Annexation Frequently Asked Questions
1. Will the amount of money I pay in taxes go up, once the annexation is effective?
The amount of money you pay in taxes will go down. The City levies a 6% utility tax on electric, natural gas and telephone utilities, and a 7.8% utility tax on garbage collection and disposal services. Utility companies add these taxes onto their billings. Based upon usage, the annual average tax per household during 2009 is estimated to be $89. However, property taxes will decrease because the City of Kent levy rate is significantly lower than the combined King County Road Tax and Fire Protection District #37 levy rates, both of which will be eliminated. Property taxes during 2009 on a home valued at $250,000 would decrease by $227 (City - $2.18; Road/District - $3.09). The amounts charged for drainage and garbage service for a typical household would increase by $6 per year. This slight increase is largely attributed to an ongoing $10.57 annual charge from King County for drainage bond debt service. The overall cost for a household with a $250,000 home would decline by $132 per year.
2. What will annexation do to property taxes in the annexed area?Property tax statements for property in the annexation area will remain essentially unchanged for any levies that apply to school districts, libraries, hospitals, emergency medical services and the county consolidated levy (county-wide levies for general services, human services, the Port of Seattle, and parks).
Changes to the property tax statements will include the addition of a levy for the City, and a corresponding removal of the road levy, and the removal of the Fire District 37 levy. The 2009 levy for fire services of $1.50 per $1,000 and the County Road levy of $1.59 for a combined levy of $3.09 will be replaced by the City of Kent levy of $2.18 per $1,000. This decrease is estimated to be $227 for a home valued at $250,000.
3. When do City taxes show up on property tax bills?
The City would levy its first tax on the annexed property in November 2010, and the tax levy would be reflected on the 2011 tax bills.
4. What is the financial impact of the annexation on the City’s overall budget?The annual operating cost to serve the Panther Lake annexation area is estimated to be just over $8.7 million. A 10-year sales tax credit from the State of Washington, amounting up to $4.9 million annually, will provide a portion of the operating revenue. Revenues will also include property taxes and other local and state revenues such as sales tax, utility taxes, natural gas tax, and real estate excise tax.
5. Will my property value increase with annexation?
Real estate market conditions drive real property values. Assessed values, which are used to formulate annual property taxes, are applied solely by the King County Assessor’s Office, county-wide. To learn more about how the County values property and improvements, please visit http://www.kingcounty.gov/Assessor/RealPropertyAssessments.aspx.
6. How will my garbage service change?The garbage collection and disposal provider for Panther Lake would not change for a period of at least ten years after the annexation effective date. All Allied Waste Services customers would fall under the existing City of Kent contract for services. Service charges during 2009 for a typical Panther Lake household (one 32-gallon can and yard waste collection and disposal service) would be $25.90 per month, a $.15 increase from current charges.
7. I currently take my trash directly to the transfer station and do not have garbage service from a solid waste provider. Will garbage collection and disposal service now be mandatory with annexation?
All occupied dwelling units and businesses within the City are required to have garbage collection and disposal service.
8. How will my water, sewer and storm drainage services change?
Water and sewer services in Panther Lake will continue to be provided by the Soos Creek Water and Sewer District. Storm drainage services will be provided by the City of Kent rather than King County. City residential storm drainage service charges during 2009 are $105.00 per year. King County charges are $111.00 per year, including $10.57 for storm drainage bond debt service. King County will continue to collect the debt service portion from the customers until the bonds are paid in full in 2021 ($10.57 per year through 2016, and decreasing amounts through 2021).
9. What type of utility discount programs does the City offer?
The City of Kent offers utility rate reductions for eligible senior citizens and disabled persons based on income and place of residence. The reduced storm drainage rate during 2009 is $.92 per month.
More information regarding these discounts can be obtained at
http://www.ci.kent.wa.us/finance/index.aspx or by contacting Finance Customer Services at (253) 856-5201.
Download the print version of the Taxes and Fees FAQ (PDF, 130KB)