seattle property tax breakdown
DESCRIPTION
West Seattle Blog upload of slide deck prepared for Select Housing Levy Committee of the Seattle City Council.TRANSCRIPT
SEATTLE PROPERTY TAXBrian Goodnight & Traci Ratzliff, Council Central StaffNate Van Duzer, Councilmember Burgess’ OfficeApril 1, 2016
SEATTLE PROPERTY TAX COMPONENTS
Three types of property tax levies:
1. General Purpose Levyo Not subject to voter approval
o Growth is limited to 1% + new construction
2. Voter-Approved Levies for Specific Purposeso Known as levy “lid lifts” because voters authorize taxation above the statutory lid
o Examples: 2009 Housing Levy, Seattle Preschool Program, Move Seattle
3. Levy to Pay Debt Service on Voter-Approved Bondso Known as an “excess” levy because it does not count against the City’s rate limit
o Examples: 1998 Libraries for All, 2012 Waterfront Seawall
1
CALCULATING THE PROPERTY TAX
2
Calculating the tax rate for the City:
Annual Levy Collection Amount
(Total Assessed Value (AV) of All Property / $1,000)= Tax Rate
Tax Rate x (AV / $1,000) = Annual Property
Tax Amount
Calculating the tax amount for an individual property:
3
$20,714,286
($163,305,559,891 / $1,000)= $0.127
$0.127 x ($480,000 / $1,000) = $60.88
2016 Tax Amount for Median AV Home ($480,000)
EXAMPLE CALCULATION – 2009 HOUSING LEVY
Calculating the tax rate for the City:
Calculating the tax amount for an individual property:
2016 PROPERTY TAXES
Amount by Jurisdiction for Median AV Home ($480,000)
Source: King County Assessor’s Office, for Single-Family House
Total Bill: $4,553
4
County, $710
Emergency Management, $136
Port of Seattle, $81
Flood District, $62
School District, $1,051
State, $1,041
City of Seattle, $1,472
City General Purpose, $704
Move Seattle, $279
Seattle Parks District, $140
Families/Education, $98
Bond Debt Service, $85
Low-Income Housing, $61Library Services, $51
Pre-K, $43Election Campaign Financing, $9
City of Seattle, $1,472
2016 PROPERTY TAXES
City of Seattle Property Tax Breakdown for Median AV Home ($480,000)
Source: King County Assessor’s Office, for Single-Family House
Total Bill: $4,553
5
HISTORICAL PROPERTY TAX 2010-2016
Residential Median AV & Total Property Tax Bill
Source: King County Assessor’s Office, for Single-Family House 6
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
2010 2011 2012 2013 2014 2015 2016
Prop
erty
Tax
Asse
ssed
Val
ue
Median Assessed Value Total Property Tax Bill for Median Assessed Value
IMPACT OF PROPOSED HOUSING LEVY
If the proposed housing levy was in effect in 2016 for a Median AV Home:
Source: King County Assessor’s Office, for Single-Family House, and Seattle City Budget Office 7
Other, $3,081
City, $1,411
2009 Housing Levy, $61
2016 Housing Levy Increase, $61
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
2016
$4,614
• Total housing levy tax amount would be $122, an increase of $61 over the 2009 Housing Levy
• Total property tax bill would increase 1.3%
PROPERTY TAX EXEMPTIONS AND DEFERRALS
Washington State offers four property tax exemption or deferral programs for primary residences:
Source: Washington State Department of Revenue, http://dor.wa.gov/Content/FindTaxesAndRates/PropertyTax/IncentivePrograms.aspx 8
Program Income Level Other Eligibility Requirements
Seniors & Disabled Persons: Tax Exemption ≤ $40,000 - At least 61 years of age, or
- Unable to work because of a disability, or
- Veteran receiving compensation at total disability rating
Seniors & Disabled Persons: Tax Deferral ≤ $45,000 - At least 60 years of age, or
- Unable to work because of a disability
Owners with Limited Income: Tax Deferral ≤ $57,000 - Owned home for > 5 years, and
- Sufficient equity to secure the interest of the state in the deferral
Widows & Widowers of Veterans: Tax Assistance Grant ≤ $40,000 - At least 62 years of age, or
- Unable to work because of a disability, and
- Not re-married or in registered domestic partnership
The state also offers property tax exemptions for eligible nonprofit organizations. Examples of the types of organizations receiving
a property tax exemption include: schools, churches, hospitals, nursing homes, and museums.
COMPARING SEATTLE PROPERTY TAXES
2015 Median Residential Property Values
Source: King County Assessor’s Office. Includes King County cities with more than 15,000 in population. 9
$0 $400,000 $800,000 $1,200,000
SeaTacTukwila
Des MoinesFederal Way
CovingtonAuburnBurien
KentRenton
Maple ValleyShorelineKenmore
BothellSeattle
KirklandIssaquahRedmond
SammamishBellevue
Mercer Island
COMPARING SEATTLE PROPERTY TAXES
10
$0 $2 $4 $6 $8 $10 $12 $14 $16
Mercer IslandBellevue
SeattleKirkland
RedmondIssaquah
BothellSammamish
KenmoreShorelineCovington
TukwilaSeaTac
KentBurienRentonAuburn
Des MoinesMaple ValleyFederal Way
2016 Property Tax Rates per $1,000 in assessed value
Source: King County Assessor’s Office. Includes King County cities with more than 15,000 in population. Some cities have multiple tax rates due to overlapping taxing
jurisdictions (school districts, fire districts, etc.); this chart takes the most common tax rate from each city.
COMPARING SEATTLE PROPERTY TAXES
2016 Median Property Tax Bills
Source: King County Assessor’s Office. Includes King County cities with more than 15,000 in population. 11
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000
SeaTac
Tukwila
Covington
Des Moines
Burien
Kent
Auburn
Federal Way
Renton
Shoreline
Maple Valley
Seattle
Kirkland
Bothell
Kenmore
Redmond
Issaquah
Bellevue
Sammamish
Mercer Island
COMPARING SEATTLE PROPERTY TAXES
Property Tax Bills & Home Values
12
South County cities
RentonMaple Valley
Shoreline
Kenmore
BothellSeattleKirkland
IssaquahRedmond
Sammamish
Bellevue
Mercer Island
$0.00
$1,000.00
$2,000.00
$3,000.00
$4,000.00
$5,000.00
$6,000.00
$7,000.00
$8,000.00
$9,000.00
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000
Med
ian
Tax
Bill
Median Residential Home Value
Source: King County Assessor’s Office. Includes King County cities with more than 15,000 in population. Some cities have multiple tax rates due to overlapping taxing
jurisdictions (school districts, fire districts, etc.); this chart takes the most common tax rate from each city.