Residential Remodeling Exemption

Residential Remodeling

Property owners making extensive remodeling to a single family dwelling may wish to apply for the Remodeling Exemption. Apply before the remodeling is completed. The exemption cannot exceed 30 percent of the assessed value of the structure prior to remodeling.

Any addition, improvement, remodel, renovation, structural correction, or repair that materially adds to the value or improves the condition of an existing dwelling may qualify for reduced property taxes for three years. RCW 84.36.400 or WAC 458-16-080

For an application, click here.


ELIGIBILITY REQUIREMENTS: Improvements, Additions, or Repairs

Improvements must be attached to and compatible with existing single family dwellings.

Additions or Remodeling of garages, carports, patios, or other improvements attached to and compatible with similar dwellings also are eligible for the remodeling exemption.

Ineligible Changes include the addition or repair of swimming pools, fences, outbuildings, or other structures not normally recognized as part of the dwelling unit. Routine or general maintenance, such as roof replacement, carpeting, or painting does not qualify.


Applications Must Be Filed BEFORE The Remodeling Is Done


WAC 458-16-080 IMPROVEMENTS TO SINGLE FAMILY DWELLINGS

Definitions. For the purpose of WAC 458-16-080 and 081 and RCW 84.36.400:

(1) The term “single family dwelling” shall mean a detached dwelling unit and the lot on which the dwelling stands which is designed for, and not occupied by, more than one family. Said dwelling unit must meet the definition of real property contained in WAC 458-12-010 and RCW 84.04.90.

(2) The term “physical improvement” shall mean any addition, improvement, remodeling, renovation, structural correction or repairs which shall materially add to the value or condition of an existing dwelling. It shall also include the addition of, or repairs to, garages, carports, patios or other improvements attached to and compatible with similar dwellings, but shall not include swimming pools, outbuildings, fences, etc., which would not be common to or normally recognized as components of a dwelling unit.


WAC 458-16-080 EXEMPTION - FILING - AMOUNT - LIMITS

Any physical improvement to an existing single family dwelling upon real property shall be exempt from taxation for three assessment years; provided, that no exemption shall be allowed unless a claim is filed with the county assessor of the county in which the property is located prior to completing the improvement. The claim shall be on such forms as prescribed by the department of revenue and supplied by the county assessor.

The assessor, upon receipt of the claim, shall determine the value of the single family dwelling prior to the improvement. This valuation may be arrived at by either a new physical appraisal or a statistical update of the current assessed value.

Upon written notification of the completion of the improvement by the applicant, the Assessor shall revalue the dwelling by means of a physical appraisal; provided, that the valuation prior to commencing the improvement, whether by a new physical appraisal or statistical update, and the physical appraisal upon completion of the improvement shall not obviate the requirement for a physical appraisal set forth in RCW 36.21.070. The difference of the two values shall be the amount of the exemption and shall be deducted from the value of the dwelling after the completion of the improvement or any subsequent value determined according to chapters 84.41 RCW or 84.48 RCW; provided, the amount of the exemption shall not exceed thirty percent (30%) of the value of the dwelling prior to the improvement, and, provided further, that in no event will the assessed value of the dwelling unit, after deduction of the exemption, be less than it was prior to the improvement.

The cost of the physical improvement shall not be construed as being the dominant factor in determining the exemption.

The exemption shall be allowed on the property for the three assessment years following completion of the improvement. If at any time the property does not meet the definition contained in WAC 458-16-080(1), the exemption shall be canceled.

This exemption shall not be allowed on the same dwelling more than once in a five-year period, calculated from the date the exemption first affected the assessment roll.