Property Tax Increases in Washington's Counties
2003-12
In 2001 the people of Washington passed Initiative 747, a measure designed to limit the yearly rate of increase in the property tax burden citizens must bear.
Under Initiative 747, local officials have three options when considering whether and how much to increase property tax collections each year: 1) they can increase the amount collected by up to 1%; 2) they can increase the amount collected by more than 1% by drawing on unused taxing authority they banked in previous years; or 3) they can ask voters to approve a higher increase. There are no statutory limits on tax increase proposals sent to the voters. Such proposals need only a simple majority to pass.
Washington Policy Center conducted a statewide survey to see if Initiative 747 is effective in holding down tax increases. We found that 36 counties (92%) limited their annual increase in regular property tax collections to 1% or less. Five of these counties, Kittitas, Spokane, Wahkiakum, Whatcom and Whitman, adopted zero increases. In fact, Whatcom has consistently held its level of increase at zero for six years, bringing a significant level of tax relief to its citizens.
Overall, this is the highest level of property tax limitation since we began monitoring statewide property tax trends six year ago. Survey results for all counties are shown in the graph on the reverse.
Three counties, Island, Benton and Garfield, raised their property tax burden more than 1% by drawing on banked taxing authority. Benton County officials explained the level of tax increase as being “due to the expected completion of a new jail/court facility and the loss of state criminal justice funding.” Garfield County officials presented no explanation in their resolution for the level of increase they approved for 2003.
Island County commissioners explained their level of tax increase by stating additional funding was needed, “to meet the expected expenses and obligations of the County by partially offsetting the long-term impact of the loss of MVET, Sales Tax Equalization, and certain Criminal Justice funds from the State of Washington.” Island’s total increase in regular property tax collections for 2003 was $318,372, comprised of $57,514 (1%), plus an additional $260,858 (4.8%), which the county reported “represents the use of previously banked excess tax capacity.”
No county increased taxes by more than the once-common 6% level, indicating the broad effect the Initiative 747 law has had in reducing the rate of annual property tax increases among counties.
Some counties, like Chelan, increased their current expense budget, which funds most county programs, by shifting money from their road levy.
The yearly increase in the tax burden imposed by counties has been markedly eased by Initiative 747. County taxes are much lower today than they would have been under previous law, resulting in significant tax savings to Washington citizens.