Understanding Your Property Taxes

Property taxes touch every household and business in Skagit County — but the system that produces your tax bill isn't always easy to understand. As your Assessor, Danny believes that transparency isn't just a policy position, it's a responsibility. This page answers some of the most common questions about how property is valued, how tax bills are calculated, and what role the Assessor's Office actually plays in the process. If you have a question that isn't answered here, Danny's office is always open. Reach out directly — that's what the office is for.

  • Washington limits how much revenue local governments can collect, rather than limiting how much property values can change.

    Each taxing district, such as schools, cities, fire districts, and the county, sets a budget. Most districts are limited to increasing their total property tax revenue by 1 percent per year, plus revenue from new construction.

    After budgets are set, tax rates are calculated to raise that amount. When overall property values increase, tax rates generally decrease. When values decline, rates adjust upward. If a district wants to collect more than the limit allows, voters must approve that increase.

    This structure is designed to keep property taxes relatively stable and tied to public budgets rather than market swings.

  • Not necessarily.

    In Washington’s system, a property owner’s tax bill is based on their share of the total assessed value within their taxing district. If a property increases in value at roughly the same rate as similar properties, the owner’s share may remain relatively consistent.

    If a property increases more than average, its share of the overall tax burden may increase. Voter-approved levies and bond measures can also affect the total tax bill.

    Property taxes are influenced by both individual value and how that value compares to others.

  • No. The Assessor determines the value of property. Taxing districts determine how much revenue they need to operate. Tax rates are then calculated to collect those approved budgets.

    The Assessor’s responsibility is to ensure property values are accurate and applied consistently so the tax burden is distributed fairly.

  • The 1 percent limit applies to most district budgets, not to individual tax bills.

    An individual tax bill may increase if:

    • The property increased in value more than similar properties

    • Voters approved a levy or bond measure

    • The distribution of value within the district shifted

    Property taxes are based on how the total amount approved by voters and taxing districts is shared among property owners. Changes in relative value, not just overall value, are what typically affect individual tax bills.

  • In Skagit County, most properties are valued using a market-adjusted cost approach. This means the Assessor’s Office starts with the cost to build a structure, adjusts for age, condition, and features, and then aligns those values with actual market sales to reflect what properties are selling for locally.

    Each year, recent sales are analyzed through a formal sales ratio study. This study compares assessed values to verified sales prices to measure accuracy and consistency. It does not just check whether values are close to market overall. It also evaluates horizontal equity, meaning similar properties are treated similarly, and vertical equity, meaning properties of different value ranges are assessed proportionally and fairly.

    This annual review helps ensure values are accurate, consistent, and equitably distributed across the county.

  • Property owners have the right to review their assessment and compare it to market sales. If concerns remain, they may file an appeal with the County Board of Equalization within 30 days of receiving their Change of Value notice from the Assessor’s Office, usually around October. The Board provides an independent review of the assessed value.

  • Yes. Washington offers a Senior and Disabled Persons Exemption Program for qualifying homeowners. Depending on income, the program may reduce property taxes and freeze the taxable value of a home. Income thresholds are set by the state and updated periodically.

    Eligibility requirements and application information are available through the County Assessor’s Office.