Pierce County property taxes are going up sharply this year for most owners. Here’s why

Valentine’s Day is next Friday, but there won’t be a lot of love for your county assessor-treasurer this year. That’s the day we will mail property tax statements, most of them quite a bit larger than last year.

The new tax amounts for each parcel of property are posted now on our website, piercecountywa.gov/atr, so we’ve already received many calls and emails asking, “Why did you raise my taxes?” I appreciate this opportunity to explain how the increase came about.

First, allow me to clear up the No. 1 misunderstanding about property taxes: that an increase in value results in a similar increase in the tax. Yes, property values continue to rise in Pierce County, increasing 7.5% in the past year.

However, without a vote of the people or the state Legislature, each taxing district may only increase its property tax revenue by 1% over the highest previous year (plus the tax on new construction). So, when all values are rising, your share of the tax remains about the same.

Property tax bills are the result of simple multiplication: the assessed value of each property times the tax rate where the property is located. In turn, that tax rate is the sum of taxes from a number of districts — including schools, cities, fire districts, parks, libraries, the Port, Sound Transit and Pierce County itself.

Last year was a happier time for property owners, because tax bills went down in most of the county. The main reason was action by the Legislature, putting a tight lid on local school operating levies, coupled with a temporary reduction in the state school levy.

Now, further action by the Legislature has resulted in the opposite effect— the temporary state reduction expired, and local school districts were allowed to increase their levies by an additional $1 per $1,000 of property value.

Most did so, and since K-12 school funding accounts for over half of all property taxes, this explains a large part of the increases we are seeing, which average 15% countywide.

Districts that did not immediately raise their operating levies, including Puyallup, White River, Steilacoom and Peninsula, have smaller increases.

Percentages don’t always tell the story, so a few examples may help.

Tacoma’s average house is now worth $336,000, and the tax bill will increase by $550. University Place, with a higher average home value of $426,000 will see a $1,000 increase. Puyallup’s increase is among the lowest, just over $200 on an average home valued at $366,000.

School operating levies are not the only reason for the sharp increase; three districts, Bethel, Peninsula and Yelm, also passed construction bonds starting this year. And voters in six fire districts and the city of Fircrest approved tax increases taking effect in 2020.

All this sticker shock comes while 11 school districts and a fire district are seeking voter approval of property tax levies or bond issues in Tuesday’s election. Those measures will affect taxes in 2021 and beyond, not the current year. They are important decisions, since over 40% of property taxes begin at the ballot box.

I see first-hand the challenge that some property owners have making ends meet—not only taxes, but insurance, upkeep and repairs. Now, for homeowners over age 61, or fully disabled, there is some good news.

The maximum gross household income to qualify for a partial tax exemption has been raised to $45,708. Application information is available on our website, or by visiting our office at the Pierce County Annex, 2401 S. 35th St. in Tacoma.

And as always, we’ll do our best to answer any other questions taxpayers may have.

Mike Lonergan is the Pierce County assessor-treasurer.

This story was originally published February 7, 2020 at 3:00 PM.