December 31, 1998 - CURRENT
Section 3. 1994-1998 General Government Revenue
Over the five-year period from 1994-98, the increase in general government revenue exceeded inflation by an average of about 3.6% annually.
- 1998 Property tax revenue to the General Fund, Special Revenue Funds, and Debt Service Funds was $19.0 million higher than inflation-adjusted 1994 property tax revenue, with the largest increase occurring in the regular property tax revenue. State law permits regular property tax revenue to increase by up to 6% per year (plus taxes attributable to the value of property improvements and new construction), if a majority plus one vote of the city legislative authority makes a finding of substantial need for the rate increase to exceed inflation (this additional clause was added to the law in 1997). The City Council made this finding in 1997 and 1998, and this increase along with increases from new construction resulted in regular property tax revenue growing faster than inflation.
- The table below shows the City property tax rate (per $1,000 AV) from the past five years. The City’s share of the County’s Emergency Medical Services (EMS) levy is included in the City rate (the EMS levy failed in 1998, but was restored for 1999). The total City rate did not increase as much as the City property tax revenue because assessed values upon which these rates were levied were also rising.
Table 2. City Property Tax Rates (per $1,000 Assessed Value)
Year |
General |
EMS |
Special Levies |
Excess Levies |
Fire Pension |
Total |
1994 |
2.076 |
0.250 |
0.599 |
0.060 |
0.297 |
3.282 |
1995 |
2.203 |
0.250 |
0.396 |
0.290 |
0.315 |
3.454 |
1996 |
2.451 |
0.250 |
0.610 |
0.291 |
0.225 |
3.827 |
1997 |
2.574 |
0.250 |
0.607 |
0.285 |
0.225 |
3.941 |
1998 |
2.598 |
0.000 |
0.648 |
0.222 |
0.225 |
3.693 |
- Strong economic growth in the Seattle region has helped cause sales tax revenue, B&O tax revenue, and utility tax revenue to rise by $41.1 million more than inflation over the past five years. B&O tax revenue has also increased as a result of improved enforcement of this tax. And, the growth in telecommunications services has been a factor in the growth of utility tax revenue.
- The chart below shows the annual rates of growth of sales tax revenue, B&O tax revenue, utility tax revenue, and the general inflation rate. Except for the utility tax revenue in 1998, the rates of growth of each of these tax revenues exceeded the general inflation rate in each year. B&O tax revenue growth was the strongest, averaging 9.3% per year. For each tax, the 1998 revenue growth rate was lower than that of the prior year, indicating a slowdown in economic growth.
- "Other Tax and Miscellaneous" revenue was $19.5 million higher than
inflation-adjusted 1994 revenue. Most of this increase came from the Real Estate Excise
Tax. Increases in volume of real estate sales and the prices of real estate resulted in a
significant rise in the revenue from this tax -- from $10.4 million in 1994 to $25.5
million in 1998.
- "Other" revenue in 1998 was $23.4 million higher than inflation-adjusted 1994 revenue. This increase was a combination of real increases in revenue from licenses and permits, grants and shared revenue, and miscellaneous other revenues, partially offset by real decreases in charges for services, and fines and forfeitures.
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