Library levy is a “lid lift”

The term “lid lift” has not been used on the Library issue, as city officials say that last year with the EMS lid lift vote, people got it confused with the Street LID. But the Ocean Shores Library levy vote is another “lid lift,” meaning 50.1 percent of the vote is needed to pass. (Timberland’s 2009 levy vote was also a lid lift). If the Library levy passes, it means voters OK “lifting” the current $2.09 per thousand to $2.31 per thousand.  Here is how the Washington State Department of Revenue web site explains what a lid lift is:

Q.  How do levy lid lifts affect property taxes?

Local taxing districts can propose that voters “lift” the 1 percent limit on annual levy increases so the district can collect a higher levy rate, up to the maximum rate for that jurisdiction.  These districts have certain statutory maximum rates but many of these districts have had to reduce their rates year after year to avoid collecting more than 1 percent additional revenue as property valuations increase.  A levy lid lift lets them increase rates up to the statutory maximum rate.

For example, fire districts generally have a maximum rate of $1.50 per $1,000 assessed value.  Many fire districts have seen their actual rates drop significantly below that maximum rate.  In turn, many fire districts have successfully proposed to voters that they be allowed to increase their rates.    This results in an increase in property taxes beyond the 1 percent limit.  Voter-approval of levy lid lifts by fire districts and other local districts has steadily increased the percentage of voter-approved property taxes, to 38 percent of all property taxes statewide.