Frequent Questions

"You are increasing value to make up a shortfall for XXX district."

This is a common misconception, but it’s not possible under Washington State law.

Property tax collections are based on budgets, not assessed values. A taxing district (like a fire district, school district, or library) submits a budget request each year. That budget request, combined with limits in state law, determines the total amount of property tax collected.

When assessed values increase, they only increase the denominator in the tax rate equation. This causes the levy rate to decrease, so the district still collects the same total budget amount, unless voters specifically approve a new tax or lid lift.

Even if we wanted to raise extra revenue this way, which we do not, we could not legally. Our role as the Assessor’s Office is to set fair and equitable values, not to fund government operations.

"You are only increasing value to generate more tax."

This is a misunderstanding of how Washington’s budget-based property tax system works.

• Increasing values does not generate more tax revenue. When the total assessed value in a district increases, the tax rate automatically decreases, maintaining collections at the same budgeted amount.
• Likewise, decreasing values do not reduce tax revenue. If property values fall, the rate automatically increases, allowing the district to still collect its approved budget amount. 

The total tax collected is determined by the district’s budget, not by the values we set. The only time tax collections increase is when:

• Voters approve a new levy, bond, or lid lift at the ballot box, or
• State law allows a small, limited annual increase (typically up to 1% of the prior year’s levy, plus certain additions like new construction). 

In other words, our assessments don’t create more taxes; they simply determine how the tax burden is divided fairly among property owners.

"What is a budget-based levy system?"

Washington is distinct from many other states because it uses a budget-based levy system instead of a rate-based system. In many states, districts receive a flat rate for every $1,000 of assessed value. For example, perhaps they collect $1.00 for every $1,000 of value. In those states, increases or decreases in value directly impact tax collections. 

In Washington State rates are not pre-established for districts. Here’s how it works:

1. Taxing districts set a budget for what they need to collect for the coming year.
   1. This could be for schools, fire districts, libraries, or city services.
   2. The budget is reviewed and capped under state law.
2. The total assessed value acts like a pie.
   1. Once all property values in the district are added up, that becomes the total tax base.
   2. This tax base is the denominator in the tax rate formula.
3. The tax rate is calculated automatically: Levy Rate = Approved District Levy Request ÷ Total District Taxable Value
   • If values go up, the denominator is larger, and the rate drops.
   • If values go down, the denominator is smaller, and the rate rises.

4. Each property’s tax bill is like a dinner bill split by what each person ordered.
   1. Imagine a group of friends at a restaurant. One person had just soup and water, while another ordered a steak and wine.
   2. The total bill is the district’s budget.
   3. The most equitable way to split the bill is based on what each person “consumed,” just like taxes are based on the market value of each property.
   4. In this context, think of property tax exemptions as the table deciding someone doesn’t have to pay for their meal, so their portion gets picked up by everyone else equally. 

Our office serves as the referee, ensuring that everyone’s share of the total bill is fair and equitable. We don’t determine the size of the bill, nor do we set the costs. Costs are established based on verified sales that have already occurred.

"Why did my value go up so much in a single year?"

Large changes in assessed value can happen for several reasons:

• Market changes: If homes in your area are selling for much higher prices, your value must reflect that.
• Revaluation cycle timing: Some areas are updated annually, while others may be on a multi-year cycle. If your area hadn’t been updated recently, the change can seem dramatic.
• Property record updates: Sometimes, corrections to property data, such as adding missing square footage or fixing an error, can affect value. 

Even with a significant value increase, your tax bill does not automatically rise by the same percentage because the levy rate is adjusted.

"Will my taxes be more?"

Not necessarily.

Your tax bill depends on two key factors:

• The budgets requested by taxing districts determine the total collected countywide.
• How your property’s value changes compared to others. 

If everyone’s values rise by the same percentage, your share stays the same, and the levy rate drops. Your bill only goes up if your value grew faster than average or if voters approved new levies in your area.

"My neighbor’s house is the exact same, but their value is lower than mine."

Typically, this comes down to data differences: There may be missing or incorrect information about one of the homes. They may also differ in key data points that impact value.

We encourage you to contact our office so we can review your property record and make any necessary corrections.

"I haven’t improved my house. Why is the value increasing?"

Even without changes to your home, the real estate market around you may have shifted.

When buyers are willing to pay more for similar properties, our office must adjust assessed values to reflect current market conditions as of January 1 each year.

This ensures everyone is treated fairly and equitably, even if their property hasn’t physically changed.

"I haven’t improved my home. Why does this notice include improvements?"

In assessment terms, “improvements” simply means structures on your land, such as:

• A house
• A garage
• A shed or barn 

It does not necessarily mean you built or remodeled anything. The notice separates land value from improvement value to show how each part contributes to the total assessment. This is required by Washington Law.

"I’m not selling my home. Why are you increasing the value to what you say it could sell for?"

State law requires that all property in Washington be assessed at 100% of its fair market value, even if you aren’t selling. This creates an equitable system where everyone pays taxes proportionate to their property’s actual worth, not just what they personally spent or invested.

Even if you plan to stay in your home for years, the market is determined by sales in your area, and our office is required to reflect those market realities.

"How do you come up with values? Are you just making values up?"

No, we do not make up values. Every value we set is based on actual, verifiable data and is required by state law to reflect fair market value as of January 1 each year. Our process is very similar to what a fee appraiser would do when valuing a single property, but we must do it on a much larger scale for tens of thousands of properties at once. We rely on sales that have already occurred as a basis for what property valuations should be.

1. Data Collection and Verification

We maintain a detailed record of each property, including size, quality, condition, location, and use.

• Field inspections are done periodically to confirm property characteristics.
• We review building permits, sales, and other public data to keep records current.
• When you provide information during an appeal or correction, we verify and update our records accordingly. 

2. Sales Analysis

We study actual sales of properties in the open market.

• Only verified, arm's-length sales are used, meaning sales between willing buyers and sellers that were not foreclosures or family transfers.
• These sales are grouped by neighborhood, property type, and other factors to make accurate comparisons.
• This ensures we are reflecting real-world market behavior, not guesses or assumptions. 

3. Mass Appraisal Modeling

Washington law requires all property to be assessed at 100 percent of its fair market value. To meet this requirement, we utilize a process known as mass appraisal, which employs statistical modeling to value large numbers of properties simultaneously.

• We use multiple regression analysis (MRA) and other statistical techniques to estimate how various features affect value, such as square footage, quality grade, condition, and location.
• These models are based entirely on actual sales data, not opinions.
• The same standards for fairness and accuracy are applied countywide to ensure everyone is treated equitably. 

4. Quality Checks and Standards

Once values are developed, we test them against professional standards to ensure they are fair and accurate.

• We perform ratio studies to compare assessed values to actual sales prices.
• We measure accuracy using statistics like the Coefficient of Dispersion (COD), Price Related Differential (PRD), and Price Related Bias (PRB), all of which must meet International Association of Assessing Officers (IAAO) standards.
• If results are outside accepted ranges, we review and adjust the models. 

5. Legal Oversight and Transparency

We do not control how much tax is collected; we only ensure that the total is distributed fairly among taxpayers.

• All of our work is subject to Washington State Department of Revenue oversight.
• Our models and sales data are public records.
• Taxpayers have the right to review their property record, ask questions, and appeal if they disagree with their value. 

Summary

Our role is to establish fair, equitable, and defensible values, ensuring that property taxes are distributed accurately, much like an impartial referee. Just like a dinner bill where everyone pays for what they ordered, our job is to make sure each property owner pays only their fair share, based on the actual market value of their property.

• Increasing values cannot generate more tax revenue in Washington's budget-based system.
• The levy request, which sets the total tax collected, is limited by state law and voter approval.
• The total assessed value only determines how the bill is divided fairly among property owners.
• Our role is to ensure fairness and transparency, like a neutral party splitting a dinner bill so everyone pays for what they ordered.