Property tax increase hits hard, legislators consider 2019 relief

Islanders have begun to receive their property tax bills, and many have reacted with sticker shock: The average tax bill on Vashon has gone up 24 percent over last year, a difference of several hundred to thousands of dollars for homeowners.

On Monday, in the midst of many trying to come to terms with what the increase will mean for them, Senate Democrats in Olympia released their supplemental budget plan, which includes cutting property taxes in 2019, for that year only, by $403 million. No tax relief was proposed for 2018, in part because property tax bills have already been sent out, according to Amelia Dickson, a communications specialist for Sen. Sharon Nelson.

If passed, next year, the proposal would cut state property taxes by 31 cents per $1,000 of assessed value, from $2.70 to $2.39, according to a press release.

On Tuesday, after press time, House Democrats were slated to release their supplemental budget, which was also expected to include a provision to reduce property taxes.

While some relief might come in the future, many are concerned about how they will navigate the extra cost this year. Kent Phelan, who is retired and moved to Vashon in 2016, is among them. His taxes increased 23 percent, up $1,000 for the year. He took to Facebook in shock and later shared his thoughts in a phone conversation.

“I bought my first house in 1985. Our Vashon house is our sixth home. I have paid taxes since 1985, and I have never seen or heard of anything like this,” he said.

He added that he is accustomed to tax increases more in the range of 2 to 6 percent.

“I have never had a double-digit increase,” he added.

Islanders Melvin and Margaret Mackey, also retired, are contending with an increase of $2,000. Both near 80, their income is from Social Security and a Boeing pension. They, too, are frustrated.

“Now Melvin says he is going to have rearrange our retirement so that we can pay our damn $1,000-a-month property tax. And there is something wrong with that,” Margaret Mackey said.

Many is-landers have expressed confusion and dismay — among other emotions — about the higher taxes. A significant factor in the increase is that last summer the Washington State Legislature passed an additional property tax to increase funding of education. This stems from the State Supreme Court McCleary decision, which determined that the state must make new investments into public education; as a result, the Legislature added $1 per $1,000 of assessed value, in King County, to help fund the mandate. That budget decision left homeowners on Vashon, in a home with the assessed value of $456,000, slated to pay $400 more in 2018, followed by increases in the following three years of $530, $580 and $630.

In addition to the taxes related to the McCleary decision, further increases have come from higher assessed home values, which rose 17 percent on the island last year, and voter-approved measures. Countywide, voters renewed the Veterans, Seniors and Human Services Levy last November. On Vashon, they also approved the fire levy in the same election, giving Vashon Island Fire & Rescue $1.50 per $1,000 of assessed home value, up from about 94 cents per $1,000.

In all, on Vashon, voter-approved measures account for 39 percent of property taxes; about half of the taxes go to support schools.

County records indicate a steady rise in home values and taxes in recent years, before this big jump. For 2018, the assessor’s office has placed the median assessed home value at $451,000 with average taxes of $5,600. This compares with a median home value last year of $387,000 and taxes of $4,500. Five years ago, in 2013, the median assessed value was $291,000 with taxes of nearly $3,900, about $1,700 less than they are now.

With such an increase, there is particular concern for people on fixed incomes, including seniors.

For some, tax relief is available through the state’s property tax exemption program, administered by the county. People who cannot work because they are disabled and seniors 61 years of age and older who have a disposable income of $40,000 or less are eligible. The program benefits participants in two ways: Program participants’ property values are frozen for tax purposes in the year they enter the program, and they pay a lower tax rate based on income. This program is a forgiveness program, and no money needs to be paid back.

At the assessor’s office, Chief Deputy Assessor Al Dams encouraged all those who think they might be eligible to inquire; he noted that it is possible representatives will come to Vashon to assist people in signing up, as staff travel around the county to do so.

But many people who do not qualify say they are concerned about their ability to pay the increase. For some, the choices will be difficult and the effects possibly far reaching. For others, adjustments will be less extreme.

For Phelan and his wife Teresa, it may mean they will settle in more slowly to the home they moved into two years ago. They had hoped to paint and expand their garden, but those tasks are in doubt.

“Certain things are not going to happen,” he said. “You just have to economize.”

He predicts a backlash — and fewer taxes passed in the future.

“Vashon is a loving and inclusive community — and pretty much the schools are supported without question,” he said. “I think there are going to be a few more questions, and I think people are going to start pushing back, and that is unfortunate.”

The Mackeys, too, expressed frustration. Melvin noted they have a solar array in their backyard, and they had hoped to double its size. They likely will not do that, because of the expense.

“We want to do that. We want to support the environment, but maybe we cannot afford to,” Margaret said.

Both Mackeys are activists, and they noted their concern for people with low incomes — and those who rent, who already face an extremely challenging situation and who likely see their monthly rents rise.

Melvin added that he a believes something positive might come from this tax increase — a wholesale change of Washington’s tax system.

“Maybe this will put a little pressure on legislators to come up with an income tax,” he said. “An income tax would bring relief to property taxes and the sales tax. And that would be a good thing.”

Unlike some who may choose — or be forced — to relocate, the Mackeys plan to stay.

“We love this island. We want to be here,” Margaret said. “We will live more poorly so we can pay our property tax.”