FREQUENTLY ASKED QUESTIONS

The following commonly asked questions and their answers provide an overview of the Island County Assessor's responsibilities and the underlying laws by which they were established.

Important facts about the Assessor's Office-

• The Assessor performs the function of an appraiser in placing a dollar value on your home or other property.
• The total amount of regular property taxes that are collected do not increase because total assessed values increase.
• The Assessor does not establish the dollar amount of taxes that will be collected, but chooses the lowest amount from a group of state-imposed alternatives.
• The tax rate for each district is either specifically voted by taxpayers or calculated mathematically by the Assessor based upon state limitations, budgets submitted by taxing districts, and the assessed value for the district.
• The Assessor does not bill for or collect property taxes. The County Treasurer's Office bills and collects taxes.

QUESTIONS:                                                                   

• How do I change my mailing address on my statement?
• How do I change the owner's name on my parcel following a death, divorce, or court order?
• What kinds of property are taxable?
  • Real
  • Personal
• What causes property values to change?
• How is real property appraised?
• How is personal property appraised?
• Is Property Assessed at full value?
• What determines the property tax amount?
• How are property tax levies established?
• What are the legal property tax limits?
• What happens if levy limits are exceeded?
• How do I appeal my assessed value?
• How do I apply for an exemption?
• Why do the tax rates shown on my tax statement differ from my neighbor's?
• Who makes the maps for the assessor?

HOW DO I CHANGE MY MAILING ADDRESS ON MY STATEMENT?

• You may Contact the Treasurer's office for an address change. You may use their Request for Address Change form.
• You may send a signed, written request to the Assessor identifying the property you own, your old mailing address, and the new mailing address you want to replace it.
• You may come to the Assessor's office in person.  Please have personal identification available and know your parcel number(s), your old address, and your new address.

HOW DO I CHANGE THE OWNER'S NAME ON MY PARCEL FOLLOWING A DEATH, DIVORCE, OR COURT ORDER?

Provide the Assessor with any of the following supporting legal documentation that applies:

Death

• Copy of the death certificate for the deceased owner from whom the property is being transferred.
• Copy of a will, probate order, or community property agreement identifying the property being transferred and the name of the person to whom the property is being transferred.

Divorce or lawsuit

• Copy of the court order identifying:
  • the property being transferred,
  • the name of the owner from whom the property is being transferred, and
  • the name of the new owner to whom the property is being transferred.

Legal Name change

• Identification
• Copy of court order changing your name. 
• The parcel number(s) of the property you own to which you want the name change applied.

WHAT KINDS OF PROPERTY ARE TAXABLE?

Under Washington state law, two types of property are assessed and taxed.

Real Property:

Real property consists of the land, improvements attached to the land (buildings, manufactured homes, etc.), and improvements to the land (driveways, utilities, etc.).

How is Real Property Appraised?

Personal Property:

Taxable personal property includes agricultural machinery and equipment; manufacturers', contractors' and logging machinery and equipment; office machinery and equipment; and supplies and materials which are not held for sale or do not become an ingredient or component of an article being produced for sale. Furniture and fixtures in commercial use, leased equipment, certain leasehold improvements, franchises and easements of inter-county public utilities, lessee-owned improvements on public land and commercial vessels not subject to excise tax are also assessed and taxed as personal property.

Many types of personal property are exempt from taxation. these include livestock; inventories held solely for resale; specific intangible property such as money, bonds, stocks or share of corporations, mortgages, notes and the like; and the personal effects and household goods in actual use by their owner.

Although intangible personal property may not be taxable, in some cases, intangibles may be used to estimate the value of real property, especially when the income approach has been applied.

CLICK HERE TO DOWNLOAD PERSONAL PROPERTY LISTING

              FORM              

CLICK HERE FOR FIRST TIME LISTINGS    

How is Personal Property Appraised?

HOW IS REAL PROPERTY APPRAISED?

To efficiently and effectively appraise the property in Island County, the Assessor has hired a trained and experienced staff of professional appraisers as provided in Chapter 36.21 RCW.  These appraisers specialize in mass appraisal.

Island County is an annual county responsible for the appraisal and apportionment of over 50,000 parcels of real property each year.   Appraisal methods used in Island County comply with the basic practices and procedures used in the appraisal profession and rely heavily upon Computer-Assisted Mass Appraisal (CAMA).  Without the aide of reliable computers and software, the appraisal task would be less efficient and more costly.

Three approaches may be used to determine real property value. they are:

1. Market Data: The market data (sales comparison) approach uses sales of comparable (not identical) properties and adjusts the sales price for time, location, and other components of the property that differ to estimate the value of the subject property.  This method is the most reliable for all property when sufficient sales of comparable properties exist.
2. Cost: The reproduction or replacement cost new (of structures), less accrued depreciation derived from market analysis is combined with the estimated value of land based upon sales.  Land values may be derived from sales of similar vacant land or improved land by subtracting the estimated value of improvements from sales prices.
3. Income: The income approach relies upon the capitalization of economic rents or discounted cash flow analysis.  Income data is collected for commercial properties to estimate market rents and market expenses.  Sales are used to develop an appropriate capitalization rate.

These approaches are applied as follows:

• Any combination of the three approaches may be applied, in appraising real property. 
• The Income and Cost approaches are given greater weight in the appraisal of improved commercial and industrial properties.
• The market data and cost approaches are given greater weight in the appraisal of improved residential properties.
• The value of vacant land is most often determined using the market data or sales comparison approach.
• All three approaches rely upon market evidence, primarily sales.

Whenever the Assessor revalues your property, you will receive a "Valuation Change Notice" .  

WHAT CAUSES PROPERTY VALUES TO CHANGE?

Real Property ^

HOW IS PERSONAL PROPERTY APPRAISED?

Most personal property assessments are based on information provided by the taxpayer on personal property affidavit forms furnished by the Assessor. The affidavits are mailed to established accounts by January 1 each year, and must be returned to the Assessor by April 30. Affidavits for new business reporting for the first time may be mailed after January 1. Extensions of filing date are not granted . A tax penalty of 5% per month will be applied to affidavits received after April 30. The Assessor may waive the penalty if the late filing is due to reasonable cause. A penalty of 25% of the tax due in the following year will be applied for failure to file an affidavit.

The Assessor uses information provided by the taxpayer to determine value, taking into consideration the age, cost, and type of property. When the affidavit is processed and the property valued and entered on the assessment roll, a Personal Property Assessment Notice is mailed to the taxpayer.

Personal Property^

IS PROPERTY ASSESSED AT FULL VALUE?

Yes, state law requires property to be assessed at 100% of its true and fair value (also called market value) unless otherwise provided by law.  Some properties are taxed at less than market value because the owners are entitled to one or more exemption programs.  

Statistical tests unique to the appraisal profession are calculated to estimate the assessment level of the county and to equalize assessments.  A median assessment to sales ratio between 90% and 110% is considered acceptable according to standards published by the International Association of Assessing Officers (IAAO).   The assessment to sales ratios of the various counties are used by the Department of Revenue (DOR) to equalize the school property tax collected by the state.

The appraisal process is the responsibility of the Assessor, who values property on a cyclical basis according to a revaluation plan filed with DOR.  Island County has produced annual revaluations every year since 1985.  All Assessors in the state will be required to appraise all taxable property annually by the year 2013.

WHAT DETERMINES THE PROPERTY TAX AMOUNT?

The cost of local government determines how much property tax will be levied. These costs include operating costs of schools; city and county government; and other taxing districts such as county, county roads, library, hospital, fire and sewer districts.  All property taxes fund local government.

Regular taxing districts submit requests to the Assessor who ensures that the lawful limits for the levies have not been exceeded.  If they are, the Assessor will select the the appropriate levy amount by applying the six levy constraints below:

• The 1% constitutional limit
• The statutory maximum rate for each district
• The 1% limit on increases in levies
• District resolutions to establish the levy amount
• The amount of the budget/levy certification
• The amount voted by taxpayers

A large portion of each property tax dollar goes to pay off bonds or special levies voted in by citizens for such capital costs as school buildings and other public projects. 

In 2009, the portion of each tax bill that was "voter imposed" ranged from 32% to 47% depending upon the districts in which your property is located.

HOW ARE PROPERTY TAX LEVIES ESTABLISHED?

The State Constitution, statutory levy limits set by the legislature, and excess levies approved by the voters are used to calculate the total property tax levy.

The tax rate on your property is determined by dividing the dollar amount required for the taxing district by the total taxable value of property within the district, and then adding up the rates of the various districts in which your district is located.

The assessed value of your property multiplied by the combined rate produces a tax amount which is your fair share of the total property tax levy in your area. The Island County Treasurer issues tax statements and taxes are paid to the Island County Treasurer's Office.

For a quick outline of the taxation process, click TAXATION.

WHAT ARE THE LEGAL PROPERTY TAX LIMITS?

Of the six limits listed below, the one that yields the lowest property tax determines how much tax will be collected for each regular levy. 

The 1% constitutional limit:

The primary limitation on property taxes was established by a 1972 amendment to Article 7, Section 2 of the Washington State Constitution.  This provision was codified as RCW 84.52.050 and limits the total regular property tax levy to a maximum of $10.00 per $1,000 of the market value of property (1%). Excluded from this limit are levies for ports and public utility districts as well as voted special levies which are not regular levies.

Statutory maximum rate for districts:

RCW 84.52.043 establishes maximum levy rate for the types of taxing districts (the state, counties, cities and towns, fire districts and the like). In addition, the statute establishes a maximum aggregate rate of $5.90 per $1,000 of assessed value for regular districts such as counties, cities, fire districts, library districts and certain other junior taxing districts. The state levy for support of common schools is a regular levy but is not subject to the $5.90 limit, although it is subject to the constitutional $10 per $1000 limit (1% constitutional limit).

The 101% limit:

In 1971, RCW Chapter 84.55 established a limitation on the increase on property taxes for regular taxing districts. The current limitation each year for most districts is 101% of the highest, lawful levy since 1985, plus an additional amount to allow for new construction within the district.   Thus, if a district's maximum levy were $1,000,000, the 101% limit would allow them to increase to $1,010,000 the following year.

The 101% limit applies to the total amount of revenue collected for a taxing district, not to an individual's property tax.

With majority voter approval, districts may increase their budgets or levies in excess of the 101% limit.  If approved, such a vote would allow the district to exercise more levy authority for at least one year.  

These "Lid Lifts" as they are called, may be temporary (by default) or permanent.  The 1% constitutional limit and the statutory maximum rates may not be exceeded, regardless of voter approval, unless the district has been specifically excluded by statute.

Resolutions:

Each regular taxing district is required to make a resolution each year if they plan to apply the rules for an increase under the 101% levy limit. 

The district is limited to the lower of 101% of the previous highest lawful levy or 1+ the Implicit Price Deflator for Personal Consumption Expenditures (IPD), as of July of the year preceding the tax year.  If the IPD were .8%, then the resolution could be no more than 100.8% instead of the 101% that would have otherwise been authorized.

Districts with populations under 10,000 may elect to apply the maximum 101% factor even if the IPD is under 1%.  However, districts with populations over 10,000 would hold to have a public hearing and pass a second resolution by a super majority (60%) stating a substantial need existed to exceed the IPD limit.

If the amount of the resolution is less than the maximum levy calculated using these limits, they would only be entitled to collect the lower amount.

Budgets:

The budget of each district is their certified levy and will override any other limitation as long as it is lower.  Thus, a district requested $1,000,000 but budgeted for only $900,000 would be entitled to collect no more than $900,000 in taxes for that budget year.

If a regular district's budget exceeds the resolution, they would be limited to collecting the amount authorized in the resolution, even if they would have otherwise been entitled to collect the higher amount.

If a district were to fail to certify their budget or levy to the county for the upcoming year, they would not entitled to collect any property taxes that year.

Voted levies:

Most districts can submit propositions for additional property tax levies to a vote of the people.  These include:

• Lid Lifts (raising the current regular property tax levy above the 1% limit, but not exceeding the statutory rate)
• Voted Regular Levies
  • EMS Levies
  • Parks and Recreation Levies
• Excess / Special Levies

• Bonds
• Local School Maintenance and Operation Levies
• School Transportation Levies
• School Capital Projects Levies
• School Technology Levies
• Mosquito District Special Levies
• Other special levies

Local school districts have no regular levy authority (although funds to cover basic education are allocated to them from the statewide school levy), so they receive a substantial portion of their funding from voter-approved excess levies.

Article 7, Section 2 of the Washington State Constitution, LIMITATION ON LEVIES, requires that excess levies be authorized by a 60% (three-fifths) majority of the voters.  Excess levies may also be subject to the statutory rates and other limitations described above.

Voters recently approved a constitutional amendment to remove the 60% majority requirement from school district maintenance and operation levies, changing it to a simple majority instead.

WHAT HAPPENS IF A DISTRICT ASKS FOR MORE?

The regular levy for each taxing district is reviewed by the Assessor for compliance with the 101% limit, and the $5.90 and the 1% limits before the levy is made. If the district requests more than the statutory or 101% limits, then their levy is reduced by the Assessor to a lawful amount.

The statutes establish a district hierarchy for rate reductions if the aggregate limits (statutory district rate limits, 1% constitutional limit, the $5.90 aggregate limit) are exceeded.   The rates for the districts would be reduced by the Assessor according to the proscribed formulas, if any of these limits were to be exceeded.

If the Assessor were to discover that any levy limits had been erroneously exceeded in a prior year, due to errors in the calculations, the error must be corrected either in the following year, or within three years at the request of the affected taxing district or districts.  Even errors that caused a previous levy to be too low must be corrected.   Only errors discovered within three years of the error having occurred may be corrected.

WHY DO THE TAX RATES SHOWN ON MY TAX STATEMENT DIFFER FROM MY NEIGHBOR'S?

The Island County Assessor calculates the property tax rate for each taxing district and the appropriate tax for each tax payer in that district each year.  Everyone located in a particular taxing district pays exactly the same rate for that district. 

The Island County Tax statement no longer allows the taxpayer to verify the tax calculation by multiplying the rate times the value of the property, because the tax rate is no longer listed on the tax statement .  The Island County Treasurer, who issues the tax statement, chose to remove the tax rates from the tax statement and replace them with an unrelated percentage. 

The percentages shown on your tax statement are not the tax rate.  These percentages reflect only the percentage of your total tax bill that a particular district receives; it is not the same thing as the tax rate.

Your property tax statement may include fixed fees or other taxes not based upon value, which would account for the differing percentages from one tax statement to the next.  Thus, the percentage can change from one tax statement to another and in most cases, cannot reliably be expected to agree with the percentages shown on any other tax statement. 

You can manually calculate the approximate tax rate for a particular district by dividing the tax that you pay the district by the value of the property being taxed.  The actual tax rates are also shown in the Assessor's Annual Report that is published each year by the Assessor's Office.

HOW DO I APPEAL MY ASSESSED VALUE?

An Appraisal is an Opinion of Value

Determining the market value of your property is a process of evaluating evidence to reach an opinion of value.  Since the final determination is an opinion, it is subject to dispute. 

Contact the Appraiser

Always feel free to contact our office if you disagree with the value that the Assessor placed upon your property.  The appraisal staff is interested in any new information about your property that may not have been available to them at the time the appraisal was made.  Annually, the appraisers make adjustments to account for the new information that you provide and reduce more assessments as a result than does the board of equalization or board of tax appeals.

Forms and Publications

If you decide to appeal the value of your property to the board of equalization, please take the time to review the Washington State Department of Revenue publication, Appealing Your Property Assessment to the County Board of Equalization, for details about how the board works and how best to proceed with your presentation.

All appeals of the assessed value of property should first be directed to the Island County Board of Equalization.  The most recent appeal form is available on this site.  You may also have a form mailed to you, e-mailed to you, or pick up a form from either the Assessor's office, the Camano Annex Office, or the Clerk of the Board of Equalization, Don Mason.

State Board of Tax Appeals

Decisions of the Board of Equalization may be appealed to the State Board of Tax Appeals (SBTA).  Some appeals may be made directly to the State Board of Tax Appeals. 

Two methods of appeal are available at the SBTA:

• are close to the date of appraisal
• do not involve undue influence, such as foreclosure sales, sales between relatives, gifts of love and affection, etc.
• are in a similar geographic neighborhood
• are physically similar to the property that is the subject of the appeal

Other factors are also useful to bring to the board's attention, such as

• deterioration of structures of which the assessor was unaware
• recent governmental restrictions
• recent detrimental changes in the neighborhood
• material errors on the assessment record, such as measurements of structures, the size of the site, etc.

Remember, although sales are historical facts, an appraisal is always an opinion.  Value is not necessarily the same as price, although sales prices are part of the evidence used to estimate value.

For best results, try to remain focused on the the market value of your property.  Board members are not generally swayed by emotional outbursts, recriminations, accusations, or personal attacks.  A calm, respectful, truthful, and assertive approach makes your case easier to follow and understand for all parties.

HOW DO I APPLY FOR AN EXEMPTION?

WHO MAKES MAPS FOR THE ASSESSOR?

THE ASSESSOR IS REQUIRED TO MAINTAIN COUNTY MAPS

RCW 84.40.160 Manner of listing real estate -- Maps.

" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The assessor shall prepare and possess a complete set of maps drawn to indicate parcel configuration for lands in the county. The assessor shall continually update the maps to reflect transfers, conveyances, acquisitions, or any other transaction or event that changes the boundaries of any parcel and shall renumber the parcels or prepare new map pages for any portion of the maps to show combinations or divisions of parcels. "

Visit our web-page on Assessor's Maps.

OTHER QUESTIONS?

Feel free to contact the Island County Assessor's Office for any other questions that you may have.  You may e-mail, write, call, or stop by for a visit between 9:00 AM and 4:00 PM, Monday through Thursday, except holidays.

Our mailing address is:

Island County Assessor's Office

P.O. Box 5000

Coupeville, WA, 98239-5000

Please be patient with us.  We have a long phone tree and due to severe budget shortages, can no longer afford to have receptionists to answer phones or greet you when you come to the office.

Our phone numbers are:

360-679-7303 - Our main number is toll-free from Central or North Whidbey Island.

360-321-5111 - Toll free from South Whidbey Island (ask for Assessor's Office).

360-629-4522 - Toll free from Camano Island (ask for Assessor's Office).

360-240-5565 - Fax

We are located in Room 208 on the second floor of the Island County Administration Building located on the corner of 7th and Main in Coupeville.  The address is 1 NE 7th Street.