2004 Tax Guide By State

For those wondering about such things as taxes, here is a rundown of the taxes in Washington State.

For those of you who just happen to pass through, please check out the link for your state.

This is 2004 data. I will try to post any changes when the 2005 data becomes available.

WASHINGTON

Sales Taxes
State Sales Tax: 6.5% (food and prescription drugs exempt); cigarettes are taxed at $1.425/pack of 20, $1.781/pack of 25. Local option taxes may increase total tax by 2%.
Gasoline Tax: 28 cents/gallon
Diesel Fuel Tax: 28 cents/gallon
Gasohol Tax: 28 cents/gallon

Personal Income Taxes
No state personal income tax
Retirement Income: Not taxed.

Property Taxes
Property taxes account for about 30% of Washington's total state and local taxes. Properties are appraised at 100% of fair market value. A property tax exemption program is available for persons age 61 or older, or persons unable to work due to a physical disability. The property, which can include up to an acre of land, must be owner/buyer occupied. Applicant's total combined household income must be $30,000 or less for the filing year. Under this program, the assessed value of the applicant's primary residence is frozen as of the time they initially enter the program. As long as the applicant remains in the program, the valuation stays constant. This means that even though the market value of the property may continue to rise, the taxes will only be figured on the frozen value. In addition, all excess (voter approved) levies are exempted; and, for applicants whose income is below $24,000, a portion of the regular tax is waived.

The state's Tax Deferral Program works in conjunction with the Exemption Program. A senior citizen or disabled person may defer property taxes or special assessments on their residence if they meet certain age, disability, ownership, occupancy and income requirements. The state pays the taxes on behalf of the claimant and files a lien on the property to indicate the state has an interest in the property. The deferred taxes must be repaid to the state plus 8% interest when the owner dies, sells or moves from the home, or doesn't have sufficient equity in the property. Qualified people may participate in both or one of these programs.

For more details on property taxes, click here (PDF).

Inheritance and Estate Taxes
The state of Washington replaced the inheritance tax in 1982 with an estate tax. The estate tax is 100% of the available state credit rather than the reduced percent of state credit allowed by the federal government. For details, call 360-753-5547 or 360-753-7518.

For further information, visit the Washington Department of Revenue site.
For state tax forms, click here.

Signing Off. Until next time, I'll see ya on the Blog! drh.