Wind Project Valuations Push Columbia County Tax Rates Down Again in ‘08
Total property valuation in the county jumped significantly for the second straight year, due mostly to the new wind energy projects. Another big valuation increase is projected for 2009.
by Ken Graham
Most property owners in Columbia County will see a significant decrease in their property tax levy rates in 2008. According to County Assessor Chris Miller, the rate reductions are due to the partial addition of the Marengo I wind project to the tax rolls in 2007, as well as a significant increase in the valuation of the Hopkins Ridge wind project from 2006 to 2007. The overall valuation in the county increased more than 7.5% from 2006 to 2007. (Property tax rates for 2008 are based on valuations in 2007.)
As a result of the increased overall valuation, the average property tax levy rate in Columbia County dropped from $11.69 per thousand dollars of property value in 2007 to $11.19 per thousand in 2008. This compares to an average rate of $13.04 in 2006. Figure 1 shows average rates in the county for the past five years. As a comparison, the average property tax levy rate in Walla Walla County in 2007 was $13.77 per thousand.
According to Miller, all city of Dayton residents should see a reduction in their taxes this year. "We revalued the City in 2006, and many city residents saw a tax increase in 2007 even though their rates went down," says Miller. Miller noted that most sale prices of homes in Columbia County have risen significantly in the past four years, as they have in most of the U.S. The county is required by law to use market values when revaluing homes for property tax purposes. "In 2007 we revalued part of the county, so some residents there may see their taxes go up in 2008, even though their rates have gone down this year."
Overall property valuation in Columbia County increased from approximately $390 million in 2006 to $420 million in 2007. Miller expects that, when both the Marengo I and Marengo II projects are fully on the tax rolls, the County's property valuation will exceed $500 million. In 2005, before the first wind farm joined the tax rolls, the county's total valuation was about $286 million. (See Figure 2.)
For 2008, the Marengo I wind project enters the tax rolls for the first time, with a partial valuation of just over $20 million. "Marengo wasn't completed last March when its value was set for 2007, so this year's taxes reflect only a partial value," says Miller. "2009's tax rates should decrease further now that the project is fully operational." The tax valuations of utilityowned property in the state, including the wind projects in Columbia County, are established by the State Department of Revenue.
Pacificorp will pay $225,000 in property taxes for Marengo I this year – its first year of making tax payments for that project. Miller says that the total valuation for Marengo I for next year's taxes should be well over $60 million, helping reduce levy rates even further.
Besides the addition of the Marengo I project to the tax rolls, the valuation of the Hopkins Ridge project increased significantly in 2007 over 2006. The value of that project for 2007 was about $81 million, compared to just over $69 million in 2006, which was its first year on the tax rolls. Puget Sound Energy (PSE), the Hopkins Ridge project's owner, will pay over $900,000 in property taxes to Columbia County this year.
Anne Walsh, PSE's Environmental/ Communications Manager, says it's a misperception that the taxable value of Hopkins Ridge will go down or will significantly decrease over time, reducing its benefit to the county. "The increased value of Hopkins Ridge this year shows that that's not necessarily true," she says. "Even though these values are established by the state, we expect them to hold steady over the life of the project. Like any home or successful business, these projects add to the future tax base."
The county and all of the taxing districts that receive direct funding from local property taxes will see significant hikes in tax revenues this year. Overall taxes collected by the county increased from $3.7 million in 2006 to $4.5 million in 2007, and will be just over $4.8 million in 2008. (see Figure 3.)
According to Miller, Columbia County has gone from having one of the highest average levy rates in the state to having among the lowest. "Urban counties with a large commercial and industrial base have always had lower tax rates," she says. "Our rates aren't as low as Seattle's, but we're getting closer."
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