8a - 2023 Property Tax Rate Public Hearing` CITY OF
2023 LevyFederal Way
Centered on Opportunity
Property Tax
Answers to questions:
Q: How will assessed value affect my property
tax bill?
Q: How does the City Budget affect my
property taxes?
Q: How much is the City increasing this year?
Q: What is the change in the Tax Rate?
Property Tax
When Assessed Value
Tax Rate goes down:
Value
Prior Year
Curr Yr
Add:
Existing*
New Construction
Annexation
Result Total
goes up,
$ 14, 324, 776, 457
2, 740, 492, 672
Levy
$ 0.81037 $ 11, 608, 378
1.00%
46, 516, 497 / 1, 000 x $ 0.81037
171111, 785, 626
1161084
37,696
$ 0.68737 11,762,158
Takeaways
1. Increase in Assessed Value has little to
do with increase in property tax
2. The increase in Levy is what raises
property tax, the lesser of inflation or 1
3. The City's budget has little to do with the
increase in levy
Property Tax
Q: What's the Implicit Price Deflator?
A: A Federal Inflation Index. Cities cannot
levy the full 1% increase if IPD is below 1%
unless a supermajority of city council members declare
substantial need
The I PD is 6.457% for 2023
therefore the City can levy the full 1%
Levy Lid
Q:
How
much Property
Tax
Revenue does
the
city's
budget
forego
due
to the
1%
cap,
the "levy lid?"
A: $15.6 million
Tax Rate
AV
Levy
2022
$ 0.81
$ 14,324,776,457
11, 608, 369
2023
$ 0.69
$ 17,111,785,626
11, 7621128
Cap
$ 1.60
$ 17,111,785,626
27, 378, 857
LLL
$ 1.60
$ (0.69)
$ 0.91
$17,111 7 626
15, 616, 729
Property Tax Rate Ordinance
Proposed Levy:
Increases $154,000 or 1.32%
Tax rate:
Decreases $0.12 per $1,000 of av
Value
2022 $ 14,324,776,457
Add:
Existing* 2, 748, 707, 046
New Construction 46,516,497
Annexation -
2023 171-120.10001000
Plus, refunds per County treasurer
Total Ordinance
Levy
$ 0.81037 $11, 608, 378
1.00%
/ 1, 000 x $ 0.81037
$ 0.68704
$ (0.12)
116,084
37,696
111762,158
45,000
11,907,158
(153, 780)
Overlapping Taxes
✓City % of overlapping property tax 8%
021 Over I.rppi IV Pruper1 yr I jx Bakes
t it)- c4 ftaffA Wad bwr$r[ mv141 �twrt� '�' r +■k� ON kw
Is% �
* q # ■
AN{&won ■ki iut.
"r F 595215 49 P
6 1,2k WAPM
j
i
I
F 59521949 P �8r
Hearing
Public Input
tC 04727 792
0472.792
G7
: [G7
r 7
6741-4 73 Z
i-,'32
Ir.. A--L.16
LC- 0 02-4 -3 Z
LG 9 47274 70 4 -
L C a 412�7 9
t Adghk ul lolls do( 0 t AOL %
AM=
lit) 411P 4 ItA 91 & A 4
L LXL 047 Z
"INI W-1. 11.
WIM L C 0 W 72 7 7 t C 0 W 7 2 77 9 C 0 14 4 7 27?9;'7
G7 lift rr 7
114110 ou