Election results: Will Gig Harbor raise property taxes for the first time in 40 years?
Early election results showed Gig Harbor voters rejecting what would be the city’s first property tax increase in 40 years Tuesday night.
The measure would raise property taxes by 40 cents, to $1.10 per $1,000 of a home’s assessed value. That means the owner of a $750,000 home would pay about $300 more annually.
1,069 voters (31 percent) have approved the measure so far. 2,379 voters (69 percent) have rejected it. The levy lid lift needs a simple majority to pass.
The Pierce County Auditor’s Office reports 8,893 registered voters in Gig Harbor, which makes turnout 38.78% as of Tuesday night.
The Auditor’s Office expected to release the next batch of results at 4 p.m. Wednesday. Another batch should be released at 4 p.m. Thursday, and the last results should be posted at noon May 3.
City officials have said they cut about 10 administrative positions last year, which saved about $1.4 million, the Gateway previously reported.
They expect a $2-3 million shortfall at the end of 2025 without increased revenue, which could mean cutting another nine or 10 positions.
“That would be catastrophic for the organization,” City Administrator Katrina Knutson said at a Jan. 11 City Council study session. “There hasn’t been anything more important since I’ve been in my position.”
Gig Harbor has nearly 14,000 residents
The city had more than 7,900 residents in 2013 and has nearly 14,000 today, the Gateway previously reported.
“When you have that many people moving to a city, they all have wants and needs,” Knutson said at the Jan. 11 meeting. “They are needing the police to show up at their house, needing us to go check their water meters ... they want good streets to drive on.”
The statement against the property tax increase in the voters’ pamphlet said the measure is an increase of 57 percent and that ”council could consider a sales tax, business and occupation tax, lower property tax, or better fiscal restraint.”
The property tax measure is not the only way city leaders have considered raising revenue this year.
They’ll ask voters to approve a 0.1 percent public safety sales tax increase on the Aug. 6 ballot, which would bring in an estimated $1 million a year for law enforcement, the Gateway reported.
The council has also raised the possibility of a business and occupation tax. So far council members have said they want to hold off on that option and learn more, the Gateway reported, but they could consider it down the road.
News Tribune archives contributed to this report.
This story was originally published April 23, 2024 at 8:16 PM.