AIRWAY HEIGHTS – In the face of a gradual increase in assessed values, the city council decided to table the discussed item/ordinance, with a 5 to 1 vote in favor.
City Finance Director Stanley Schubert discussed property taxes with the City Council during a meeting Monday, Nov. 20.
Schubert emphasized the significance of revenues, labeling them as the bedrock of the city’s budget.
“Sixty percent of our revenue comes in through taxes: property tax, sales tax, utility tax,” he said. “About a quarter of this is property tax.”
Schubert pointed out the necessity to set a levy rate, ensuring fairness across properties.
“You can’t charge one property more than another property,” he said, acknowledging exceptions for seniors and nonprofit organizations.
The current levy rate is $1.50 per $1,000 of assessed valuation, he said, noting the figure is subject to change based on property values.
At that rate, the owner of a $400,000 house would be taxed $600 per year.
The council suggested the more a property is worth, the lower the levy rate should be.
When questioned about the timing of the levy rate establishment, Schubert provided historical context. “The highest rate was set in the 1980s, then in the Eyman Initiative in 2001 to increase levy amounts by 6%,” he said.
A brief overview of limitations highlighted the inverse relationship between property value and levy rate.
In practical terms, if a property is more valuable, the levy rate is lower. For instance, in 2021, a property valued at $1.3 million saw an increase to $1.5 million in 2023, resulting in a levy rate decrease from $1.77 to $1.43.
Schubert said that different districts within the city had varying property tax rates, a nuanced process overseen by the Spokane County Assessor’s Office.
Despite most taxpayers focusing on the total property tax amount, Schubert directed attention to the 14% that goes directly to the city.
“In 2015, 56% went to schools, 16% went to the county, and 14% went to the city or town,” he said.
The presentation detailed regular levy amounts and two excess levies, with possibilities for rate limit increases. Statutory limits were outlined, with cities restricted to $3.47 per $1,000 of value. Schubert highlighted the role of inflation rates, explaining their impact on levy rates when the assessed value remains the same.
Clare is an Eastern Washington University graduate and a reporter at Free Press Publishing.
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