Residential Improvement Exemption
According to the Kitsap County Assessor’s Website, if you are considering a major remodel, you could be eligible for a hefty property tax break.
Washington State law provides that the Assessor may grant an improvement exemption up to 30% of the current assessed value of your home. The exemption would be in affect for three years.
The process requires that you submit an application, which is available on the website, provide a description of the improvement, a construction project timeline, information on the contractor, and building permit information.
If approved, for three years, the taxable value of your home will not reflect the new construction value.
At the end of the three year period, the value of your new construction will be added to the value of your home and the exemption will end.
Keep in mind that the exemption applies only to the new construction. The assessed value of your home may fluctuate, just as other parcels in the county do during that three year period.
As a example, if your current home, before improvement assesses at $500K, but your addition of a master suite will increase the value of your home $150K—you will not have to pay taxes on the addition for that three year period.
For more information and to get started on the application, visit the Kitsap County Assessor’s website.