Taxes
Tax Relief Programs
What tax relief programs are available for senior citizens or
disabled persons?
Why do we have property tax?
Taxing authorities such as school districts, park
districts and city councils adopt their budgets and levy taxes to
deliver the services that taxpayers want and authorize. Taxing
authorities require money to provide those services. Property taxes
are also used to pay for special voter-approved measures such as
school maintenance and operation levies and bonds, and emergency
medical levies.
If assessed value
increases, do taxes have to increase?
No. Raising
property values does not increase taxes. Taxing districts'
budgets are limited by how much their budgets can increase under the
1% Levy Limit.
For example, let's say a portion of your tax bill is for a city:
- The city taxing authority decides how much money the
property tax has to collect that year, say $1 million.
- Assessors estimate the total assessed value (A/V) of all
taxable property within the city, say $500 million.
- A tax rate (levy rate) is calculated by dividing the amount
of tax to be raised by the total A/V of the city: $1
million/$500 million = $2 per thousand dollars of A/V.
- If your home's assessed value is $100,000, your share of the
taxes will be: .002 x $100,000 = $200.
- If the assessed value of property within the city doubles to
$1 billion, and the amount to be raised stays the same, the tax
rate will be: $1 million/$1 billion = $1 per thousand dollars of
A/V.
- Your taxes, if your home doubles in value, will still be
$200: .001 x $200,000 = $200.
If assessed
values decrease, do property taxes automatically decrease? No,
not unless the decrease in assessed value for a taxing district
causes the taxing authority to exceed the statutory limit for its
regular levy rate. For example, let’s say a portion of your tax bill
is for a taxing district:
Example One:
Before values decrease and a taxing district is not at its
statutory limit at $2.00 per thousand dollars of assessed value.
- The taxing authority decides how much money the property tax
has to collect that year, say $1 million.
- Assessors estimate the total assessed value (A/V) of all
taxable property within the district is $1 billion.
- A tax rate (levy rate) is calculated by dividing the amount
of tax to be raised by the total A/V of the district: $1
million/$1 billion = $1.00 per thousand dollars of A/V.
- If your home’s assessed taxable value is $100,000, your
share of the taxes will be: .001 x $100,000 = $100
Example Two:
Before values decrease and a taxing district is at its
statutory limit at $2.00 per thousand dollars of assessed value.
- The taxing authority decides how much money the property tax
has to collect that year, say $1 million.
- Assessors estimate the total assessed value (A/V) of all
taxable property within the district is $500 million.
- A tax rate (levy rate) is calculated by dividing the amount
of tax to be raised by the total A/V of the district: $1
million/$500 million = $2.00 per thousand dollars of A/V.
- If your home’s assessed taxable value is $100,000, your
share of the taxes will be: .002 x $100,000 = $200
Example Three:
After values decrease, the calculated levy rate increases
to $4.00. The rate is still limited to $2.00 without going to a vote
of the people.
- The taxing authority decides how much money the property tax
has to collect that year, say $1 million.
- Assessors estimate the total assessed value (A/V) of all
taxable property within the district is $250 million. (A 50%
reduction in assessed value from example two.)
- A tax rate (levy rate) is calculated by dividing the amount
of tax to be raised by the total A/V of the district: $1
million/$250 million = $4.00 per thousand dollars of A/V – which
exceeds the $2.00 limit and the district can not collect at
$4.00 – only at $2.00. If your home’s assessed taxable value is
$50,000, your share of the taxes will be: .002 x $50,000 = $100.
- This districts tax to be collected is reduced to $500,000
instead of $1 million.
Example Four:
After Values decrease and the taxing district’s statutory limit is
$3.00.
- The taxing authority decides how much money the property tax
has to collect that year, say $1 million.
- Assessors estimate the total assessed value (A/V) of all
taxable property within the district is $450 million. (A 10%
reduction in assessed value from the previous assessment.)
A tax rate (levy rate) is calculated by dividing the amount of
tax to be raised by the total A/V of the district: $1
million/$450 million = $2.22 per thousand dollars of A/V – which
does not exceed the $3.00 limit and the district can collect at
$2.22. - If your home’s assessed taxable value is $90,000, your share
of the taxes will be: .00222 x $90,000 = $200.
- The districts tax to be collected is not reduced.
Can I appeal the amount of
taxes I will pay or the percentage that my assessment
increased? No. The Board of Equalization cannot consider
appeals on this basis. If you have concerns over the amount of taxes
you are paying, you need to take them up with the taxing district
officials who determine the budgets for their districts. As a
taxpayer you may have to decide whether you are willing to do
without service or reduced services to keep taxes low. You can also
work for efficiency in government by attending budget hearings and
calling or writing the taxing authorities with your concerns and
ideas. Please refer to your local phonebook for contact names and
numbers.
I have a senior citizen or
disabled person exemption and my taxable value is "frozen", will
the new assessment affect my taxes? No. Individuals
qualifying for a Senior Citizen or Disabled Persons exemption have
their taxes calculated on the market value of the property on
the date of qualification for the exemption program ("Frozen Value")
and not on New Market Value.
Is it possible to make a
"ballpark estimate" of how much the taxes will be on a piece of
property that I am thinking about buying (or a structure that I
might build)? Yes. The average 2008 tax rate in Snohomish
County is about $8.92 per $1000 of assessed valuation. Rates vary
from area to area and from year to year, but multiplying the number
of thousands of dollars of price or cost by 8.92 will provide a
rough estimate of taxes. Tax rates ranged from a low of $7.1097 to a
high of $9.6221 depending on where you live in the county.
How does Washington State rank in terms
of property tax collected per household when compared to other
states? Click
here to see rankings of property tax collection per household by
state.
What tax relief programs
are available? There are several exemption programs
and special classifications available that provide tax relief:
For further information about any of these exemptions, contact
the Exemption Department at (425) 388-3540.
What tax relief programs are
available for senior citizens or disabled persons? If you
own and occupy a residence or mobile home, are now or will be 61
or older by December 31 of this year OR are retired because of
physical disability you may qualify for an exemption and/or a
reduction on next year's property tax. The total combined, gross
household income limit (including social security and/or disability
payments) is $35,000 or less. For determining eligibility we must
use your total combined income, which is your income from ANY source
and is not the same as "taxable income" used for federal income tax
purposes.
A full tax deferral program (which is separate from the exemption
program) is also available for qualifying senior citizens and
disabled persons. The total combined, gross household annual income
limit for the Senior Citizen/Disabled Persons Deferral program is
$40,000. This program creates a lien against your property as you
are deferring to the State of Washington to pay your property taxes.
The amount the State pays must be re-paid upon the transfer of
ownership of your property.
County Menu
Print this Page