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Special Valuation: A Local Tax Incentive Program
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"Special Valuation" is a revision of the assessed value of a historic property which subtracts, for up to 10 years, such rehabilitation costs as are approved by a local review board. |
During its 1985 session, the Washington State Legislature determined that as the state approached its centennial year, the preservation of a lasting legacy of historic resources was an important goal. In order to reach this goal, the legislature passed a law which allows a "special valuation" for certain historic properties within the state.
The primary benefit of the law is that during the 10-year special valuation period, property taxes will not reflect substantial improvements made to the property.
Prior to the passage of this law, owners restoring historic buildings were subject to increased property taxes once the improvements were made. This had the effect of discouraging some owners from rehabilitating their historically significant structures. The Legislature decided that restoration of these properties would be encouraged if tax relief were available. Property tax relief was selected as a tool which could provide the financial incentives necessary to promote rehabilitation of eligible historic properties.
How the Application Process Works
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APPLICANT |
· Submits application to the assessor no later than 24 months after beginning date of rehabilitation work. |
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ASSESSOR |
· Reviews application for completeness.
· Verifies legal owner, legal description, etc.
· Submits application to local review board within 10 working days. |
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LOCAL REVIEW BOARD |
· Reviews application and attachments.
· Determines approval or denial of application no later than December 31st of application year.
· If application is approved, notifies applicant, assessor, and State Advisory Council within 10 days.
· Executes agreement with applicant.
· Returns application to assessor. |
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ASSESSOR |
· Records agreement.
· Files application, agreement and certification statement (if applicable) with the county recording authority.
· Determines special valuation and enters in tax roles separately from the normal assessed value. |
Forms and additional information about this program can be accessed with the links below. Contact Steven Morrison at (360) 956-7575 if you have further questions.
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