Puyallup City Banks Property Tax Capacity to Fund New Public Safety Building

Puyallup city officials are tapping into a provision that allows them to bank property tax capacity, a financial maneuver increasingly considered by local governments facing budget shortfalls. By doing so, they aim to fund a new public safety building, which will lead to an average property tax increase of $3 per month for homeowners beginning in 2025. This practice of banking property taxes is uncommon in Pierce County, where most districts prefer to maximize their allowable levy increases instead. Former Pierce County Assessor-Treasurer Mike Lonergan noted the rarity of this strategy, contrasting it with counties in Eastern Washington where officials often pride themselves on not raising taxes. Candice Bock from the Association of Washington Cities highlighted that the decision to bank taxes does not necessarily mean they will be used later on, as some jurisdictions may find it negligible.

As cities face financial pressures, the article discusses the broader implications for homeowners and local government budgets. Puyallup, which began banking its tax capacity in 2009, has $3. 5 million available, with plans to use 21 percent of that amount for the public safety project. Overall, the article sheds light on the complexities of property tax management and its direct impact on local communities.