Property taxes???? (Vancouver, Wenatchee, Moses Lake: comparable sales, flat fee, sales)

[Earniefan]

Could everyone please fill me in on the property tax situation. Someone left a post saying they are paying over 10K this year, and someone else said that their property value went from 350K to 850K, this is insane. Is this just in certian areas or is all of Washington like this? We are looking at Wenatchee, Moses Lake, Liberty Lake areas. This is really turning me back towards Idaho but I would like to have Washington be an option also. Any info on where to look this up would be appreciated also. Thanx

[wythors]

Property taxes appear to be about 1% of the assessed value, as our home is assessed at $350,000 and our taxes are about $3,500. God help us if they ever start using market value, as the market value of our home is upwards of $500,000.

[magrack]

Originally Posted by Earniefan

.... Any info on where to look this up would be appreciated also. Thanx

Each county taxes slightly differently, plus there are many that voted various and sundry bond issues, but basically wythors is correct; figure on 1%.

Sometimes appraised value lags market value, and when the tax assesor wakes up, it can be a shock.

[LMB]

Is the assessment calculated on sq footage of house, size of property, etc., or by amount of last sale? Or is this the county-by-county thing you mentioned? Also, how does a finished basement figure in the assessment?

Thanks,
Lynn

[magrack]

State law requires assessments to be based on fair market value.

The differences are mostly in the bonds passed by the voters in any particular county/school district, and how efficient/up to date the fair market value determination is.

[cdelena]

Originally Posted by LMB

Is the assessment calculated on sq footage of house, size of property, etc., or by amount of last sale? Or is this the county-by-county thing you mentioned? Also, how does a finished basement figure in the assessment?

Thanks,
Lynn

Typically an appraiser will estimate the fair market value based upon sales of comparable properties and the square footage of the home. I found 1% of a conservative market estimate is common, but you can look at public tax information online for the counties you are interested in.

Some here have been put in a financial bind because appraisals have increased and therefore taxes have gone up. I moved here from Texas where 2.4 to 3.4% is common so the taxes look pretty reasonable to me.

[magrack]

Originally Posted by cdelena

.... I moved here from Texas where 2.4 to 3.4% is common so the taxes look pretty reasonable to me.

I've read that on the average home prices in Texas are much cheaper than in western WA, but I have no real knowledge of that, so a question.

If home prices in TX are in fact cheaper, how do you think you made out, comparing PITI to PITI? (I think that's the only reasonable way to compare, given the reported disparity in home prices)

[cdelena]

Originally Posted by magrack

I've read that on the average home prices in Texas are much cheaper than in western WA, but I have no real knowledge of that, so a question.

If home prices in TX are in fact cheaper, how do you think you made out, comparing PITI to PITI? (I think that's the only reasonable way to compare, given the reported disparity in home prices)

Housing in Washington is about 30% higher than Texas but I would estimate PITI is only 15% higher as taxes and insurance are much lower. Since the climate is more moderate and electricity is substantially lower the cash flow difference is probably only 5%.

But for the 5% I live in a much more beautiful place, have a more comfortable climate, less congestion (I am in Vancouver), and fewer social problems to deal with. We are very pleased with the change.

[StealthRabbit]

Originally Posted by Earniefan

... We are looking at Wenatchee, Moses Lake, Liberty Lake areas. This is really turning me back towards Idaho but I would like to have Washington be an option also. Any info on where to look this up would be appreciated also. Thanx

Check the county web sites, as assessor will usually post the mill levy, and realize that is can vary from one side of the street to the next. (one of ours is ~ 1.5% and other .85%) also beware that some counties have had low taxes due to timber $$ which we have just seen go away, ask the assessor, I find those conversations enlightening.... BUT... WA state is REQUIRED to tax on FMV, just some assessors are a little more conservative than others about cranking it up. I have a court date next month, but don't expect any big successes in dropping my taxes. (maybe a few bucks) I've always just worked it out with assessor, but this time they had several thousand peolpe contesting it, so they are playing hardball. The std increase was 60-70% in valuations in our area, and they do a physical inspection every three yrs. And base the FMV on comparable sales (as if we were all spiffing our homes to sell...). ID is not great either, as they only offer a 75k 'Homestead' exemption. That doesn't go to far on a $350k tax bill.

WY has pretty good property taxes , that's where I'm looking, but... I don't like buying into an 'energy boom' BTDT...

I have a Cost of Living Spreadsheet, and ID didn't fair well. (income + sales + property tax) But check this website to compare states http://www.taxfoundation.org/news/show/335.html (broken link)

Unfortunately WA shows a total tax burden ranking of #4 !!
This is accentuated if you have little or no income, as that is a "benefit" imbedded in the WA numbers. Hopefully you are not 'retired', as WA is setting itself up for an exodus of retirees... who will be reducing their overall tax burden by living somewhere with an income tax, and a 'reasonable' property tax. Just be thankful you are not a business owner (or farmer...). WA hammers them ! (B&O, + Personal Property...). BTW, It is a very good state to do your estate planning and set up a living trust, especially if you own property in multiple states. (low estate tax burden, better laws to protect estate) It is a "community Property state, so BEWARE of those issues. (I think there are only 2 states + Puerto Rico that are still CP)

Consider building a 'low tax' house. There are articles and even a few books in the library to explain. I always quiz my assessor's on their points of veiw, and I have made adjustments to my houses to get reductions. Our big problem (WA & elsewhere) is land values. I have a trashed mobile home on 5 VERY steep (unusable) acres, and it is valued at nearly $300k ($7,000 for the 'improvements' / mobile home, the rest is in the lot !) Calculate the 'capitalization rate' on that prop, and figure what I should be renting it for !!! A leaky and drafty and HOT in summer 1974 mobile home for $3k/month??? I don't think so. (I get $400, and just lost the renter )

[magrack]

Hopefully you are not 'retired', as WA is setting itself up for an exodus of retirees... who will be reducing their overall tax burden by living somewhere with an income tax, and a 'reasonable' property tax

I don't know if that's entirely true, but it was third on my list of reasons to leave. Several of my friends are seriously considering leaving when they decide to pull the plug, but maybe only half will do so.

Financially, retiring out of state, was the best thing I could have ever done.

I don't think WA (if you want to consider it as an entity) really cares if retirees stick around.

We don't much contribute to the economy, and mostly just sit around and p*** and moan about the high cost of living and add to the traffic congestion.

Funny thing is, WA has a voter initiative provision, and I have yet to see a initiative similar to CA's prop 13 get off the ground, but I expect it will happen.

If you remember, vehicle tabs were much more expensive but the voters got tired of it and rolled them back to a flat $35 (ha!).

The tax and spend politicians fought it, but only got to keep the transportation bonds in addition to the flat fee.

If the politicians had understood just how upset the voters were over vehicle tabs and had capped fees at 70 or 100 dollars, the voters probably would have been satisfied with that and the state would have been in much better shape without going to the initiative process.

As it was, the tax and spend politicians took the voters to court in an attempt to invalidate the initiative. What kind of representation is that?

I think, in time, the property owners will ram another initiative through, this time around property taxes, and the legislative body will still not get it.