Spokane Valley City Council forgoes property tax increase for ninth year in a row

For the ninth year in a row, the Spokane Valley City Council is forgoing increasing property taxes by 1 percent, the maximum annual increase allowed by law without a public vote.

The council voted unanimously Tuesday night to establish the property tax rate at $1.36 per $1,000 of assessed value – 7 cents less than the property tax rate of $1.43 in 2017.

Spokane Valley Finance Director Chelsie Taylor said the city anticipates collecting $11.8 million in property tax revenue, with an estimated $150,000 to be collected from new construction. That amount could fluctuate depending on final calculations and adjustments by Spokane County, she said.

“Ultimately, the final determination of property assessed values won’t be made by the county until later this fall, and we’ll see that property tax rate per $1,000 continue to change as they refine their estimates,” Taylor said.

Spokane Valley’s maximum levy rate is $1.60 per $1,000. The difference between that amount and the $1.36 per $1,000 approved property tax rate will be banked for possible future use.

“A ‘yes’ vote on the ordinance means a ‘no’ vote on increasing taxes,” said Councilman Ed Pace. “So I’m happy to vote yes, because I like no tax increases.”

Property taxes represent more than 27 percent of the $43.7 million of the city’s general fund recurring revenues in the city’s proposed 2018 budget.