1. Overview of Property Tax Valuation and Equalization

2. Property Tax Base
All real and personal property is subject to tax on its value except:
Exemptions provided by constitution or statute
Government property, some nonprofits, seniors’ residences (partial), household goods, business inventories.

3. Assessed Value=Market Value
State Constitution requires uniform assessments.
State statute sets assessment standard as 100% of true and fair value (Market Value).
Except open space, farm land, and forest land have special assessments below market value.
Market Value:
The amount of money a willing buyer will pay to a willing seller for this property with knowledge of the market.

4. Who Determines Value?
County Assessor values most real and personal property.
Department of Revenue values the operating property of utilities located in more than one county.
Valuation methods:
Sales Comparison
Income Approach
Cost Approach

5. How close are assessed values to market value?
Department of Revenue checks the assessed values against actual sales prices each year.
The “Ratio” of assessed value to market value is calculated.
Assessors are valuing property at about 90% of market value.
Ratios range from 74% of market value to 96% of market value.
Local assessed values are adjusted (equalized) up to market value for:
Distribution of the state property tax across counties
Allocation of funds under the school levy equalization formula

6. Adjusting (equalizing) the 2002 State Property Tax Rate for differences in Assessment Levels State Property Tax Rate = $2.71 per $1,000 of value (at 100% of market value)
County
Ratio
Rate
Adams
89.9
3.02
Asotin
90.1
3.01
Benton
89.3
3.03
Chelan
82.7
3.28
Clallam
90.3
3.00
Clark
93.9
2.88
Columbia
95.9
2.83
Cowlitz
92.0
2.95
Douglas
94.2
Ferry
91.6
2.96
Franklin
89.2
3.04
Garfield
95.3
2.84
Grant
86.4
3.14
Grays Harbor
92.3
2.94
Island
95.4
County
Ratio
Rate
Jefferson
92.4
2.93
King
91.0
2.98
Kitsap
88.0
3.08
Kittitas
90.2
3.01
Klickitat
89.9
Lewis
93.0
2.91
Lincoln
90.0
Mason
91.7
2.96
Okanogan
87.7
3.09
Pacific
94.5
2.87
Pend Oreille
73.7
3.68
Pierce
San Juan
82.2
3.30
Skagit
94.4
Skamania
93.8
2.89
County
Ratio
Rate
Snohomish
82.6
3.28
Spokane
88.5
3.06
Stevens
92.1
2.94
Thurston
89.2
3.04
Wahkiakum
91.5
2.96
Walla Walla
89.6
3.03
Whatcom
86.1
3.15
Whitman
89.0
Yakima
89.1
State Total
89.9
3.01
Ratio = Assessed Value/Market Value
Rate in Dollars per $1,000 of
Assessed Value

7. Adjusting the School District Value for differences in Assessment Levels
Levy Equalization Formula uses Assessed Value per Student.
Within the levy equalization formula:
School district assessed values are adjusted using the ratio of assessed value to market value.
This procedure makes assessed value per student comparable across school districts.