HomeMy WebLinkAboutFIN 2022-03-14 Item 1D - Update - 2022 Property TaxesCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance Committee
FROM: Vicky Carlsen, Finance Director
CC: Mayor Ekberg
DATE: March 8, 2022
SUBJECT: Property Taxes within the City of Tukwila - 2022
ISSUE
Review property taxes within the City of Tukwila
BACKGROUND and DISCUSSION
Per state law, all real and personal property in the State of Washington is subject to
property tax based on 100% of the fair market value unless the law provides for a specific
exemption. The Washington State Constitution requires all taxes on real estate to be
uniform within a taxing district.
The State Constitution exempts all property owned by the United States, counties, school
districts, and other municipal corporations. The Legislature has also exempted business
inventories, household goods and personal effects, churches and their grounds,
hospitals, private schools and colleges, and tribal lands used for essential government
services.
Current state law authorizes property tax relief on the principal residences of senior
citizens and persons retired by reason of disability if they meet certain income
requirements. What this means is that property owners that qualify under this program,
are exempt from most voter approved levies.
Property Tax within the City of Tukwila
There are several taxing entities within the borders of the City of Tukwila. Those include
the following:
- State school fund
Local school district
- King County
- Port
- Library
EMS
- Flood district
- Regional Sound Transit
- Tukwila Pool Metropolitan Park District
Boundaries for taxing jurisdictions do not align neatly and they often overlap other taxing
jurisdictions. For example, there are several school districts within the City of Tukwila
boundaries. If a property is located in the central part of the City, a property owner would
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pay property taxes to the Tukwila School District, but a property located in the north end
of the city could pay property taxes to the Seattle School District.
For a property located within the Tukwila School District, the tax levy rate is broken down
as follows:
LEVY DISTRIBUTION COMPARISON BY YEAR
Tax Year: 2022 Levy Code: 2408 Total Levy Rate: 512.08991 Total Senior Rate: 55.81727
School. 421764. 34.89%
City, 2.72071. 22.50%
Pott, 0.11258. 0.93%
County. 1.22827. 10.16%
56.42% Voter Approved
—Library, 0.32757, 2.71%
— EMS. 0.24841.2.05%
Flood 0.08146. 0.67%
i RST. 0.18409, 1.52%
TPMP, 0.15223. 1.26
State School Fund. 2.81695, 23.30%
Tax Year: 2021 Levy Code: 2408 Total Levy Rate: 511.98066 Total Senior Rate: $6.27786
City. 2.67733. 22.35%
Pon. 0.11984. 1.00%
County. 1.24688. 10.41%
51.99% Voter Approved
(screen shot from King County website)
School. 3.78886, 31.62%
— Library. 0.35733.2.98%
— EMS. 0.26499.2.21%
1 Flood. 0.08909. 0.74%
RST, 0.19709, 1.65%
TPMP. 0.15102, 1.26%
State School Fund. 3.08823. 25.78%
The top graph displays 2022 levy rate data, and the bottom graph illustrates 2021 data.
The total levy rate for 2022 is $12.08991, the senior/disabled rate is $5.81727, and of the
total levy rate of $12.08991, 56.42% is voter approved. The City's portion of the total levy
rate is $2.72071, or 22.5% of the total tax levy. The levy rate for the City increased by
$0.04338, or 1.62%. State and local school levies total $7.03459, which is 58.2% of the
total tax levy. Additionally, the senior/disabled rate decreased from $6.27786 in 2021
down to $5.81727 in 2022.
The increase or decrease in a specific property owner's tax bill is not only determined by
the total levy rate for the year, but also by the change in assessed value for the individual
parcel. If all parcels within a jurisdiction's boundary all increase by the same percentage,
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then all property owners realize the same increase in their property tax bill. However, not
all parcels within the same taxing boundary increase by the same percentage. Those
property owners that show a larger increase in assessed value than others would realize
a larger increase in total property bill than those that experienced a smaller increase in
assessed value.
For comparison purposes, the next set of graphs show the total tax levy rate, but for a
parcel located in the north end of the City but in a different school district. The total levy
rate for 2022 is lower at $9.65955 than 2021, which was $10.03661. Voter approved levy
is 45.45% and total schools (state and local) is $4.60423, which is $2.43036 lower than
parcels located in the Tukwila School District.
LEVY DISTRIBUTION COMPARISON BY YEAR
Tax Year: 2022 Levy Code:
City. 2.72071. 28.17%
Port, 0.11258, 1.17%
County. 1.22827. 12.72%
Total Levy Rate: 59.65955 Total Senior Rate: 55.81727
45.45% Voter Approved
School. 1.78728. 18.50%
Library, 0.32757. 3.39%
EMS. 0.24841. 2.57%
Flood, 0.08146.0.84%
RST. 0.18409, 1.91%
TPMP. 0.15223, 1.58%
Stale School Fund. 2.81695. 29.16%
Tax Year. 2021 Levy Code: 2430 Total Levy Rate: 510.03661 Total Senior Rate: Sr, 27766
City. 2.67733. 26.68%
Port. 0.11984. 1.19%
County, 1.24888, 12.42'!
42.69% Voter Approved
RECOMMENDATION
Discussion only
Sc n oot. 1.84481. 18.38%
Library. 0.35733, 3.56%
— EMS, 0.26499. 2.64%
Flood, 0.08909.0.89%
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RST. 0.19709. 1.96%
TPMP. 0.15102. 1.50%
State School Fund. 3.08823. 30.77%
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