any advice on the appeal process or are you still waiting for a response?

[Hemlock140]

Are the people old? There are programs that provide relief for the elderly regardless of the property value, where some of the property tax bill is deferred or it is exempted. There are also voter-approved assessments that could apply to you but not your neighbors but that would be rare if within the same city. Lot size also makes a difference, our taxes jumped up several years ago when due to the lot size (12,000 sf) they changed the zoning to two homes, though we would never consider tearing it down and building two on the lot.

Tax relief - King County

[pinkerton83]

Originally Posted by townie123

Any advice on the appeal process or are you still waiting for a response?

We are still waiting for a response (it has been months since we filed the appeal). I will update the thread once we have heard back.