(1) Determination of ratio for assessed value strata. For each real property stratum, average assessed value and average market value shall be determined from the results of selected sales and appraisal studies. The average assessed value of the samples for each stratum divided by the average market value of the samples determines the ratio for each assessed value stratum.
(2) Determination of indicated market value. The actual total assessed value for each stratum divided by the ratio for each assessed value stratum, as determined by using the calculation set forth in subsection (1) of this section, determines the indicated market value of each stratum for the county.
(3)
Addition of county assessed values for current use and forest land—Assessor's certification of values. The county assessed values of current use land and improvements (chapter
84.34 RCW) and forest land (chapter
84.33 RCW) as indicated on the current certification provided by the assessor to the county board of equalization are added to the actual total assessed value for the county. Ratios for current use land and improvements and for forest land are applied to the county assessed values to determine indicated market values.
(a) A copy of the assessor's certification to the board of equalization shall be filed with the department by July 15th, or when the rolls for the current assessment year are completed, whichever is later. The certification form shall be properly completed with all required information.
(b) If a copy of the assessor's certification is not received from an assessor prior to September 1, the assessor's abstract of assessed values for the current year may be used, when available. If not available, the assessed values from the abstract of the previous year may be used.
(4) Determination of county indicated ratio. The sum total of the county assessed values is divided by the sum of the indicated market values to determine the county indicated real property ratio.
(5) Example. The following illustration, using simulated values and ratios, indicates simplified ratio study computation procedures for real property.
STEP 1
STRATUM AVERAGE VALUE & RATIO COMPUTATIONS
Type of Land Use | Stratum | Number of Samples | Average Assessed Value of Samples | Average Market Value of Samples | Stratum Ratio |
SINGLE FAMILY RESIDENCE | 0 - 75,000 75,000 - 150,000 150,000 -+ | 400 400 100 | $ 35,000 100,000 195,000 | $ 45,000 125,000 230,000 | 77.8 80.0 84.8 |
MULTIFAMILY RESIDENCE | 0 - 125,000 125,000 -+ | 40 15 | 50,000 225,000 | 60,000 265,000 | 83.3 84.9 |
COMMERCIAL/ MANUFACTURING | 0 - 500,000 500,000 -+ | 40 25 | 140,000 2,000,000 | 165,000 2,350,000 | 84.8 85.1 |
AGRICULTURAL | 0 - 125,000 125,000 -+ | 35 35 | 60,000 300,000 | 65,000 330,000 | 92.3 90.9 |
OTHER | 0 - 100,000 100,000 -+ | 75 40 | 30,000 250,000 | 36,000 290,000 | 84.0 86.2 |
STEP 2
APPLICATION OF STRATUM RATIOS TO ACTUAL COUNTY ASSESSED VALUES
| | (1) | (2) | (3) |
Type of Land Use | Stratum | Actual County Real Property Assessed Value | Ratio | County Market Value Related to Actual Assessed Value Col. 1 ÷ Col. 2 |
SINGLE FAMILY RESIDENCE | 0 - 74,999 75,000 - 149,999 150,000 -+ | $500,000,000 250,000,000 250,000,000 | | 77.8 80.0 84.8 | $642,673,522 312,500,000 294,811,321 |
MULTIFAMILY RESIDENCE | 0 - 124,999 125,000 -+ | 85,000,000 65,000,000 | | 83.3 84.9 | 102,040,816 76,560,660 |
COMMERCIAL/ MANUFACTURING | 0 - 499,999 500,000 -+ | 245,000,000 200,000,000 | | 84.8 85.1 | 288,915,094 235,017,626 |
AGRICULTURAL | 0 - 124,999 125,000 -+ | 110,000,000 95,000,000 | | 92.3 90.9 | 119,176,598 104,510,451 |
OTHER | 0 - 99,999 100,000 -+ | 90,000,000 75,000,000 | | 84.0 86.2 | 107,142,857 87,006,961 |
CURRENT USE LAND | | 125,500,000 | | 95.2 | 131,827,731 |
CURRENT USE IMP | | 50,000,000 | | 84.0 | 59,523,810 |
FORESTLAND | | 2,950,000 | | 100.0 | 2,950,000 |
AND TIMBERLAND | | | | | | |
| | $2,143,450,000 | | | $2,564,657,447 = 83.6 |
(6) Department may consider general trends in property values. The department may consider the relationship between the market value trends of real property and the assessed value increases or decreases made by the assessor during the year in each county as checks of the validity of the results of the sales and appraisal studies. The assistant director of the property tax division of the department may authorize modification of the results of the sales and appraisal study in any county where there is a demonstrable showing by an assessor to the assistant director that the sales and appraisal study is inconclusive or does not result in a reasonable and factual determination of the relationship of assessed values to market value such that a significant variation results from the previous year not deemed by the assistant director to conform with general trends in property values.