''Our office works for you, the taxpayer''
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Overview of the Assessor-Treasurer's Office |
The Assessor-Treasurer's Office was formed on May 1, 1981 under the new Home Rule Charter by combining the formerly separate offices of the Assessor and the Treasurer. Under the Charter, the Assessor-Treasurer's Office is an administrative department of Pierce County, governed by the laws of the State of Washington and subject to the Home Rule Charter. The Assessor-Treasurer is elected by the voters of the county.
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2401 South 35th Street Room 142
Tacoma, WA 98409
Hours: 8:30 - 4:30
Customer Service Hotline (253) 798-6111
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Washington State Law classifies property under two specific categories:
Real and Personal Property. The Pierce County Assessor-Treasurer's Office has the responsibility for appraising and taxing all property, unless otherwise exempted by law. Revised Code of Washington RCW Title 84.
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Real Property: Real Property includes land, all buildings, manufactured homes, structures or permanent improvements built upon or attached to privately-owned land, including machinery and equipment which may become a fixture. RCW 84.04.090
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Personal Property: For the purposes of taxation, Personal Property falls into two categories: tangible items which have physical existence and intangible items which consist of rights and privileges having a legal but not a physical existence.
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The chief characteristic of Personal Property is its mobility. Personal Property includes, but is not limited, to furniture and fixtures machinery and equipment; supplies and materials not held for sale or do not become an ingredient or component of an article being produced for sale.
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Many types of Personal Property are excluded from taxation. These include livestock, inventories held solely for resale, intangible property and personal effects and household goods in actual use by their owner. RCW 84.04.080
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Operating Property: Real and Personal Property owned by public utilities such as railroad companies, telephone companies, and gas or electric companies are classified as operating property. The Washington State Department of Revenue values the operating properties and provides that information to the Assessor-Treasurer's Office to be included on the county's assessment and tax rolls. RCW 84.12.270
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According to the state law RCW 84.40.030, assessors are required to value all taxable property at 100% of its true and fair market value taking into consideration the highest and best use of the property.
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Revaluation of Real Property is performed on an annual basis in Pierce County using current market value trends. All property is physically inspected at least once every six years (RCW 84.40.030 and 84.41.041). Revaluation is an additional aspect to the continuous appraisal of new construction, remodeling and other characteristic changes.
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Real Property Assessment: Pierce County appraisers take into consideration a wide range of factors to ensure accuracy and equity when estimating the assessed value of all types of property. Each of the three approaches to value has a distinctive method to measure and understand the motives of the buyers, sellers, investors, developers, and financiers in the current market place. An appraiser determines value for residential properties by using either the Cost or the Market approach. The Income approach is used primarily for commercial properties.
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Three approaches to value:
Cost Approach: This method applies the principle of substitution. A knowledgeable individual would not pay more than the cost of a comparable property with similar location and utility. The appraiser estimates the cost new to replace or reproduce the improvements deducts from cost new, physical, functional, and economic conditions that affect its value, adds the estimated land value to determine the total assessed value of the property.
Market Approach: (comparable sales) This method is a process of analyzing sales of similar properties that have recently sold. Adjustments are made for certain differences between the properties such as age, condition, area, and amenities to determine the total assessed value.
Income Approach: The income capitalization approach to value is used primarily for commercial properties. Value is based on the property's income generating potential. An analysis of income, vacancy, credit loss, and operating expenses with an appropriate capitalization rate is necessary to properly determine a valuation by this method.
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Personal Property Assessment: All Personal Property is subject to assessment and taxation except items exempted under RCW 84.36.005 & RCW 84.36.070. For the purposes of taxation, Personal Property falls into two categories: tangible items which have physical existence. The chief characteristic is mobility, includes but is not limited to furniture, fixtures, machinery and equipment, supplies and materials which are not held for sale, leased equipment, certain leasehold improvements, and lessee-owned improvements on public land. Intangible items consist of rights and privileges having a legal but not a physical existence. Intangibles are exempt per RCW 84.36.070.
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Property owners are required to file an annual listing (an affidavit) of all taxable personal property used in conducting their business by April 30th. There is a penalty for failing to file a Personal Property affidavit, 5% of the tax due per month, up to a maximum penalty of 25%.
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Taxes are a lien with reference to its value and ownership on the first day of January of the year in which the property is assessed. Property owners are required to file a separate affidavit for each place of business. Assessed values must be allocated to the taxing district in which the property is located. Affidavits are available by calling the Assessor-Treasurer's office at (253) 798-7130.
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Personal Property values are based on reported cost, year of acquisition and type of asset. Valuation Tables are provided by the Department of Revenue. These tables are used to determine the market value. Value Change Notices are mailed each year after the property has been assessed.
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Mobile homes are described as structures which can be moved in one or more sections, have a total size of 32 feet or more in length and 8 feet or more in width, are built on a permanent chassis and designed to be used as a dwelling with or without foundation when connected to required utilities.
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Beginning in 1985 all mobile homes that are permanently affixed to the land are to be assessed as Real Property (not to be confused with on real property). In order to accommodate our appraisal system and state law, most mobile homes in Pierce County are assessed as Real Property with a separate tax parcel number to identify the mobile home and any of its accessories. RCW 84.04.090
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Although all mobile homes are assessed as Real Property, the collection of taxes is based on the ownership of the land. The determination of how to collect the tax is as follows:
Real Property Collection: If the same party owns the mobile home and land, the taxes are collected as Real Property and subject to foreclosure proceedings.
Personal Property Collection: If the mobile home owner is not the owner of the land where the mobile is located, the taxes are collected as Personal Property and subject to distraint. RCW 84.56.090 & 84.56.120
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Property taxes vary widely across the United States with over 13,500 local governments having authority to assess both Real and Personal Property unless specifically exempt by law. All states allow local governments to set their own tax rates even though many states place limits on their rates.
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The Assessor-Treasurer's office must determine the property tax base for each taxing district and ensure that district levies are not more than allowed by law. This system of ad valorem taxation uses the assessed value and the total tax base for the district in which the parcel is located to calculate the amount of property taxes owing for each parcel.
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Property tax is collected to support the administration of the State, County, Port, Road District, Rural Library, Metropolitan Park, Cities and Towns, Schools, Fire Protections Districts and miscellaneous taxing districts.
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The maximum regular tax rate is set by the state legislature. Excess levies or local levies are approved by voters at the polls, and include bond issues, maintenance and operation, and capital improvements. Voters within a district determine their own tax burden by either approving or disapproving excess levy requests for money.
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Levy Procedures: The Assessor-Treasurer's office must determine the property tax base for each taxing district and ensure that district levies are not more than allowed by law. There are 121 taxing districts in Pierce County. With irregular and overlapping boundaries there are 241 tax code areas.
Regular levies are subject to various limitations. Excess levies are determined by the voters and are not included in these levy limitations. Pro-rating occurs when one or more taxing districts has the same statutory right to levy for taxes. Levy rates are limited by either the $5.90 or the 1% Constitutional Limit. RCW 39.67.010 and .020 allow taxing districts to contract or transfer funds between the districts for the purpose of reducing pro-rationing.
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1% Levy Limit: This limit prohibits a taxing district from levying regular property taxes in any year more then one hundred and one percent of the highest amount of regular property taxes that could have been lawfully levied in that taxing district in any year since 1985, plus an additional amount calculated for new construction, improvements to property and the increase in the value of state assessed property. RCW 84.55.010
The limit is based on the population of the district and the district's need to increase revenue. A taxing district with a population below 10,000 would need to adopt a resolution/ordinance by simple majority to increase its levy up to the 1% limit. Taxing districts with a population over 10,000 are limited to the lesser of 1% or inflation as defined by the IPD (implicit price deflator) with the adoption of a resolution/ordinance by simple majority. If the rate of inflation is less than 1%, the taxing district could increase its levy up to 1% with a finding of substantial need and the passage of a second resolution/ordinance by a supermajority vote of the governing body.
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$5.90 Levy Limit: This is the maximum combined regular tax levies for senior and junior taxing districts (other than the state) in each tax code area. Not all districts are subject to the $5.90 limit. (Exceptions, State School, Ports & PUDs, Conservation Futures, EMS, Affordable Housing, Metro Parks (if voted), Excess Levies).
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1% Constitutional Limit: Established by Article VII, Section 2 of the State Constitution. It prohibits the aggregate of all tax levies on real and personal property from exceeding one percent ($10 per $1,000) of the true and fair value of property. This limit does not apply to excess levies, levies by port districts, and levies by public utility districts. RCW 84.52.050
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Property tax statements are mailed during February each year. Failure to receive a tax statement does not waive interest and penalty for a delinquent tax.
If the amount of tax due is $50.00 or less, full payment is due by April 30. If the tax amount due is over $50.00 it may be paid in two installments. First half may be paid by April 30 and the balance by October 31 without incurring a penalty for late payment. RCW 84.56.020
Mortgage companies will be subject to the same payment policy as the taxpayer and will be expected to pay all taxes, special assessments, and other charges levied on a parcel of property.
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Real Property Payments For Current Year: If a payment for the current year is made after April 30, but before October 31, the taxpayer may pay the current year first installment plus the incurred interest and penalty on the full amount of taxes.
The current year second installment will then be due on October 31.
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Personal Property Payment For Current Year: If a payment is made after April 30, then the full current year amount due plus interest and penalty must be paid and there is no second installment.
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Delinquent Prior Years Tax Payment: If the taxpayer wishes to pay a delinquent amount, the full delinquent year amount due plus interest and penalty must be paid.
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Advance Tax Collection: Real Property (plats, mobile homes) and Personal Property may be subject to an advance tax collection. Taxes are a lien from date of assessment with reference to its value and ownership on the first day of January of the year in which the property is assessed for tax due the following year. RCW 58.08.040, RCW 84.56.090
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Interest and Penalties on Delinquent Taxes: Current year first half tax must be paid by April 30th, or the entire tax becomes delinquent. Interest and penalty on delinquent first half tax is calculated on the entire years tax.
Second half tax becomes delinquent after October 31st.
Interest = 1% per month on the full amount due (from month of delinquency to month of
payment).
Penalty = 3% (current year tax only) on the unpaid amount as of June 1st.
8% (current year tax only) on the unpaid amount as of December 1st.
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If a taxpayer believes a tax is unlawful or excessive and wishes to preserve their right to seek a refund in court, the taxpayer must, at the time of payment, provide Pierce County Assessor-Treasurer with a separate written statement (1) saying the tax or a portion thereof is being paid under protest, and (2) stating all the reasons why they believe the tax paid under protest is unlawful or excessive. If the tax is paid in two installments each payment must have a written protest or the first written protest must indicate that it is in respect to the tax payable for the entire year. RCW 84.68.020
Payments made Under Protest
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Transactions dealing with real property that change property boundaries must be in compliance with the appropriate subdivision requirements as established by State Law, County Code, and City or Town ordinances.
Hundreds of changes take place each year. These include short plats, formal plats, large lot subdivisions, condominiums, lot combinations, binding site plans and boundary line revisions. Whenever property lines change, the Assessor-Treasurer's digitized parcel maps are updated to reflect these changes.
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State law allows property owners to be delinquent on the real property tax for a period of up to three years. After three years Pierce County has the authority to sell the property in a tax foreclosure sale. (RCW 84.64.030)
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A foreclosure sale takes place at an open auction, with a minimum bid for each parcel set at the amount of delinquent taxes, interest & penalty plus administrative costs. The Assessor-Treasurer's Office takes every precaution to see that all legal owners have received notification of the possible foreclosure sale.
Foreclosure Information
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2401 South 35th Street Room 142
Tacoma, WA 98409
Hours: 8:30 - 4:30
Customer Service Hotline (253) 798-6111
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