The letter urges the King County Council to direct the Board of Equalization to expedite property tax appeals over the coming months. It anticipates a large increase in appeals due to the impact of Covid-19 on property values. Government interventions to slow the spread of the virus led to business closures and job/income losses. This has resulted in unpaid rent and increased vacancies, significantly impacting commercial and residential property values. However, property assessments and taxes have increased despite lower incomes and property values. Expediting appeals is urgent to provide relief, especially for sectors hit hardest like rental housing, retail, hotels, and smaller housing providers.

1. September 18, 2020
To: Members of the King County Council
Re: Board of Equalization, Covid-19 Value Appeals
Dear Councilmembers,
We are writing to urge you to direct the King County Board of Equalization to fast
track property tax appeals over the coming months. The Board is likely to see a huge
increase in appeals to property value assessments and the resulting tax bills not
seen since the 13,000 appeals filed in 2009.
Covid-19: Lost Income, Unpaid Rent, and Increased Vacancies
In March of this year, federal, state, and local governments initiated an
unprecedented series of interventions to slow the spread of Covid-19. These
interventions included lockdowns that led to business closures and loss of jobs and
income. These losses have meant many businesses, individuals, and families have
not been able to pay their rent. Business that closed has resulted in vacancies. All of
this has resulted in significant impacts to the value of commercial and residential
properties now receiving their tax assessments. Those property taxes are paid from
rent revenue.
Values Have Dropped, But Assessments Have Increased
While these impacts have lowered income used to pay for those property taxes,
operating expenses, other taxes, maintenance and operations, and increased unpaid
rent balances, assessments on property values have gone up as have property taxes.
This is not only unfair, but will result on increasing pressure on the balance sheets
of businesses who will see real drops in Net Operating Income (NOI) which will
affect debt service and thus the market value of property.
Meanwhile, many property owners have worked with residents and commercial
tenants to grant forbearance from rent collection during this crisis. Now those same
property owners will see a bigger bite in their balance sheets from higher property
tax payments.
Expedite Appeals and Review Appeals by Sector
The County Council should direct the King County Board of Equalization to hear
appeals from hard hit sectors especially residential rental housing, retail and

2. commercial property owners, hotels and other hospitality businesses, and smaller
housing providers. These businesses have been hit hard this year. There is no
significant rent relief coming from federal, state, or local government coming any
time soon. It is therefore urgent that property tax appeals based on lost value
because of government action to reduce the spread of Covid-19 be heard quickly
and favorably.
Thank you for your consideration.
Sincerely,
Roger Valdez
Director
CC: John Wilson, King County Assessor