Title
Public Hearing on the 2024 Ad Valorem Tax
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Hold a public hearing and receive testimony on 2024 Ad Valorem Tax collections.
Report
Issue:
Whether to hold a public hearing and receive testimony on the 2024 Ad Valorem Tax.
Staff Contact:
Aaron BeMiller, Finance Director, 360.753.8465
Presenter(s):
Aaron BeMiller, Finance Director
Background and Analysis:
The City is required to adopt a property tax levy Ordinance and file a levy certification with Thurston County by November 30, 2023. If no certification is filed, the County Assessor will levy the same amount as 2023. Under state law, property tax revenue increases are limited to the lessor of 1% or the Implicit Price Deflator (IPD) on the highest lawful levy amount. State law allows for add-ons from new construction, state assessed property, annexations, and refunds to be added to property tax revenue above the 1% legal limit. The IPD, which is a measure of the rate of inflation for personal consumption, is 3.67% for 2023. As such, the city is allowed to levy the full 1% increase on the highest lawful levy.
The 2024 general levy budget is based on a 1% increase over the previous year's highest lawful levy, plus allowable add-ons above the 1% limitation for collection in 2024. Should the County Assessor's Office adjust any levy amounts which impact revenue as they finalize their valuation process, the ordinance will be presented with those adjustments.
The regular levy for collections in 2024 totals $21,115,373.02, this includes legally allowed add-ons for new construction, state assessed property, and refunds. Based on the current assessed value from the County Assessor's Office of $11,200,868,233 and revenue budget of $21,115,373.02, the estimated levy rate per $1,000 of assessed valuation is $1.89.
Additionally, the City will collect an excess levy to pay debt service on bonds issu...
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