Property Taxes 101 is in session

Click here to take our online poll on property taxes

Good morning, class, and welcome to Property Taxes 101.

Let’s begin with some of the basics. What’s going on out there in the real world?

Yes, Noodles?

“Well the economy is more or less in ruins. Unemployment is hovering at all-time-high records, no one is getting raises, pensions are essentially gone for the private sector and most people are just getting by.”

Very good. So what is the government doing about it?

Yes, Jake?

“Well I’m reading all the stories. The government is really cutting back. Fire stations closing, governmental employees taking furlough days, programs are being cut and their workers are even having to pay a little more for their health insurance.”

Right! OK, so if the private sector is hurting and the public sector is really cutting back, what should happen to your property tax bill?

Raise your hand if you think your tax bill is going down. OK, how many think your bill will stay flat? How many think it will be going up?

Interesting. Most of you felt it would be going down. Some thought it would be flat, and, Jimmy, you were the only one who felt your tax bill would be going up. Why?

“It’s the government.”

Be nice, Jimmy. But Jimmy (dramatic pause required here), you’re the only one who got it right. You’ll be paying more this year.

Here are the facts. If you look at all the taxing districts, all the governments in Clark County, they are asking for $498 million from property taxes. Last year they asked for $480 million. That’s a 3.75 percent increase.

Now, everyone’s tax bill is different, but it’s safe to assume your tax bill went up by about that amount.

My personal property tax bill? A 10 percent increase.

Well, at least this jump for us all was offset by all the nice raises we all got this year, right?

You have a question, Jake?

“Professor Brancaccio, what raises?”

Whoops. Good point, Jake. You and me both.

OK, with everyone struggling, with all the cutbacks you hear about in government, why the increase?

Let’s examine this more closely.

First, check your property assessment. Technically, the assessment doesn’t impact taxes. But it will impact you if your assessment stands out. The county likely lost around 9 percent of its assessed value. But my house lost only 1.8 percent of its value. That spells trouble for me and a bigger increase. Madre mia!

Another way for your bill to go up? Well, sometimes we vote to pay more. Schools and libraries, for example. Of the $18 million more the county expects to take in for all the taxing districts, $14 million was approved by us.

Third, some governmental entities are allowed to go up 1 percent, well, just because.

So when you add it all up, what do you get?

Yes, Danni?

“A big honking increase.”

OK, but let’s just say an increase.

Looking at my tax bill, here’s the damage: A 12 percent increase for the Vancouver school district, a 29 percent increase for the library and a 7 percent increase for my fire district. Had a 9 percent increase for the county general budget.

So what am I trying to say?

Hannah?

“They’ll get you one way or another?”

Well, that’s not really the point. Taxes are necessary, but we always should examine what we’re paying. When you see all the increases for the government, then you compare it to what increases you had, you begin to see the difference. So what do you think, class? Class?

Lou Brancaccio is The Columbian’s editor. Reach him at 360-735-4505 or lou.brancaccio@columbian.com.