How’s My Tax Assessed Value High in THIS Market?
Edward A. Williamson January 15th, 2009
How can my property tax assessment be so high in this market?
It’s no secret that the housing sales market in the region is getting tighter. The Northwest Multiple Listing Service (NWMLS) statistics report for July ‘08 shows the YTD average sales price has fallen over $20,000 below the previous year’s average price, with this YTD number of units sold accounting for only 65% of 2007’s YTD totals. It seems that everyday there is a new TV news feature or newspaper article bemoaning the stagnant market.
And yet, when homeowners get their tax bills, their assessed value may have gone up by double digits! What the heck?
Commercial property in King County has been hit even harder. My work partner, Ed Boyle, and I are currently working on an appraisal of current market value for a tax appeal of a long-time local business whose assessed value went up 100%!
Do you think your property value is over-assessed? Don’t know how to appeal your assessment? Fortunately, the problem and a possible solution are linked together. The Assessor’s Office is forbidden by state law to take 2008 market sales into account for this apportionment. But you aren’t!
There are three approaches to successfully appealing your tax assessment:
- Can you show that the assessor’s office made a material mistake? If your assessed lot size or evaluation of structural details is significantly different than the actual surveyed size, this would suggest a manifest error. Check your assessment for material accuracy or math mistakes.
- Are you being assessed at a different rate than neighboring properties? It is the responsibility of the Board of Equalization to assure that comparable properties are assessed on an equal basis.
- Is your home’s assessed value roughly the same as the property’s current market value? As was mentioned earlier, the assessment may very well not reflect today’s fair market value.
You see, this year’s apportionment is based on a three year average value of nearby properties, with values calculated as of January 1, 2008. This three year averaging is intended to mitigate the market flux and capture present fair market value but when the brakes went on, the double-digit appreciation most of the region’s real estate had enjoyed, the market jolted to an abrupt stop, then dropped. And we’ve been sensing market downturn on the commercial side since about July of 2007.
So, how do you appeal? You must file two copies of the appeal petition with the Board of Equalization/Appeals, which must be received by the board on or before July 1st of the assessment year, or within sixty (60) calendar days after the date of the value change notice (or other notice of determination) - whichever is later. The information that the board requires is laid out in the Board of Equalization FAQ page; this site has a good deal of information and is a great place to start. You can begin to compile evidence by contacting the Property Tax Advisor in the assessor’s office for information on how your property was valued. You may need to get information on recent sales at that time, but I would strongly recommend performing your own research. Public records in our area are reasonably easy to come by. One key aspect is to locate comparable properties in your neighborhood that match your property as closely as possible. An identical match is not required, but the fewer the differences, the stronger your argument.
The King County Board of Equalization is made up of seven appointed citizen members. Their decisions are based on the legally-required exercise of “equalizing” the assessed value with the market value standard. That’s today’s market value standard, not the roller coaster of three years past.
And there’s your edge - the comparables you submit in evidence can come from this year’s market and, with good supporting data, you should make your case. Published reports put appeals received from the King County Board of Equalization this year at 1,800 as opposed to 750 by this time last year, with the outcome: Over half the appeals resulted in lowered taxes.
Of course, if your property is complex or commercial, it would pay to get a certified, professional appraiser involved. At Lamb Hanson Lamb Appraisal Associates, we often work on ad valorem appeals for both residential and commercial property assessments. So check out the County Assessor’s resources and start investigating. And don’t forget - the clock is ticking!
More Information: (for local counties)
Assessor’s Office
- King County
- Pierce County
- Kitsap County
- Snohomish County
- Thurston County
- Skagit County
Board of Equalization/Appeals
- King County
- Pierce County
- Kitsap County
- Snohomish County
- Thurston County
- Skagit County
Taxpayer Appeal Petitions
Very nice explanation of the process. I think the Assessor’s office is going to be pretty busy this year with appeals.
Helpful, thank you. I have researched your assertion that 2008 comps can be included in an appeal of 2009 valuation. Everything I read says the opposite. In fact, one site provided text from a denial by the Equalization Board. The denial flatly excluded all comps outside of the valuation period. Confusing.