Centralia is pictured from above at sunset on Thursday, Nov. 7.
The Centralia City Council voted 5-2 on October 14, 2023, to increase the property tax levy by 1% for the 2026 collection. This decision, which affects the fiscal year of 2025-2026, adds an estimated $22,950.64 to the total property tax collection, raising it to $2,318,014.91 from the current levy of $2,295,064.27.
Councilors Mark Westley and Norm Chapman opposed the measure. During discussions, Finance Director Bret Brodersen outlined the implications of the increase, which translates to an additional $2.03 per year for homeowners assessed at $225,000. Based on the current collection rate of 90.3 cents per $1,000 of assessed value, this increase results in a total payment of $205.23 annually for such homeowners.
The average home value in Centralia is approximately $392,318, according to the Zillow Home Values Index. Westley expressed concern during the council meeting, reflecting on conversations with community members, including a single mother who noted the financial strain that even a small increase could impose. “One percent may seem quite insignificant to a lot of us,” he stated, “but there are quite a few of our constituents out there that it is a significant amount of money.”
Brodersen highlighted that neighboring Lewis County has a current tax rate of 92.6 cents per $1,000, while municipalities such as Chehalis and Aberdeen have rates of $1.43 and $1.93 respectively. In Washington, property tax increases are typically capped at 1% unless a public vote allows for a larger increase or jurisdictions utilize “banked capacity.”
Earlier in 2024, the Centralia Finance Committee suggested raising the property tax by 1% alongside a proposed new business and occupation (B&O) tax to mitigate a budget deficit estimated at $1.2 million. Ultimately, the council rejected the B&O tax but moved forward with the property tax increase and utilized $1.2 million in banked property tax authority to balance the budget. Brodersen explained that using banked capacity limits future growth of the levy, as it restricts the 1% increase calculation.
Councilor Mark Vogt emphasized the necessity of the tax increase, noting its historical significance in maintaining the city’s financial health. “It catches up to you, and then you have to have a big tax increase,” he remarked, advocating for the council to continue this practice.
According to the Bureau of Economic Analysis, the implicit price deflator (IPD) for personal consumption expenditures serves as an inflation guide for property tax increases. The IPD released on September 25, 2023, indicates an inflation rate of 2.44%, which will influence potential tax adjustments for the coming years.
As Centralia navigates economic challenges, the recent vote reflects the ongoing balancing act between maintaining essential city services and addressing the financial realities faced by its residents.
