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Tom Kelly
Tom Kelly
The Real Estate Adviser

April 24, 1998

Property taxes due April 30

By TOM KELLY
The Real Estate Advisor

The April 15 IRS filing deadline has past, but don't think you're off the hook for a while -- Property taxes for the first half of the year are due on or before April 30. They may be paid up to Oct. 30 with interest and penalty on the entire year's tax. The taxes for the second half of the year are due Oct. 31.

If you care to appeal your assessment, July 1 is USUALLY the last day to appeal your county property tax assessments. However, don't be discouraged if you are planning an appeal. The deadline is July 1 OR 30 days after valuations have been sent. Some counties might not issue valuations until later in the year.

Appeals must be made by July 1 with the Board of Equalization, typically located at the county courthouse or county administration building.

Appeal forms are available at the office. Appeals postmarked July 1 or 30 days after they are sent out by the county will be accepted, as will those delivered in person between 8:30 a.m. and 4:30 p.m.

A hearing will then be set. If the consumer or the assessor's office is not satisfied with the equalization board's decision, either may appeal within 30 days to the State Board of Tax Appeals.

In previous years, more than 50 percent of property owners in King and Snohomish counties who appealed got their property taxes lowered.

The equalization board advises filing an appeal if the taxable value shown on your 1995 tax statement is higher than the price you could expect if you sold your property. The most common way to determine a property's worth is by comparable sales prices.

As home prices go up, so do property tax assessments. The market value of homes here typically has been higher than the worth assigned for county tax assessment purposes.

The state also has done a decent job of providing the county assessors the ability to reduce or defer property taxes for senior citizens and disabled persons. This program exempts these taxpayers from all excess levies and may exempt a portion of regular levies on your primary residence and up to one acre of land. Excess levies are approved by the voters and include school construction bonds and maintenance of operation levies.

To find out if you are eligible, contact your county assessor (King County, 1-206-296-3920; Snohomish County, 388-3540; Pierce County, 591-7111, Kitsap County 1-360-876-7160; Jefferson County 1-360-385-9105; Mason County 1-360-275-4467). You have until Dec. 31 to apply for the senior citizen or disabled person program. Applications will be considered for the previous three years even if you did not apply at that time.

Typically, for a reduced tax, you must be 61 years of age on Dec. 31 of the year of application, or unable to work due to a physical disability. In addition, your household income must be $28,000 or less in the year before application.

For a deferral of property taxes, you must be 60 years of age with a gross household income of less than $34,000.

All sources of income must be reported for yourself, your spouse and all co-tenants. A co-tenant is a person who lives in the residence and jointly owns the residence with you.

When the assessment arrives, don't be surprised to get a call from a real estate appraiser. His pitch will be that your property valuation is too high and will offer to represent you before the County Board of Equalization. He probably will boast a good track record in previous appeal cases and say he could get the valuation significantly reduced.

The going rate for this service typically runs 50 percent of the tax savings for the next two years -- or about $400 for me the last time I was contacted. He wanted a $200 retainer, which would be subtracted from his total.

The idea of paying a professional property appraiser $400 for a tax savings that may extend for years often is a good one. I know it would appeal to the average consumer who wants nothing to do with fighting city -- or county -- hall. The fee could be a bargain given the time and preparation it would take most taxpayers to compile and present such a case.

However, be sure to get in writing what happens if the appeal fails. If the appraiser wants to be paid for "his time" agree upon a figure before accepting. You could learn the hard way that some people's time is worth a lot more than others.



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