Why was my property tax rate reduced from $1.40 per $1,000 in 2014 to only $0.70 in 2024?

Taxing districts like the city annual levy a flat amount each year. That amount grows as new construction is developed or new property is annexed into the city, but it does not grow as property values increase (or shrink when property values go down). The city is also authorized to raise the total levy by only 1% each year. 

Property values in Gig Harbor have grown substantially over the past decade but property owners' taxes have not grown at the same pace. Many property owners have seen their assessed values double over the past 10 years while their city property taxes have only increased incrementally. The result is that the property tax rate they pay has been reduced to half of what it was 10 years ago.

Show All Answers

1. What is a levy lid lift?
2. How much will my property taxes go up if the levy lid lift passes?
3. How is money from property taxes used?
4. What led to this budget shortfall?
5. What has changed in the past ten years?
6. What efficiencies has the city implemented to cut costs?
7. What will happen if this levy lid lift is not approved?
8. How much revenue will the proposed levy lid lift generate?
9. Who pays the property taxes?
10. The city council just gave an additional $2 million for the Sports Complex project? How is this possible with the projected revenue shortfall?
11. The levy lid lift would raise the property tax rate to $1.10 per $1,000 in assessed value. Why am I paying more than $8.00 per $1,000?
12. Which budgeted staff positions has the city "frozen" in 2023?
13. The levy lid lift is proposing to raise the city's property tax rate 60% from $.70 per $1,000 to $1.10 per $1,000. Will my property tax bill go up 60%?
14. Are there reserve funds available to help address the budget shortfall?
15. If approved, what new services will the levy lid lift provide?
16. Can the budget shortfall be funded with aditional sales taxes instead of property taxes?
17. Why was my property tax rate reduced from $1.40 per $1,000 in 2014 to only $0.70 in 2024?