King County tax advisor Barbara Alsheikh likens paying property taxes to owning a racehorse.

Just because the value of the horse diminishes doesn't mean the owner's expenses are less.

"The price of hay doesn't go down because the horse is losing," Alsheikh reminded participants in a Nov. 17 property tax forum cosponsored by the League Of Women Voters of South King County and the Highline Times.

Property taxes are based on the budgets of the many taxing districts that a homeowner lives within, Alsheikh noted. Expenses such as salaries and benefits for employees, energy costs and facility maintenance tend to go up and are unrelated to changes in home values.

Also, 2008's assessed values of homes were based on home values from previous years, so the assessments did not reflect the sudden dip in home values, she said.

That resulted in 13,000 appeals, slowing the resolution of those appeals, according to Alsheikh. In 2009, only 2,600 residential appeals have been made.

Retired King County tax assessor Bob Rosenberger also noted that assessments of home value are made as of January 1 for taxes that are due one year later, thus creating confusion.

Rosenberger, who finished second in the race for King County assessor in the Nov. 3 election, added that property owners appealing their appraisals must be able to demonstrate that the appraisal was above true and fair market value.

A senior/disabled property tax exemption is available for those over 61 or permanently disabled with a household income of less than $35,000, according to Rosenberger.

A deferral program is also available for households with less than $57,000 in income, he said. Property owners must have been in their homes for at least five years and must pay the first half of their property taxes. Payment of the second half can be deferred.

Those seeking the exemptions must apply to the county.

Zoning changes can deeply affect tax assessment, the two experts said.

Alsheikh cited Burien's Town Square development where density restrictions were changed allowing one lot to be subdivided into three lots.

It is difficult to make a successful appeal in that situation, according to Alsheikh.

"The law says assessments must be made for the highest and best use," Rosenberger noted. "So if the area is zoned for condominiums, the assessor has to assess at the higher rate."

State Rep. Brendan Williams of Olympia noted, "property taxes are a topic of keen state interest."

He said state legislators faced a $9 billion budget shortfall last year and he expects an additional $2 to $2.4 billion shortfall when the legislature reconvenes in January.

That could mean additional cuts in social services, health care and education on the state level and decreases in local city budgets.

"I don't want to kid anyone," Williams declared. "We will see big cuts in local government until the economy gets better."

He said instituting a corporate income tax would require a change in the constitution through voter approval.

"I don't really see much political courage in Olympia for that," Williams said. "Income tax has been the third rail of state politics."

Washington's property taxes are not higher than in many other states, according to Williams.

In 2007, Washington ranked 32nd in the nation in property tax based on income.

One area the state could look to for increased tax revenue is through closing tax loopholes, Williams said.

However, Williams conceded, "There won't be any look at rescinding Boeing's tax breaks."

He said legislators are in a "delicate dance" with Boeing.

Boeing officials threaten to move programs out of state, the lawmakers accede to Boeing demands, and Boeing moves programs anyway, Williams said.

A nonpartisan citizen's commission is the best way to take politics out of decisions on closing unnecessary tax exemptions, according to Williams.

"The Legislature has an insatiable desire to create new tax loopholes," Williams declared. "Every loophole has a constituent."

Williams said the state lottery is not a good way to raise revenues. Lottery revenue funds only 1 percent of the state's education budget, he noted.

A sales tax holiday from Thanksgiving to Christmas is also not feasible as a way of improving the economy, Williams said.

The Legislature would have to authorize it and lawmakers won't convene until January, Williams noted.

"The reality is we need that revenue for the state," Williams concluded.