ELECTIONS 2023: Multi-Year Levy Lid Lifts: A Tool for Coping with Inflation? (MRSC)
The Municipal Research and Services Center (MRSC) published an article by about levy lid lifts in their blog on Apr. 5, 2023. At least two of the four fire districts in Island County are considering asking voters to approve levy lid lifts in 2023.
For the last two years or so, local governments as well as consumers have been dealing with inflation levels not seen since the early 1980s. Since the beginning of 2021, the national Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) has risen by 15%, while the Seattle regional CPI-W has increased more than 16%. Some sectors have seen greater increases. (Don’t even get me started on grocery bills for a family of four!)
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Meanwhile, local property tax revenues—the main revenue source for many local governments— are generally restricted to a 1% increase each year plus new construction and certain “add-ons.” This is known as the 101% levy limit, or the “levy lid.”
This limitation, combined with years of rapidly increasing property values in many parts of the state, means that the levy rate per $1,000 assessed value (AV) has fallen significantly in many jurisdictions.
What’s a local taxing district to do? Well, the main option available to most jurisdictions is to submit a levy lid lift to voters for their approval—but there are several choices to make before placing a levy lid lift on the ballot. This blog focuses on single-year versus multi-year lid lifts, with a particular emphasis on how multi-year lid lifts have performed on the ballot compared to their single-year peers.
Topics discussed in the article include:
- Benefits of a Multi-Year Levy Lid Lift
- Examining the Data (Results of Local Levy Lid Lift Votes in Washington)
- Key Takeaways
Read the full article at this link.
About MRSC
The Municipal Research and Services Center (MRSC) is a nonprofit organization that helps local governments across Washington State better serve their communities by providing legal and policy guidance on any topic. At MRSC, we believe the most effective local government is a well-informed one, and as cities, counties, and special purpose districts face rapid changes and significant challenges, we are here to help.
[Ed. Note: We first encountered MRSC while serving on the Planning Commission in Oak Harbor. All of the members of the commission, as well as elected officials and the volunteers on various committees and commissions through out the state receive MRSC’s newsletters. We will share selected articles from MRSC’s newsletters that serve the interests of our readers.]
