Pullman officials call for maximum property tax increase
Finance director recommends that City council raises taxes by 1 percent
PULLMAN — Pullman officials are recommending that the Pullman City Council approve the maximum 1 percent increase in property tax revenues in November, when they adopt the 2021 tax levy.
The move would generate about $82,600 in additional revenue for the city next year; that includes the Metropolitan Parks District and emergency services levies.
Based on preliminary numbers from the Whitman County Assessor’s Office, Finance Director Mike Urban estimates new construction will contribute another $257,000 in property taxes.
The council discussed the 2021 revenue sources during a virtual hearing Tuesday. No one from the public chose to testify at the meeting.
The council is scheduled to adopt next year’s property tax levies on Nov. 17. Even if it approves a 1 percent increase, the actual tax owed by individual property owners will depend on the assessed value of their specific property.
Urban said the city surpassed $2 billion in total assessed values for the first time this year.
He also noted that the council has a choice between approving a 1 percent increase or sticking with the Implicit Price Deflator, which is a measure of inflation.
State law allows jurisdictions with 10,000 or more people to increase property tax collections each year by the lesser of 1 percent or the Implicit Price Deflator, plus new construction and any voter-approved levy amounts.
Urban said the deflator typically comes in higher than 1 percent. This year, however, it’s about 0.6 percent, which would generate about $49,700 in new revenue.
Nevertheless, state law also allows jurisdictions to levy the full 1 percent increase if they adopt a “resolution of substantial need,” which explains why the additional revenue is needed.
Urban is recommending that the council go that route, in part because estimated revenues will still be down by about $670,000 next year, compared to the initial 2020 budget.
Going with the 1 percent increase, rather than the Implicit Price Deflator, would add about $4 to the property tax bill for a $250,000 home, Urban said.
He and Mayor Glenn Johnson will discuss the 2021 expense budget during the council’s Oct. 27 meeting. Urban said they’re “very close” to having a balanced budget plan despite the lower revenue estimate, although they’ll have to dip into the city’s reserve funds.
Spence may be contacted at bspence@lmtribune.com or (208) 791-9168.
