Hike not likely to add much to most property tax bills
In hopes of mitigating a bleak 2010 budget, the Vancouver City Council gave initial approval of a 1 percent “emergency” property tax increase Monday night.
Under the state’s Initiative 747, passed in 2001 and aimed at limiting taxation, local and state government may only increase their property tax levies by the rate of inflation or 1 percent, whichever is lower.
The year 2010 will be the first since I-747 was enacted where not only will the inflation rate be below 1 percent, but there’s a deflation rate of -.848 percent, city treasurer Carrie Lewellen said Monday.
In situations of very low inflation or deflation, the initiative permits governments to declare a “substantial need” to increase their property tax levy above the inflation or deflation rate, up to 1 percent, she said.
Without passing an ordinance for a 1 percent increase, Vancouver would collect about $331,000 less than the $39.4 million in property taxes it collected in 2009, she said.
“More or less, we’re declaring an emergency,” Lewellen explained.
The city’s treasurer said the 1 percent isn’t likely to add much to property taxpayer’s bills in 2010 compared with 2009. The county assessor has begun sending out updated assessed home values — upon which property taxes are based — and most homes are seeing a decrease of about 10 percent of real value.
For example, Lewellen said, homeowners with a home that assessed at $220,000 this year will pay $508 for the city portion of their tax bill.
Next year, with the example home’s value down by 10 percent, even if the property tax rate goes up by 1 percent, the same homeowner will pay $505 for the city portion of the tax bill, she said.
The city of Vancouver isn’t the only local government considering the move: Clark County commissioners have proposed the same 1 percent increase. However, some agencies, including the Fort Vancouver Library District, are simply budgeting for the decrease in revenue.
The seven-member Vancouver City Council approved the initial reading of the ordinances without comment Monday. They will hear public comment and likely vote on the increase Dec. 7. For the ordinance to pass, five members — the majority of councilors plus one — must give a “yay” vote.
Andrea Damewood: 360-735-4542 or andrea.damewood@columbian.com.
