King County Property Tax Soars
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The cost of living in King County, Washington has risen dramatically. Businesses are leaving the county because of high taxes and people are losing their jobs. Costs are rising but salaries are not. Those on fixed income such as social security are finding it difficult to survive. People are losing their homes because they cannot afford the high cost of increasing taxes and loss of employment.
Individuals are selling their homes because land values have been assessed as being valued three times the value of last year. A 864 sq ft house built in 1969 (54 years old, 3 bedroom, one bath) that had a value of $24,500 in 1969 now has a house value ($138,000 for 860 sq ft house) and land value ( $228,000 for 5,201 sq ft lot) which equals $366,000 for house and land value in 2023 an increase of +$70,000 from last year.
What's wrong with this picture? A lot of people don't make $70,000 a year, senior citizens may never have made $70,000 a year and yet King County can raise the value of your home $70,000 per year. Senior Citizens living on a fixed income don't get an increase in their take home pay and yet they are expected to pay inflation costs on their homes. A tip for those thinking of buying a home, "Buy a home in an unincorporated area because when the city becomes incorporated, you are also expected to pay an additional city tax that lowers your income."
So how is the property tax law is calculated in Washington state?
They are calculated based on the total of assessed value in a given tax district, and the total budget of a given taxing authority.
Residential property is assessed each year at its full market value, which is defined as the amount a buyer, willing but not obligated to buy, would pay to a seller willing but not obligated to sell. For residential parcels, fair market value is determined by analyzing recent sales of comparable properties in the same area.
To prevent people losing their homes perhaps the valuation of property tax should not be determined by fair market value but by how much the person owning the home could afford to pay or maybe we should not be taxing our homes at all?
| Valued Year | Tax Year |
Appraised Land Value ($) Lot Size |
Appraised House Value ($) House 860 sq ft built 1969 House 54 years old 3 Bedroom 1 Bath |
Appraised Total ($) | Taxable Total ($) (+ $ Increase from Last Year) |
Per year and monthly King County Propery Tax Increase It looks like most people in King County |
|---|---|---|---|---|---|---|
| 2022 | 2023 |
$228,000 |
$138,000 (+$37,000 increase from last year) |
$366,000 |
$366,000 (+$70,000 increase from last yr) |
$3,999.46 house tax / 12 mo = $333.29 tax per mo |
| 2021 | 2022 |
$195,000 |
$101,000 | $296,000 |
$296,000 (+$64,000 increase) |
$296k |
| 2020 | 2021 | $104,000 | $128,000 | $232,000 | $232,000 (+$21,000) |
$3,101.23 per year / 12 mo = $258.44 mo taxes
|
| 2019 | 2020 | $99,000 | $112,000 | $211,000 | $211,000 (+$12,000) |
$2,833.90 per year / 12 mo = $236.16 mo taxes |
| 2018 | 2019 | $99,000 | $100,000 | $199,000 | $199,000 (+$20,000) |
$2,536.08 per year / 12 mo = $211.36 mo taxes |
How King County Assess Value
"In valuing residential real estate, we look at both land and improvements (buildings, bulkheads, etc.). We begin by establishing land value, which state law requires us to value as if it is vacant. This value is determined by analyzing sales of comparable bare land. If there have been no recent sales, we use other recognized appraisal methods.
Our next step is to study sales and market trends of improved (developed or built-on) properties in a selected area. This sales analysis is used to determine total market value based on size, year built, quality of construction and other characteristics. From this total value, we subtract the amount determined for the land. The balance is allocated to improvements.
In addition to this Market Approach, residential property can also be valued using the Cost Approach, which sets the value based on what it would cost to reproduce or replace the property, minus its depreciated value.
In addition to statistical analysis to determine value, all properties are physically inspected once in every six year cycle.
Whenever we revalue your property, you will receive an Official Property Value Notice showing your old and new total values with separate values shown for land and improvements."
What can be done?
1. Change the way we do tax valuation.
2. Centralize and lower services costs by using set standards. Building plans could be constant and reusable by different counties. Reuse what is in place instead of creating additional cost plans.
3. Lower costs by using fewer people. We have computers that could value land and homes instead of using additional people to go out and value the land and property. Google maps if you zoom in actually shows the home and property condition... it's online. There are drones that also can get a sky high view of many properties at once. The land toxicity that indicates the Arsenic and lead poisoning in King County could be looked at with GIS mapping technology. GIS mapping technology can use blood lead screening, tax assessor (property), and U.S. census data to develop and improve preventive interventions, especially primary prevention (before children are poisoned). With GIS, maps can be created that show the location and age of every housing unit in an area. These maps can include information on other risk factors for lead poisoning, including population distributions, housing conditions, and BLLs of resident children during a given period. This information can be used to show the relationship between housing units and risk factors.
3. Government entities should financially support their own infrastructures without taxation to the people. It means thinking a different way.
Where is the government's greatest assets? In the land, where it has always been, of course. There is only so much land to be had, King County is a prime example. There is only so much land and way too many people looking to occupy it.
King County is often called "The Land of the Millionaires" only most people are living just at or just below poverty level.
The federal government owns roughly 640 million acres, about 28% of the 2.27 billion acres of land in the United States. Four major federal land management agencies administer 606.5 million acres of this land.
What is it that most people need and use? Energy. We need energy to power our homes and our lives. Energy can be created on the land and sold to the utilities. In the southwest there are acres of land that are not improved, where solar power could be creating energy. The southwest is also drying up, the water is at premium. Everyone needs water, probably some infrastructure will have to be in place to get water from where it's now flowing to those in the southwest. If not all those people in the southwest will need to go somewhere, maybe up here to the northwest?
4. People never really own their homes. If you don't pay your taxes then the government owns your home. People never really own their land. We are essentially leasing our land from the government, because if we don't pay the taxes the government will take your property.
There are other costs of maintaining a home. We recently had a water main leak that cost us $5,400 to replace the water main from the house to the street, and the water company sent us a $13,000 water bill (that they lowered to $965, a one time lowering per 5 years). We were lucky that the water leak was not under the house. Some people never find their water leak. The unexpected $6k water leak expenditure was only one problem. We also have Home Owner Association dues the went from $27 per month two years ago, to $43 per month last year to $45 per month this year. Every time your house and land cost increases makes the cost of your house insurance go up also. The typical house insurance with earthquake insurance is around $1,000 per year. Another large investment is roof replacement, it cost about $13,000 to replace our roof three years ago.
It would be wonderful if people were not taxed on their homes.
Economic Recession - Hybrid Car Gasoline Prices
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The appeal and popularity of various hybrid cars have grown especially with the concerns about high gasoline prices as well as a worsening air pollution. Here are some bits of useful information that would help you learn more about hybrid cars and how they may help you save on gas and be somehow protected from worries about rising gasoline prices.
A hybrid vehicle is a type of car that makes use of at least two different fuel sources to make it work. Both fuel sources usually are being used together in some instances to help propel the vehicle more efficiently. There are several different combinations possible for hybrid cars, but the most common hybrid car so far is the gas-electric hybrid.
The gas-electric hybrid car, also known as the hybrid electric vehicle or HEV, is known to make use of a gasoline internal combustion engine or ICE and a separate electric motor to help power it. While the ICE makes use of gasoline to make it run, an electric battery is used to store the electrical energy that powers the hybrid car's electric motor. The HEV usually has a gasoline engine that is smaller than a conventional one used in standard gasoline powered cars. Use of more advanced technology makes this possible and allows the HEV have better running efficiency as well as substantially reduced pollutant emissions.
Aside from the gasoline engine, the hybrid electric car also has a special electric motor built in that not only helps provide added power to the car but also acts as a generator when not being used. The electric motor can act as a generator in situations where it is not being used to help charge the battery for added efficiency.
In a common HEV set up, the car uses its electric motor when being propelled at very low speeds. The gasoline engine acts as a secondary power source when the HEV requires much needed power as in the case of climbing up an incline. The gasoline engine also has the ability to compensate the electric motor with power whenever the car needs it in order to go faster. The gas and the electric motor can also work in combo at certain instances if needed.
Because the hybrid electric car makes use of both an electric motor as well as a gasoline motor, a substantial improvement in car mileage is somehow achieved. A hybrid electric vehicle or HEV can run longer distances using the same amount of fuel as compared to a conventional gasoline powered car. Whenever the electric motor is needed, gasoline use is avoided. This results in fewer gas used when running the same distance as a traditional gasoline powered vehicle.
And because the hybrid electric car has a smaller gasoline engine, the hybrid car can also runs more efficiently because of lesser engine weight as compared to the conventional car. The working parts of the hybrid car engine also are smaller and require less energy to move. This efficiency makes the hybrid electric car quite a great option for people concerned with rising gasoline prices. Using the hybrid car can help drivers save a substantial amount of gas when traveling. Not only that, using the hybrid car can also help in reducing pollutant emissions by using less gas while traveling.
Taxes - And Your Online Business
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Trying to land a great job which gives a good pay is quite difficult to do these days. Not everyone can actually have the job of their dreams with a good salary to boot that’s why more and more people are resorting to having their very own online business to suffice their needs and wants. If you are one of the many people who is interested in starting your very own online empire, you should be aware of the basics of taxes and your online business.
More Than Just Social Networking
More often than not, people initially become exposed to the wonders of the Internet thanks to social networking sites or online games. However, people grow up and their interests expand beyond just meeting new friends and people and they become more interested in exploring the income generating power of the net.
If you just have the know-how on making your own website and promoting your very own webpage, you can actually go a long way in the realm of online business.
Know The Basics Of Starting An Online Business
Once you decide to start your very own online business, you have got to ditch your amateurish ways of thinking and move on to more professional and business-like
practices.
The first thing you should know when planning to start an online business is that you are not exempted from the responsibility of paying for taxes. Income tax, sales tax, use tax - those are only few of the different kinds of taxes that you might encounter once you start your online business.
The second thing you should consider is what specific kind of online business you would want to start. Do you want to sell clothes online? Do you want to sell your painting online? Or maybe you would like to buy and sell pre-owned stuffs? Well, whatever kind of online business you would like to have, just make sure that you coordinate it with the laws and regulations of your state.
Your website or webpage should also have its own terms and conditions. If the law in your state requires you to make the customers pay for tax for the items that they would like to purchase from you, don’t forget to make your costumers aware that they will be paying an additional tax for the items that they will purchase from you.
That way, your customers or clients will be impressed by the fact that you are so open and honest with how you handle the fees and income of your website.
Never Try To Dodge Your Tax Responsibility
The best way to ruin the future of your online business is to try and avoid your responsibility as a tax payer. When you start your very own online business, do try to consult a lawyer or your local government town hall for assistance on legal matters.
No matter how small you think your online business may be, there will always be a corresponding tax payment for your online transactions.
Be sure that you are aware of the different states that are offering tax-free sale transactions as well as the states that have different tax collection percentages. In issues that concern taxes and your online business, ignorance is definitely not an excuse so you might as well gear up and fill yourself with adequate knowledge for your online business to prosper.
Taxes - And Your Online Business: Basic Things You Need To Know
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So you want to start your very own online business. Aside from having unlimited access to the Internet, you also need to be armed with adequate knowledge about taxes and your online business because without it, you will surely be at loss.
Online retailers, or more commonly known as e-tailers are not exempted from paying taxes, contrary to the common misconception of most people. E-tailers are still included in the rush for meeting the April 15 deadline for tax filings.
However, veteran e-tailers would say that the most difficult part for online business owners is navigating and complying with the confusing and complicated laws and conditions governing day to day sales taxes.
An Everyday Challenge If you are one e-tailer who would like to take your online business seriously, then you should be prepared to deal with the fact that handling and managing sales taxes is actually an everyday challenge.
The truth is, a lot of e-tailers are required by the government or their state to file and remit sales tax to states on either a monthly or regular interval. The basis for the filing of sales taxes would more or less depend on how much revenue you online business
generates.
Few Tips For E-tailers
It is very vital that you understand your responsibility for sales tax. You must also know that the idea that e-commerce companies are required to collect and remit sales tax in every state is one big myth.
You only have to pay sales tax if you have nexus in that certain state. If you are a neophyte in online business, perhaps you don’t have an idea what the word
nexus means, right?
Well, in online business jargon, nexus means a "connection". Put in application, making a sale in another state does not mean that you automatically have a sales tax obligation.
You have to put in mind that there are many rules and laws that you need to consider before you can determine whether or not you will need to pay for sales tax in a certain state.
When you create your very own nexus in a certain state, you are then required to calculate, collect, report and remit the sales that you make in that certain state every time you have a transaction there.
This is the reason why you are obliged to pay tax sales based on the location of your business.
However, you must also keep in mind that there are also other ways to create your very own nexus in a state. Aside from physical presence or structure of your business establishment in a certain state, you can also establish a nexus by having sales representatives present in that state, tradeshows, mobile stores, etc.
Trying to make an online business work amidst the seemingly confusing and complicated rules that apply to different states can be quite impossible.
However, one must not lose hope; with the help of professionals in the legal field and certified public accountants, you will surely be enlightened as to what steps you should take for your online business to stabilize and prosper.
By being armed with the right knowledge about taxes and your online business will surely help you achieve success in the realm of online businesses.
Taxes - And Your Online Business - eBay And Other Buy And Sell Sidelines
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Most people think that the Internet is really a great venue for earning extra income or for generating extra money through sidelines such as buying and selling, auctioning, etc.
Most people also believe that transacting small sidelines or business transactions through the Internet requires no tax.
However, the truth of the matter is, there are actually taxes that are due for every item purchased or sold through the Internet.
Taxes and your online business (if you have one or planning to have one) should work hand in hand for you not to get in trouble with the government.
Is Your Online Buying And Selling A Hobby Or A Business?
Majority of the people who are involved with E-bay buying and selling would try to say that they don’t really have to pay tax from what they earn through the Internet because they are only treating it as a hobby.
However, agents from IRS would say that whether it is treated as a hobby or a sideline business, taxes should be strictly implemented.
While you may think that doing business on eBay is just something you may consider as a fun pastime, the money that you made, are making or will make is actually still valid to reported as income.
You need to consult with the IRS people first before you can truly say that you are exempted from paying taxes while you are participating in your online business.
You see, everyone seems to love making money but when the time comes that they have to pay their due taxes to their beloved country, they try almost every possible way to escape paying their taxes.
If you have your so-called online business, you should be aware of the rules of the IRS: one is required to pay taxes on all business and personal income and that includes the dough you make selling stuffs on the Internet.
Simple Earnings Still Require Tax
As heartbreaking as this may sound, even the simplest business transaction made through the Internet needs to be reported as "income".
For example, you bought an exquisite looking flower vase at a flea market for $5 and then you decide to sell it an eBay for $20. You manage to sell it for $20 so that means you had a $15 profit which would then entail you to report it as income and pay your taxes as fair share.
Realistically speaking, if you don’t treat eBay as a serious and constant venue for your online business, then perhaps you can get away with selling a few items every now and then without having to worry about the IRS tracking you down with their questions about tax dues and other stuffs.
However, if you are a consistent chap at eBay, then the IRS people might categorize your eBay
participation as something that is business oriented and you may end up being required to file a Schedule C form and claim the income that you have spurred.
If you are fond of doing business at eBay and other similar sites, you may want to assess yourself by asking yourself the following questions:
a.) Do I carry my "hobby" in a business-like manner?
b.) Do I spend considerable time working on my "hobby"?
c.) Do I depend on income from my hobby for my livelihood?
If the answer to all those questions are yes, then you most definitely are not carrying a hobby, but in fact a business. By finding out that you are already having a mini-online business at eBay or other similar websites, then you have to be responsible enough to pay for your taxes on your income.
Remember that you have a responsibility for your taxes and your online business.
