The annual Valentine’s Day pink envelope from the Kitsap County Treasurer reflecting property assessments made by the Kitsap County Assessor arrived in island postal boxes just over one month ago. Tax statements are worthy of review and comment because they represent a significant financial obligation that provides the flow of money from citizen’s assets to the taxing districts doing whatever their taxing district directors and leaders decide to do with the collected funds.
Key observations from the 2016 tax statements:
Median value of a Bainbridge Island residential parcel increased from $486,295 to $535,555.
That’s a 10.1% one year increase. The average residential tax parcel increased in assessor tax value $134.95 a day in calendar year 2015.
Median value residential property tax is $5,746.
Two fees are added to property tax statements. . The City’s stormwater and water quality monitoring (SSWM) program fee of $146.76 and a noxious weed fee of $2.30 add $149.06 to most single family resident and condominium parcels. If the parcel has a second building with a roof exceeding 3,000 sq. ft. or the parcel is accessed by an unnamed road serving three or fewer properties and/or has a graveled parking area (thank you City Council, City staff and Utility Advisory Committee for that very oddball decision), then a higher SSWM fee might apply.
The Bainbridge Island median combined taxes and fees are $5,895 ($491.25/mo) for taxes due in 2016.
When doing financial planning, the concept of life cycle cost is often used. If tax rates do not go up for the next 20 years, taxes and fees on a median valued Bainbridge Island residence in the next 20 years would total $117,900. That’s absolutely not going to happen, especially with the new school bonds and the possibility of a new public safety building and any number of other new possible bonds that a growing community will be asked to approve.
Previous posts have calculated the new school bonds will average somewhere between $455 and $559 a year (depends on the island’s growth rate) for the next 22 years alone.
Residents should plan for a median residential property tax and fee obligation of between $140,000 and $150,000 over the next 20 years.
Commercial parcels also continued their climb, but at a lower rate than residential properties … the figure for Bainbridge Island commercial parcels is is not detailed in the 2016 Kitsap County Assessment Book.
The median Bainbridge Island property tax percentage breakdown in order of magnitude (nearest whole %):
• Bainbridge Schools 28% $1,631/yr $ 136/mo Total $18.8M
• State General Tax 22% $1,261/yr $ 105/mo Total $14.5M
• Fire Department 14% $ 820/yr $ 68/mo Total $ 9.5M
• City of Bainbridge Island 12% $ 667/yr $ 56/mo Total $ 7.7M
• Kitsap County 10% $ 625/yr $ 52/mo Total $ 7.2M
• Bainbridge Park District 9% $ 494/yr $ 41/mo Total $ 5.7M
• Kitsap Regional Library 4% $ 204/yr $ 17/mo Total $ 2.7M
• Kitsap PUD 1% $ 43/yr $ 4/mo Total $ 0.7M
Presently 56% of Washington State property taxes goes to schools. With the State’s constitutional issue of funding basic education in the McCleary case being muddled along in the state legislature , that funding percentage will likely increase, but it’s a complete unknown how that will effect either local school or state taxes. Pretty clear schools are going to get a lot more money, but where that is going to come from is the job of next year’s state legislature to finalize.
Probably the three most surprising facts in local Bainbridge Island property taxes:
Bainbridge Fire Department will receive roughly $1.8M more a year from property taxes than the City of Bainbridge Island. Residents are paying for the additional manning and two new fire stations. The new fire stations will be paid off in 21 years.
Bainbridge Island residents pay $7.2M in taxes to Kitsap County … just a little less than the $7.7M to City of Bainbridge Island. Whether Bainbridge citizens are getting $7.2M in services from Kitsap County is worth questioning by City leaders, especially since any number of Kitsap County services Bainbridge citizens receive are paid for with additional City contracts.
City of Bainbridge Island receives only 12% of the parcel taxes collected from island properties. But, the City has the authority to collect many other taxes. (Hope to provide a list in the future).
Exclusive of Bainbridge Island, KItsap County median property taxes are about $2,883. Present property taxes on Bainbridge Island are just shy of double those of the other cities and county properties in Kitsap County.
Bainbridge Island is a high income small community, has miles of waterfront houses, a citizenry that rarely votes down any bond proposal no matter the cost, and has the real estate $$$ axiom of location, location, location. Relatively high property taxes are the result.