If the value of shoreline property is decreased by the non-conforming label, what will be the effect on the county tax base?
One thing that worries shoreline property owners is that the label “non-conforming structure” will inevitably decrease the value of their property. There is good evidence that this may be happening already, as is reflected by the fact that shoreline property is falling in value much faster than inland property. An interesting consequence is that shoreline property taxes are falling while inland property taxes are being forced to rise, to make up the difference.
This write-up is based on research done by a KAPO member who lives in the Manchester area who researched trends in property taxes in various Kapo localitites over the last two years. All the information was confirmed in a meeting with the office of the county assessor.
On the Manchester Peninsula, shoreline properties have decreased in their property taxes about 12%. Correspondingly, upland properties have had their property taxes increase by about 2.5%.
Also, there were at least two other areas showed similar trends. In the Silverdale/Poulsbo area, shoreline taxes decreased 17% and upland taxes increased about 3%.
The north end of Kitsap experienced shoreline tax decreases of about 10% and upland increases of about 2%
These figures confirm what is a logical relationship between shoreline tax decreases (or increases) and upland increases (or decreases). There is a natural and confirmed increase in upland property taxes when shoreline taxes go down. County taxes are all tied together in the fact that the tax assessor must ‘re-spread’ annually the total taxes raised against the total values being generated, (calculated through actual sales comparisons. )
Total tax revenue through real estate taxes must remain essentially fixed, increasing by only 1% per year.