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HomeMy WebLinkAboutOrd 2748 - 2025 Property Tax Levy Decreaseashington rdinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RELATING TO PROPERTY TAXES; DECREASING THE 2025 GENERAL PROPERTY TAX LEVY FOR THE CITY OF TUKWILA REGULAR LEVY FROM THE PREVIOUS YEAR, COMMENCING JANUARY 1, 2025, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN COMPLIANCE WITH RCW 84.55.120; PRESERVING FUTURE LEVY CAPACITY; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila has properly given notice of a public hearing held on October 28, 2024, to consider the ad valorem tax levy for 2025 collections pursuant to RCW 84.55.120; and WHEREAS, the King County Assessor provided a preliminary estimated assessed value of taxable real property in the City of Tukwila of $9,561,329,345, which is subject to adjustment for senior citizens exemptions as provided for in RCW 84.36.381 and for omitted assessments as provided for in RCW 84.40.080; and WHEREAS, under state law, a local government may not increase its property tax collections by more than 1 % from the previous year or the change in Implicit Price Deflator (IPD), whichever is less; and WHEREAS, the IPD rate of inflation for property tax collections due in 2025 is 2.57%; and WHEREAS, the City Council desires to provide property tax relief to fulfill the commitment made to voters upon annexation of the City into the Puget Sound Regional Fire Authority; and 2024 Legislation: Regular Tax Levy Decrease Version: 11/7/24 Staff: A. BeMiller Page 1 of 3 WHEREAS, after such hearing and after duly considering all relevant evidence and testimony presented, the City Council has determined that the City of Tukwila will reduce property tax collections from the previous year's actual collections by $6,000,000, or 33.33%, which excludes any increase resulting from additions of new constructions and improvements to property, any increase in the value of state -assessed property, and amounts authorized by law as a result of any annexations that have occurred and refunds made, in order to discharge the expected expenses and obligations of the City in its best interest; and WHEREAS, the City Council desires to protect the City's future levy capacity pursuant to RCW 84.55,092, calculated in future years as though the maximum lawful levy amount allowed by state law had been levied; and WHEREAS, the City is required to certify the general property tax levy amount to be raised by taxation on assessed valuation with the clerk of the county legislative authority by November 30, 2024; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The annual amount of general property tax levy necessary to raise the amount of revenues required by the City of Tukwila for expenditure during calendar year 2025 is hereby levied upon all real and personal property subject to taxation in the City of Tukwila as set forth in the table below. Est. Assessed Value (AV) for collections in 2025 9,650,575,457 2024 Actual Collections 17,999,227 2025 Budgeted Collections 11,999,227 Dollar ($) Decrease from 2024 Collections (6,000,000) Percent Decrease from 2024 Collections (33,33476°/0) Est. Levy Rate per $1,000 AV for 2025 Collections $1.24337 Section 2. The estimated general property tax levy amount set forth in Section 1 is hereby levied upon all real and personal property in accordance with certified assessed values and completed tax rolls of the City of Tukwila for collection in 2025. That estimated general property tax levy amount is intended: (a) to include a 33.33476% decrease from the City's 2024 actual regular levy amount of $17,999,227; (b) to include any additional amounts allowed under (i) the new construction, improvements to property and state -assessed property provisions of RCW 84.55.010 and (ii) as provided pursuant to RCW 84.55.070, the refund provisions of chapters 84.68 and 84.69 RCW; and 2024 Legislation: Regular Tax Levy Decrease Version: 11/7/24 Staff: A. BeMiller Page 2 of 3 Upon certification of property values for 2025 collections, the Assessor shall adjust and finalize the levy rate per $1,000 of Assessed Valuation to meet the revenues as provided in Sections 1 and 2 above. Section 3. Any unused general property tax levy capacity for the 2025 tax year is reserved for future levy as provided by RCW 84.55.092, calculated in future years as though the maximum lawful levy amount allowed by state law had been levied. Section 4. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall be in full force and effect on January 1, 2025. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this i8 day of iNto\icortItec , 2024. ATTEST/AUTHENTICATED: Andy Youn, CMC, City Cterk APPROVED AS TO FORM BY: Office of the City Attorney 2024 Legislation: Regular Tax Levy Decrease Version: 11/7/24 TIN Thomas McLeod, Mayor Filed with the City Clerk: t - 0-4 Passed by the City Council: \,k- '?3 Published: t t - 42k - ;2* Effective Date: Ordinance Number: Staff: A. BeMiller Page 3 of 3 City of Tukwila Public Notice of Ordinance Adoption for Ordinances 2747-2748. On November 18, 2024, the City Council of the City of Tukwila, Washington, adopted the following ordinances, the main points of which are summarized by title as follows: ORDINANCE 2747: AN ORDINANCE OFTHE CITY COUNCIL OFTHE CITY OFTUKWILA, WASHINGTON, LEVYING THE GENERAL TAXES FOR THE CITY OF TUKWILA IN KING COUNTY FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2025, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN SAID CITY, THAT IS SUBJECT TO TAXATION FOR THE PURPOSE OF PAYING SUFFICIENT REVENUE TO CARRY ON THE SERVICES OF THE SEVERAL DEPARTMENTS OF SAID CITY FOR THE ENSUING YEAR, WITH AN EXCESS PROPERTY TAX LEVY FOR THE PURPOSE OF PAYING DEBT SERVICE ON THE CITY'S UNLIMITED TAX GENERAL OBLIGATION BONDS ISSUED IN 2016 AND 2019, AS REQUIRED BY LAW; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. ORDINANCE 2748: AN ORDINANCE OFTHE CITY COUNCIL OFTHE CITY OFTUKWILA, WASHINGTON, RELATING TO PROPERTY TAXES; DECREASING THE 2025 GENERAL PROPERTY TAX LEVY FOR THE CITY OFTUKWILA REGULAR LEVY FROM THE PREVIOUS YEAR, COMMENCING JANUARY 1, 2025, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN COMPLIANCE WITH RCW 84.55.120; PRESERVING FUTURE LEVY CAPACITY; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. The full text of these ordinances will be provided upon request. AndyYoun, Records Governance Manager/City Clerk Published Seattle Times: November 21, 2024