Personal Property Audits

About the Program

Category: County Administration and Management (Best in Category)

Year: 2013

The King County Assessor’s 2012 Business Personal Property Audit Program has increased fairness and equity in property tax collection by helping to ensure that personal property taxes are paid by those that should be paying. This has distributed the tax burden in King County more fairly, and has reduced the respective tax load for those that are currently paying their personal property taxes as required by law. The program’s focus is voluntary compliance and education about Washington State’s personal property tax requirements, backed by an in-person auditing team. The program began with an amnesty period in which penalties for non-compliance were waived to encourage business owners not currently paying personal property taxes to come forward and self-report. Following the amnesty period, personal property auditors visited businesses to provide information about personal property taxes and to work with business owners not paying to come into compliance with the law. The program was very successful in its first year. Nearly 1,700 new personal property accounts were discovered and added to the tax roll. These accounts represent approximately $300 million in personal property value. Almost $860,000 in property tax revenue was generated, which was significantly more than the cost of the program: $145,000.