Nailing it Down
By Dave Murnen and Pat Beaty
Is it possible you — or a friend or relative — could be eligible for a break on your property tax bill?
Grays Harbor County Assessor Dan Lindgren recently took some time with us to review and explain many things about the county’s property valuations, offer insights into local economic and building trends, and discuss the county’s amazing new computer tools: taxsifter and mapsifter.
Lindgren also reminded us of the many property tax reductions, exemptions and referrals available in certain situations. Today we’re going to give you a brief overview of the programs available. Maybe there’s something that will benefit you or a loved one.
Exemptions
When someone has a reduction or exemption in property taxes, it creates a “tax shift” to other property taxpayers. That means the rest of us pay a little more. However, those exemptions and deferrals are available for a reason for those in need.
Property tax exemptions specifically for senior citizens and disabled persons: This program is available for senior citizens, veterans with a 100 percent service-connected disability, and disabled people whose household income falls within the guidelines. The program freezes the value of the residence as of Jan. 1 of the assessment year. It exempts all excess levies and, in some cases, a portion of the regular levies. The county assessor must approve applications for this program, which we will discuss in more detail in next week’s column.
Three-year tax exemption on value of remodel: This is another exemption we plan to talk more about in a future column. Briefly, if you make a major improvement to your single-family residence, you may be able to get a tax exemption on the value of the improvement for three years. This isn’t normal maintenance; it’s like remodeling or adding a new room.
More exemptions: Government buildings, churches and many other not-for-profit agencies are exempt from paying property tax if the buildings are used for tax-exempt purposes.
Reductions
Current use programs and designated forest land: Owners of agricultural, open space, timber land or designated forest land may qualify for a reduced property assessment under the current use program or as designated forest land. However, if the land is removed from this classification, additional tax, interest and penalties may apply. (So you’ll want to make sure this is how you intend to use the land for the long haul.)
Destroyed property: Some Grays Harbor homeowners took advantage of this program after major flooding events in the past few years. It’s also available for people whose homes were burned. This common-sense program makes it so you don’t have to pay taxes for any real or personal property that has been partially or totally destroyed. This also is true if an area has been declared a disaster area by the governor or a county authority. To be eligible, the property value must be reduced by at least 20 percent of its overall value.
Deferrals
In the deferral programs, the state of Washington pays all or some of your property taxes for you. However, the deferred taxes are a lien on the property. The lien — along with interest — becomes due when the property is sold, transferred or inherited, or when it is no longer your primary residence. The application for a deferral is approved or denied by the county assessor.
Property tax deferral program for senior citizens and disabled persons: Up to 80 percent of the equity of your house can be deferred if you qualify. Senior citizens and disabled people within certain household income and equity requirements may qualify. The current interest rate is 5 percent.
Property tax deferral program for homeowners with limited income: If you’ve owned your home more than 5 years and meet household income and equity eligibility requirements, have paid your first property tax installment for the year (due April 30) and filed your application by Sept. 1, you may qualify for this deferral. If qualified, you can defer your second-half property taxes — the part due in October — in an amount up to 40 percent of the equity in your home. The interest rate varies annually.
Assistance
Property tax assistance for widows or widowers of veterans: Age or disability, household income and your spouse’s veteran status at time of death determine eligibility for this program. It is a grant assistance program to help you pay property taxes and is administered by the state Department of Revenue.
Contact the assessor
Again, for each of these various programs, contact the Grays Harbor County Assessor’s Office for more information. Go to the Grays Harbor County website at www.co.grays-harbor.wa.us or call the Assessor’s Office at 360-249-4121.
Dave Murnen and Pat Beaty are construction specialists at NeighborWorks of Grays Harbor County, where Murnen is executive director. This is a nonprofit organization committed to creating safe and affordable housing for all residents of Grays Harbor County. They can be reached at 360-533-7828.
