INSIDE

The Point: land of tax increases

By Meg Olson

The value of Point Roberts real estate jumped by over $10 million last year, and virtually all came from new construction.

“No properties other than new construction were revalued in these areas,” said county assessor Keith Wilnauer. “We are beginning the revaluation process on all properties west of the Guide Meridian and north of Slater Road, which will include Point Roberts, Blaine, Birch Bay and Ferndale. In 2007 you’ll see that revaluation as well as new construction.”

Wilnauer said taxpayers often focus on what is being levied by taxing districts and forget that, as property values go up, that tax burden is spread among more dollars and some taxpayers pay less. “Increasing valuations have a big part to play,” he said.

This year properties in the northern portion of Bellingham were revalued, which combined with $600 million in new construction county-wide led to a 15 percent increase in property values. Of that 15 percent four percent represented the new construction while 11 percent reflected an increase in the county’s total assessed valuation due to the new north Bellingham numbers. “One quarter of the county went up about 50 percent and three quarters of the county went unchanged, and that’s what looks like 11 percent,” Wilnauer said. “Areas that were not revalued enjoy the benefits of others being revalued.”

With the tax burden spread amongst more dollars in property value and most taxing districts taking a one percent increase in their levies, if anything, Wilnauer said most taxpayers in the county will see their taxes go down. “Property taxes do go down and that’s what we’re seeing in most of the county,” he said.

A hefty rate of new construction also means taxing districts will have a bigger base to collect taxes from next year. “Country-wide $600 million in new construction is a very high level,” Wilnauer said. While state law limits regular increases in a tax levy to one percent, taxes from new construction are added on top of that and form a higher base to take the one percent increase from in the following year. For fire district five in Point Roberts, it will add up to an extra $5,000 next year.

Point Roberts’ new hospital district levy of 67 cents per thousand dollars of assessed valuation made the Point the only community in the county that didn’t realize a drop in the tax rate. However, local taxpayers would have otherwise seen their overall rate drop by 64 cents, so the local clinic will only lead to a three cent increase in the tax rate in 2006 over 2005, and the rate will be 16 cents lower than 2004.

The consolidated levy for Point Roberts will be $12.17 in 2006. The rate is higher than Blaine, Lynden, Birch Bay and Sudden Valley, but lower than other communities in the county. Without the hospital district the Point would have enjoyed Whatcom County’s lowest property tax rate.

Wilnauer pointed out that overall, Whatcom County has lower property taxes than most of the state. “Other counties have levy rates in the twenties,” he said. Wilnauer credits county government for keeping taxes low. “The county has not taken any increase for a ten-year period and it has added up to an unbelievable advantage to the taxpayer,” he said.

Taxing districts that took a bigger bite of the pie included the port of Bellingham, which cashed in on banked taxing potential after several years of no increases and boosted their rate more than 11 percent.
The Blaine school district also levied substantially more, with a 12 percent increase, more than double the increase seen in other school districts maintenance and operations levies. Because the increase is voter approved Wilnauer said “that’s about as public as it gets. You do it to yourself.”