Guest column: Taxation with representation
The Spokesman-Review (Saturday, Feb. 24) included a great article describing property tax rates and trends in the Spokane area.
The residents of my town, Millwood, were described as the “winners” in the property tax contest for 2007, paying the highest rate per $1,000 of property valuation. As mayor of the town of Millwood this news both caught my attention and gave me the notion to head out of town, quickly.
How could Millwood, a community of 1,700 people that consistently ranks as one of the lowest-taxed communities in the state of Washington, have such high property tax collections? That answer came with the help of assessor specialist Connie Kline of Spokane County – it’s simply revenue from the increased average value of property.
It’s no secret that Millwood is one of the favorite communities in the Spokane Valley. Properties in Millwood averaged an increase of 11.4 percent in value in 2006, which is the figure 2007 property tax is based on. This increase results in a 20 percent increase in the volume of property tax revenue to the town. The increase is not due to the actions of Millwood’s leaders. Millwood’s Town Council increased the tax rate by 1 percent, the highest rate the council can charge without a referendum. If the town does not increase the tax each year any surrounding community like Spokane Valley or Spokane County will collect that revenue, none of which returns to Millwood.
On your tax statement you will see that Millwood receives just less than 12 percent of your annual property tax. In summary Millwood residents will see in 2007:
“A reduction in rates from Valley Fire district, County Library district and the state school taxes.
“And a slight increase in the rates for West Valley School District and the town of Millwood.
Overall if you had a 5 percent or less increase in assessed value during 2006 you will see no change or a reduction in your property tax for 2007. If your assessment increased at the average of 11.4 percent you will see about a 7 percent increase. In either case don’t start the Tea Party yet.