It’s not often that a city will consider a 0 percent increase to taxes, but that’s exactly what the city of Vancouver is doing with its Affordable Housing Levy.
This levy is unique, said Bronson Potter, Vancouver city attorney.
When voters approved the affordable housing levy in 2016 it was for $6 million annually, rather than a levy tax rate. The effective tax rate in 2017 was 32 cents per $1,000 of assessed value. State law allows the city to seek up to a 1 percent increase to property taxes, but it seeks a 0 percent increase instead “to honor the ballot language saying it would be $6 million,” Potter said.
As assessed values are anticipated to increase 12.5 percent in 2018, the affordable housing levy rate is expected to decrease to between 25 cents and 30 cents per $1.000 of assessed value.
Additional funding can still occur, however, if any property is annexed into the city.
The city originally planned for additional revenue based on any new construction, but the ballot limitations prevent such action. Potter said the Department of Revenue consulted with the Washington Attorney General on the issue and came to the conclusion Monday. The stipulation was removed from the ordinance prior to council approval.
