The economy is slumping. Home prices are dropping. So when you get your 2009 property tax bill in the mail this week, you can expect a big break, right?
DATABASE: Which areas saw decreases in property taxes?
Not necessarily.
Data from the Pierce County Assessor-Treasurer’s Office show average tax bills are dropping in many communities. But for the most part they’re not dropping much. And some communities will see big increases in average tax bills.
The reasons? The bills are based on property values that are more than a year old, so they don’t reflect the slumping home values of 2008. And in some cases voters boosted their own taxes to pay for various services.
Assessor-Treasurer Dale Washam broke the news on a message posted recently on the office’s Web site.
“I want to let you know in advance that your 2009 tax statements are probably not going to show as much of a decrease as you were expecting,” Washam wrote.
Still, new property tax data show average bills are down this year in many communities:
• Average bills are down about $281 – or 11.4 percent – in Fife. They’re down about $109 (3.7 percent) in Puyallup and $121 (3.2 percent) in Gig Harbor. The average Tacoma property tax bill is down $25 this year, or less than 1 percent.
• Other communities will see big increases in average tax bills. The average bill is up about $424 (20.2 percent) in Pacific, which is partly in King County. Average bills are up $384 (10.7 percent) in Steilacoom and $352 (18 percent) in Eatonville.
• University Place residents will pay the highest average tax bill this year: $4,267. Wilkeson has the lowest average bill: $1,860. The average Tacoma bill is $2,846.
The figures are just averages and won’t necessarily reflect what happens to your tax bill. Average bills may fall in your community, but you could still pay more.
Still, the slowing real estate market has clearly had an effect. Just two years ago nine of 23 Pierce County communities saw double-digit increases in average tax bills. This year only three communities will see such increases.
The Assessor-Treasurer’s Office began mailing 185,939 property tax bills Saturday. Many are mailed to mortgage companies, so taxpayers don’t see them. Others are sent directly to property owners.
For taxpayers who don’t want to wait for the mail, the office posted individual tax bill information on its Web site late Friday.
Overall, Pierce County residents will owe more than $1 billion in property taxes this year, up 4 percent from last year.
So why haven’t declining home values had a bigger impact on this year’s tax bills? For starters, this year’s bills are based on the market value of property as of Jan. 1, 2008. And that value was based on sales in 2007.
That means none of the decline in local home values over the last year is reflected in the new tax bills.
“We are, by law, behind the curve,” said Billie O‘Brien, administrative manager for the Assessor-Treasurer’s Office. “But we were behind the curve when the market was going up. It kind of evens out over the long run.”
Home values aren’t the only factor affecting tax bills. Another big one: where you live.
There are 118 taxing districts in Pierce County. They include everything from school and sewer districts to city governments and fire protection districts.
Many of those districts overlap. For example, if you live in Tacoma you pay taxes to the city, the school district, Metro Parks and other taxing districts. Add all of them up and you’ll pay a combined tax rate of about $11.62 per $1,000 of assessed value in Tacoma, down slightly from $11.68 last year.
Voter-approved tax increases for schools and other services also are a big factor in tax bills. Countywide, voters approved 43 percent of the property taxes to be collected this year.
One example: Last year voters approved a bond for the Valley Regional Fire Authority to build and remodel fire stations and buy equipment. That’s a big reason why average tax bills in Pacific are up 20 percent this year.
Elsewhere, voters in Fife rejected an emergency medical services levy last year, which contributed to the 11.4 percent decline in average tax bills there.
The assessor-treasurer data show schools continue to get the lion’s share of property taxes. Though the exact proportion varies depending on where you live, schools will get about 37 percent of property taxes collected countywide this year.
State government will get about 19 percent, followed by fire protection districts (11 percent) and cities and towns (10 percent). Pierce County government, roads, parks and other services split the remaining taxes.
How is my bill determined?
Your tax bill depends largely on two factors: the assessed value of your home and your tax rate.
Your assessed value is based on fair market value as of Jan. 1, 2008. The value is calculated by the county Assessor-Treasurer’s Office, based on sales of comparable properties. Any change in your home’s value in the last year won’t be reflected in this year’s bills.
Your tax rate is determined by many factors, including where you live and the budgets of the government authorities that serve you. The total value of area property, including new construction, also is a factor. Voter-approved levy or bond measures also affect tax rates. Voters approved 43 percent of property taxes to be collected this year.
What are my property taxes used for?
Local school districts will get 37 percent of all Pierce County property taxes collected this year. State and local governments, fire protection districts, parks and other services also get a share.
Didn’t Initiative 747 limit the growth of property taxes?
Yes and no. The measure caps the growth of government property tax revenue at 1 percent annually. But it does not cap the assessed value of your home or your tax bill. And voter-approved tax measures are not counted against the 1 percent cap.
Can I appeal my tax bill?
No. You can’t appeal your tax bill. And generally it’s too late to appeal the 2008 assessed value on which your bill is partially based. You may be able to appeal the value if you bought your home after July 1 but before Dec. 31, 2008, and the purchase price was less than 90 percent of the assessed value. But there are restrictions. The purchase must have been an arm’s length market transaction. Distress sales, short sales or foreclosure sales would not qualify. Check with the Pierce County Board of Equalization for more details.
If I have questions about my bill, who should I contact?
The Pierce County Assessor-Treasurer’s Office.
Location: 2401 S. 35th St., Room 142, Tacoma, WA 98409.
Hours: 8:30 a.m. to 4:30 p.m.
Customer service: 253-798-6111.
Online: www.piercecountywa.org/atr.
David Wickert: 253-274-7341
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