HomeMy WebLinkAbout11/18/2008 08 2009 Ad Valorem Taxes - Public Hearing BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 8
For Meeting Of 11/18/08
ITEM TITLE: Public Hearing on Revenue Sources and Consideration of Legislation pertaining
to Ad Valorem Taxes to be levied for collection in Fiscal 2009 Year:
Ordinance A— Declaring the City Council's intent to increase the City's 2009
regular property tax levy up to 101% of the amount levied in the previous year.
Ordinance B— fixing and levying the 2009 ad valorem property taxes and
excess levy taxes for the City of Yakima.
SUBMITTED BY: Dick Zais, City Manager
Rita M. DeBord, Finance Directo
Cindy Epperson, Deputy Director of Accounting & Budgeting
CONTACT PERSON/TELEPHONE: Dick Zais / 575 -6040
Rita M. DeBord / 575 -6070
Cindy Epperson / 575 -6070
SUMMARY EXPLANATION:
Background
State law, based on Initiative 747, requires several administrative and legal steps to establish the
property tax levy. (Even though 1 -747 was ruled unconstitutional in the fall of 2007, the legislature met
and re- established property tax levy limits as set forth in the initiative.) Your package includes two (2)
separate ordinances. Ordinance A and B will set the property tax levy for collection in 2009, based on
CONTINUED
Resolution Ordinances 2 Other (Specify) Exhibit I, Attachments 1 -5;
Funding Source
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: City Management is recommending that City Council conduct a
public hearing on the 2009 property tax levy, and then pass ordinances "A ", which declares Council's
intent to increase the levy above the prior year levy, and "B ", which fixes the levy amount. These
ordinances follow state law imposing a 1% increase in the property tax levy for 2009 plus new levies
for construction and annexation, consistent with the provisions of 1 -747, and are the basis on which
the 2009 budget was developed and balanced.
BOARD /COMMISSION RECOMMENDATION:
II) COUNCIL ACTION:
i e,auan
2009 Property Tax Agenda Statement—Continued page 2 of 4 •
the 1 -747 limit of a 1% increase over the prior year base levy, plus new levies for construction and
annexation. Exhibit I details these calculations. According to state law, the certification of ad valorem
taxes must be filed with the Board of Yakima County Commissioners on or before November 30, 2008
or the City will receive no funding from this source in 2009.
Ordinance purposes are:
Ordinance A identifies Council's intent to authorize an increase in the tax levy over 2008 levels. This
ordinance requires a simple majority to pass. It is required by RCW 84.55.120. This is legally
necessary to increase the 2009 tax collections by any amount over 2008 levels.
Ordinance B fixes the tax levy for collection by the City in 2009. This ordinance includes not only the
regular tax but also special levy taxes for bond repayments. This ordinance complies with RCW
35.33.135 and requires a simple majority vote to pass.
These ordinances are in the same format as the prior year levy legislation.
General Govemment Revenue Discussion
In reviewing General Govemment revenue, there are 4 revenues that each make up approximately
one /fourth of the total —i.e. there are four "legs" that support General Govemment operations. Sales
Tax (including the City's allocation of both county -wide Criminal Justice sales taxes) represents about
29% of the total. Property tax as proposed is about 23 %; Utility Taxes as presented in the Preliminary
Budget make up about 20 %; and all other revenue comprise the remaining 28 %. (See Attachment 1
for a summary of General Govemment revenues.)
Even though Yakima's economy has experienced growth in sales tax, spurred by construction and
durable goods spending, the historical limit of growth in the property tax levy continues to dampen
growth of General Govemment revenue, which was estimated to increase for next year by 3.2% in the
2009 Forecast. However, major revenues are not growing as quickly as economic indices, or related
expenditures. The City estimates the cost to provide "General Government" programs and services
will increase by just over 3% next year (about $1.8 million more than the 2008 "General Govemment"
amended budget). Prices for construction materials (such as steel and concrete), utilities (such as
electricity and phone service), and employee healthcare coverage are all expected to go up. Other
key cost drivers include labor contracts, state pension mandates, investments to enhance the City's
criminal justice system.
In response to these economic conditions, the City has exercised responsible budgetary restraint.
City management has taken necessary cost reduction measures to maintain essential services. Over
$900,000 in 2008 expenses have been eliminated from the 2009 budget, in order to bring the budget
into an acceptable balance for the preliminary budget. Expenditures for professional services, capital
outlay (some in the form of debt service), and supplies will be significantly reduced.
Since the preliminary budget was set, the national economy has continued to worsen. Even though
agriculture had a good year, the City will likely not be able to escape the downturn.- The October sales
tax was the first month in this year that exhibited a decrease from the same month in 2007. As the
change resulting from Streamlined Sales Tax (SST) was effective for the first time in the September
collections, it is unknown how much of the decrease is the result of a change in the tax sourcing
versus the economic downturn. (Any reductions in sales tax because of SST will be mitigated, but the
City will not know if we are eligible for mitigation until December, 2008). Because of this downturn,
1 rural/R11
0 2009 Property Tax Agenda Statement — Continued page 3 of 4
the revenue budget for sales tax is being reduced for 2009 by about $400,000. Fortunately, the initial
estimates from the County on the 2009 property tax levy included a growth rate for new construction
of 2% compared to a budget estimate of 1%, so the property tax budget will be increased by about
$140,000, which will offset about one -third of the sales tax reduction. (Other revenues and
expenditures will be adjusted for the final budget and detailed more thoroughly in the Budget Wrap -up
document, to be distributed the last week of November, which are expected to nearly offset the
reduction in sales tax.)
Because "General Govemment" revenues in 2009 are not estimated to cover all of the cost increases,
the City also expects to spend approximately $2.1 million from its reserves in order to balance the
budget. Even though relying on reserves to pay for about 3.4% of next year's "General Govemment"
expenses is within City budget guidelines, depleting the City's "savings account" at the same rate is
not sustainable over the long term. Having one of the 4 major revenue sources limited to a rate below
inflationary cost drivers is a major factor in the annual effort to balance the tax- supported budgets in
the future.
Property Tax Discussion
The total 2009 City of Yakima property tax levy includes the 101% levy, levies for voted bond issues,
and amounts for annexations and new construction. The budget currently includes an estimated
revenue of $15,232,765 for the regular levy, an increase of $333,033 (made up of the 1°A) authorized
increase of approximately $150,000, and an estimate of 1% for new construction) over the 2008 year -
end estimate of $14,899,732. (As noted above, the estimate will be increased by $140,000 for the
final budget.) The voted levy debt is budgeted to be $268,000, slightly below the 2008 budget, based
on scheduled debt service for the 1995 voted Fire bond issue. The total operating tax rate for next
year is estimated to be $2.8842 per $1,000 of Assessed Valuation (AV), down from the 2008 rate of
$2.9549. (The statutory limit is $3.60 Tess the Library levy, which is capped at 50 cents per $1,000.
The estimate for the 2009 Library levy is 46 cents per thousand) -- the bond rate is estimated to be
$0.04969 per $1,000, down from $0.0583 in 2008. It should be noted that the amounts included in
the budget differ from the levy as shown in attached Exhibit I because of the timing of collections. In
other words the budget is built on collection estimates of the levy.
A home with an assessed value of $150,000 in 2008 paid $443.25 for the regular levy, and $8.75 for
the voted levy, for a total of $452. According to the valuation estimate provided by the County
Assessor, the underlying assessed value of all taxable property in the City increased by 3.5 %. If that
growth rate is applied to the $150,000, the 2009 assessed value would be $155,250 and the regular
levy tax would be $447.75, and the voted levy would be $7.75 for a total of $455.50 —an increase of
$3.50 for the year or $0.29 per month. In this scenario, the total property tax bill only increased by
0.8% even though the assessed value increased by 3.5 %. That is because the levy is limited to a 1%
increase in the dollars levied on existing properties, while the assessed value is the mechanism to
distribute the total tax equitably among the properties.
We believe the current request for the property tax levy is justified by the following conditions:
(1) The property tax is needed to help meet mandates and contractual obligations, principally
410 Public Safety pensions /medical costs. Attachment 2 demonstrates the amount of property
taxes dedicated to these areas.
i pIJsn
2009 Property Tax Agenda Statement— Continued page 4 of 4 40
(2) In the Street budget, property tax represents nearly 75% of all revenue in this budget. (see
Attachment 3) Investing in maintaining and repaving the City streets has been a high Council
priority for several years. The other major revenue source in this fund is Gas Tax, which is
based on a "per gallon" charge. The escalation in gas prices affected consumption, and the
2008 gas tax is currently running 5.6% behind 2007.
(3) Property tax is also a key revenue source for the Parks and Recreation Division, representing
over 40% of all Parks revenue. Parks maintenance is supported entirely by property tax, while
other programs such as the Senior Center and Aquatics are supported in part by the property
tax. The cost to maintain and operate these facilities increases annually. (Also see
Attachment 3)
(4) Again this year, the City is not expected to collect the full levy because of higher senior citizen
exemptions, delinquent taxes and other uncollectible accounts. For the year 2009, the City is
budgeting conservatively and estimating a reduction of up to 3% in actual collections from the
authorized levy offset by a portion of delinquent taxes that are predicted to be collected.
(5) Yakima's per capita property tax ranks $62 below the average of comparable Washington
cities with populations of 30,000 to 90,000 in 2006, the most recent year this information has
been compiled. Yakima ranks 9th out of 12 cities in this group. Further, for these same cites,
Yakima's total per capita revenue collected from all taxes, fees and charges is $615 dollars
Tess than the average and ranks 11th out of the 12 cities. Our residents are currently taxed
substantially less than other similar size cities. (see Attachments 2 & 4)
(6) The City's current property tax levy represents only 26% (approximately 1/4) of the total
•
property taxes paid by City residents. The State, local School District levies and County
government receive approximately 3/4 of all property taxes paid. (See Attachment 5)
(7) Finally, Public Safety continues to be Council's highest priority, and even with recent
enhancements to the Criminal Justice program funded by a voted county sales tax and a gain
in property taxes as a result of the City's annexation into the Library District, the Police Officers
per thousand of population is 1.64 in 2009 —still 13 officers below the Western States Average
of 1.8 officers per thousand.
In conclusion, based upon the previous discussion, property tax is a vital component of General
Government revenue. Management/budget staff respectfully requests the passage of both
Ordinances A and B to set the 2009 property tax levy, which is the basis on which the 2009 budget
was developed.
•
1 Rn2URf
EXHIBIT I
•
City of Yakima
Property Tax Limitation Calculation
(Dollars in Thousands)
2008 Tax 2009
Assessed Rate Levy
Values Applied Dollars
Prior Year (2008) = Base $5,104,315.771 $2.9549 $15,082,853
1% Increase $150,829
Base 101% $15,233,682
Valuation Increase (3.5 %) $180,117.465 N/A $0
New Construction (2 %) $105,109.344 $2.9549 $310,588
fa State Assessed Value $2.9549 $0
Tax Limit Before Annexations $5,389,542.580 $2.8842 $15,544,269
Add for Annexation $3,002.381 $2.8842 $8,659
Limit for Subsequent Years $5,392,544.961 $2.8842 $15,552,928
Plus Contingency (And Refunds) $150,000
Total- ordinance $15,702,928
State of Washington Constitutional Limit
Assessed Valuation $5,392,544.961 $3.6000 $19,413,162
Less: Library Levy (Estimate) $0.475 $2,561,459
2008 Levy for Collection in 2009 (Estimate) $3.125 $16,851,703
411
cje 11/10/2008
ORDINANCE A
® ORDINANCE NO. 2008
AN ORDINANCE relating to the annual property tax levy; declaring the City Council's intent
to increase the City's 2009 regular levy up to 101% along with new .
construction, annexation and growth in state- assessed property values
from the amount levied the previous year.
WHEREAS, RCW 84.55.120 requires a taxing district that collects regular levies to hold
a public hearing on revenue sources for the district's following year's current expense budget,
including consideration of possible increases in property tax revenues; and
WHEREAS, pursuant to RCW 84.55.120 and the City Charter, on November 18, 2008,
upon due and proper legal notice, the Yakima City Council held a public hearing to consider
the City's general govemment revenue sources for the 2009 current expense budget, and the
total proposed property tax levy amount pertaining to 2009 revenues from real and personal
property taxes; and
WHEREAS, Section 209 of Referendum Bill 47 (RCW 84.55.120) provides that no
increase in property tax revenue, other than that resulting from the addition of new
construction and improvements to property in any increase in the value of state - assessed
® property, may be authorized by a taxing district, except by adoption of a separate ordinance or
resolution, pursuant to notice, specifically authorizing the increase in terms of both dollars and
percentage; and
WHEREAS, the City Council, after the public hearing on November 18, 2008, and after
duly considering all relevant evidence and testimony presented, has determined that the City
requires an increase in property tax revenue from the previous year, resulting from the addition
of new construction and improvements to property and any increase in the value of state-
assessed property, in order to discharge the expected expenses and obligations of the City,
and as being necessary and in the best interests of the citizens of the City of Yakima; and
WHEREAS, the amount of property tax levied for collection in 2008 was $15,082,853
for general govemment purposes; and
WHEREAS, the discretionary increase in property tax levied for collection in 2009 shall
be in the amount of $150,829, which is a percentage increase of one percent (1 %) from the
previous year; and
WHEREAS, the non - discretionary increases in property tax levied for collection in 2009
can only be estimated due to the absence of final values to be provided by the Yakima County
Assessor, now, therefore,
Ill
ge /property- texord 20091 % -ce 11/13/2008
ORDINANCE A
BE IT ORDAINED BY THE CITY OF YAKIMA: •
Section 1. The following increases in the regular property tax levy, over the amount
of the previous year's levy, are hereby authorized to be cumulatively levied for collection in
2009:
A. A discretionary increase of $150,829, which is a percentage increase of
one percent (1 %) over the amount levied for collection in 2008; plus
B. An estimated increase of $8,659 for recent annexations; plus
C. An estimated increase of $310,588 for new construction and
improvements to property; plus
D. An increase authorized by state law for state - assessed property values.
Section 2. The City Clerk is directed to transmit and file a certified copy of this
ordinance with the Board of Yakima County Commissioners and the Yakima County Assessor
on or before November 30, 2008.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this
ordinance shall take effect on November 18, 2008.
PASSED BY THE CITY COUNCIL, signed and approved this 18th day of November,
2008.
ATTEST: David Edler, Mayor
City Clerk
Publication Date:
Effective Date:
cje /property - tax -ord 20091 % -ce 11/13/2008
ORDINANCE B
ORDINANCE NO. 2008
AN ORDINANCE fixing and levying the amount of ad valorem taxes necessary to balance
estimated revenue with estimated expenditures for the 2009 Budget for
the City of Yakima.
WHEREAS, the City Council finds that the total net amount of $15,702,928 in revenue
must be raised by ad valorem taxes on real and personal property within the corporate limits of
the City of Yakima to balance estimated revenues and expenditures for the 2009 Budget for
the City of Yakima, now therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. There is hereby fixed to be raised by general property taxes upon real
and personal property within the City of Yakima the amount of $15,702,928 for the following
purposes:
General Govemment Levy
Operating Funds $14,170,163
Firemens' Relief & Pension Fund 1,532,765
Amount of tax levy for General
Govemment Purposes (1) $15,702,928
Special Purpose Tax Levy 268,000
Total Levy Amount (1) $15,970,928
(1) Includes an additional $150,000 to provide for final adjustments in State assessed, new
construction and annexation values.
Section 2. The City Clerk is directed to transmit and file a certified copy of this
ordinance with the Board of Yakima County Commissioners and the Yakima County Assessor
on or before November 30, 2008.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this
ordinance shall take effect on November 18, 2008.
PASSED BY THE CITY COUNCIL, signed and approved this 18th day of
November, 2008.
ATTEST: David Edler, Mayor
City Clerk
Publication Date:
Effective Date:
ad- valorem -ord 2009cje11/13/2008
Attachment #1
1111 .
GENERAL GOVERNMENT REVENUE
(BASED ON 2009 BUDGET OF $58.9 MILLION)
29.1 19.8 7.3 4.0
Sales Tax Franchise & Intergovemment & Other
Utility Tax State Shared Revenue Revenue
($17.1 Million) ($11.7 Million) ($4.3 Million) (2.4 Million)
4.T-1 u• ,4- z. "
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23 11.3 .3 5 L
Property Tax Licenses, Permits Fines &
($13.7 Million) & Charges Other Taxes
41110 for Services ($3.1 Million)
($6.6 Million)
GENERAL GOVERNMENT RESOURCES
THREE YEAR COMPARISON
2009 % OF - -- 2009 vs. 2008 - --
2007 2008 PERCENT BUDGET 2009 INCREASE PERCENT
SOURCE ACTUAL ESTIMATE CHANGE FORECAST TOTAL (DECREASE) CHANGE
General Sales Tax $13,423,269 $13,938,000 3.8% $14,384,000 24.4% $446,000 3.2%
Crim. Justice Sales Tax* 2,378,160 2,620,000 10.2% 2,729,000 4.6% 109,000 4.2%
Property Tax 12,678,715 13,348,002 5.3% 13,700,000 23.3% 351,998 2.6%
Franchise & Util. Taxes 10,534,541 11,265,200 6.9% 11,662,716 19.8% 39Z516 3.5%
Charges for Services 5,360,155 5,551,116 3.6% 5,843,705 9.9% 292,589 5.3%
State Shared Revenue 3,000,203 2,939,900 (2.0 %) 2,907,600 4.9% (32,300) (1.1 %)
Fines and Forfeitures 1,420,275 1,550,250 9.2% 1,632,900 2.8% 82,650 5.3%
Other Taxes - 1,666,492 1,478,100 (11.3 %) 1,47Z200 2.5% (900) (0.1 %)
Other Revenue 1,393,657 1,268,178 (9.0 %) 1,242,170 2.1% (26,008) (2.1 %)
Transfers from other Funds 1,063,126 1,084,000 2.0% 1,139,000 1.9% 55,000 5.1%
Other Intergovernmental 1,056,731 1,167,324 10.5% 1,373,489 2.3% 206,165 17.7%
Licenses and Permits 982,084 872,000 (11.2 %) 814,000 1.4% (58,000) (6.7 %)
TOTAL REVENUE $54,95Z408 $57,082,070 3.9% $58,905,780 100.0% $1,823,710 3.2%
Beginning Fund Balance 6,935,112 8,186,216 18.0% 7,514,180 ($672,036) (8.2 %)
TOTAL RESOURCES $61,892,520 $65,268,286 5.5% $66,419,960 $1,151,674 1.8%
I D *Some Criminal Justice sales tax is allocated to the Law and Justice capital fund (a non - general Governmental fund) for capital needs. (See section IV for details.)
Attachment #2
The following graph depicts the 2009 budgeted allocation of the City's property tax revenues.
•
PROPERTY TAX ALLOCATION BY FUNCTION
2009 GENERAL LEVY
PROPERTY TAX TOTAL — $15,232,765
Fire & Police
Pension
$2,920,722
ra ,� 4., , 19.2%
General Fund u i� .�`
$6,198,043 ' s § � ' ` r
40.7% -�, k fi �r� -- &. '
P ar k s
`' . . A $1,800,000
� � 11.8%
j f Ts ''" , s '-'4' -
� •
a
a
Street
$4,314,000
28.3%
2009 PROPOSED
GENERAL PROPERTY TAX LEVY
2008 2009 2008 EsT.
2007 AMENDED 2008 BUDGET VS.
ACTUAL BUDGET ESTIMATED FORECAST 2009 BUDGET
General $6,820,513 $7,327,800 $7,32Z800 $7,586,000 3.5%
Parks & Recreation 1,938,000 1,800,000 1,800,000 1,800,000 0.0%
Street & Traffic 3,920,202 4,220,202 4,220,202 4,314,000 2.2%
SUB -TOTAL GENERAL GOVERNMENT 12,678,715 13,348,002 13,348,002 13,700,000 2.6%
Fire Pension 1,536,367 1,551,730 1,551,730 1,532,765 (1.2 %)
TOTAL $14,215,082 $14,899,732 $14,899,732 $15,232,765 2.2%
III
Attachment #2 (Cont...)
• -
The City has compiled data from the State Auditor's Office that identifies per capita property tax
for comparable cities throughout the State. The following chart compares the City's per capita
property tax income for 2006 (the last year information is available). It shows the City of Yakima's
property tax per capita is $164, which is $62 less than the average of all the comparable cities. Ya-
kima ranks fourth lowest in tax per capita of the 12 comparable cities.
2006 PER CAPITA PROPERTY TAXES
COMPARABLE CRIES BETWEEN 30,000 AND 90,000 IN P OPULATION
(rounded to the closest dollar)
$450_ $406
$400- Yakima's per capita property tax is $164, which is $62 less
than the average city per capita of $226 ?"
0 4
$350- $276 $298 $3 ;
!'7
$
$300
$241 Al " F
$250- $212 a ` . t
$176 4_ 1 s
$200 $164 _ 34
$128 $137 j , a a r t
$111 i� � • $150— ., .:7 1:4„
�;i a P
x
� 1 y
.� ray ks -- z x; 1' 1 , 4.: 1 f „, m a `. i u :' 3" .
$100 , S $ qx, ;3 . a , a : 1 n ,, y , c: k r ; &r ," h v
ii,
al - ' t f Q4' y R r t . ' .'
t t '
$50 a s £ 7 $ x f a ° , � a
,,,, 1., J' ** ✓ —_m � - w' �d , � '�� J te , i
Pasco Walla Walla Kennewick Yakima Bellingham Olympia Richland Redmond Kirkland Auburn Kent Renton
* Data compiled from the State Auditor's Local Government Comparative Statistics.
III
Attachment #3
PROPERTY TAX AS A PERCENTAGE OF TOTAL FUND REVENUE
2008 BUDGET YEAR
100 % `, .1'
Vi .
90 °/ < .
o fi t; C :
60%. -.x 1
50 o, I °
40 -- 1 ` 75% ' b
- 16 /° ,.
General Fund Parks Streets Fire Pension
® % Property Tax ® % Other Revenue •
III
Attachment #4
0
The largest revenue source for the General Government Funds is sales tax. Yakima is in the lower half of
per capita sales tax compared with similar cities in the State. However, Yakima is also in the lower 1/3 of
rankings in all other revenue comparisons per capita an d is the second lowest out of the twelve cities com-
pared
• combined per capita revenue. Yalima's $1,256 per
in the chart capita taxes is $615 below the aver of $1,871
based on 2006 actual data, as demonstrate below. The most important conc from th is
analysis is that the City of Yakima has a very limited revenue /tax base compared with most cities of its size
• the state, and yet provides similar or enhanced services and programs to its citizens.
2006 PER CAPITA TOTAL REVENUES *
COMPARABLE CITIES BETWEEN 30, AND 90, IN POPULATION
(rounded to the closest dollar)
$3,000- $2,852
Yakima's per capita total revenue is $1,256, which is $615
$2 500- less than the average city per capita of $1,871 $2 219 $2321 $2,335
$2141 , a sav
$1990 a— ° ", x
$2,000- $1
$1787 ,, s .
$1.526 A t 8 ''1".?)". u , te a , . ,. y,
$1,500 1,053 $1256 $12 , , r� F '
0 $1000
a l 2 L }
�-fl4 At a a �' t N ' �,. ,t "'. , ' 1 ai d '•. %.
$500 ` r f ' • 7 a k j n "a .�, � 7 Y ., mt Y g.}'
-46 ° d t '3 a +� ` ,"s. ch d $� :te -''.s ... ,,.�- - `a __ �.0 c 2 ,-.. _ .+� �i .._ r.u.2 . \"- - - :i� . .
.. :_tea .�.1
Kennewick Yakima Pasco Walla Walla Kent Bellingham . Kirkland Aubum O l ympia R e nton R edmond Richl
* Data compiled from the State Auditor's Local Government Comparative Statistics. Includes state and federal grants, taxes an d charges for services,
and excludes debt proceeds.
11110 ,
Attachment #5
III
PROPERTY TAXES
The total property taxes paid by property owners within the City of Yakima include taxes levied by
several governmental entities: the State, School Districts, Special County -wide voted levies and the
City's general and special voter approved levies. The percentage of the total property taxes levied
by, and allocated to, each individual governmental entity will change slightly from year to year.
The City's portion is generally under 30% of the total amount collected. (Refer to the graph and
chart below for how the 2008 property taxes were allocated between these governmental. entities.)
2008 PROPERTY TAX DISTRIBUTION
Yakima School District City of Yakima Library
.37` .26` .04`
_ _ I I
1 ir , ... a i fi ' % 1 gC.33`� ° ^=a�z 4 Shy , • 1
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State of Washington Schools Yakima County EMS
.17` .14` .02`
CITY OF YAKIMA PROPERTY TAX — In 2008, a typical City resident pays approximately $11.75 per thousand
of assessed value on property taxes. Only $3.01, or about 25.7% goes to the City, with the balance
divided between the County, schools, and other special districts.
DESCRIPTION OF HOW PROPERTY TAXES ARE LEVIED — The following explanation is included to help the
reader understand how property taxes are assessed to the individual property owners. To aid in
this explanation, three commonly used terms must be understood. They are Property Tax Levy,
Property Tax Rate and Assessed Value.
Property Tax Levy - is the total amount of money that is authorized to be collected.
Property Tax Rate - is the property tax amount that will be applied to every $1,000 of assessed
value; the rate is determined by simply dividing the levy amount by the total assessed value
amount and dividing that number by 1,000.
Assessed Value - is the total value, as determined by the County Assessor's Office, of all prop-
erty within the City.