SAD BUT TRUE
Working toward our goal of meaningful property tax reform, we feel it's important
to stress the personal stories of hardship resulting from Washington's broken property
tax system.
We need to hear from you - your personal stories will be
a useful tool, helping to raise awareness of how our draconian property tax system
is negatively affecting our quality of life. When a legislator or reporter or any
other interested party asks us why we need to change our constitution, we can point
them to these personal stories.
Stories have been gathered from emails to us, letters to the editor of various newspapers
and articles from various periodicals, as well as testimony from the Finance Committee
Hearing for HJR 4214, the Predictable Tax Amendment submitted to the 2006 Legislature.
Go to a blog site to air your frustrations
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The following are transcripts of testimonies from the Finance Committee
Hearing held January 24, 2006.
Note:
our appeals to committee chairman, Rep. Jim McIntire. went unheeded, and therefore
our bills "died" in committee.
We've only reprinted a few here, but every single person who testified had similar
stories to tell.
My name is Tom Hamilton. I am retired. I live in Clallam County near Sequim. And
the assessments on my property and my property taxes are skyrocketing.
In the last four years, my property taxes have increased 68%. They have gone from
just under $900 to over $1500. In the same time period, my assessments have risen
128% from $84,000 to over $190,000. And this is on a two bedroom, two bath mobile
home on a dirt road!
Now, if these taxes and assessments continue to increase at this rate, in the not
too distant future, my wife and I will probably lose our home, because we won't be
able to afford to pay our taxes.
Now I should think that anybody with just the basic education in mathematics and
a calculator would come to the realization that if taxes continue to rise at this
rate, this is unsustainable! You cannot continue to raise taxes at this rate continuously
and expect people to willy nilly run down to their taxing districts with bushel baskets
full of money. We just don't have that money!
You know, never in my wildest imagination did I think that I would be standing in
front of a legislative body at some time asking for your help to tell you that I
think I would lose my home because I couldn't pay for the taxes. I can't imagine
larger and larger amounts of money...I mean, don't you people get tax bills? Don't
you see what's going on here? I think it's a matter of representation. In Clallam
County, the median family income is about $37,000 a year. I don't know what the median
family income of the Washington state legislature is, but apparently taxes don't
impact you the way they impact us. If they did, obviously something would have been
done about it, but obviously that's not the case.
Anyway, HJR 4214 deserves the full consideration of this committee.
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I am from Clallam County, I am retired. I am here to address the subject of ever increasing property tax assessments and its effects on my fixed income. I support the proposed amendment of Washington's Constitution, HJR 4214. The facts in my specific case are, since 1999 I have had three onsite tax appraisals. From tax year 2001 to tax year 2006, my land and assessed value has increased 82.75%. From tax year 2001 to tax year 2006, my house assessed value has increased 95.81%. This results in corresponding increases in property tax dollars paid by me due to the increase in assessed values. I received no increase in the services provided by the County or the State for the corresponding increase in tax dollars paid. I face the very real prospect of being taxed out of my home and with all due respect, the suggestion that I should take a mortgage to pay my taxes is ridiculous. The problem is not unique to any single area in Washington State and affects all property owners. It requires the legislators immediate and thoughtful attention. Let the people vote on this amendment. Thank you. Testimony of Glenn Irwin.
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I am Susan Fleming and I am also from Clallam County, Sequim, Washington. I am a retired teacher and I believe most of us have worked very hard to obtain our properties, and we would hope to be able to keep them. But my property last year was assessed 65% higher, so this will mean $1,050 more in property taxes this year. I would ask that something be done about this and hopefully we will achieve a correct, fair and equitable tax state. Thank you.
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For the record my name is Jill Willauer. I would like to thank the chairman again for this meeting. I am co-founder of Property Owners for Predictable Tax Now along with Shelley Taylor. Our group began for somewhat selfish reasons, our property taxes were out of control with no relief in site. My husband and I purchased our property in 1991. Since that time, we have visited and planned our dream home. The place we planned to live the rest of our lives. In 2000, we were able to move and plan our home and try to build within our budget. Upon completion of construction, we received our first change in value notice. The following year we received another and the next year another. Over the last two years, our valuations have increased over 42%. Our house payment has jumped up by $250 per month. If only our income would increase $250 a month. Some have said it would not be fair to have equal properties next to each other valued differently. Both our neighbor and ourselves completed construction on equal size lots with slightly smaller homes. After the final valuations, he did nothing to his home for one year. Likewise, we did nothing to our home for one year. His next change of value notice increased $40,000; our next change of value notice increased $148,000. There is nothing fair about the current system. Ladies and Gentlemen, we are scared that we are going to lose our home. Please allow the people to vote on this amendment. In closing, I would like to thank co-sponsors, Jim Buck and Lynn Kessler.
(End of selected Finance Committee Hearing testimonies)
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We moved into our home just over a year ago. Our property
taxes were $2,900. The county reassessed our home this year and our taxes were raised
to $4,100. Our house is 34 years old. We had planned on remodeling both our outdated
bathrooms, which would have meant spending money within our community, but because
of the increase of our taxes, we were only able to afford a simple remodel of one.
This means the community and local small businesses suffer as a result.
We went to the board for a review and they basically told us that they, the county
government, decide what you will pay in property taxes. Although we took documents
that showed homeowners on our street with larger lots and homes were paying less
in taxes, this type of information is apparently not admissible at a County property
tax hearing.
This time we can afford the increase in our property taxes however this may not be
the case in the future as the County has the final say in what our home is worth
and how much we will pay each year. The County seems to think that a home is like
a savings account in a bank. Any increase in value (interest) is taxable income.
A homeowner can only access the equity in his home in 2 ways, either he sells the
home or takes a loan against it. Selling a home accrues real estate agent fees, closings
costs, inspections, perhaps home repairs, and the cost of moving. The seller then
faces additional costs if he decides to buy a new home. If the homeowner chooses
to borrow his own money (equity) he must pay loan costs and interest. Obviously home
equity is not a liquid asset for the homeowner.
It would be understandable if the County were to base property tax increases on the
yearly inflation. If inflation went up 7% then they could justify raising your tax
by 7%. This would also mean that taxes would decrease in years with negative inflation.
However, Washington counties apparently view property tax as an "Artesian Well"
that will never go dry. We are certain that the inflation rate in 2005 was not 33%,
yet the county raised our tax by this amount.
When a home buyer purchases a home, he has the option of a fixed rate for his loan.
This allows the buyer to plan for the future as he knows what he will be paying each
year. This is not the case with property taxes. No home buyer in his right mind would
tell his lender, "charge whatever interest rate you want and feel free to increase
it whenever you feel the need to." Yet this is how Washington counties deal
with their homeowners.
A home is a place to live, it is not an investment option. It's value is what the
buyer paid for it and has many costs above the monthly mortgage and property tax
payment. It is time for the state of Washington to realize this and begin treating
homeowners as something other than a "piggybank" that can be raided with
immunity.
Kris Phillips
Sequim, Washington
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On February 15, I was the recipient of what will likely
turn into an eviction notice from the property I have owned, worked and loved for
nearly 50 years. It was my tax statement for 2006.
What a kick in the gonads that was! This document reeks of outright collusion between
those in power and the bandits in real estate!
Who were the first ones down to Olympia handing out money to vote against the tax
lid? Real estate, you bet!
I have lived at North Beach for most of my 75 years, as did my father and grandfather.
I worked very hard to acquire and maintain this property all of my life. Now you
tell me I have to pay $13 a day to live on my (?) property.
You try this on Social Security!
You know, 50 some-odd years ago, I was sent to Korea twice, and my country said,,"This
is your enemy, kill them" -- and we did.
The present bunch of crooks, both elected and appointed, along with the real estate
bandits, are creating more heartburn for me than those Koreans ever did.
I think all the people involved with this "taurine fecality" better soon
take notice.
You have pushed us too hard. It is my very strong belief that I should not be forced
to sell part of my property to keep on living here.
My buddy, Nick, said this: Death and taxes are inevitable, but it should not be inevitable
that we be taxed to death.
Should this continue, you will surely "beggar us all." Jack Guiher, Port
Townsend, PDN Letters 3/10/06
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We recently received a revaluation notice on our property
in Agnew.
What a pleasant surprise!
The assessor's office says our property is worth $511,000, which is a 65 percent
increase over last year.
We paid $259,000 for the property in 1999, and the assessor says the value has almost
doubled.
We met with a person from the assessor's office.
She could only provide generalities on how she arrived at the value.
As a result, we will have a $500-$600 monthly bill for property taxes and insurance,
even when we do not owe anything on the property.
Talk about ridiculous!
It is time for a Proposition 13 to stop this travesty. Anon, Port Angeles, PDN Letter
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In 1997, I built a downsized home in the Sequim area intended
to be my castle during retirement.
Built it for the amount I could afford based on an anticipated fixed income.
Now I am concerned taxes will force me out of my home.
Last year my assessed valuation increased over $54,000, and out-of-pocket tax went
up 35 percent.
This year my assessed valuation increased $56,000 from last year, and who knows what
the percentage increase will be.
A real estate tax system dictated by rapidly escalating residential and commercial
construction prices in the community beyond a homeowner's control rather than the
homeowner's own real property is insane.
The value of my home is what I paid for it plus improvements until I choose to sell.
No amount of nearby residential or commercial development is going to improve my
exterior nor interior.
With no foreseeable end to the present growth and evaluation increases, I suggest
that our representatives convince colleagues in Olympia to immediately eliminate
annual assessed valuations and freeze out-of-pocket homeowner real estate taxes to
the tax amount at purchase plus a maximum of 1% increase per year thereafter, regardless
of money issues on any ballot until property is resold.
A grassroots scream to 24th District state Rep. Jim Buck, state Rep. Lynn Kessler
and state Sen. Jim Hargrove and their colleagues in Olympia to begin a serious dialogue
for a fair real estate tax formula is long overdue.
Without it, many of us could be in REI pup tents with permanent mailing addresses.
Anon, Sequim, PDN Letter
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We recently received a new assessment of our property and
were aghast to note that it is proposed to increase the property tax value by 18.65
percent, which to our minds is unacceptable.
Considering the amount of building, both commercial and residential, that is going
on here and has been for months, it would seem feasible that the assessments should
go down, not up.
I hope people will not just moan among themselves about this, but will write to everybody
they can think of to voice their objections.
I am fed up with these faceless wonders who spend my money like water. Anon, Sequim,
PDN Letter
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Grocery's closure hurts
Clallam Bay wonders what's next
Peninsula Daily News
Sunday February 26, 2006
Synopsis: The closure of Clallam Bay Grocery, the main store for Clallam Bay and
Sekiu has hurt both communities. To buy meat or fresh produce, residents will have
to drive to Forks or 20 miles to Neah Bay.
One reason for the owners', Vance and Janet Gamet, decision to close the store they
bought in 1994 to raise their son in a small community: three years behind in their
property taxes for their home. "It feels like we're losing a dream," said
Janet.
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Dedicated couple have made a difference
Peninsula Daily News
Wednesday February 22, 2006
Synopsis: Darrel "Dee" Iverson, 73, and his wife, Jean, 68 "pioneers"
establishing horse programs for area youths, have been involved in 4-H for forty
years. The article abounds with stories recounting their love and selfless devotion
to the community. According to their grown daughter, Wendy, everyone who ever took
a horseback riding lesson from her mother went on to win in the show arena as well
as in life in general.
They are returning to their home state of South Dakota, a move they say was initiated
by a substantial increase in property taxes.
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