Questions about Whatcom property tax? We have answers for you
Whatcom County property owners have likely received their property tax statements by now and property taxes are higher this year.
Assessed property value throughout the county also went up, but that’s not the only reason property owners are spending more in taxes. The increase also has to do with new and renewed county-wide property tax levies. Some districts also have specific levies that affect the amount property owners will pay.
Half of the tax is due by April 30 and the second half is due Oct. 31.
The Bellingham Herald looked at tax questions from local property owners and sent them to Whatcom County Tax Assessor Rebecca Xczar.
Here are her direct responses to those questions and follow-up questions asked by The Herald.
Appraised value
Question: I understand that the tax would go up from all the new levies. But what about the county assessor’s massive raise in appraised value, even though other metrics like Zillow are giving reduced estimated value?
Answer: Assessed values are date-specific and only change once per year. They do not fluctuate with market changes throughout the year. State law requires every property be reassessed every year with a Jan. 1 effective date or July 31 for new construction. The 2023 property taxes are based on 2022 assessed values. The 2022 assessed values are the values as of Jan. 1, 2022.
Any changes in the market since then do not change the Jan. 1, 2022 figure. Sales from January to December 2022 will be used to determine the Jan. 1, 2023 value. The 2023 assessed values will be available later this year, which will be used to calculate 2024 property taxes.
Follow-up question from The Herald: How do home sale prices affect assessments?
Answer: Sale prices are used in different ways. First, we determine if each sale is a market sale or a “good” sale for our analysis. (There are many transactions between family members or quit claim deeds, or partial interest deeds, that are not market sales even though they may transfer ownership).
We are required by law to consider any sale of the property within the past 5 years when determining its assessed value.
In the inspection area when properties are updated on an individual basis, we do analyze the prior sale along with a time adjustment (percentage adjustment to bring that prior sale price to current market value). That prior sale does impact the assessed value for properties in the inspection area.
In the statistical update areas, we analyze large groups of sales together, compare the sale prices to the assessed values, determine a percentage adjustment for the assessed values to bring it closer to the sale prices, and then apply that adjustment to all similar properties in that area. So the recent sale prices are used to develop a percentage adjustment but aren’t used to change individual property values based on its sale.
When properties sell outside of the inspection area for that year, we do not go change the assessed value of that property only. But the sales data is used indirectly to adjust the values in that entire neighborhood or property type.
Lower tax increase
Question: Our (property tax) didn’t increase that drastically but then neither did those in my rural neighborhood so maybe our turn to be assessed wasn’t last year? In unincorporated Whatcom County, we don’t pay some of the taxes for levies like the Greenways.
Answer: There are a number of reasons property tax may not have increased as much for some.
Some of the reasons include:
▪ A property being in the Open Space or Designated Forest Land exemption program.
▪ A property being in the Senior Citizen and Persons with Disabilities exemption program.
▪ An adjustment to value based on destroyed property.
Every property is revalued every year. However, if one value increases at a lower rate than another, there is a shift in the percentage of one property within the whole taxing district.
Properties within the inspection area last year (Blaine, Point Roberts, Point Whitehorn to approximately Valley View Road) saw the largest variety in value changes. Some properties there may not have seen a significant change in assessed value or property tax. Bellingham and Ferndale school districts had voter-approved increases, so areas outside of those two areas would see a lower increase as well. Unincorporated areas tend to have a lower tax rate in general, based on the taxing districts they pay to.
Contesting tax amounts
Question: Our property taxes went nuts. I suggest you contest, contest, contest. It will force them to change how they do things.
Answer: Property tax cannot be appealed. Assessed value can be appealed within 30 days of the date of notice. For most property owners, the appeal deadline was Oct. 30, 2022. Property tax amounts are decided by individual taxing districts and/or voters.
While the assessed value is used to determine property tax, it is based on a percentage of the total value. Any change to the assessed value requirements or property tax system would require a change to state law. The assessor has no authority to make those changes. Changes to state law would need to go through state legislators.
