2023 KING COUNTY TAX ASSESSMENTS INCREASE ANOTHER 6.4% IN 2023 LOWERING NET OPERATING INCOME

Brian Platt

King County’s aggregate property tax will increase by 6.4% in 2023. This comes after several years of additional increases. Most investors with long-term tenants keep rents reasonable to avoid vacancies or turnover. While this management style has worked in the past, it is under pressure due to skyrocketing expenses, including the large increases we have seen in property tax bills over the last 5 years. However, there are some areas investors can trim expenses without disrupting the current tenant base. Whether it be tax property assessments, insurance premiums, maintenance, or unit turnovers, there are areas you can improve on expenses so you can improve your Net Operating Income.

Michael Urquhart

One area we examine in this article is tax assessed values. Each year the County assigns an assessed value to both your land and the improvement of the value of your property. The assessed values are not always an accurate representation of true market value; they can be too low or too high. We recommend you do a search at http://blue.kingcounty.com/Assessor/eRealProperty/default.aspx to determine your taxable value and contact a real estate broker to compare values.


Ben Douglas

If your 2023 tax assessed value is higher than your broker’s opinion of value, then you do have options to contest the assessed value. There are two main areas that will determine if your property taxes are too high. These will include a review of market sales of similar properties in your area as well as an income/expense analysis to determine if your current Cap Rate is in line with the market. Additionally, there could be unknown circumstances relating to your property such as deferred maintenance, environmental concerns, or unbuildable land that could all factor into a potential property tax appeal.

While we would recommend hiring firms that specialize in this field, you can also appeal your assessed value directly with King County. The firms we work with can also run an analysis and determine if you have a solid case to lower your taxes. Please contact us if you are interested in reaching out to one of these specialists, and we can pass along their contact information. If you do decide to appeal your taxes on your own, here is how to do it.

How to Appeal the Assessed Value of Your Property

There are two options to file an appeal with the Board of Equalization:

1. File online using E-appeals.
   http://www.blue.kingcounty.gov/assessor/eappeals/index.aspx

2. Mail or hand deliver two sets of the BOE’s petition form, any attachments, and/or supporting evidence to the following address:
   
   King County Board of Equalization
   516 Third Avenue, Room 1222
   Seattle, WA 98104-2306

Petitions either must be postmarked, hand delivered to the BOE’s office, or filed online by the latter of July 1st of the assessment year OR within sixty 60 calendar days from the mailing date printed on the value notice (or other notice of determination).

Call us if you are curious about how seller financing would affect your property’s pricing. We would be happy to give you an updated market valuation and provide you with an array of exit strategies to help you make the best decision. Brian Platt at Brian@ParagonREA.com (206) 251-8483, Michael Urquhart at Michael@ParagonREA.com (425) 999-6650, or Ben Douglas at Ben@ParagonREA.com (206) 658-7247.