-- Mr. John Wilson, King County Assessor, 2/17/2021
King County Mails First Tax Bills Since the Beginning of the Pandemic: Some Areas Will See Increases Due to the Passage of Special Levies
COVID 19 Pandemic Has Not Affected Home Values, but Some Commercial Businesses Have Taken a Major Hit
Overview of 2021 Property Taxes
Voter approval of special levies, in conjunction with a strong housing market, will generate a 4.03% general increase in King County property tax collections for 2021 – although some jurisdictions will see double digit increases.
Overall, countywide property tax collections for the 2021 tax year are $6.6 billion, an increase of $256 million from the previous year of $6.3 billion. Total County property value increased by 2.65%, from $ 642.5 billion to $659.5 billion between 2020 and 2021.
“This year’s tax bills reflect the complexity of our property tax system,” said Assessor John Wilson. “Taxes are going up for many county residents, but not all. And the pandemic which has affected all our lives has hit the economy hard but has not dramatically affected property values.”
King County Treasury began sending out the annual property tax bills February 16. King County collects property taxes on behalf of the state, the county, cities, and taxing districts (such as school and fire districts) and distributes the revenue to these local governments.
About 57 percent of 2021 King County property tax revenues pays for schools. Property taxes also fund voter-approved measures for veterans and seniors, fire protection, and parks. King County receives about 17 percent of your property tax payment for roads, police, criminal justice, public health, elections, and parks, among other services.
Property Values Largely Unaffected By the COVID-19 For 2021 Taxes
The King County Assessor has been monitoring the economic impacts of the COVID-19 pandemic. While residential housing values have remained steady, some commercial sectors are being heavily impacted. It is important to note, however, that, by state law, values are set as of January 1 each year. Taxes collected this year are based on the value of the property on January 1, 2020. Therefore, any changes in commercial values caused by COVID will be reflected in the 2021 assessed value for taxes payable in 2022.
“The world today is radically different than it was on January 1, 2020 when state law has us set assessed values for this year’s taxes,” said Wilson. “While residential values have been steady, many businesses have been either temporarily closed or their operations dramatically constrained. And thousands of workers have been laid off or furloughed.”
Local Levies Lead to Property Tax Increases
By state law, property taxes are calculated on values set January 1, 2020 – well before the economic impacts from COVID-19. During 2020, many local special levies, particularly for schools, were passed by voters. Taxes to fund those levies will be collected for the first time this year, leading to property tax increases in many parts of the county.
For example, the four largest increases are in Pacific, up 13% over 2020, Enumclaw, up 11%, Maple Valley, up 15%, and Algona, up 18%.