HomeMy WebLinkAbout01/12/2019 00 Misc Distributed at the Meeting (3) Distributed at
Meeting / P th
#3 Property Taxes
"My assessed valuation goes up every year and so do ==p
my taxes. How is it that we can't balance the
budget?"
9„g"+.��S & 1��. kyi qP F.h. sr,.,.
J g� S
2 ,fi x_ 2 >.qq.{{ pr :e�'2 � b'!•3'.
t' if „yi. 4 s {yY + th 6S'f"ri i .+ r.Aal�ASdt �� 5 ? �,r.".7 y.'.
�.> wx;' a .S �Y,S ..3 ,.3•,., r.rr�vr.;6 r�1t $ �r t"�"4:'eX 'i'.�Y si °', J FFA ?Nt',
Property Tax
®Statutory authority: RCW Title 84
oAt least 30 types of taxing districts with different maximum levies
individually and in aggregate
°Two main aggregate limits:
• Statutory limit applies to most local regular tax levies ($5.90 per $1,000 AV)
• Constitution limits the amount of property tax imposed on an individual
parcel without voter approval to one percent of its true and fair value
o If either limit is reached, the individual levy components are reduced for
junior taxing districts first (it's complicated!)
}td'ai"3y3k i xrty -1 s zl ""'+ � `L �4 �f '! t# s"u ? i3
Vrerr
�Y'�'+•r.w ._'k"n; q.���4A°rt)., .7`5.> 7 .r���� ��Isd,c . .,��"+'.at t rfr° •
3
P
# '�` #� � • Money is
� � TA
4,' used to
1 better the
�_ { ::: community!
Appraiser sets value Taxpayer gets statement Taxpayer can
appeal value /ti~
t t /
'Piii 1 . tY '_®61 q
#2 s', # # z ..,-.. 0't , ,
iLII -23
.
Gavemmer set Values determine your Taxpayer pays their
budgets
slice of taxes to pay share of taxes
Property Tax Truths
The city determines its levy (total allowable property tax revenue or
the amount needed to balance the budget if less)
°Current levy plus allowance for new construction
e Plus optional amount up to the lesser of . . .
• Implicit Price Deflator
O One percent
o Banked capacity if available (allowable increase not taken in the past)
The Assessor determines home values based on market values
The tax rate per $1,000 results from the math
The rate is multiplied by the parcel's AV/$1,000 to arrive at the
individual tax bill
�+C� a r,a �"�rry^" r� Cad F V�, �aaarw l "''"' i y A ,,.
4,1t,r r ' ..r$ "a 7 ilg.�f::; !' =f-Wit d� ° 1.�� i.. ,S 5'?t' .81 '#� „Cb '�, .c,
i{i.a ,42+ 3x, .a";':,7 fit. c,, �a5 ,:_.:.' "a ; 4 y+11 ,r`fv J _ e 4 t c y"�,,� {.vFa r .t , r^t' ,r y�,S ^a'i' �`34
x •� . -, > .. :;T f + •€` ,x- ' , - 4 . .i_a,.,,>i cN ri�zw'ag.' _n poK&•,��"F'ar ��'nti°e���' � a'Si
1:
Sample Levy Calculation (sorry, some numbers)
$15 million Levy and $10 billion Assessed Value
Step 1: Divide the Assessed Value by $1,000
$10,000,000,000/$1,000 = $10,000,000
Step 2: Divide the Levy by the Assessed Valuation (per $1,000)
$15,000,000/$10,000,000 = $1.50 (the Rate)
Step 3: Apply the Rate to every $1,000 of your homes AV
$500,000/$1,000 = $500
Step 4: Multiply the AV by the rate
$500 * $1.50 = $750 Annual Property Tax
f 1 d�F �` .c.. ,•' °yK �.
Property Tax Myths
eWhen the valuation goes up the city gets more revenue
If the city raises property taxes by 1% my entire tax bill will go
up 1%
®The city determines the tax rate, the Assessor determines my
value and the city gets whatever revenue results
®My taxes go up every year
l nei c "b'ro_01 Fr�s � t'li^ �,yf.* a"0jj t� :
Ftir�- Nt e �ytrt +v..� i Ls4 b 4 r S k .� w '+
#.b:'!.h' .•*tee* }T,ti p°.'yt 3 j ,[� tt`i''f+g. °'"' ,. .. u%;1. �',�' .I.. . ` 1 °t r
1
Factors Affecting Your Property Taxes
Decisions of the City council
®Decisions of other jurisdictions
Decisions of voters
°County assessor's valuation
• Your property
• All other properties
• Your property compared to all others
New construction
d^ „to-, �°l i . ham+ `ate t � -** i .v „,4
w , q1
Property Tax — The Good, The Bad and the Ugly
Good
®Very Stable (citizen initiatives aside)
Relatively Progressive
o Everybody pays
°Bad
• Frequent target of citizen initiatives
o Impacts to people on fixed incomes
°Complicated and Confusing
®Ugly
°Almost everybody hates is on principle
�`�� .M>'t�}t � w�"
,�` h a, A'l ;„ :,i a k, L+,�{�E i.a �A' rr� F��
- - e � � . .� ... a tlU t,Via: '''C �' N'4.� ax 4�;M'_• ?�}^ ;&51
1`
/
#4 Levies
"We should do a special levy for public safety staff for six years"
Itqfeleti',OZieiVig,IK.r POPO leg .,44. i- s- -''1''''
14- ''' Al:(4'lierrli'VVP14.'4..'^` 7*-ON''44-...P7:-.'74.1
,1,,,,„„ . ..„,,I,,,,--vti4,114 4../:.,k,04,4 ii7144-4:F5,-.V.4:,0
,:,;),-,,,....,;,,,,,,.i.-:'','::'''''',.iit,Vire:‘,474,-,3T:)10`41.Act04
Types of Levies/Lid Lifts
Levy Lid Lift Types vary based on:
® Purpose
°Annual Increases Allowed
® Election Date
°Approval Percentage
®Supplanting Requirements
Debt Limitations
r i a 5, ;' f `atl ,,„4v ,lr,,,,,,,,, > „..1 .,,4,rO 'r 'r�,ra , V,� t: a ,0' } )> . c',, , 4 i ' •' „ ..b r,if
+, �, I�
r K ° ¢ 4 ..x Tyr u z;•"�r., :,, r 'F. ray
� �,n i'yry�i ix.:.d�w � 3 s ,r " ;�C �c�w.:,�s:r '�' � .:r � 7 �' = � �' � r 5 tl
`t tux '^' �',�'' tEw
1
Types of Levies
tR' MCI alalaa407:03Z,
7Vorifit6117 414sCh WogiMaV rigaVa% ,ZOTTIVIATSMMIMOM.t.:
"Original Flavor" X X
50%+1 After year 1,increases limited to 1%
Levy Lid Lift (max 9 yr debt)
Multi Year + X X Subject to non-supplanting
%50 1
Levy Lid Lift (max 9 yr debt) Can increase by more than 1%for up to 6 years
Excess Levy 60% X Can only be used for capital
with validation
MPD
50%+1 or *subject to 60%w/validation
X X*
Petition to form Overlapping junior taxing district
.-:,:3•4:1V4V4At
`TW-Zt;WiAg'qP; ."41'44'tliMikei,,b,414.1,nk.
Considerations in Selecting Option
Short versus long term need
Cost growth pattern
Anticipated support of the electorate
Use of debt versus pay-as-you-go