Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-07 - Valuation and revaluation of real property › Section 458-07-030 - True and fair value - Defined - Criteria - Highest and best use - Data from property owner

Current through Register Vol. 24-14, July 15, 2024
(1)
True and
			 fair value -- Defined.
All property must be valued and assessed at one
			 hundred percent of true and fair value unless otherwise provided by law. "True
			 and fair value" means market value and is the amount of money a buyer of
			 property willing but not obligated to buy would pay a seller of property
			 willing but not obligated to sell, taking into consideration all uses to which
			 the property is adapted and might in reason be applied.
(2)
True and fair
			 value--Criteria.
In determining true and fair value, the assessor may
			 use the sales (market data) approach, the cost approach, or the income
			 approach, or a combination of the three approaches to value. The provisions of
			 (b) and (c) of this subsection, the cost and income approaches, respectively,
			 shall be the dominant factors considered in determining true and fair value in
			 cases of property of a complex nature, or property being used under terms of a
			 franchise granted by a public agency, or property being operated as a public
			 utility, or property not having a record of sale within five years and not
			 having a significant number of sales of comparable property in the general
			 area. When the cost or income approach is used, the assessor shall provide the
			 property owner, upon request, with the factors used in arriving at the value
			 determined, subject to any lawful restrictions on the disclosure of
			 confidential or privileged tax information.
(a)
Sales.
Sales of the property
			 being appraised or sales of comparable properties that occurred within five
			 years of January 1st of the assessment year are valid indicators of true and
			 fair value. In valuing property, the following shall be considered:
(i) Any governmental policies or practices,
			 regulations or restrictions in effect at the time of appraisal that affect the
			 use of property, including a comprehensive land use plan, developmental
			 regulations under the Growth Management Act (chapter 36.70A RCW), and zoning
			 ordinances. No appraisal may assume a land usage or highest and best use not
			 permitted under existing zoning or land use planning ordinances or statutes or
			 other government restrictions, unless such usage is otherwise allowed by
			 law;
(ii) Physical and
			 environmental influences that affect the use of the property;
(iii) When a sale involves a real estate
			 contract, the extent, if any, to which the down payment, interest rate, or
			 other financing terms may have increased the selling price;
(iv) The extent to which the sale of a
			 comparable property actually represents the general effective market demand for
			 property of that type, in the geographical area in which the property is
			 located; and
(v) Sales involving
			 deed releases or similar seller-developer financing arrangements shall not be
			 used as sales of comparable property in determining value.