There is a difference between a deferral and an exemption. Deferred taxes become a lien on the property, and the deferred amount plus interest must be repaid. There are two types of property tax deferrals available:

Homeowners with Limited Income

If you are a homeowner with limited income, Washington State has a program that may help you pay a portion of your property taxes. Under this program, the Department of Revenue pays 50% of your property taxes and/or special assessments on your behalf. The deferred taxes plus interest must be repaid when you cease being eligible for the deferral.   

To apply for this program, your first half property tax installment for the year must already be paid. In addition, the claimant must meet eligibility requirements in three areas to qualify: ownership and residency, total household income, and available equity. You must have owned your home for at least five years before applying, and you must live there at least six months of every year. Your total household income for the year previous to application must be $57,000 or less (including claimant's income and income of any spouse or co-tenant). There must also be sufficient equity available in your home; the taxes deferred cannot exceed 40% of the equity.   

Click here for the Department of Revenue brochure: "Property Tax Deferral for Homeowners with Limited Income"

Senior Citizen & Disabled Citizens Tax Deferral

Chapter 84.36 RCW permits some senior citizens and disabled citizens to defer payment of unpaid property taxes and/or special assessments. The deferred taxes plus interest must be repaid when you cease being eligible for the deferral.   

The claimant must meet eligibility requirements in three areas to qualify: age or disability, home ownership, and total household income. The claimant must be at least 60 years of age or unable to work because of a disability, must have an annual household income of $40,000 or less (this includes all forms of income, not just that which is taxable), and must own the property in total or under a contract purchase. The deferral is available on a home and up to 5.00 acres of land. The amount deferred, plus interest, may not exceed 80 percent of the claimant's equity value in the residence. A declaration to defer taxes must be filed with the Assessor no later than 30 days before the tax is due.  

Click here for the Department of Revenue brochure: "Property Tax Deferral for Senior Citizens and Disable Persons"

Exemptions granted to qualified recipients do NOT have to be repaid. There are several types of exemptions available, including the following:

Senior Citizen & Disabled Persons Tax Exemption

RCW 84.36.381 grants property tax exemptions based on qualification in three categories: age or disability, home ownership, and total household income. You may be eligible for this exemption if you meet the following criteria: 

AGE or DISABILITY REQUIREMENTS:

• You are at least 61 years old, OR

• You unable to work because of a disability, OR

• You are a veteran with a 100% service connected disability.

OWNERSHIP REQUIREMENTS:

• You own the home (either in total, as a contract purchaser, or as a life estate), AND

• The home is your principal residence at the time of filing, AND

• You occupy the residence for at least 6 months of each year. 

INCOME REQUIREMENTS: 

• Your total household annual income is $35,000 or less. This includes all disposable income (not just what is taxable), such as Social Security benefits, pensions, retirement distributions, annuities, interest income, and capital gains. 

THE COWLITZ COUNTY ASSESSOR'S OFFICE REQUIRES THAT YOU COME INTO THE OFFICE IN PERSON TO APPLY. Proof of income (and disability if not 61) is required at the time of application. 

Once your application is approved, you must renew the exemption every two years unless you have a change in circumstance. If your eligibility status changes (i.e. your income increases over the allowed maximum), you must notify the Assessor's Office within 30 days after the change occurs.  The exemption ceases immediately upon the death of the qualified person, unless survived by an eligible spouse, OR upon the date the claimant moves out, OR upon the date the residence is sold, whichever occurs first.  

You may also apply for an exemption of prior years' property taxes if you would have qualified but were unaware of the program.  However, by law, the county Treasurer cannot refund taxes that were paid more than three (3) years prior to date of application for exemption.  

Click here for more information about the application process.

Click here for the "Request for Removal/Proration of Senior Citizen/Disabled Person's Exemption and Recalculation of Taxes"


For those who qualify for this property tax exemption, there are two benefits:


1. The value of your residence is frozen as of January 1, 1995 or January 1 of the initial year of qualification, whichever is later.
2. The property taxes are reduced. The residence is exempt from all excess levies and may be exempt from a portion of regular levies, depending on income.
3. The exemption is allowed on your home and up to 5.00 acres of land, depending on the minimum lot size required for a building permit. Outbuildings and any non-qualifying land will be billed at 100% on a separate tax statement.

 

Destroyed Property RCW 84.70.010 provides that if, on or before December 31 in any calendar year, any property placed upon the assessment roll of that year is destroyed in whole or in part, the true and fair value of such property shall be reduced for that assessment year. The amount of reduction is determined by taking the true and fair value of such taxable property before the destruction or reduction in value and deducting true and fair value of the remaining property after destruction or reduction in value.    If the true and fair value has been reduced under this section, then taxes levied for collection in the year in which the true and fair value has been reduced shall be abated in whole or in part. The method for determining how this tax abatement is calculated is described in RCW 84.70.010(2). If taxes abated under this section have already been paid, the amount paid shall be refunded under RCW 84.69.020.   The tax relief provided for under this section does not apply to property damaged or destroyed voluntarily.    Click here to download the Destroyed Property form.   Click here to download the Petition for Property Tax Refund form.   Current Use Assessment In 1970, the state legislature enacted the Current Use Open Space Taxation Act as one way to recognize the importance of preserving and maintaining the various types of open space lands in Washington. Chapter 84.34 RCW provides for certain land to be assessed based on its current use rather than its highest and best use. The Assessor’s Office accepts applications for Open Space Timber ($51 fee) and Open Space Farm & Agriculture ($50 fee), while applications for Open Space Open Space are submitted to the Building & Planning Department ($1,275 fee). All application fees are non-refundable.  Once land is classified, the Assessor's Office maintains the files for all property in the Open Space program, including a dual tax roll to track the current use (taxable) value and the actual market value. The Assessor is also responsible for conducting periodic reviews to make sure the land is still being used for the purpose for which it was granted classification. This includes audits of financial records and on-site inspections of agricultural or timbered land. These reviews are very important because the reduction in taxes for parcels in Open Space represents a tax shift to the other taxpayers in the county. If land is no longer being maintained according to the approved Open Space agreement, it will be removed from classification and and Additional Tax will be assessed, including interest and a 20% penalty.  Click here for detailed information and links to forms   Home Improvement Exemption RCW 84.36.400 exempts from taxation any physical improvement to a detached single family dwelling for the three assessment years subsequent to the completion of the improvement, up to 30% of the value of the original structure. This can provide substantial tax savings for homeowners who remodel or expand their homes. This home improvement exemption may be claimed only once in a 5-year period. Normal maintenance work does not qualify for this exemption. Notice must be filed with the Assessor prior to completion of the improvement to claim the exemption. Click here to download the Home Improvement Exemption form. Historic Property According to RCW 84.26.030, the actual cost of substantial improvement to eligible historic property (which cost is 25% or greater of the assessed value of the historic structure prior to rehabilitation) may be excluded from the assessed value of such property for a period of ten years. Applications for this exemption are furnished by the Assessor and approved by the Historical Preservation Board of the jurisdiction within which the property is located. Click here to download the exemption form for Historic Property.     Forest Land Designation Designated Forest Land is subject to property tax under RCW 84.33.010. Land that has been classified under this law is assessed in accordance with valuation schedules developed by the Department of Revenue (DOR). The Assessor must determine which land qualifies and then assess the land according to DOR-certified forest land grades. Land which has no higher or better use than growing and harvesting timber may be classified as Forest Land by the Assessor. Land which is being used to grow and harvest timber but which is more valuable for other uses may be designated as Forest Land by the Assessor upon application by the landowner. To qualify as Designated Forest Land, a parcel must be at least 20 acres in size and must be primarily devoted and actively used for growing and harvesting timber. Designated Forest Land may be subject to a compensating tax if the use of the land is changed or upon an owner's request to remove the classification or designation.  There is no application fee for classification as Forest Land.  Click here for detailed information and links to forms   Publicly-Owned Property RCW 84.36.010 allows exemption of taxes to all publicly-owned property such as that of federal, state, county, or city governments.   Church-Owned Property RCW 84.36.020 allows exemption of church-owned property used for church purposes. Property must be used for such things as church, parking, parsonage, convent and caretaker's residence. The land on which an exemption is granted may not exceed five acres.  After initial application, a renewal application must be submitted annually.  Application must be made to the State Department of Revenue.   Exempt Property RCW's 84.36.030 through 84.36.350 allow tax exemptions for property used in character building, benevolent, protective or rehabilitative social services, camp facilities, veterans and relief organizations, libraries, orphanages, day care centers, nursing homes and hospitals, schools and colleges, art, scientific and historical collections, fire companies, humane societies, musical and artistic associations, public assembly halls, certain public authorities, and sheltered workshops for the disabled. Exemption must be claimed annually and ceases upon cessation of the exemption-qualifying use of the property.  Application must be made to the State Department of Revenue.                    Exemption of Farm Machinery and Equipment Under RCW 84.36.630, all qualifying farm machinery and equipment is exempt from the state property tax.  Qualifying machinery and equipment must be; (1) owned by an active farmer, (i.e. someone who is in the business of farming), and (2) the equipment must have been used in the business of farming during each year the claim for exemption is made.  Additionally, equipment claimed for exemption must also have been used exclusively in growing, raising, or producing agricultural products.  Equipment not qualifying includes; (1) equipment used in growing, raising, or producing agricultural products for a person's own consumption, (2) equipment used in the selling of animals from stockyards, slaughterhouses, and packing houses, and (3) equipment used in cultivating or raising timber.  The claim for exemption must be submitted by April 30th each year with the personal property affidavit to the County Assessor where the personal property is located.  For a listing of qualifying farming activities refer to RCW 82.04.213 and RCW 15.85.020. Click here for the Farm Machinery & Equipment exemption form.