Residential property values drop three percent

The latest assessed values for residential and commercial properties throughout Pierce County are in the mail to taxpayers and posted on the Assessor-Treasurer’s website, www.PierceCountyWa/atr.

“Home values in all parts of our county have leveled off from the high-water mark of last year, and in most cases decreased slightly,” said Mike Lonergan, Pierce County Assessor-Treasurer. Countywide, the average single-family home decreased in value by 3.1 percent this year, dropping from $572,100 to $554,500.

Lonergan cautioned homeowners not to conclude that a decrease in value will result in much more than a minor tax decrease next year. That’s because state law allows each taxing district to increase their property tax revenue by one percent annually without a vote of the people. Instead, values are used to determine each property owner’s fair share of total taxes collected.

“Your property tax in 2024 will be the new 2023 value multiplied by the combined tax rates of your school district, city, fire district and other local districts, plus the statewide school levy that everyone pays,” Lonergan explained. “So a lot depends on public votes such as levy lid lifts and bond issues.”

The change in home value varies in different communities, based on actual sales of similar properties. 70 percent are down, and 30 percent stayed the same or inched up. “The largest drops in value are around five percent in Tacoma, Ruston, Spanaway, Eatonville and Roy,” said Lonergan. Milton had the largest value increase at three percent. (Click here to view a spreadsheet with details.)

Most commercial properties showed moderate value increases over last year, with retail and office space up around five percent, while motels and warehouses increased ten percent. All value changes represent the period from January 2022 to January 2023 and will be used to calculate 2024 taxes.

This year County appraisers visited nearly every house in Tacoma, while values in other areas were based on sales of similar homes. During the summer months they are inspecting all new construction in Pierce County and adding its value to the tax rolls.

Any property owner who believes the Assessor-Treasurer has over-valued their property may appeal to the Pierce County Board of Equalization at no cost. The appeal must be filed no later than Aug. 22, 2023, providing evidence that comparable properties have sold recently at a lower amount. More information is available at www.PierceCountyWa.gov/atr.