With property values increasing, will Pierce County homeowners see a tax increase?

Property values have gone up in Pierce County.

Home values in the county have increased an average of $80,000 in the past year, according to Mike Lonergan, Pierce County assessor-treasurer. Residential property values went up more than 19 percent this year, compared to 16 percent in 2021.

Lonergan said the increase in property values does not mean homeowners should expect a large tax increase. State law limits the amount taxes can increase without a vote.

“It’s a math equation, and when values are rising, the legal limits on each taxing district will reduce their tax rates per thousand dollars of value,” Lonergan said.

Lonergan added voters determine bond issues and levy lid lifts, which allow taxing districts to increase the dollar amount collected to increase that district’s revenue.

Tacoma saw an 18.4% increase in home values – the typical Tacoma residence is now $493,000, an increase of $77,000. Gig Harbor Peninsula saw the biggest change in residential property values, which on average, increased $170,000, or 24.5%. Edgewood saw the lowest increase at 12.9%, or $69,000. The average residential value is $604,000.

Commercial properties showed a slight value increase as COVID-19 restrictions eased, though property values for hotels remained unchanged. Retail, restaurants and office-space property values went up about 5%. Both apartment buildings and warehouses had double-digit increases as the demand continues for affordable housing and online ordering/distribution.

Property owners who think the assessor-treasurer has over-valued their property can appeal to the Pierce County Board of Equalization at no cost by Aug. 23. The appeal must include evidence that comparable properties have sold recently at a lower amount.