Seattle - A new study finds that 92% of Washington counties limited their annual increase in regular property tax collections to 1% or less and no county increased taxes by more than the once-common 6% level. This research indicates the broad effect recently passed property tax limits are having in reducing the rate of annual property tax increases among counties.
Five of the 36 tax-friendly counties - Kittitas, Spokane, Wahkiakum, Whatcom and Whitman - adopted zero increases in 2003.
Officials in Whatcom County consistently held the annual increase in the basic property tax to zero for six years in a row, bringing a significant level of tax relief to its citizens.
"Property Tax Limitation in Washington State" is the sixth study, in as many years, released by Washington Policy Center, a non-profit research and education organization in Seattle.
"Overall, this is the highest level of property tax limitation we've seen since we began monitoring statewide property tax trends six year ago," said the Center's Research Director and author of the report, Paul Guppy.
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.
"The real benefit is to the taxpayer," said Daniel Mead Smith, President of Washington Policy Center. "Tax limits have considerably eased the level of increase imposed by all counties and cities, but the impressive restraint shown by Whatcom's elected leaders will actually result in a tax cut for many county residents, as a limited burden is supported by a growing tax base."
