Wednesday, February 16, 2011

“Property values down, but many tax bills up” plus 1 more

“Property values down, but many tax bills up” plus 1 more


Property values down, but many tax bills up

Posted: 16 Feb 2011 06:16 AM PST

Wednesday, February 16, 2011

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Last February, when early returns showed all eight replacement school levy measures were passing despite the lousy economy, The Columbian reported that "a wave of relief and joy washed over Clark County schools."

Another feeling might be washing over homeowners when they receive property tax statements this month.

Clark County Assessor Peter Van Nortwick said Tuesday he's already hearing from people who are upset that lower property values are not translating to smaller property tax bills.

The biggest increases will be seen by people who live in the Battle Ground and Evergreen school districts.

First-half taxes are due April 30.

Statements will be mailed next week to taxpayers whose property taxes are not paid through a mortgage company.

Van Nortwick said Tuesday that people should not call his office to ask why their property value dropped and their tax bill increased.

While elected officials in the county and cities are limited to increasing the property tax levy by 1 percent a year, voters actually control increases in junior taxing districts, such as school, library and fire districts.

"It's just a complete shock for people in Battle Ground," Van Nortwick said.

He gave this example for the Battle Ground Public Schools, where voters last year passed a $20.5 million maintenance and operations levy.

In the past year, the school district's total property value declined 6.7 percent.

However, the higher levy amount means that despite the lower property values each homeowner will pay substantially more.

In 2010, the owner of a $200,000 home paid $444 to the Battle Ground school district.

This year, the owner would pay $708 to the district if the property value did not drop.

If the value dropped 6.7 percent, the owner would pay $658 to the district.

In addition to passing school levies, voters also approved a levy increase for the Fort Vancouver Regional Library District.

County commissioners increased the property tax levy rate by 1 percent, as did councils in every city with the exception of Camas and Washougal. Those cities are at the statutory limit.

If you can't wait for your statement to arrive in the mail or want to know what your mortgage company will be paying on your behalf, go online to http://gis.clark.wa.gov/applications/gishome/property/ and enter your address. When your account comes up, click on "taxes" and you'll see what you'll owe this year.

Stephanie Rice: 360-735-4508 or stephanie.rice@columbian.com.

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Lawmakers toil over property-tax relief

Posted: 16 Feb 2011 09:36 AM PST

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Lawmakers toil over property-tax relief


Wednesday, February 16, 2011 11:19 AM CST

Des Moines Bureau

DES MOINES --- A House panel began work Feb. 2 on a property-tax relief plan that would have the state pick up 100 percent of the cost of K-12 school aid by phasing out over seven years the property tax levies for schools other than the uniform $5.40 per $1,000 assessed valuation property tax levy.

House File 9 would shift about $400 million to $550 million in costs from property taxpayers to the state general fund via the school foundation formula, which currently divides K-12 district per-pupil costs by drawing 87.5 percent from the state and 12.5 percent from property taxpayers.

In the current budget year, state aid to support elementary and secondary schools totals slightly under $2.5 billion, while $676.4 million in revenue is generated by the uniform $5.40 per $1,000 assessed valuation on property and $573.4 million in additional levies that make up the 12.5 percent share.

The legislation also seeks to tie together the assessment limitations of residential, agricultural, commercial and industrial property by limiting the percentage increase for all property classes to the percentage increase of the class that has the lowest percentage increase under the 4 percent allowable limit retroactive to Jan. 1, 2011.

ANOTHER PROVISION makes changes relating to the funding of city and county budgets that rely on property tax revenues by requiring those whose property tax revenue capacities are reduced to first cut funding for services that are defined as non-essential services.

Rep. Tom Sands, R-Columbus Junction, chairman of the House Ways and Means Committee, said the bill provides "dollar-for-dollar" property tax relief while attempting to strike "some balance between property tax receivers and property taxpayers," but city officials argued the approach would take away their home-rule flexibility, punish successes in achieving efficiencies and make it difficult to dealing with rising costs like health care and pension expenses.

Sands said the Feb. 2 discussion represented a starting point in an effort to find a way this legislative session to provide meaningful property tax relief, particularly for commercial/industrial property taxpayers who are covered by a rollback calculation that limits yearly increases for agricultural and residential property owners.

"I think without a doubt there will be some property tax cut this year," he said during the subcommittee meeting.

"When we talk about the rollback, the only thing that rolls back is people's eyes," said Rep. David Jacoby, D-Coralville, in discussing a property-tax dilemma that has eluded a legislative solution for decades.

SANDS SAID House Republicans are not opposed to Gov. Terry Branstad's approach to lower commercial tax rates to 60 percent or 65 percent for new starts and phase down the rates for existing businesses to the same level over four to five years.

But, he noted H.F. 9 contains a preferred method that equalizes "property rich and property poor" school districts under the state aid formula and "is the purest way to lower the property tax burden for all property owners in each class statewide."

John Gilliland with the Iowa Association of Business & Industry said Iowa's current system has made commercial and industrial property taxes uncompetitive with other states. Iowa ranks in the top 10 in every category.


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