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239 N. Olympic Ave.

Arlington, WA 98223

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jeanne@threesixtyhome.com

Tax Assessed Valuations: The Good, The Bad, The Ugly

Most of you have received your updated Tax Assessed Value of your home/land/etc. within the last month or so. If you are like me, I had to sit down and ask myself - is this for REAL? Here are a few questions & answers that I hope you will find useful in attempting to revive yourself from sticker-shock:

How does the County come up with its' Assessed Value? Each county has it's own specific process, but for Snohomish County, the Assessor makes a visit to each 'site' once every six years. Then, every year thereafter, a "growth" rate is tacked on to the home's value in that area. Snohomish County does re-value each year - whereas some counties only do this every 2-4 years. It's important to note that state law requires that assessors appraise property at 100 percent of it's true and fair market value in money, according to the highest and best use of the property.

What if we've just completed a refinance and the home value the assessor has is much higher than the appraisal that came in for the lender? If you have a copy of the appraisal, you can call the county's assessor's office and make an appointment to come in and share this data with them. In general they will try to work with the data you have and attempt to ensure your home is valued correctly.

What if we just think the County Assessor is WAY off in their assessment of our property? Again, call the county assessors office and make an appointment to meet with them to review the comps they've used to value your property. My experience again has been that Snohomish County Assessors Office is very friendly and helpful on the phone, but the in-person appointments are much more productive. Expect to have your call returned in 2-3 days....keep trying if you do not get a return phone call to your satisfaction. And remember you are within your legal rights to request a copy of the comparable sales information used to value your property.

Will our taxes go up each year by the same % as the assessed value? Washington State Constitution limits the regular (non-voted) combined property tax rate that applies to an individual's property to one percent market value ($10-$1000). Voter approved special levies such as special levies for schools, are an addition to this amount. There is also a LEVY LIMIT in place which applies to a taxing district's budget, and not to increases in the assessed value of individual properties. The law restricts taxing districts from collecting, in any year, more than a one percent increase in it's regular, non-voted levy over the highest amount that could have been levied since 1985.

How can we make sure we are part of this assessment process going forward? Call your county assessor's office and find out what the appraiser's schedule is like for your area. It may be okay for you to be there when the county appraiser physically visits your home for the onsite inspection and valuation. You can talk with them and glean valuable information, and of course, pass on your knowledge of comparable properties at the same time. I have done this twice and found it very useful. I learned that there are several categories of home 'qualities' that include both interior and exterior construction and upgrades. Assessors are very knowledgeable about these levels and usually very willing to discuss how your home is classified.

Can I get my land re-zoned or get the wetlands identified to reduce the assessed value? The short answer is yes. But, be careful about this. If you intend to sell the land off later, it will be categorized as wetlands or whatever you worked to have it designated as in order to reduce the taxes. This may be a short term fix, if indeed the wetlands are minor- or are drying up, it may be when you go to sell the land that a developer will not be able to purchase the land because of wetland designations. This is very difficult to have reversed (ask me....from personal experience!) It may benefit you to just pay increased tax assessment now in order to reap the benefits of more 'marketable land sale' later.

To help you put this all in perspective, if you purchased a home for $200k in Snohomish County 3 years ago and it's increased in Tax Assessed value by 10% each year - it is now worth $266,200. I have sold homes at $200K three years ago that truly are worth that and more. So, amazing as it may seem- the Tax Assessor may be right....you may well have made an excellent real estate investment in your home. I truly hope so.

County Assessor Contact Info.