Chief
11-04-2007, 03:37 PM
http://www.cityofvancouver.us/councilmeetings.asp?menuid=10462&submenuID=10474&itemID=46457
5. Property Tax Levy for 2008
(Staff Report 202-07 --- attached on lavender paper.)
AN ORDINANCE relating to the annual property tax levy; authorizing an increase of 1.0% in the City’s regular levy from the amount levied the previous year; providing for an effective date.
Summary:
City Council must approve an increase in its regular property tax levy for 2008 in order to collect the allowable increase in City property taxes needed to fund the City’s General Fund Budget. On November 6, 2001, Washington voters approved Initiative 747 (I-747) which limits the allowable increase in the property tax levy to 1.0%, or the rate of inflation, whichever is less. The July of 2007 implicit price deflator for personal consumption expenditures as published by the Department of Commerce is 2.084 percent. Staff recommends that City Council approve a 1.0% increase in the property tax levy. Since the inflation rate is higher than the 1.0% limit, this is the maximum increase allowed. Based on last year’s levy of $36,054,748, the increase will be $360,547. Authorization of this increase requires a simple majority vote of City Council. Staff estimates that the City’s property tax rate in 2008 will be $2.4 per $1,000 of assessed value. At that rate, annual City property taxes on a typical property ($277,000 assessed value) would be $665 or $12 less than the taxes paid to the City in 2006 on a home of the same assessed value.
In addition to the 1.0% increase in the base levy, the City collects new property tax revenue based on the value of new construction added to the assessment rolls during the prior year. Revenue to the City is calculated using the assessed value of new construction multiplied by the prior year’s levy rate. The value of new construction will not be finalized by the County Assessor’s Office until late November and includes the value of utility new construction provided to the County Assessor by the state. The most recent estimate from the County Assessor’s Office indicates more than $353 million of new construction which translates into $912,800 of additional City property tax revenue. The City’s ordinance states the percentage and dollar amount increase in the City’s base property tax levy and allows the County Assessor to determine the levy amount for new construction based on their final calculations. In total, the current estimate of 2008 property tax revenue is very close to that originally projected.
Action Requested:
Approve ordinance on first reading, setting the date of second reading and public hearing for November 19, 2007. (Carrie Lewellen, City Treasurer, 619-1082)
5. Property Tax Levy for 2008
(Staff Report 202-07 --- attached on lavender paper.)
AN ORDINANCE relating to the annual property tax levy; authorizing an increase of 1.0% in the City’s regular levy from the amount levied the previous year; providing for an effective date.
Summary:
City Council must approve an increase in its regular property tax levy for 2008 in order to collect the allowable increase in City property taxes needed to fund the City’s General Fund Budget. On November 6, 2001, Washington voters approved Initiative 747 (I-747) which limits the allowable increase in the property tax levy to 1.0%, or the rate of inflation, whichever is less. The July of 2007 implicit price deflator for personal consumption expenditures as published by the Department of Commerce is 2.084 percent. Staff recommends that City Council approve a 1.0% increase in the property tax levy. Since the inflation rate is higher than the 1.0% limit, this is the maximum increase allowed. Based on last year’s levy of $36,054,748, the increase will be $360,547. Authorization of this increase requires a simple majority vote of City Council. Staff estimates that the City’s property tax rate in 2008 will be $2.4 per $1,000 of assessed value. At that rate, annual City property taxes on a typical property ($277,000 assessed value) would be $665 or $12 less than the taxes paid to the City in 2006 on a home of the same assessed value.
In addition to the 1.0% increase in the base levy, the City collects new property tax revenue based on the value of new construction added to the assessment rolls during the prior year. Revenue to the City is calculated using the assessed value of new construction multiplied by the prior year’s levy rate. The value of new construction will not be finalized by the County Assessor’s Office until late November and includes the value of utility new construction provided to the County Assessor by the state. The most recent estimate from the County Assessor’s Office indicates more than $353 million of new construction which translates into $912,800 of additional City property tax revenue. The City’s ordinance states the percentage and dollar amount increase in the City’s base property tax levy and allows the County Assessor to determine the levy amount for new construction based on their final calculations. In total, the current estimate of 2008 property tax revenue is very close to that originally projected.
Action Requested:
Approve ordinance on first reading, setting the date of second reading and public hearing for November 19, 2007. (Carrie Lewellen, City Treasurer, 619-1082)