Voter-approved measures drive increases in 2011 property taxes

Vancouver, WA – February 16, 2011 – (RealEstateRama) — Clark County property owners soon will receive their 2011 property tax statements in the mail, and the Department of Assessment wants to inform them about the impact ballot measures approved last year will have on their tax bills.

With property values dropping, many owners might expect a lower tax bill. However, several factors go into determining their total for each taxing jurisdiction.

Last year, voters in six school districts approved maintenance and operations levies for 2011. In school districts, residents vote on a total levy amount, which is divided among property owners to set a rate applied to each $1,000 of assessed value. If the total value of the district increases because of new homes and businesses, the tax rate decreases because the total levy amount is divided among more property owners. But if the district’s total value decreases because of an economic downturn, the tax rate rises because there is less property value on which to collect taxes adding up to the total levy amount. Voters know an estimated levy tax rate when they vote, but the Clark County Assessor’s Office determines the final tax rate. In any economy, a levy amount does not change once approved by voters.

Here’s an example: Battle Ground School District voters last year approved a $20.5 million maintenance and operations levy, agreeing to raise the levy rate to be comparable to other school districts’. But during the past year, the Battle Ground district’s total property value declined by 6.7 percent because of the poor real estate market. Both factors pushed the levy rate per $1,000 of assessed value from the original estimate of $2.99 to $3.54 to reach the voter-approved $20.5 million in 2011.

Under the Battle Ground district’s 2010 levy rate of $2.22 per $1,000 of assessed value, the owner of a $200,000 home paid $444 ($2.22 x 200 = $444). Under the 2011 levy rate, the owner would pay $708 if the value of the home remained constant ($3.54 x 200 = $708). However, if the value of the $200,000 home dropped 6.7 percent to $186,000, the owner would pay $658 in 2011 ($3.54 x 186 = $658).

The same factors apply in Evergreen Public Schools, where voters approved a $40.8 million maintenance and operations levy for 2011. There, the rate per $1,000 of assessed value rose from $3.15 in 2010 to $3.68 in 2011.

Library districts put tax rates on the ballot, not a total levy amount. However, the impact on tax bills is similar.

Last year, voters in the Fort Vancouver Regional Library District, which includes Clark County, except Camas, two nearby counties and the city of Woodland, approved an increase in the library maintenance and operations levy tax rate. Voters approved an increase from 38 cents per $1,000 of assessed value to 50 cents per $1,000. The money will buy books and restore hours previously reduced through budget cuts.

In 2010, the owner of a $200,000 home paid $76 in library levy taxes (38¢ x 200 = $76). Under the 2011 rate, the owner would pay $100 if the value of the home held steady (50¢ x 200 = $100). However, if the home is worth less because of the real estate downturn, say $180,000, the homeowner will pay $90 (50¢ x 180 = $90).

In other taxing jurisdictions, increases are because the jurisdictions adopted the 1 percent property tax increase as allowed by law.

“When I saw the levies’ impact on property taxes, I thought taxpayers would appreciate an explanation as to why the changes occurred in this economy,” said Assessor Peter Van Nortwick.

Contact:
Peter Van Nortwick, Clark County Assessor
Phone: (360) 397-2391
peter.vannortwick (at) clark.wa (dot) gov