ASSESSOR’S OFFICE Keith M. Willnauer Whatcom County Assessor

THE ROLE OF THE OFFICE Provides uniformity and fairness in the distribution of property tax Provides uniformity and fairness in the distribution of property tax Appraises all properties as to their “true and fair market value” Appraises all properties as to their “true and fair market value” Maintains a listing and description of property accounts, maps, and ownership Maintains a listing and description of property accounts, maps, and ownership Provides taxpayer assistance Provides taxpayer assistance

FACTS Our INFORMATION is our most valuable public asset Our INFORMATION is our most valuable public asset SERVICE TO THE PUBLIC is our most valuable commitment SERVICE TO THE PUBLIC is our most valuable commitment

DOES NOT DOES NOT Set or determine property tax policy Set or determine property tax policy Raise values to raise money or taxes Raise values to raise money or taxes Determine how much money is needed Determine how much money is needed

PROPERTY TAX BASICS The Property Tax Formula $ (Levy) _Budget_ = RATE TAX BASE The Property Tax Formula $ (Levy) _Budget_ = RATE TAX BASE

ASSESSED VALUATION /TAX DISTRIBUTION AUTHORIZED TAX AMOUNT __________ = RATE O o O O O O O o O (Tax Base) o O o o O O

A BUDGET-BASED PROPERTY TAX SYSTEM A BUDGET-BASED PROPERTY TAX SYSTEM Dollars come first (pre-set). Dollars come first (pre-set). Assessed values distribute the individual taxpayer burdens of pre-set dollar tax amounts levied. Assessed values distribute the individual taxpayer burdens of pre-set dollar tax amounts levied. Increased assessed values do not create additional tax revenue. Increased assessed values do not create additional tax revenue.

PROPERTY TAX BASICS The Property Tax Formula $ (Levy) _Budget_ = RATE TAX BASE The Property Tax Formula $ (Levy) _Budget_ = RATE TAX BASE

3 REASONS TAXES INCREASE Taxing Districts increase their budgets, Non-Voter approved, (1% Limit or Banked Capacity). Taxing Districts increase their budgets, Non-Voter approved, (1% Limit or Banked Capacity). Voters authorize increases or new taxes. Voters authorize increases or new taxes. TAX BASE SHIFT TAX BASE SHIFT

15 YR TAX INCREASE

REAL PROP AV CHANGE

ORDER OF LEVY INCREASES

LEVY YEAR IN REVIEW LEVY YEAR IN REVIEW VOTER APPROVED INCREASES Fire Districts #1, #14, #17 Fire Districts #1, #14, #17 $ 1,135,715 (1.13 Million) increase $ 1,135,715 (1.13 Million) increase EMS District #11 EMS District #11 $ 62,248 (193.48%) increase $ 62,248 (193.48%) increase Lynden School District #504 Lynden School District #504 $ 2,821,314 (50.64%) increase (Bond) $ 2,821,314 (50.64%) increase (Bond) Nooksack School District #506 Nooksack School District #506 $ 1,345,253 (31.99%) increase (Bond) $ 1,345,253 (31.99%) increase (Bond)

LEVY YEAR IN REVIEW LEVY YEAR IN REVIEW FISCAL RESTRAINT HIGHLIGHTS State of Washington State of Washington $ 2,010,832 (-3.34%) Decrease $ 2,010,832 (-3.34%) Decrease Port of Bellingham Port of Bellingham $ 0 (0%) NO CHANGE $ 0 (0%) NO CHANGE Whatcom County Totals Whatcom County Totals $ 840,579 (1.65%) Increase $ 840,579 (1.65%) Increase

PROPERTY TAX BASICS The Property Tax Formula $ (Levy) _Budget_ = RATE TAX BASE The Property Tax Formula $ (Levy) _Budget_ = RATE TAX BASE

3 REASONS TAXES INCREASE Taxing Districts increase their budgets, Non-Voter approved, (1% Limit or Banked Capacity). Taxing Districts increase their budgets, Non-Voter approved, (1% Limit or Banked Capacity). Voters authorize increases or new taxes. Voters authorize increases or new taxes. TAX BASE SHIFT TAX BASE SHIFT

REVALUATION PROCESS Annual revaluation- every year Annual revaluation- every year Every six years - Required physical inspection - S Side Every six years - Required physical inspection - S Side Establish a new 100% Market Value as of noon, Jan 1st Establish a new 100% Market Value as of noon, Jan 1st Highest and Best Use Highest and Best Use Everything considered Everything considered Required Change Notification Required Change Notification

TAX BASE MOVEMENTS Winners and Losers Winners and Losers Budget Based System Budget Based System AV Down, Rate goes UP AV Down, Rate goes UP Hit the Rate Max- Taxing district loses revenue. Hit the Rate Max- Taxing district loses revenue. Rural Library, Fire Dist, EMS, etc. Rural Library, Fire Dist, EMS, etc.

TAX BASE SHIFT-Causes Winners and losers Winners and losers Market Value vs Property Type Market Value vs Property Type Land Use Regulation Impacts Land Use Regulation Impacts Expanded Exemptions Expanded Exemptions

IMPACT EXAMPLES Semiahamoo, Sudden Valley Semiahamoo, Sudden Valley Non-Profits Non-Profits Senior Citizens, Disabled Senior Citizens, Disabled Tribal Fee and Trust Tribal Fee and Trust Multi-family, Historical Property Multi-family, Historical Property Low Income/Affordable Housing Low Income/Affordable Housing Cherry Point Cherry Point

BP-TAX BASE IMPACTS 975m vs 475m, now at 700m 975m vs 475m, now at 700m 3 Years Under Appeal 3 Years Under Appeal At 700 Districts lose- 1,633,500 at 475 Districts lose- 2,043,682 At 700 Districts lose- 1,633,500 at 475 Districts lose- 2,043,682 Other Taxpayers- rate increase Other Taxpayers- rate increase At $ for 250K in Dist, At $ for 250K in Dist, $ for all county taxpayers $ for all county taxpayers At $ At $

BIG THREE AT CHERRY POINT BIG THREE AT CHERRY POINT Approx Billion AV approx Approx Billion AV approx Allready 378 Million in Controversy- BP Appeal Allready 378 Million in Controversy- BP Appeal Change in Highest and Best Use Change in Highest and Best Use If 60% loss in AV–1 st year change $ 550,000 loss to Districts If 60% loss in AV–1 st year change $ 550,000 loss to Districts $ increase to 250K $ increase to 250K

ASSESSOR’S WEB SITE * Order of Levy Tax Book * Program Information - Exemptions - Appeals - Contacts / general information * PARCEL DATA SEARCH