Comments on: Sticker shock………… http://www.lakewenatcheeinfo.com/2008/sticker-shock/ News, Photos, Information about Lake Wenatchee, Plain and Fish Lake in Washington State Sat, 17 May 2008 09:21:30 +0000 http://wordpress.org/?v=2.3.3 By: Steve Craig http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-188 Steve Craig Mon, 10 Mar 2008 18:58:25 +0000 http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-188 I feel there's another factor in play, which helped create a "double whammy" on your tax bill. Up through the 1990s, the county assessor's property valuations were dramatically less than true market values - to the tune of approximately a 75% discount. Starting with the 1999 tax appraisal (which was implemented in 2000), the county starting narrowing that gap. So not only did true market values go up, but the discount between assessed value and marked value narrowed as well. What tax payers saw was a huge increase was the result from the combination of two different changes. In my opinion the same effect took place in the 2004, and again here in 2008. I know this doesn't ease the financial pain of writing your property tax check next month, but I thought I'd share this observation. I feel there’s another factor in play, which helped create a “double whammy” on your tax bill. Up through the 1990s, the county assessor’s property valuations were dramatically less than true market values - to the tune of approximately a 75% discount. Starting with the 1999 tax appraisal (which was implemented in 2000), the county starting narrowing that gap. So not only did true market values go up, but the discount between assessed value and marked value narrowed as well. What tax payers saw was a huge increase was the result from the combination of two different changes. In my opinion the same effect took place in the 2004, and again here in 2008.

I know this doesn’t ease the financial pain of writing your property tax check next month, but I thought I’d share this observation.

]]> By: geordieromer http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-187 geordieromer Mon, 10 Mar 2008 14:48:47 +0000 http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-187 John (and others) the best info I can find on the web is here at the County Assessors. http://www.co.chelan.wa.us/as/data/levy_book_2008.pdf Unfortunately it doesn't explain some issues as well as an older interview with the Assessor in the WBJ which is not available online. I'm not saying your taxes will go down next year, but your share of the county's tax burden will go down (as a %). Here's how. Values are assessed every four years - it would be more fair to have it done every year and have smaller adjustments, but more expensive in terms of labor. This year the Uppper Valley got hit. Chelan is coming up. When they get their 4 year bump, they will be upset too. But taxes are limited by state law and the constitution how much they can go up every year. So Chelan will be paying a bigger share of the taxes. Here's what the cycle looks like. Year 1 - Re-assessed values. Tax share high. Year 2. Tax share smaller Year 3. Tax share smaller yet Year 4. Tax share smallest. Year 5 Re-assessed again! If your property values go up dramatically, like they did in the past few years, you will really notice the difference. If property values stagnate, you won't notice much. What if values drop? Then you have to wait 4 years for the re-assessed value to be lowered. As each part of the county is re-assessed, the re-assessed group (year 1)gets their taxes lowered. But the rest of the county is catching up! The county still has to pay for their budget and we still have to have schools. If the lowering property values lasts very long, our taxes won't continue to lower even though values do!! I hope this makes sense. If someone with more knowledge of tax policy than I can explain this better, or correct me, please do. I'm just a concerned citizen like the rest of you. John (and others) the best info I can find on the web is here at the County Assessors.

http://www.co.chelan.wa.us/as/data/levy_book_2008.pdf

Unfortunately it doesn’t explain some issues as well as an older interview with the Assessor in the WBJ which is not available online.

I’m not saying your taxes will go down next year, but your share of the county’s tax burden will go down (as a %). Here’s how. Values are assessed every four years - it would be more fair to have it done every year and have smaller adjustments, but more expensive in terms of labor. This year the Uppper Valley got hit. Chelan is coming up. When they get their 4 year bump, they will be upset too. But taxes are limited by state law and the constitution how much they can go up every year. So Chelan will be paying a bigger share of the taxes.

Here’s what the cycle looks like.

Year 1 - Re-assessed values. Tax share high.
Year 2. Tax share smaller
Year 3. Tax share smaller yet
Year 4. Tax share smallest.
Year 5 Re-assessed again!

If your property values go up dramatically, like they did in the past few years, you will really notice the difference. If property values stagnate, you won’t notice much.

What if values drop? Then you have to wait 4 years for the re-assessed value to be lowered. As each part of the county is re-assessed, the re-assessed group (year 1)gets their taxes lowered. But the rest of the county is catching up! The county still has to pay for their budget and we still have to have schools. If the lowering property values lasts very long, our taxes won’t continue to lower even though values do!!

I hope this makes sense. If someone with more knowledge of tax policy than I can explain this better, or correct me, please do. I’m just a concerned citizen like the rest of you.

]]> By: John C. Mitchell http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-186 John C. Mitchell Sun, 09 Mar 2008 16:59:55 +0000 http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-186 I'm not disappointed, just confused. What I know is that I am paying twice the property tax I paid last year. I assume that most everybody else in the upper valley is in the same boat, or at least close. How does our current valuations increase our tax burden only "temporarily?" I’m not disappointed, just confused. What I know is that I am paying twice the property tax I paid last year. I assume that most everybody else in the upper valley is in the same boat, or at least close. How does our current valuations increase our tax burden only “temporarily?”

]]> By: geordieromer http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-185 geordieromer Sat, 08 Mar 2008 16:31:25 +0000 http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-185 I am sorry to dissappoint, but there is no windfall. The current valuations increase our burden temporarily and when other parts of the county get re-evalauted the burden will shift again. State laws and our votes on levies limit the amount the total dollar amount can increase county wide. If there was a windfall, it would likely go to the schools as 50%+ of property taxes in Washington state go to schools. Bill Gates and his dad would rather we have state income tax instead of property tax, any takers? I am sorry to dissappoint, but there is no windfall. The current valuations increase our burden temporarily and when other parts of the county get re-evalauted the burden will shift again. State laws and our votes on levies limit the amount the total dollar amount can increase county wide. If there was a windfall, it would likely go to the schools as 50%+ of property taxes in Washington state go to schools.

Bill Gates and his dad would rather we have state income tax instead of property tax, any takers?

]]> By: John C. Mitchell http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-184 John C. Mitchell Thu, 06 Mar 2008 14:51:43 +0000 http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-184 Question: who, pray tell, is going to be on the receiving end of this windfall of property tax increases resulting from the precipitous climb in land values, and what are they going to do with their jackpot winnings? Question: who, pray tell, is going to be on the receiving end of this windfall of property tax increases resulting from the precipitous climb in land values, and what are they going to do with their jackpot winnings?

]]> By: Richard E Curtis http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-183 Richard E Curtis Thu, 28 Feb 2008 14:14:10 +0000 http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-183 Our real estate taxes, for 2008, increased by 33%. We live in the woods with no lake, no county road access, no plowing, no nothing returned for our taxe revenues. We have $20,000.00 of our own snow removal equipment. We are surrounded by environmentalists and other non elected government agencies, funded by the PUD, grants and earmarks, all of which are funded by our money, a tax in addition to the real estate tax. The tax system is confiscatory. Economics 101! Real estate assessments and the resulting taxes are a tax on unrealized gain. Taxes on other unrealized gains will follow as nothing is done about this realization. Global warming is another tax raising vehicle. Though non existent since 1998, the mantra continues, and only continues for the inevitable levy of a "Carbon Tax". Last, to highlight our Washington state government's incompetence, the money allocated to fix the levies around Chehalis was spent elsewhere by the governor and legislature, the result being the flooding and financial catastrophe that took place recently. Dick Our real estate taxes, for 2008, increased by 33%. We live in the woods with no lake, no county road access, no plowing, no nothing returned for our taxe revenues. We have $20,000.00 of our own snow removal equipment. We are surrounded by environmentalists and other non elected government agencies, funded by the PUD, grants and earmarks, all of which are funded by our money, a tax in addition to the real estate tax. The tax system is confiscatory. Economics 101! Real estate assessments and the resulting taxes are a tax on unrealized gain. Taxes on other unrealized gains will follow as nothing is done about this realization. Global warming is another tax raising vehicle. Though non existent since 1998, the mantra continues, and only continues for the inevitable levy of a “Carbon Tax”. Last, to highlight our Washington state government’s incompetence, the money allocated to fix the levies around Chehalis was spent elsewhere by the governor and legislature, the result being the flooding and financial catastrophe that took place recently. Dick

]]> By: trevors http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-180 trevors Sun, 24 Feb 2008 20:02:56 +0000 http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-180 Don't count yourselves the only victim of this problem- all owners of "recreational property" are having the same problem. Yes, you may year-round in your 'recreational property', and you may have bought it for what would today be a very good price, and you may have expected to retire and live the rest of your life, flying under the radar and enjoying cheap living expenses. But alas, it is not to be. Not as long as the property you bought 20 years ago for $20k would sell today in 3 minutes for $400k. Don’t count yourselves the only victim of this problem- all owners of “recreational property” are having the same problem. Yes, you may year-round in your ‘recreational property’, and you may have bought it for what would today be a very good price, and you may have expected to retire and live the rest of your life, flying under the radar and enjoying cheap living expenses. But alas, it is not to be. Not as long as the property you bought 20 years ago for $20k would sell today in 3 minutes for $400k.

]]> By: rccoltd http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-174 rccoltd Sat, 23 Feb 2008 17:42:44 +0000 http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-174 I agree with TShafer, as long as we keep electing the same ol same ol we have noone to blame but ourselves and of course KING COUNTY, who thinks they should run this state, FYI our taxes for a modest cabin at fish lake doubled this last assesment, That's the taxes not the assesment. I trust someone in Chelan county will look into this for all our sakes, oh and by the way whatever happened to I-600 and I-601, I thought they had caps on how much taxes could be raised in any given year, Thank you liberals for gutting our only relief! I agree with TShafer, as long as we keep electing the same ol same ol we have noone to blame but ourselves and of course KING COUNTY, who thinks they should run this state, FYI our taxes for a modest cabin at fish lake doubled this last assesment, That’s the taxes not the assesment. I trust someone in Chelan county will look into this for all our sakes, oh and by the way whatever happened to I-600 and I-601, I thought they had caps on how much taxes could be raised in any given year, Thank you liberals for gutting our only relief!

]]> By: geordieromer http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-170 geordieromer Fri, 22 Feb 2008 01:35:25 +0000 http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-170 George- I'm not a fan of property taxes any more than the next guy, but I am always interested in the disconnect between home owners perceptions about the value of their home (always very high, of course) and then their expectation of the value it should be assessed at. You mentioned that your 2008 tax assessment went up 48% since 2007. Is this the taxes or the assessed value of your property? Since the Chelan County Assessors reevaluates tax assessed values every 4 years, I would expect an assessed value to go up considerably more than 48% for the time period between 2003 and 2007. That's only slightly higher than 10% a year which is certainly less than market values have gone up during this time period. George- I’m not a fan of property taxes any more than the next guy, but I am always interested in the disconnect between home owners perceptions about the value of their home (always very high, of course) and then their expectation of the value it should be assessed at.
You mentioned that your 2008 tax assessment went up 48% since 2007. Is this the taxes or the assessed value of your property?
Since the Chelan County Assessors reevaluates tax assessed values every 4 years, I would expect an assessed value to go up considerably more than 48% for the time period between 2003 and 2007. That’s only slightly higher than 10% a year which is certainly less than market values have gone up during this time period.

]]> By: wwillcock http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-166 wwillcock Wed, 20 Feb 2008 17:58:24 +0000 http://www.lakewenatcheeinfo.com/2008/sticker-shock/#comment-166 I have contacted my representative(s) local/county/state. I urge you to do the same. Increasing property assessments at this rate is not acceptable. Our reps have the ability to print their own spending money as a result. Please let your rep know they will not be getting your next vote unless the situation is addressed. I have contacted my representative(s) local/county/state. I urge you to do the same. Increasing property assessments at this rate is not acceptable. Our reps have the ability to print their own spending money as a result. Please let your rep know they will not be getting your next vote unless the situation is addressed.

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