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property tax relief
property Tax Exemptions 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 six (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), including Social Security benefits, pensions, retirement distributions, annuities, interest income, and capital gains. Proof of income is required at the time of application.
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. This program does NOT exempt property from special assessments such as mosquito, diking and stormwater, or forest patrol assessments.
Once your application is approved, you must renew the exemption every four 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 due and paid more than three (3) years prior to date of application for exemption (RCW 84.69.030).
Click here for the Department of Revenue (DOR) informational brochure: "Property Tax Exemption for Senior Citizens and Disabled Persons"
Click here for the Senior Citizen/Disabled Citizen Exemption forms and other information.
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 in this section does not apply to property damaged or destroyed voluntarily for the tax year in which the damage or destruction occurred.
Click here for the Destroyed Property Claim form.
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 for the Home Improvement Exemption application.
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 for the Historic Property Exemption application.
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 and Equipment Exemption form.
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.
Click here for the Property Tax Exemption application.
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.
Click here for the Property Tax Exemption application.
Property Tax Deferrals 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. Applications must be filed with the Cowlitz County Assessor after the first half taxes have been paid but no later than September 1st of the year to be deferred.
Click here for the Department of Revenue (DOR) informational brochure: "Property Tax Deferral for Homeowners with Limited Income"
Click here for the Limited Income Deferral application.
Senior Citizen and 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 should be filed with the Cowlitz County Assessor no later than 30 days before the tax is due.
Click here for the Department of Revenue (DOR) informational brochure: "Property Tax Deferralfor Senior Citizens and Disabled Persons"
Click here for the Senior Citizen/Disabled Citizen Deferral application.
current use assessment Upon approval, some land can be taxed according to its current use rather than its highest and best use. The property owner must agree to use the land only for a specific approved classification and, in exchange for that agreement, the land is then taxed on a reduced value. If the land ceases to be used for the purpose for which it was granted classification, there are generally compensating and/or additional taxes assessed. The following programs are available:
The Open Space Act 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. There are three categories of Current Use classification: · Open Space Open Space · Open Space Farm & Agriculture Land · Open Space Timber Land 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 value (taxable) and the true and fair value (market). 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 an Additional Tax will be assessed, including interest and a 20% penalty.
Click HERE for more detailed information about the Current Use Open Space programs.
This program is defined in RCW 84.33 and requires a minimum of 20.00 contiguous acres in the same ownership devoted to growing timber for commercial harvest. Land must be actively managed for timber production and must meet minimum stocking level requirements. New applications are submitted to the Assessor’s Office for approval or denial. A timber management plan may also be required as part of the application process. When land in Designated Forest Land is removed from classification, there will be a Compensating Tax assessed.
Click here for more detailed information about Designated Forest Land.
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