Posted: 11 Feb 2011 12:37 PM PST

Mike Glover, Associated Press, On Friday February 11, 2011, 3:37 pm EST

JOHNSTON, Iowa (AP) -- House Speaker Kraig Paulsen said Friday that he thinks lawmakers have a better shot at fundamentally reforming Iowa's property tax system this year than at any time during his legislative career.

Paulsen, a five-term Republican from Hiawatha, said during a taping of the Iowa Public Television program "Iowa Press" that legislators are likely reduce commercial property taxes by far more than the $50 million a year that Republican Gov. Terry Branstad requested. He said lawmakers want to cut taxes on all classes of property.

Although Democrats hold a majority in the Senate, Paulsen says he thinks they are willing to work with House Republicans in reducing property taxes.

"I think for the first time in my time in the Legislature we may have it set up with the right combination to get something consequential done," said Paulsen. "We've nibbled around the edges, but we've never really done anything big. I think we've got a shot at doing something big."

Branstad challenged lawmakers to come up with $50 million a year that could be used to defray the impact of lowering commercial property tax rates, which nearly everyone agrees are out of line with those in neighboring states. The $50 million would replace lost revenue for local governments who depend heavily on property taxes.

Paulsen said Republicans don't want to stop there, but also want to deal with residential and agricultural property as well.

"I think we're going to look at all classes," said Paulsen.

Spending targets unveiled by House Republicans this week identified $383 million that's available for some kind of tax relief, and the House has already agreed to spend $47 million of that to avoid property tax increases that would be forced by freezing basic state assistance to schools.

"I think this caucus is particularly interested in property taxes, and that's a little bit of a shift," said Paulsen.

The renewed interest in property taxes was driven in part by former Gov. Chet Culver's 10 percent across-the-board spending cut, which resulted in a huge property tax hikes and helped Republicans win big in November, Paulsen said. Voters elected a new Republican governor and handed the GOP a 60-40 edge in the House, leaving Democrats clinging to a 26-24 margin in the Senate.

"The governor's 10 percent across-the-board cut drove that discussion during the election cycle and that's heightened interest," said Paulsen.

Paulsen said he's had discussions with Senate Majority Leader Michael Gronstal, D-Council Bluffs, and detected some interest.

"I think we have a Senate that's interested now to do something really, really big," Paulsen said.

Gronstal confirmed that he's discussed the issue with Paulsen. He said he wasn't sure about the final package, but "we're willing to work with them on property taxes."

Branstad's proposal to set a 36 percent tax rate for all Iowa casinos has drawn tepid support from Republicans. Such a measure would generate about $190 million for the state, and while Paulson didn't take a position on the measure, he clearly wasn't excited about it.

"House Republicans did not campaign on raising taxes," said Paulsen. "We don't have a bill on that and when we get that we'll talk about it."

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King County property tax going up as home prices fall

Posted: 10 Feb 2011 02:38 PM PST

Declining property values will bring tax relief to some King County homeowners this year, but voter-approved levies and bonds will mean higher taxes for others.

Assessed values nudged slightly higher in some areas while falling steeply in others, County Assessor Lloyd Hara reported Thursday.

In Seattle, where voters last year approved two school levies and construction bonds and home values rose a tad, the tax bill on a typical $453,300 house will rise by $324, or 8 percent, to $4,379.

Assessed values fell so much in Burien — more than 9 percent — that the typical homeowner's taxes will drop 5.6 percent, or $210 this year, to $3,572 on the average $276,500 house even though voters agreed to pay a higher levy rate for schools.

Tax bills, based on property values as of Jan. 1, 2010, will be mailed to property owners Monday. Payments are due in two installments, on April 30 and Oct. 31. Tax bills in Snohomish County are expected to be mailed later this month.

Bills are going out as numerous homes are in or near foreclosure and Zillow.com calculates one-third of Seattle-area mortgage holders owe more money than their houses are worth.

"We really haven't seen a market like this since the Great Depression," Hara said. "A lot of people can't remember the history, and we're kind of making our own history in this marketplace. ...

"It's still a pretty volatile market because there are many foreclosures that are out there. Things haven't stabilized yet."

Hara said he expects many property owners to be surprised, as they were in the past several years, to see their property taxes go up as the value of their homes goes down.

That "counterintuitive" reality, he said, is primarily the result of new voter-approved levies and bonds.

Voters approved 44 tax increases in 2010, 38 of them for schools, according to the assessor. Other taxing districts collecting more money range from Si View Metropolitan Park District to the cities of Shoreline and Black Diamond to the King County Library System.

Even without voter-approved levies, Washington's "budget-based" tax system allows cities and other taxing districts to boost tax collections without voter approval by 1 percent a year plus tax on the value of new construction. New construction has declined dramatically.

The tax rate is adjusted up or down to prevent sharp fluctuations in tax bills as real-estate values rise or fall.

Countywide, tax collections will increase 3.3 percent after a year in which total assessed value dropped 3.4 percent. The drop in value was modest compared with the previous year's 11.6 percent plunge.

As jurisdictions have raised their tax rates to offset falling values, some have bumped against statutory limits on the rate for special-purpose districts and combined local rates.

The King County Flood Control District, the lowest-priority taxing district in the county, avoided losing its entire $36 million tax stream this year by paying eight small fire districts $3.2 million to keep their levies down.

Non-voter-approved taxes will drop 3.6 percent this year countywide, according to Hara's office.

Average tax bills will drop in the Vashon Island School District by 2 percent. The biggest rise among school districts in the county was in Tukwila, up 10.9 percent.

Homeowners' average tax payments will go up more than commercial property owners' payments, because commercial values fell faster than residential values last year, Chief Deputy Assessor John Arthur Wilson said. In some years, commercial property taxes go up faster than residential taxes, he said.

Keith Ervin: 206-464-2105 or kervin@seattletimes.com

An unwelcome Valentine's Day gift: property tax bill

Posted: 11 Feb 2011 11:18 AM PST

Friday, February 11, 2011
Last updated 9:31 a.m. PT

Bellevue residents will receive their 2010 property tax bills this week, with higher rates, despite lower property values. The reason? Voters have approved increases in the school levy.

The average Bellevue home (valued at $563,000) will receive a property tax assessment of approximately $4,900 said King County Deputy Assessor John Arthur Wilson. The rate is slightly more than 10 percent greater than last year's rate of $4,571 (when the average home was valued at $579,000).

The total assessed value of property in King County was down 3.38 percent in 2010, a smaller decline than in 2009 when total assessed values dropped 11.61 percent.

The rising tax, despite decreasing property values, stems from Bellevue citizens' decision to approve two school bond measures last February. Tax rates rose approximately 80 cents per $1,000 of assessed value, with the school-related charges comprising 51 cents of that total, Wilson said. The rest of the tax lies in the various tax districts ability to raise taxes by 1 percent plus taxes on construction.

Countywide, a total of 44 property tax ballot measures were approved by voters for collection in 2011, and 38 were for school district levies. As a result, property taxes will go up in 17 of the 20 school district areas within King County.

About 53 percent of property tax revenue collected in King County goes to support schools. Cities and other local governments, such as fire districts and hospital districts, receive 27 percent of the property tax collection (there are 163 local taxing districts in King County). King County government receives approximately 18 percent, and the Port of Seattle receives 2 percent.

Property taxes can be paid in two installments. The first is due Monday, May 2, with the final payment due Oct. 31.

Nat Levy can be reached at 425-453-4290.

This article was originally published in the Bellevue Reporter on February 10, 2011.

Property Tax

Friday, February 11, 2011

“Iowa House speaker optimistic about tax overhaul” plus 2 more

“Iowa House speaker optimistic about tax overhaul” plus 2 more

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