Question: WHAT IS OPERATING PROPERTY?

Answer: Operating property is any property owned by a public transportation, communication, or power utility company used to conduct it's business and said crosses county and/or state lines. Examples of operating property are Burlington Northern Railroad, AT&T, and Puget Sound Power & Light. Operating property is valued by the Washington State Department of Revenue (DOR) for taxation by the County Treasurers.

Question: HOW DOES THE ASSESSOR ESTIMATE MARKET VALUE?

Answer: Appraisers use three approaches to determine the market value of your property.

Market Approach
The market approach uses sales of similar property as evidence of market value. Because no two properties are exactly alike the comparable properties' sales are adjusted by adding or subtracting for features that are different than the subject property. Adjustments may also be made for time and terms of the sale. The market approach is most suitable for the appraisal of single-family dwellings and vacant land when there are frequent sales. This approach is sometimes used for multi-unit dwellings and commercial property. Sale prices, however, are used to compare the values produced by the cost approach.

Cost Approach
The cost approach is based on the idea that the value of an existing property is the value of the land plus the replacement cost of the improvements minus depreciation. Depreciation is not the number of years the improvements have been used, it is the loss in value due to physical deterioration, functional and/or economic obsolescence.

Income Approach
The income approach is used by appraisers to estimate the income from a property and capitalize the income into an estimate of current value. Because this approach recognizes that potential buyers demand property from which they can anticipate a future income, it is often referred to as the principle of anticipation.

Question: WHAT GIVES THE ASSESSOR THE RIGHT TO PHOTOGRAPH OR TO ENTER MY PROPERTY UNINVITED?

Answer: The laws of the State of Washington require the Assessor-Treasurer or his authorized employees to periodically inspect all real property in Pierce County to determine its true and fair market value. (RCW 84.40.025) Although you may refuse private access to your property, you may not deny access to the Assessor-Treasurer or his employees. You may confirm the credentials of any employee seeking access to your property by calling the Assessor-Treasurer's Office at (253) 798-6111.

Question: HOW CAN MY VALUE CHANGE WHEN I HAVE NOT MADE ANY IMPROVEMENTS TO MY PROPERTY?

Answer: Changes in property values may occur for a number of reasons:

• Valued below 100% of market value in the previous year.
• Located in an area within the county which is experiencing a higher than average appreciation in value.
• Have had new construction (with or without a building permit) value added to the property.
• Fluctuations in real estate sales market up or down.
• Renovation and modernization.
• Property located in an area which has recently been physically inspected by a county appraiser and appraisal changes have been made due to changed property conditions, corrections of previous appraisal errors or omissions, etc.
• Change in tax status since the previous year(i.e. property no longer qualifies for a Senior Citizen or Disabled Persons Exemption, the three year period for an exemption due to improvements having been made to a single family dwelling has expired, etc.).
• Changing highest and best use (i.e. residential to commercial).

Question: I RECEIVED A VALUE CHANGE NOTICE AND NOTICED THAT THERE IS A VALUE FOR A BUILDING WHICH HAS BEEN DESTROYED BY FIRE. HOW DO I CORRECT THIS SITUATION?

Answer: Washington State law provides for a pro rata reduction in assessment value for properties that are destroyed or reduced in value by a sudden incident or event. Qualifying incidents include fire, landslide, earthquake, natural disaster, etc. A claim for reduction in assessment for qualifying reasons may be made no later than three years from the date of destruction or reduction in value. Claims for assessment reduction may be obtained from the Assessor-Treasurer's office by calling (253) 798-6111.