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Home My WebLink AboutCOW 2022-03-14 Item 4E - Update - Property TaxesCOUNCIL AGENDA SYNOPSIS A.41,----- Initials ITEM No. 44, Meeting Date Prepared by Mayor's review Council review Q l o 3/14/22 Vicky 4.E. 29Q$ ITEM INFORMATION STAFF SPONSOR: VICKY ORIGINAL AGENDA DATE: 03/14/22 AGENDA ITEM TITLE Property taxes within the City of Tukwila for 2022 CATEGORY 0 Mtg Discussion Date 03/14/22 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD 11 Finance ❑ Fire ❑ P&R ❑ Police ❑ Pr SPONSOR'S Update City Council on property tax levy rate for the City of Tukwila for fiscal year 2022 SUMMARY REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ LTAC ❑ Arts Comm. DATE: 03/14/22 COMMITTEE // ❑ Finance & Governance ❑ Planning & Community Dev. Parks Comm. ❑ Planning Comm. CHAIR: QUINN RECOMMENDATIONS: SPONSOR/ADMIN. Finance Department COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 03/14/22 MTG. DATE ATTACHMENTS 03/14/22 Informational Memorandum dated 3/8/22 33 34 City 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 35 INFORMATIONAL MEMO Page 2 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. 4.21764. 34.89% City, 2.72071, 22.50% Pon, 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% RST, 0.18409, 1.52% TPMP, 0.15223,126% State School Fund. 2.81695, 23.30% Tax Year: 2021 Levy Code: 2408 Total Levy Rate: S11 98066 Total Senior Rate: $6.27786 City. 2.67733.22.35% Pon. 0.11984. 1.00% County. 1.24688. 10.41% 51.99!/a Voter Approved (screen shot from King County website) School. 3.78888, 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, 36 INFORMATIONAL MEMO Page 3 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% Pori, 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% Lib ary, 0.32757. 3.39% EMS. 0.24841. 2.57% Flood. 0.08146. 0.84% RST. 0.18409, 1.91% TPMP. 0.15223, 1.58% Slala 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, 1.24688, 12.42'! 42.69"A 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% 1 RST. 0.19709. 1.96% TPMP. 0.15102. 1.50% State School Fund. 3.08823. 30.77% 37