“Before I got involved in city government I was pretty sure that the city was the one taking all of my tax dollars and that’s how they were paying for services,” Ralph said recently. “Most folks don’t realize that just 11% comes back to the city of Kent.” She said that 11% of the bill goes to help pay for city services.
Using this as an opportunity to educate the public Ralph said she felt it was important to take a few minutes to explain the bills that residents have received from King County. , which collects the tax money and distributes it.
Property taxes are paid to the county, not to the City of Seattle. Seattle shoppers pay retail sales taxes when they make a purchase. That tax money is collected by Seattle businesses. Those businesses report that sales tax to the state.
Some may not know that Washington state does not have a personal or corporate income tax. However, people or businesses that engage in business in Washington are subject to business and occupation (B&O) and/or public utility tax.
“More than half of your tax bill are voter approved levies,” Ralph said. Mayor Dana Ralph said she once thought that most of her property tax bill paid for city services. The Finance Department sent Ralph a slide about where property taxes go and most of the taxes go toward schools, with 32% to local levy measures and 26% to statewide levies.
In all of the tax talk some may become paralyzed with fear if they are going to have to pay out. State law provides two tax benefit programs for senior citizens and the disabled: property tax exemptions and property tax deferrals. The state information states that more than 26,000 qualified seniors and disabled persons have yet to register for the exemption, and only 1 in 100 of those eligible for deferrals are currently enrolled.
The Finance Department’s info states that 8% of the tax bill goes to the Puget Sound Regional Fire Authority and smaller amounts to King County, Valley Medical Center, the King County Library System, Sound Transit and Emergency Medical Services.
