Turns out that adage about death and taxes being the only sure things might be true – but with caveats. With property tax payments coming due, it might be helpful to understand what happens with the money and how your property taxes are calculated. Property tax makes up for about 30% of our state and local taxes and is the revenue which pays for schools, fire protections, libraries, and parks.
Our property taxes are determined by the assessor and the assessor is required to appraise property at 100% of its true and fair market value according to the highest and best use of the property. They determine
this using the market or sales comparison approach, the cost approach (what it costs to replace a structure) and/or the income approach.
Property values are revaluated each year and a physical inspection is required every 6th year. If there is a change, you’ll receive a change of value notice and if you disagree with the assessed value, you can contact your local county assessor’s office. Find a full list dor.wa.gov/CountyContacts. These disagreements are often resolved at
this level and if not you may file an appeal with the board of equalization
dor.wa.gov/content/getaformorpublication/formbysubject/forms_prop.aspx#Appeals. Make sure to be up to date on deadlines for the appeal! If you don’t agree with this determination, you can take it to the State Board of Tax Appeals. For a successful appeal, among other things, you must provide market evidence that the assessed value does not reflect true and fair market value. In my experience, most properties are under assessed,
and those that appeal, fight an uphill battle.