County Council backs 1 percent bump in road tax

EVERETT – Snohomish County property owners in unincorporated areas likely face an average $20 bump in property taxes they pay toward county roads.

All five Snohomish County councilmen said they support a proposed 1 percent increase in the portion of property tax that pays for roads in 2007.

If approved as planned, it will mark the 26th consecutive year of maximum annual increases for the county road tax.

“I think people want the roads fixed and I don’t believe I have ever had a complaint about the 1 percent for roads,” Democratic County Councilman Dave Gossett said.

The council is scheduled to vote on the issue Monday.

In all, the county expects to collect about $48 million in road taxes in 2007. The proposed tax increase would contribute $500,000 more in revenue from properties in unincorporated areas of the county.

Last year, an average home in Snohomish County was valued at $242,000. That’s increased this year to an average of about $299,000, a 23 percent increase.

Because property values spiked and new homes and businesses were built, the road levy rate is projected to drop from $1.45 per $1,000 of assessed property value to $1.23.

The council’s decision is whether to increase the levy a penny from $1.23 to $1.24 per $1,000 of assessed property value in 2007.

If approved, the average homeowner will pay about $371 a year for a $299,000 house. Last year, the owner of an average $242,000 home paid $351.05 – or about a $20 difference.

The county raised the tax by the maximum 6 percent every year from 1982 until 2002. That was the year voters capped annual tax collection increases at 1 percent.

The rise in residential property taxes for roads reflects a shifting tax burden from businesses to residential property owners, chief deputy assessor Linda Hjelle said.

Whenever a city annexes unincorporated county property, fewer people pay the county road tax, she said.

Also, senior tax exemptions are easier to get and again shift the tax burden to fewer property owners.

And homeowners bear more of the burden of property taxes as home values rise faster than shops and businesses. Home values rose an average 23 percent this year in Snohomish County.

Each councilman – from both parties – argues the road tax increase is needed to continue to improve roads and bridges across the county.

The money is a down payment on the $1 billion forecast in road needs in the next 20 years, during which the population is expected to grow from 672,000 to 933,000 people.

Of that $1 billion, officials face an estimated $200 million deficit for roads in the next 20 years. If a 1 percent tax increase were adopted each year, it would erase $117 million of that deficit, according to a report.

“Look at the multiplier effect down the road,” Republican County Councilman John Koster said. “Year after year, it gets to be pretty significant if you don’t do it. We need the infrastructure. Just a few pennies per thousand and you get a lot for it.”

Officials approved a similar tax increase for roads last year, citing a backlog of roadwork and a forecast increase in traffic.

“I would support that again, keeping in mind this is a capital investment,” Republican County Councilman Gary Nelson said.

Democratic Councilman Dave Somers said he is strongly leaning toward the tax increase “because our road infrastructure needs are so horrendous.”

The council has the ability also to raise the general property tax on all county properties.

However, there doesn’t appear to be support for a general property tax increase, County Council Chairman Kirke Sievers said. He proposed an increase to target money to veterans services.

“As it looks, I don’t think there’s enough support to pass it,” Sievers said.

Nelson said he opposes a general property tax increase.

“There are ample revenues coming in from sales tax, real estate excise tax and other fees associated building,” he said. “We don’t need to impose an additional property tax on our county.”

Reporter Jeff Switzer: 425-339-3452 or jswitzer@heraldnet.com.