|
Hey, what's up with my
property tax bill?
By Rep. Dan
Kristiansen
It may be fitting that
Oct. 31 -- Halloween -- is also the due date for payment of the second
half of your property tax bill. After all, that bill can be
frighteningly expensive. It can also be eerily confusing, especially in
this economy.
For years as Washington
enjoyed economic prosperity, we saw property tax bills skyrocket as
property values rose. This led voters to approve a 1 percent levy limit
through Initiative 747 in 2001 in an attempt to gain relief from those
high bills. But now that our economy has turned south and many property
values are down, some people's property tax bills still remain high.
So what's up with that?
And why is the increase in my property tax statement higher than 1
percent?
Great questions -- and I
hear them frequently from constituents.
Initiative 747 limits the increase
in total taxing district levy amounts to 1 percent each year, plus
additional amounts for new construction. It does not limit the amount of
tax paid on individual properties or the rate at which assessed values
may increase. Additionally, voter-approved levies (such as school
district maintenance and operation levies) are not subject to this
limitation. So, it is possible for your property tax statement to
reflect an increase of more than 1 percent.
Your property tax bill is determined by the assessed value of your
property and the tax levy rate. The county assessor determines the
market value of all property in the district as of Jan. 1, and comes up
with a taxable value taking into account any exemptions or alternative
valuation schedules. Then, taxing districts set their budget amounts
(levies) and the assessor calculates the necessary tax rate.
Dividing your property
value by $1,000 and multiplying that by the tax rate determines your
total property tax bill, which is collected by the county treasurer in
the following year after the assessment. For example, your 2009 tax bill
is based on the assessed value as of Jan. 1, 2008, and your 2010 tax
bill will be based on the value as of Jan. 1, 2009.
The tax rate can fluctuate with property values. While you may expect
your property tax bill to decline with lower values, some taxing
districts can actually increase the tax rate to compensate
for some of that lost value. That's why it is possible for your property
tax bill to remain the same or even increase with the lower property
value.
Voters can approve property taxes higher than the 1 percent limit. In
2008, about 35 percent of the total amount of property taxes collected
statewide consisted of voter-approved levies. That includes at least one
voter-approved levy increase in Sedro-Woolley.
Although there may be
several reasons why your property tax bill remains high even though your
property has lost value, there's no reason why you shouldn't take
advantage of tax-relief programs, if you qualify. Exemptions and
deferrals are available to low-income senior citizens, people with
disabilities, and widows/widowers of veterans. Certain tax exemptions
have also been provided by the Legislature for all homeowners. Be sure
to check with the Skagit County assessor at (360) 336-9370 for more
details and to see if you qualify.
# # #
EDITOR'S NOTE:
State Rep. Dan Kristiansen, R-Snohomish,
represents the 39th Legislative District, and also serves as chairman of
the Washington House Republican Caucus. He can be contacted at (360)
786-7967 or from his Web site at:
www.houserepublicans.wa.gov/Kristiansen.
For more information, contact:
John
Sattgast, Senior Information Officer: (360) 786-7257
|