Property tax decline not certain
Will government lower assessments and property tax bills when home values drop? (“Tax bill should drop,” J.R. Cucinotta, Feb. 15) Like Mr. Cucinotta, many people think when assessments go up, taxes go up; and when assessments go down, taxes go down. But it doesn’t work that way.
Current assessed values are established by the prior year’s sales. If sales prices drop, assessed values will drop. Property taxes, however, are determined by the budgets of the tax districts in which you live. Basically, government budgets are limited to 1 percent growth unless voters approve more. The budgeted amount is spread over the properties in each district. Just because assessed values drop does not necessarily mean taxes drop. We still share the entire budget burden and therefore taxes may still increase.
For a better understanding of our property tax system, I recommend reading the main article, “Property Tax Explanation,” on the county Web site at www.spokanecounty.org/assessor. Also, Assessor Ralph Baker gives an excellent presentation on this subject. To schedule him to speak to your group, contact me at (509) 477-5902 or kbest@spokanecounty.org.
Kevin Best
Chief deputy assessor, Spokane County
Spokane