News Update : Why some King County home values dropped while taxes on them rose

Enjay Malik • February 29, 2024

A wooden seesaw with a stack of money on it.

In King County, many homeowners are extremely worried as their property value has gone down, but the same decrease has not been noticed on their tax bills. This drop was consistent throughout Washington state as well as all of the country. One of the major concerns of all homeowners was that the rate at which the property value has declined does not correspond with the tax amount on the property. Alarmingly, in 15 communities where the average property value had decreased, the tax was increased making it a worrisome situation.

As an example, a resident of King County noticed that his property value decreased significantly whereas the tax reduction was just a fraction of that. This issue as a whole is becoming an active concern for Seattle dwellers as the same situation is arising as the tax bills are read more with increasing interest with this mathematical disparity.

A person is holding a tablet with a tax form on it.

King County's accessor John Wilson agrees with the fact that this disparity is increasing frustration among homeowners. He explained that in logical terms both values should decrease equally, however, this is not usually the case as taxes are calculated on various other factors that include jurisdiction decisions and other approved measures. The taxes are not directly related to the property value but to local laws such as school legislation and bond issues. Therefore, on the face of it, it might look like a bad hand is being dealt as property value decreases, this is not the case and should not be taken under plain mathematical calculations.

Changes in how much homes are worth, and the taxes people pay on them in King County show what's happening in the overall real estate market. After a time when home values went up a lot, partly because of the pandemic, things started to slow down. This meant that in most parts of the county, home values went down. But in some places like Skykomish and Normandy Park, home values kept going up. Because of this, the taxes people had to pay on those homes also went up. It is better to get help from a group of professionals or a company like United Seattle to ascertain any irregularities in property taxes.

A man and two women are standing on stacks of gold coins.

The county assessors are trying their level best to lobby for tax relief for homeowners and another measure that brings the tax rate down to parity with property decline, but measures are yet to be implemented. John Wilson said that he feels for the homeowners who are looking down the barrel in a receding economy and increasing tax value.

In the end, it can be easily said that tax calculations are complicated and cannot be pinned on one factor alone like property value. This understanding or lack of it, is causing serious frustration along with an economic burden to homeowners in Seattle. This situation does not seem to be resolving soon and homeowners need to brace for the disparity which might increase in the future.

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