No preview available
HomeMy WebLinkAboutPRES 3 - ORD Property Tax Levy2024 Property Tax Levy 2023 Assessed Value 2024 Property Tax Levy Policy Questions: What are the City's Tax Levy options? • Why should we approve ordinance? • What are we approving (not the rate)? What do you need to know first? • Assessed Value? • New Construction? • Implicit Price Deflator? • Are we near City's property tax ceiling? Process 1. City estimates budget need 2. Requests up to 1 %increase* 3. County Assessor calculates values 4. Tax is allocated to properties •Igo Levy 7 � n in 11 Assessed Value $ 300,000 $ 300,000 $ 300,000 of Total 25% 25% 25% Levy Rate per $1,000 $ 0.833 $ 0.833 $ 0.833 Tax Paid $ 250 $ 250 $ 250 •l •I: R $ 300,000 $ 25% $ 0.833 $ $ 250 $ J 110001 11200,000 100% 0.833 1, 000 *Igo n 7 � Levy $ 1,000 Assessed Value $ 300,000 300,000 $ 300,000 $ 300,000 $ 1,200,000 % of Total 0 25% 25% 25% 10011/0 Levy Rate per $1,000 $ 0.833 $ 0.833 $ 0.833 $ 0.833 $ 0.833 Tax Paid $ 250 $ 250 $ 250 $ 250 $ 1,000 Levy •l •I: $ Assessed Value $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ % of Total 25% 25% 25% 25% Levy Rate per $1,000 $ 0.417 $ 0.417 $ 0.417 $ 0.417 $ Tax Paid $ 250 $ 250 $ 250 $ 250 $ J 1,000 21400,000 100% 0.417 1, 000 •Igo n 7 � Levy $ 1,000 r r r Assessed Value $ 300,000 300,000 $ 300,000 $ 300,000 $ 1,200,000 of Total 0 2s% 2S% 25% 100% Levy Rate per $1,000 $ 0.833 $ 0.833 $ 0.833 $ 0.833 $ 0.833 Tax Paid $ 2s0 $ 250 $ 250 $ 250 $ 1,000 •l •I: J Levy $ 1.1000 Assessed Value $ 200,000 $ 300,000 $ 300,000 $ 400,000 $ 1,200,000 of Total 17% 25 % 25% 33 % 100% Levy Rate per $1,000 $ 0.833 $ 0.833 $ 0.833 $ 0.833 $ 0.833 Tax Paid $ 167 $ 250 $ 250 $ 333 $ 110000 *Igo n 7 � •l •I: C Levy $ 11000 Assessed Value $ 200,000 $ 300,000 $ 300,000 $ 400,000 $ 1,200,000 of Total 17% 25% 25% 33% 100% Levy Rate per $1,000 $ 0.833 $ 0.833 $ 0.833 $ 0.833 $ 0.833 Tax Paid $ 167 $ 250 $ 250 $ 333 $ 1,000 Levy 11r�iA u, n Assessed Value $ 300,000 $ 450,000 $ 450,000 $ 600,000 $ of Total 17% 25% 25% 33 % Levy Rate per $1,000 $ 0.561 $ 0.561 $ 0.561 $ 0.561 $ Tax Paid $ 168 $ 253 $ 253 $ 337 $ J 1,010 1,800,000 100% 0.561 1,010 WS usrzed by Dams PRELIMINARY LEVY LIMITATIONS WORKSHEET 10.05.2023 Il(Y1900 A- Highest regular tax which k1 have been lawfully levied beginning with the IM5 levy (refund levy od included) 2023 Levy * 101% Year 2023 . S11747.8E6 101.DD0% = $11.855.365 �aJse�Y�Yeefiia�4a B. Current year's assessed value of new construction. improvements. and wind turbines. solar. biomass, and geothermal faciuues in original districts would have been levied had no enor occuned), New Construction S191.971.817 ■ 0.68729 + S1,000 = S131940 C- Tax Increment finance area increment AV increase (RCW 84.55-010(1)E) (value included in B S D carnal be ioduded in C) so • 0.68729 + 51,000 = so AV L % Years Levy Raw Current years state assessed property value less last years state assessed property value. The remainder is to be multiplied by last year's regular D' levy rate (or the rate that should have been levied). S133,485.025 - $133.485,025 • S Current Year's A.V. Previous Years A.V. Remainder s0 x 0-69729 + SIDD0 SO.00 Remander tram Line C Last Years Levy Rate E- Regular property lax limit:........................................................ A+B+C+D = $11.997.305 New AV (Assessed Value) I Statutory maximum calculation any enter ire. RF A rart. h?rary rate. d, treeghter pension NM me too cities annexed to a fl iRFA or library. or has a hefighlers pension kind 3.60000 - 1.50000 0.26581 a 0.000D0 = 1.83418 Levy Lid DSlrk:t here revy refs Foe a RFA Rare Library Rate F1reaDMer Penton Fund $16.666.648,850 x 1.83418 + $1.D00 =$".569,63- AV. of Deed StaLlory Rate Lrmx J. Highest Lawful Levy For This Tax Year (Lesser of H and 1).................................... ........... = 531,997,30s Now highaat u towful levy since 198S (Lauer of H 8 1 minus C. unless A (before limit factor increase) is greater than K I or H minus C. then A before the limit factor Increase 511,947,305 L. Lesser ofIand J........................................ S11.997.305 M, Refunds $41.956 N. Levy Corr6CRons Year of Error D 1 Minus amount over levied (d applicable) .......... ......................................_ S0.00 Max Request cl 2 Plus amount under levied (itapp(icabie)...... ........................................... O Total: L+M+!-N (unless voted rate)..................................................................................... 512.039.251 P. Tax Base For Regular Levy 1. Total district taxable value (¢lcluding state -assessed property, and excluding boats- umber assessed value- and the sema citizen exemption for the regular levy) $18,886.60.850 Q. Tax Base for Excess and Voted Bond Levies 2. Less assessed value of the senior citizen exemption of less than S40.000 income w 65% of the median household income for the county based on lower of frozen or market valtre. S161.570.315 3- Plus Timber Assessed Valua(TAV) _-__-. __-__ _.______ 50 4. Tax base for excess and voted band levies._-...,--.,._,----..,. _.__-__,.. (1-2-3) 16.505.078.535 New Rate R. Increase Information 1- Levy rate based an allowable levy 0-72235 2. Las) year's ACTUAL regular levy 3. Dollar increase over last year other than New Construction (-) Annexation 76234 4. Percent Increase over last yew other than New Construction (-) Annexation 0.64665% REV 64 D07 Page 1 Increase $117,479 Increase $131,940 Decrease 4% Lid $30.6 million headroom is $18.6 million Budgeted: $11,938,000 $18,000,000,000 $16,000,000,000 $14,000,000,000 $12,000,000,000 $10,000,000,000 $8,000,000,000 $6,000,000,000 $4,000,000,000 $2,000,000,000 $0 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Assessed Value 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015 2016 2017 Tax Levy 2018 2019 2020 2021 2022 2023 2024 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 Tax Levy I � Aj , 2014 2015 2016 2018 2019 2020 2021 2022 2023 2024 Tax Rate 2014 2015 2016 2017 2018 2020 2021 2022 2023 2024 Lid Available $18,620,147 When Assessed Values Go Down, Can City request full 1%*?. nil-rit FrI-C!P- DPfUltC R�ment of vp�nue Gsh,non State September 26, 2023 Dear County Assessors: What is th ? The rate o inflation (IPD rate) far property taxes due in 2024 is 3.67 percent. What is the limit factor for 2024 provided the taxing district adopts a resolution/ ordinance authorizing an increase over the prior year's levy? Far the state and ta xi ng districts with populations of 10,000 or greater, the limit factor for property taxes due in 2024 is 101 percent. IThe limit factor for these districts is defined as 100 percent plus the lesser of the rate of inflation or one percent. How is the rate of inflation (IPD rate) calculated? The rate of inflation is the percent change in the implicit price deflator for personal consumption as published by the Bureau of Economic Analysis by September 251h. 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Seattle -Tacoma -Bellevue CPI Year -aver -Year Inflation Source: US Bureau of Labor Statistics rl ri ri ri ri ei r-I rl ri ri ri N N N ry N N N N N N N N M M M M M M M M N N N N N N N N N N ry N N N N ry N N N N N rV ry N N N N N N N N N s = on Ct > V C.0 c= Qo a t > V C s = U $120.00 $115, 00 $110 00 Tacoma -Bellevue nulative Inflation Bureau of Labor Statistics $105 00 $100, 00 $95.00 $90,00 ri ri N N N ry N N N N N N N N M M M M M M M M N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N C _ 7 C — M a } V C - ? C — M a } V C 4 7 C — 40 LL Q Q �: O Z 0 �° - g Q Q v°1i Z O - g a f 6 � zt a What do Federal Way Taxpayers see on their Property Tax bill?. §Fveriapping Property T-� 2023 Overlapping Property Tax Rates FW school District Washington state Fine District 239 I(ing County City Others* 33% 24% 16% 11% 7% 8% ---------- V ----------- V— 'III EA,X1 SUN' THIS NOTE ISLE LLTENDER FOR ALL DEBTS, PUB : AND PRIVATE IXj F59 )-2194! P WA HEgGToW D ( G F5952194S G M 0% ]0% 20% 30% 40% sm W% 70% 80% 90% 1" *others: Library 3%, Emergency Medical Services 2%, Sound7ransit2%, KC Flood Zone 1%, Port of Seattle 1% What will the effect be on the 2024 Budget?. Nrnnprtv lax Havanut; 2024 Levy $12.0 million 2023-24 Budget forecasted $11.9 million City of Federal Way - General Fund - Property $12,000,000 Tax Revenue $10,000,000 $6,000,000 $4,000,000 $2,000,000 $❑ ��F, Levy Request Process ✓ City estimates budget need ✓ 2024 Revenue budget: $11.9 million o Requests up to maximum increase o Ordinance requests $12.1 million Next Steps 2024 Tax Levy • October FEDRAC discussion • Hearing Nov. 8th • Ordinance introduced Nov. 8th • Ordinance enacted Nov. 21st LG 047.27792 - F 100 LG 04TZ7792 100