Dato daud house amazon5/16/2023 ![]() ![]() The fiscal problem in Medina is illustrative of a larger taxation issue in the state of Washington, which doesn't have a personal or corporate income tax. "We're on an unsustainable path," the newsletter says. The city, if it continues to operate without raising property taxes, will have a deficit of $500,000 by 2020 and a deficit of $3.3 million by 2025, the City says. For a $2 million home, that would be $400 per year in 2020 and an increase of $589 per year in 2025, Medina says. ![]() The proposed increase of property taxes in Medina would increase the property tax by 20 cents per $1,000 of assessed value, Ketter says. To fix the budget shortfall in Medina, the town will vote in November to lift the cap on property taxes enough to "provide funds to continue current service levels without significant cuts," the newsletter reads. "Fire services alone increased by nearly double that amount in 2019," the newsletter reads. A 1% increase of that is an additional $28,000, which is not enough to cover rising expenses. Therefore, in 2019, Medina will bring in only $2.8 million in property taxes, the City says. Of that, $83,318 will go to the City of Medina.īut comparatively, the majority of the homes in Medina are not as expensive: The median value of a home in Medina is just over $2 million, Ketter says. This home - presumably Gates "Xanadu 2.0," which has 24 bathrooms and a trampoline room - has a $1,040,627 total property tax in 2019. The most expensive home in Medina is assessed by the King County Assessors office as being worth $131,239,000, Ketter tells CNBC Make It. TWEET: Need more proof that Washington's tax system is as messed up as it gets? (Another $2.42782 goes to local schools, $0.12266 goes to the port, $1.21906 goes to the county, $0.37441 goes to the library, $0.21762 goes to emergency medical services, $0.09660 goes to a flood fund, $0.20700 goes to regional transit and $2.62992 goes to the state school fund.) ![]() Of that, only $0.63486 goes to the city of Medina, Ketter says. For Medina, the property tax rate is $7.92925 per $1,000 of assessed value. The property tax rate in Washington state is set as a rate, not a percentage, Medina's director of finance Julie Ketter tells CNBC Make It. That's because by law, the local government cannot increase the amount of tax revenue it collects by more than 1% each year without the residents voting to approve a larger amount. While property values continue to rise, the City's tax revenues don't rise in tandem," reads a June 2019 Medina city newsletter. "You may find it hard to imagine that the City doesn't have enough income to sustain current service levels, particularly in this economy. The problem is, even though Medina home values are increasing, the city's income is not rising at the same speed, the city says. So how is the home of the richest people on the planet coming up short? Yet Medina is running out of money - and the irony is lost on no one. (By comparison, the 2017 median household income in the U.S. with a median home value of $2.77 million, and the town has a median household income of $186,464 in 2017, the most recent data available. With a population of just over 3,000, Medina is the seventh richest zip code in the U.S. ![]()
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