Tribe tax collections cause "tax shift"

 

February 26, 2020



An examination of Swinomish taxation for 2020 reveals that the levy rate remains the same at $14.3500 per thousand, but the assessed value of homes in Shelter Bay and Pull & Be Damned went up from $163,899,070 to $171,719,175. Taxes increased by 5%. Skagit County levy code 1580, which used to include Shelter Bay and Pull & Be Damned, is $11.6355 per thousand. Until last year, the Tribe used to use the same levy rate as the county.

The Swinomish will collect $2,120,732 in taxes. They will contribute $974,072 to four of the nine taxing districts that make up levy code 1580. These are: Fire District 13 at $200,000, La Conner Library at $27,701, La Conner schools at $660,000, and Medic 1 at $86,371. These contributions cover all trust lands, not just Shelter Bay and Pull & Be Damned. After deducting the contributions, exemptions, uncollectible taxes and taxes shared with the county, the Tribe will have over one million dollars left.

The four taxing districts that enjoy a contribution from the Tribe should deduct the amount of the contribution from their levy request for operations and maintenance, but there is no evidence that they do so. They receive the tax shift plus the contribution. That is called “double dipping”.

The levy request from the La Conner school district includes debt service of $1,508,632. This is for the bond that built the middle school. The Tribe does not contribute toward this obligation.

Because of the tax shift, those living in La Conner will see $331.66 added to their taxes, households living west of the Swinomish Channel will see an additional $420.20, those living east of the channel will see $418.21, and every Skagit County household will pay $18.81 additional.

I tried to correct this situation by proposing legislation via Rep. Dave Paul, but the Department of Revenue shot this down, citing “constitutional” problems. We will have to wait until next year, and try again.

Sincerely,

Dan O’Donnell

 

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