Clearing up a common property tax misconception

Published 1:30 am Saturday, August 1, 2026

By JASON JOINER

I am writing as an interested and informed taxpayer residing in Coupeville. I read with interest Francie Smith’s letter in the July 22, 2026 edition. After reading that letter and several others during this levy season, I felt it might be helpful to address a common misunderstanding regarding Washington state’s property tax system.

The purpose of this letter is not to advocate for or against the levy lid lift referenced in her letter or any other measure on the ballot. Rather, it is to provide additional information that may help readers better understand how property taxes are administered in Washington. Ms. Smith is in good company with many taxpayers who are unfamiliar with the unique structure of Washington’s property tax system. Most illustrative of this misunderstanding are the assertions that taxing districts “will get a raise in funds with their current tax rate already” and that “with each assessed value increase, tax recipients (taxing districts) will get more money.” While these statements may seem logical and are commonly repeated, they are generally not accurate in the state.

Unlike many states that operate under a rate-based property tax system, Washington is fundamentally a levy-based, or budget-based, property tax state. In general, without voter approval through a levy lid lift or other authorized measure, a taxing district’s annual property tax collections from existing property are limited to approximately 101% of the prior year’s levy, plus certain allowable additions such as revenue generated by new construction added to the tax rolls. As a result, rising assessed values do not automatically translate into proportionally higher revenue for taxing districts.

To illustrate, assume a theoretical taxing district has a total assessed value of $100 million and levies $1 million in property taxes. Assuming there is no new construction and no voter-approved increase in taxing authority, the district’s levy authority for the following year would generally increase by only 1%, allowing it to collect approximately $1.01 million. Now suppose assessed values throughout the district double, increasing the total assessed value from $100 million to $200 million. Many people understandably assume that the district would now collect $2 million because property values doubled. In a rate-based system, that might be true. In Washington, however, the levy amount remains constrained by law.

As assessed values rise, the calculated tax rate is adjusted downward so that the district collects only the amount it is authorized to levy. In this example, the rate would be reduced from 1% or $10 per $1,000 value to 0.505% or $5.05 per $1,000, while the district would still collect approximately $1.01 million rather than the $2 million many might expect. The opposite is also true. If assessed values throughout an entire district were to decline significantly, levy rates would increase, subject to applicable statutory limitations, to generate the authorized levy amount. This often surprises property owners who assume that changes in assessed value automatically produce proportional changes in tax collections for local governments.

The key point is that county assessors do not determine how much revenue taxing districts receive. Their responsibility is to fairly and equitably allocate the tax burden among property owners by determining assessed values. The amount of property tax revenue a district may collect is primarily determined by state law and, where applicable, by voters through levy lid lifts, excess levies, and other voter-approved measures. Tax levy rates are derived or calculated; they are not prescribed. In other words, the assessor determines how to slice the tax pie as fairly and equitably as possible. The voters and the Legislature determine how large that pie may become.

For a quick and informative video clip explaining in simple terms these complex concepts, I encourage you to visit the Island County Assessor’s website and scroll down to the embedded YouTube video.

It is also important to remember that property tax exemption and deferral programs are available to qualifying individuals based on age, income, disability status and other statutory criteria. Anyone concerned about their own property tax burden, or that of a friend or family member, should contact their county assessor’s office or visit its website to learn whether they may qualify for assistance.

Thank you for the opportunity to provide additional context on what is often a confusing and misunderstood topic.

Jason Joiner was the Island County chief deputy assessor from 2018-2021.