Property Taxes in Spokane: Key Differences and Impacts for 2025

Property taxes are a critical component of how our local communities function, funding essential services like public safety, schools, and parks. But in Spokane, Spokane Valley, and Spokane County, local governments have taken vastly different approaches to managing these taxes. Whether you're a resident or considering a move, understanding these differences can provide valuable insight into what to expect.

Spokane County: A Modest Increase for Public Safety

In Spokane County, property taxes will see a slight increase of 1% for 2025, adding about $3 per year for the average homeowner. While this may seem small, it marks a significant shift after two years of no increases, thanks to temporary federal COVID relief funds.

Why the Increase?

• Rising Costs: The expiration of federal relief funds has left a gap in the county’s budget.
• Public Safety Focus: A significant portion of the budget is allocated to the sheriff’s office, prosecutor’s office, and detention services. Commissioner Chris Jordan emphasized that maintaining public safety is a top priority.
• Diverging Opinions: While Sheriff John Knowles supports the increase, Commissioner Al French argued that reserve funds should be used instead, to ease the financial burden on families already stretched thin.

This debate underscores the challenge of balancing fiscal responsibility with funding vital services.

Spokane Valley: No Tax Increases for 16 Years

Spokane Valley has continued its streak of avoiding property tax increases for the 16th consecutive year. The city’s levy rate remains at $0.79 per $1,000 of assessed value, saving the average homeowner about $4 annually. However, this approach is not without challenges.

The Challenges of Staying Flat

• Rising Costs: Expenditures are projected to grow five times faster than revenues.
• Public Safety Concerns: The city has struggled to meet goals like hiring additional police officers due to budget constraints.
• Fiscal Conservatism vs. Sustainability: While Deputy Mayor Tim Hattenberg supported raising taxes to improve the city’s bond ratings, most council members favor finding efficiencies and cutting costs.

Spokane Valley’s commitment to low taxes raises questions about how long this model can be sustained as costs and demands continue to rise.

City of Spokane: A Balancing Act Between Taxes and Services

In the city of Spokane, property taxes have been a contentious issue. Earlier this year, the City Council removed a proposed levy from the ballot, which would have raised $38 million annually, costing the average homeowner an additional $377 per year.

What’s Driving the Debate?

• Budget Shortfalls: Without new revenue, the city could face up to 150 layoffs, including police officers and firefighters.
• Union Contracts: Significant compensation increases for city employees and the end of federal relief funds have created financial strain.
• Differing Perspectives: While Councilwoman Kitty Klitzke argued for the levy to prevent worsening resource gaps, Councilmember Michael Cathcart pushed for more accountability and cost-cutting before turning to taxpayers.

The city’s financial struggles highlight the tension between maintaining essential services and minimizing the financial burden on residents.

Spokane Parks Levy: Delayed but Still in the Works

Spokane’s Park Board has delayed a proposed $225 million levy to fund new parks, playgrounds, and system-wide improvements. Originally scheduled for February 2024, the levy has been postponed multiple times in hopes of coordinating with Spokane Public Schools for a joint campaign.

Concerns About Timing

• Crowded Ballots: Delaying the levy could lead to competition with other tax initiatives, potentially confusing voters and decreasing support.
• Future Tax Increases: By 2027, voters may face additional proposals, including funding for a new jail, which could further complicate the landscape.

This delay reflects a calculated risk, aiming to maximize voter support by aligning with other initiatives.

Key Takeaways: What Does This Mean for Residents?

Each area of Spokane County has taken a distinct approach to property taxes, reflecting different priorities and challenges:

• Spokane County: Cautiously raising taxes to address public safety and budget gaps.
• Spokane Valley: Holding the line on taxes, but facing sustainability questions as costs rise.
• City of Spokane: Grappling with tough decisions about raising taxes or cutting essential services.

These differences highlight the varying philosophies and voter preferences across the region.

How Does This Impact You?

For current residents, these decisions directly affect local services and the quality of life in your area. If you're considering moving to Spokane, understanding these dynamics can help you choose the community that best aligns with your priorities.

Need Help Navigating Spokane’s Real Estate Market?

If you’re curious how these property tax changes might impact the Spokane real estate market or your next move, feel free to reach out. I’m here to help! 

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