Revaluation

County assessors are required to value all taxable real property in the county on a regular, systematic, and continuous basis. All taxable real property within a county must be valued or revalued annually, and all taxable real property within a county must be physically inspected at least once every six years. The assessor must adhere to a revaluation plan that will ensure equality and uniformity in the valuation of real property and must use proper appraisal methods.

Tools and resources
Assist the assessor's offices with their assessment processes.

Revaluation training

Destroyed property

Destroyed property FAQ's

References and examples
Mass appraisal report, commercial modeling, public relations, request for proposals, and data standards manuals.

 

Status of counties

County revaluation cycles
List of each county's revaluation cycle.

Revaluation plan history
Historical document detailing the revaluation cycle.

 

Frequently asked questions

What does annual revaluation require?

As of January 1, 2014, all assessors conduct valuation work under an annual revaluation plan. All taxable real property must be “revalued” annually and must be physically inspected at least once each six years (RCW 84.41.030(2)). The assessor must use appropriate tools, practices and methodology to review and determine assessed values that reflect the current true and fair value of the property as of January 1 for each assessment year (with valuation date exceptions for new construction and mobile homes).

What is the purpose of annual revaluation?

The laws contained in chapter 84.41 RCW were originally passed due to legislative concern about inequality in taxation caused by inequity and non-uniformity in the valuation of real property. To improve uniformity in taxation the legislature believed it was necessary to require assessors to maintain an active and systematic program of revaluation on a continuous basis. When property is revalued each year the assessed value is more likely to meet the mandate of RCW 84.40.030, requiring all property be valued at 100 percent of its true and fair or market value. Annual review and revaluation provides the means for assessors to adjust values to reflect changing market conditions, changes in property, and recalibrated valuation models. Annual revaluation generally improves uniformity in the level of assessed value as compared with market value. Prior to passage of the requirement for annual revaluation, counties were allowed the option of revaluation on a multi-year schedule.

What is the purpose of an annual revaluation plan?

A revaluation plan (plan) on record with the Department is the assessor’s documentation of his or her plan to maintain an active and systematic program of revaluation on a continuous basis as required by chapter 84.41 RCW. Previously, the plan had been a tool to outline schedules for multi-year/cyclical revaluation and physical inspections. But, as of January 1, 2014 all plans must provide for annual revaluation of all taxable real property (RCW 84.41.030(2)). Plans will continue to include a schedule that outlines the cyclical schedule for physical inspection of property at least once each six years. Requirements of the plan are identified in WAC 458-07-025. The Department of Revenue must review and approve the plan.

What does revaluation mean?

Revaluation is generally interpreted as making a new valuation or appraisal. Though the word “revaluation” is not specifically defined in statute, the Washington Court of Appeals defined the word as "a revised or new valuation or estimate” with reference to the definition in Webster’s Dictionary (Legacy and Webster’s). The dictionary definition is consistent with the Department of Revenue's definition in WAC 458-14-005(20) where “revaluation" is defined as "a change in value of property based upon an exercise of appraisal judgment."

Legacy Partners Riverpark Apartments Buildings A/B LLC; and Legacy Partners Riverpark Apartments Building E LLC, Delaware Limited Liability Corporations, Appellants v. King County Washington, a Municipal Corporation, Respondent. Court of Appeals of the State of Washington, Division One. No. 69073-6-I (September 3, 2013.) Webster's Third New International Dictionary 1942 (3d ed. 2002).

What is considered appropriate statistical data?

The act of revaluing property may be based on physical inspection and appraisal, or occur through application of appropriate statistical data.

Revaluation should not be selective; rather the process should be conducted in a systematic manner. Based on market data assessed values may change from year to year at different rates for different property types and locations. Uniformity in taxation is achieved when all parcels are accurately and consistently listed and valued or revalued at the same level of market value.

Appropriate statistical data is defined in WAC 458-07-015(1) as "the data required to accurately adjust real property values and includes, but is not limited to, data reflecting costs of new construction and real property market trends."

According to WAC 458-07-015(3), “Appropriate statistical data shall be applied to revalue real property to current true and fair value using one or more of the following processes: (a) multiple or linear regression; (b) sales ratios; (c) physical inspection; (d) or any other appropriate statistical method that is recognized and accepted with respect to the appraisal of real property for purposes of taxation.” Although not mentioned in rule, some properties, such as those that are unique or non-homogeneous, may require additional valuation data and appraiser judgment.

What resources are available to help me develop a revaluation plan for my county?

Plan Requirements - are addressed in WAC 458-07-025 .
Annual Revaluation – Operation of an annual revaluation plan in addressed in WAC 458-07-020 .
Or contact the revaluation specialist, Marilyn O'Connell, at (360) 534-1364.

When is the new plan due?

During the last year of your active revaluation plan, the Department will send notification that you are in your last year of the current plan and you will be required to submit a new plan before March 1st of the year prior to the first year of any revaluation and/or physical inspection cycle. We will send you a notification letter, pertinent WAC’s regarding revaluation plans and a worksheet for use in developing your new plan.

Should you change your plan?

Although you may choose to make few changes from the previous plan, we suggest a thorough evaluation of the existing plan and identification of any deficiencies. The ideal time for changes to better balance your county growth and resources is during the development of a new plan.

What is the difference between a revaluation cycle and an inspection cycle?

Revaluation—A revaluation results is a change in assessed value based on a new appraisal or a statistical update using current market data.

Inspection—An inspection is when the assessor/appraiser physically looks at the property and records or updates property characteristics including condition. As stated in WAC 458-07-015, "physical inspection means, at a minimum, an exterior observation of the property to determine whether there have been any changes in the physical characteristics that affect value. The property improvement record must be appropriately documented in accordance with the findings of the physical inspection.”

When and how often is the assessor required to inspect property?

he assessor is required to physically inspect property at least once during a 6-year period based on the inspection cycle identified in the county’s approved revaluation plan.

Other Actions - Physical inspections of properties outside of the areas scheduled for physical inspection under the plan filed with the department may be conducted for these purposes WAC 458-07-025.

  • New construction, remodeling, and additions to structures. The assessor may visit the property several times during construction to verify completion of the project.
  • Validating sales. The assessor/appraiser may visit the property to verify property characteristics, condition of the property, and terms of the sale.
  • Calibrating statistical models
  • Valuing unique or nonhomogeneous properties
  • Property is subdivided. The assessor/appraiser may visit the property to verify property characteristics and completion of the project.
  • Administering appeals or taxpayer reviews
  • Property that has been destroyed may be inspected by the assessor/appraiser to determine the effect on value.
  • Reconciling inconsistent valuation results
  • Documenting digital images
  • Or for other purposes as necessary to maintain accurate property characteristics and uniform assessment practices.
What law or rule authorizes the county assessor to go onto private property?

RCW 84.40.025 authorizes the assessor or his/her representative to inspect property for assessment purposes. An appraisal based on fair market value determines the assessed value for the purpose of property tax. Fair market value is determined based on comparisons with similar properties. The comparisons may be based on construction cost data, the property's ability to producing rental income, and real estate market transactions. These comparisons are most fair and equitable when they are based on property characteristics that are accurately recorded in the assessor's office. Property inspections provide the assessor/appraiser with critical information on the quality and condition of buildings, producing capacity of land, characteristics of land and negative impacts on property value.

What requirements must be met during a physical inspection by the assessor?

As stated in WAC 458-07-015 , "physical inspection means, at a minimum, an exterior observation of the property to determine whether there have been any changes in the physical characteristics that affect value. The property improvement record must be appropriately documented in accordance with the findings of the physical inspection.”

What will happen if the assessor fails to complete all the inspections according to their approved revaluation plan?

As stated in WAC 458-07-015 , “In any year, when the area of the county being physically inspected is not completed in that year, the portion remaining must be completed before beginning the physical inspection of another area in the succeeding year. All areas of the county must be physically inspected within the cycle established in the revaluation plan filed with the department.”

When a county has discovered an error after the change of value notice has been sent to the taxpayer, but before the Certification of the Assessment Roll is completed and submitted to the BOE, can the assessor use appraiser judgment and change the value for the current assessment year?

A county may make correction to values (up or down), using appraiser judgment, during the period between completion of revaluation work/mailing of change of value notices and before the Assessor's Certification of the Assessment Roll to the BOE. Of course any change would be followed by proper notification to the owner and their subsequent right to appeal. Once the listed values are submitted as part of the Assessor Certification of Assessment Rolls to BOE by July 15th (or later) all value changes must go through a review or hearing by BOE, except for specific instances listed in administrative code (WAC's).

Example:

A change of value notice for AY 2006 has been sent to several property owners, on let's say June 1st. The county has discovered that the new AY 2006 values were not accurately representing market value due to an inappropriate trend factor. It is still June, revaluation work is complete, but the certification of the assessment rolls to the BOE has not yet been completed. During the time between May 31st or the completion of revaluation work and the Certification of Assessment Rolls to BOE on July 15th (or even later), the county may correct these values. Then a new change of value notice should be sent to the property owners and adequate time provided for any potential appeal.

Are assessors permitted to update characteristics on properties located outside the inspection area scheduled for the current year? If so, what characteristics are allowed to be changed (square footage, number of baths, fireplace)? Can the construction quality grade of the improvement be changed?

For the greatest degree of uniformity in assessed values, all assessor property records should include property characteristics listed in an accurate and consistent manner.

• If property characteristics are listed in error, then the error should be corrected.

• If the characteristics have changed since the last inspection, then updating the characteristic should be considered. Depending on the specific instance, the characteristic for a single property may be updated or the common characteristic for a group of properties may need to be reviewed and updated at the same time.

The type of characteristic should be a consideration of the assessor in determining when to make the change in the property record. A record could be updated when the characteristic change is discovered. Or the record could be flagged for additional review and changed at a time when the characteristic may be more uniformly addressed for multiple properties in a similar location or by similar property type. The later date may be the next year as a targeted inspection of a location or property type to recalibrate the model. Or, dependent on workload and significance of the change, the change may not occur until the next scheduled inspection of a neighborhood, location, or property type.

Objective determinations -- The clearest reason for changing a characteristic is to correct an error in how a characteristic was originally captured. Examples include those characteristics that require objective decisions based on quantifiable differences in size, area of finish, number of fixtures, and other characteristics. Generally, corrections of this type improve the quality of data and bring the records into alignment with other similar but correctly listed properties.

Subjective determinations --A second type of change in a characteristic may be based on a subjective determination for how a characteristic is described and coded in a property record. Examples include changing construction quality from average to good, changing the percentage used to reflect condition/depreciation, and changing rating codes from good view to limited view. These types of characteristics can be changed but must be evaluated in the context of uniform treatment with similar property types or other property in the neighborhood or market area.

  • Example A - If during sales verification the appraiser discovers a residence is classed as fair or good quality while other residences of very similar construction are classed as average, he or she could correct that characteristic of quality to bring the quality code of the sold residence into alignment with similar neighboring properties. Changes should be driven by improving uniformity through consistency with similar property in how characteristics are classified. Changes should not be driven by the sale price of the individual property.
  • Example B - If during sales verification the appraiser discovers that a residence is classed as average quality while other similar properties are classed as fair, average, and good, then that neighborhood should be reviewed in its entirety when the common characteristic for similar properties will be being updated in a similar manner.
  • Example C - If during sales verification the appraiser discovers that a residence has undergone significant remodeling, the appraiser should make a general review of the neighborhood. Does significant improvement in condition appear to be a single instance of home improvement or is the overall neighborhood experiencing renewal?
    • If the improvements/remodeling (or declining condition) are evident in only a single property, the appraiser should change the appropriate characteristic/s to reflect the current condition. In essence the change improves uniformity because similar properties are assessed at a uniform level of market value.
    • If the improvements/remodeling (or declining condition) are likely occurring in neighboring unsold properties, the entire neighborhood should be flagged for a review and addressed at a later date in a manner that ensures other similar properties in the neighborhood are treated in a fair and consistent manner. Again, the focus in on assessed values that represent a uniform level of market value. The later date for changing characteristics may be the next year as a targeted inspection of a location or property type. Or dependent on workload and significance of the change, it may not occur until the next scheduled inspection of a location or property type.
How should corrections/changes in property, which are discovered through sales verification, be handled?

Sales verification is an important process used to verify details about the property that sold. Verification of characteristic data improves the quality of the property record for the sold property. An equally important reason for good records is the influence one sale may have on other properties valued through the market information derived from the sold parcel. Property records must contain accurate and consistently listed property information to ensure that sold and non-sold properties are valued accurately and equitably.

Corrections or updating of characteristics may be restrained by some assessment software and also by the date when the change is discovered. The International Association of Assessing Officers (IAAO) recommends assessors maintain a sales record (database) where details of the sale and characteristics confirmed through sales verification become a frozen record. A sales database is a means to record details about the property sold, which might not be changed in the primary assessment database until a later date. Discovery of significant changes in condition/depreciation and other subjective determinations might be best documented in the sales database. Documenting property characteristics in a sales database is not restricted because it is used primarily for analysis work.

The following guidelines may be useful to determine at what point characteristics are changed in the assessor’s primary assessment database.

Changes should be made to correct obvious errors of characteristics based on objective information.

Changes may be considered to correct or change characteristics that are based on more subjective decisions.

A characteristic more dependent on subjective decisions should be approached more cautiously.

  • If equity in the level of assessed value for sold property and similar non-sold property is unlikely to improve by updating the sold property’s characteristic/s, then flag the property record of the sold property to update the characteristic/s when both the subject and similar non-sold properties can be updated during a neighborhood review.
  • A general neighborhood review could occur in the current year or possibly not until the next year. The review does not have to occur in conjunction with the scheduled inspection cycle defined in the assessor’s revaluation plan.

The date of discovery in relation to the assessor’s certification of assessed value to the county board of equalization (BOE) determines the procedure used to update records for changes related to correction and update of characteristics.

  • If the assessor has not certified assessed values to the BOE then the change to characteristic/s can be made directly by the assessor for the current assessment year.
  • If the assessor has certified current year assessed values to the BOE and the correction of the characteristic/s does not require appraisal judgment, then the correction of the characteristic/s should be processed as a manifest error correction (RCW 84.48.065, WAC 458-14-005(14)).

Well documented procedures for situations that require additional inspections and for the correction of property characteristics will help ensure consistency within the county and ensure public confidence in the assessor's practices.