Port tax down, but just barely

For the first time since 2002, Port of Tacoma commissioners have reduced the tax levy rate they impose on Pierce County property owners.

But don’t count on buying a big screen television with the savings. The owners of a $300,000 house will pay just 69 cents less in port taxes than they did in 2008.

The port budget passed unanimously by the commission Monday asks the county assessor to levy a tax rate per thousand dollars of property valuation that will bring total port tax revenues of $16.93 million. The tax rate that yields that income is 18.365 cents per thousand dollars of valuation based on preliminary property value figures. The tax rate the port has levied since 2002 has been 18.59 cents per thousand. The homeowner with a $300,000 house will pay about $55.10 in taxes to the port next year.

Port commission members wanted to ensure that the homeowners’ port tax bill didn’t rise this year, but that the port’s tax revenues continued to rise because of newly constructed homes and buildings.

The port’s finance staff excluded from taxation the increase in 2008 assessed values caused by inflation but included the increased value because of new construction and major building improvements. When all was done, the tax rate went down, but the port’s tax income rose by nearly $400,000 to $16.9 million.

The rate change was part of the 2009 operating budget, which saw revenues increase by 4.1 percent to $103.2 million. The increase comes from rising land rental rates, but it’s offset in part by a decline in terminal operating revenues. The port, mindful of decreasing cargo traffic, kept employment flat at 260 employees, the same as last year. The port’s payroll has risen from 232 in 2004.

The new budget includes across-the-board raises of 4.58 percent for port workers. The port based that raise on the Consumer Price Index, a cost-of-living measure generated by the federal Bureau of Labor Statistics. Port spokeswoman Tara Mattina said port officials derived that figure by averaging the CPI increases for the first 10 months of the year. The price index in recent months has been falling as gas and energy prices plunge from their mid-summer highs. The urban CPI fell 1 percent to 3.8 percent in October compared with September, the largest one-month drop since the CPI was first compiled in 1947.

Commissioners praised port staff members for keeping the port’s finances in good shape despite the declines in the economy.

“I’d like to congratulate the staff for all your work,” said commissioner Connie Bacon. “You’ve come up with a very prudent outlook.”

John Gillie: 253-597-8663

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